UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES AND EXCHANGE ACT OF 1934
Includes financial statements and their related notes for the three-month period ended March 31,
2012 filed by Sociedad Química y Minera de Chile S.A. before the Superintendencia de Valores y
Seguros de Chile on May 29, 2012.
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.
(Exact name of registrant as specified in its charter)
CHEMICAL AND MINING COMPANY OF CHILE INC.
(Translation of registrant's name into English)
El Trovador 4285, Santiago, Chile (562) 425-2000
(Address and phone number of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-Fx | Form 40-F¨ |
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes¨ | Nox. |
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82_________
On May 29, 2012, the Registrant filed with the Superintendencia de Valores y Seguros of Chile (the "SVS") a report that included information as to the Registrant's consolidated financial condition and results of operations for the three-month period ended March 31, 2012. Attached is a summary of such consolidated financial information included in the summary and in the report filed with the Superintendencia de Valores y Seguros of Chile. This financial information was prepared on the basis of International Financial Reporting Standards (“IFRS”).
THIS REPORT IS AN ENGLISH TRANSLATION OF, AND AN INTERNATIONAL FINANCIAL REPORTING STANDARDS PRESENTATION OF, THE THREE-MONTH PERIOD ENDED MARCH 31, 2011 REPORT FILED WITH THE SUPERINTENDENCIA DE VALORES Y SEGUROS (SVS) IN CHILE, AND UNLESS OTHERWISE INDICATED, FIGURES ARE IN US DOLLARS. |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
Sociedad Química y Minera de Chile S.A. and Subsidiaries |
CONSOLIDATED FINANCIAL STATEMENTS
For the period ended March 31, 2012
SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. AND SUBSIDIARIES
In Thousands of United States Dollars
This document includes:
- | Consolidated Classified Statements of Financial Position |
- | Consolidated Statements of Income by Function |
- | Consolidated Statements of Comprehensive Income |
- | Consolidated Statements of Cash Flows |
- | Statements of Changes in Equity |
- | Notes to the Consolidated Financial Statements |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
Table of Contents – Consolidated Financial Statements
Note | Page | |
Consolidated Classified Statements of Financial Position | 8 | |
Consolidated Statements of Income by Function | 10 | |
Consolidated Statements of Comprehensive Income | 11 | |
Consolidated Statements of Cash Flows | 12 | |
Statements of Changes in Equity | 14 | |
Notes to the consolidated financial statements | ||
1 | Identification and Activities of the Company and Subsidiaries | |
1.1 Historical background | 17 | |
1.2 Main domicile where the Company performs its production activities | 17 | |
1.3 Codes of main activities | 17 | |
1.4 Description of the nature of operations and main activities | 17 | |
1.5 Other background | 19 | |
2 | Basis of presentation for the consolidated financial statements | |
2.1 Accounting period | 21 | |
2.2 Financial statements | 22 | |
2.3 Basis of measurement | 22 | |
2.4 Accounting pronouncements | 23 | |
2.5 Foreign currency transactions | 25 | |
2.6 Basis of consolidation | 27 | |
2.7 Significant accounting judgments, estimates and assumptions | 30 | |
3 | Significant accounting policies | |
3.1 Inventory | 31 | |
3.2 Trade and other receivables | 32 | |
3.3 Equity-accounted investees | 32 | |
3.4 Property, plant and equipment | 33 | |
3.5 Investment property | 35 | |
3.6 Segment reporting | 36 | |
3.7 Revenue recognition | 37 | |
3.8 Income tax and deferred taxes | 38 | |
3.9 Earnings per share | 39 | |
3.10 Impairment of non-financial assets | 40 | |
3.11 Financial assets | 41 | |
3.12 Financial liabilities | 42 | |
3.13 The environment | 44 | |
3.14 Minimum dividend | 44 | |
3.15 Consolidated statement of cash flows | 44 |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
Table of Contents – Consolidated Financial Statements (continued)
Note | Page | |
3.16 Obligations related to employee termination benefits and pension Commitments | 44 | |
3.17 Financial derivatives and hedge transactions | 46 | |
3.18 Leases | 48 | |
3.19 Prospecting expenses | 49 | |
3.20 Other provisions | 49 | |
3.21 Compensation plans | 50 | |
3.22 Good and service insurance expenses | 50 | |
3.23 Intangible assets | 50 | |
3.24 Research and development expenses | 52 | |
3.25 Classification of balances as current and non-current | 52 | |
4 | Financial risk management | |
4.1 Management risk policy | 53 | |
4.2 Risk factors | 54 | |
4.3 Risk measurement | 57 | |
5 | Changes in estimates and accounting policies (consistent presentation) | |
5.1 Changes in accounting estimates | 58 | |
5.2 Changes in accounting policies | 58 | |
6 | Parent’s separate assets and liabilities | |
6.1 Parent’s separate assets and liabilities | 59 | |
6.2 Parent entity | 59 | |
6.3 Jointly arrangements of controlling interest | 59 | |
6.4 Information on consolidated subsidiaries | 61 | |
6.5 Detail of transactions between consolidated companies | 67 | |
7 | Cash and cash equivalents | |
7.1 Types of cash and cash equivalents | 68 | |
7.2 Short-term investments, classified as cash equivalents | 69 | |
7.3 Information on cash and cash equivalents by currency | 69 | |
7.4 Amount of significant restricted (unavailable) cash balances | 70 | |
7.5 Short-term deposits, classified as cash equivalents | 71 | |
8 | Inventories | 73 |
9 | Related party: disclosures | |
9.1 Related party disclosures | 74 | |
9.2 Relations between the Parent and the Entity | 74 | |
9.3 Intermediate parent that publicly issues financial statements | 75 | |
9.4 Detailed identification of the link between the parent company and the subsidiary | 75 |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
Table of Contents – Consolidated Financial Statements (continued)
Note | Page | |
9.5 Detail of related parties and related party transactions | 77 | |
9.6 Trade receivables due from related parties, current | 78 | |
9.7 Trade payables due to related parties, current | 79 | |
9.8 Board of Directors and Senior Management | 80 | |
9.9 Key Management Personnel Compensation | 83 | |
10 | Financial instruments | |
10.1 Classes of other financial assets | 84 | |
10.2 Trade and other receivables, current and non-current | 84 | |
10.3 Hedging assets and liabilities | 88 | |
10.4 Financial liabilities | 90 | |
10.5 Trade and other payables | 99 | |
10.6 Financial liabilities at fair value through profit or loss | 100 | |
10.7 Financial asset and liability categories | 101 | |
10.8 Financial assets pledged as guarantee | 103 | |
10.9 Estimated fair value of financial instruments and financial derivatives | 103 | |
10.10 Nature and scope of risks arising from financial instruments | 105 | |
11 | Equity-accounted investees | |
11.1 Investments in associates recognized according to the equity method of accounting | 105 | |
11.2 Assets, liabilities, revenue and expenses of associates | 106 | |
11.3 Detail of investments in associates | 107 | |
12 | Joint ventures | |
12.1 Policy for accounting for joint ventures in a Parent’s separate financial statements | 108 | |
12.2 Disclosures of interest in joint ventures | 108 | |
12.3 Detail of assets, liabilities and profit or loss of significant investments in joint ventures by company | 109 | |
12.4 Detail of investments in joint ventures | 110 | |
13 | Intangible assets and goodwill | |
13.1 Balances | 111 | |
13.2 Disclosures on intangible assets and goodwill | 111 |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
Table of Contents – Consolidated Financial Statements (continued) |
Note | Page | |
14 | Property, plant and equipment | |
14.1 Classes of property, plant and equipment | 115 | |
14.2 Reconciliation of changes in property, plant and equipment by class | 117 | |
14.3 Detail of property, plant and equipment pledged as guarantee | 119 | |
14.4 Additional information | 119 | |
15 | Employee benefits | |
15.1 Provisions for employee benefits | 120 | |
15.2 Policies on defined benefit plans | 121 | |
15.3 Other long-term benefits | 122 | |
15.4 Post-employment benefit obligations | 123 | |
15.5 Staff severance indemnities | 124 | |
16 | Executive compensation plan | 125 |
17 | Disclosures on equity | |
17.1 Capital management | 127 | |
17.2 Disclosures on preferred share capital | 128 | |
17.3 Disclosures on reserves in equity | 130 | |
17.4 Dividend policies | 131 | |
17.5 Provisional dividends | 132 | |
18 | Provisions and other non-financial liabilities | |
18.1 Classes of provisions | 134 | |
18.2 Description of other provisions | 135 | |
18.3 Other non-financial liabilities, current | 135 | |
18.4 Changes in provisions | 136 | |
18.5 Detail of main classes of provisions | 138 | |
19 | Contingencies and restrictions | |
19.1 Lawsuits or other relevant events | 139 | |
19.2 Restrictions | 144 | |
19.3 Commitments | 144 | |
19.4 Restricted or pledged cash | 144 | |
19.5 Sureties obtained from third parties | 145 | |
19.6 Indirect guarantees | 146 |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
Table of Contents – Consolidated Financial Statements (continued)
Note | Page | |
20 | Revenue | 147 |
21 | Earnings per share | 147 |
22 | Borrowing costs | 148 |
23 | Effect of fluctuations on foreign currency exchange rates | 149 |
24 | Environment | |
24.1 Disclosures on disbursements related to the environment | 151 | |
24.2 Detail of information on disbursements related to the environment | 151 | |
24.3 Description of each project indicating whether these are in process or have been finished | 167 | |
25 | Other current and non-current financial assets | 172 |
26 | Operating segments | |
26.1 Operating segments | 174 | |
26.2 Information on operating segments | 175 | |
26.3 Revenue from transactions with other company operating segments | 177 | |
26.4 Information on geographical areas | 178 | |
26.5 Information on main customers | 178 | |
26.6 Segments by geographical areas | 179 | |
26.7 Property, plant and equipment classified by geographical areas | 180 | |
27 | Gains (losses) from operating activities in the statement of income by function of expenses, exposed according to their nature | |
27.1 Revenue | 181 | |
27.2 Cost of sales | 181 | |
27.3 Other income | 182 | |
27.4 Administrative expenses | 182 | |
27.5 Other expenses by function | 183 | |
27.6 Other gains (losses | 183 | |
27.7 Summary of expenses by nature | 184 |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
Table of Contents – Consolidated Financial Statements (continued)
Note | Page | |
28 | Income tax and deferred taxes | |
28.1 Current tax assets | 185 | |
28.2 Current tax liabilities | 186 | |
28.3 Tax earnings | 186 | |
28.4 Income tax and deferred taxes | 187 | |
29 | Disclosures on the effects of fluctuations in foreign currency exchange rates | 196 |
30 | Subsequent events | |
30.1 Authorization of the financial statements | 201 | |
30.2 Disclosures on subsequent events | 201 | |
30.3 Detail of dividends declared after the balance sheet date | 201 |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
CONSOLIDATED CLASSIFIED STATEMENTS OF FINANCIAL POSITION |
Note | As of March 31, 2012 ThUS$ | As of December 31, 2011 ThUS$ | ||||||||
ASSETS | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | 7.1 | 449,152 | 444,992 | |||||||
Other current financial assets | 10.1 | 206,778 | 169,261 | |||||||
Other current non-financial assets | 25 | 45,610 | 63,792 | |||||||
Trade and other receivables, current | 10.2 | 513,934 | 412,062 | |||||||
Trade receivables due from related parties, current | 9.6 | 98,339 | 117,139 | |||||||
Current inventories | 8.0 | 812,133 | 744,402 | |||||||
Current tax assets | 28.1 | 7,099 | 4,765 | |||||||
Total current assets | 2,133,045 | 1,956,413 | ||||||||
Non-current assets | ||||||||||
Other non-current financial assets | 10.1 | 45,040 | 30,488 | |||||||
Other non-current non-financial assets | 25 | 26,124 | 24,651 | |||||||
Trade receivables, non-current | 10.2 | 1,263 | 1,070 | |||||||
Investments in equity-accounted investees | 11.1 | 63,160 | 60,694 | |||||||
Intangible assets other than goodwill | 13.1 | 4,163 | 4,316 | |||||||
Goodwill | 13.1 | 38,605 | 38,605 | |||||||
Property, plant and equipment | 14.1 | 1,777,354 | 1,755,042 | |||||||
Deferred tax assets | 28.4 | 252 | 304 | |||||||
Total non-current assets | 1,955,961 | 1,915,170 | ||||||||
Total assets | 4,089,006 | 3,871,583 |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
CONSOLIDATED CLASSIFIED STATEMENTS OF FINANCIAL POSITION, (continued) |
Note | As of March 31, 2012 ThUS$ | As of December 31, 2011 ThUS$ | ||||||||
Liabilities and Equity | ||||||||||
Liabilities | ||||||||||
Current liabilities | ||||||||||
Other current financial liabilities | 10.4 | 172,633 | 161,008 | |||||||
Trade and other payables, current | 10.5 | 185,842 | 183,032 | |||||||
Trade payables due to related parties, current | 9.7 | 707 | 873 | |||||||
Other current provisions | 18.1 | 20,582 | 16,937 | |||||||
Current tax liabilities | 28.2 | 98,653 | 75,418 | |||||||
Provisions for employee benefits, current | 15.1 | 19,270 | 30,074 | |||||||
Other current non-financial liabilities | 18.3 | 162,840 | 161,961 | |||||||
Total current liabilities | 660,527 | 629,303 | ||||||||
Non-current liabilities | ||||||||||
Other non-current financial liabilities | 10.4 | 1,271,845 | 1,237,027 | |||||||
Other non-current provisions | 18.1 | 6,768 | 8,595 | |||||||
Deferred tax liabilities | 28.4 | 99,227 | 98,594 | |||||||
Provisions for employee benefits, non-current | 15.1 | 36,027 | 33,684 | |||||||
Total non-current liabilities | 1,413,867 | 1,377,900 | ||||||||
Total liabilities | 2,074,394 | 2,007,203 | ||||||||
Equity | 17 | |||||||||
Share capital | 477,386 | 477,386 | ||||||||
Retained earnings | 1,501,589 | 1,351,560 | ||||||||
Other reserves | (17,697 | ) | (16,112 | ) | ||||||
Equity attributable to owners of the Parent | 1,961,278 | 1,812,834 | ||||||||
Non-controlling interest | 53,334 | 51,546 | ||||||||
Total equity | 2,014,612 | 1,864,380 | ||||||||
Total liabilities and equity | 4,089,006 | 3,871,583 |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
CONSOLIDATED STATEMENTS OF INCOME BY FUNCTION
January to March | ||||||||||
Note | 2012 ThUS$ | 2011 ThUS$ | ||||||||
Revenue | 20 | 529,625 | 480,035 | |||||||
Cost of sales | 27.2 | (293,362 | ) | (292,430 | ) | |||||
Gross profit | 236,263 | 187,605 | ||||||||
Other income | 27.3 | 4,663 | 3,336 | |||||||
Administrative expenses | 27.4 | (22,985 | ) | (20,568 | ) | |||||
Other expenses by function | 27.5 | (10,091 | ) | (14,965 | ) | |||||
Other gains (losses) | 27.6 | 49 | (109 | ) | ||||||
Gain (loss) from operating activities | 207,899 | 155,299 | ||||||||
Finance income | 5,537 | 5,657 | ||||||||
Finance costs | 22 | (12,062 | ) | (10,627 | ) | |||||
Share of profit of associates and joint ventures accounted for using the equity method | 8,064 | 3,657 | ||||||||
Foreign currency exchange differences | 23 | (4,913 | ) | (2,899 | ) | |||||
Gain (loss) before taxes | 204,525 | 151,087 | ||||||||
Income tax expense, continuing operations | 28.4 | (52,771 | ) | (38,956 | ) | |||||
Profit (loss) from continuing operations | 151,754 | 112,131 | ||||||||
Profit for the period | 151,754 | 112,131 | ||||||||
Profit attributable to | ||||||||||
Owners of the Parent | 150,029 | 111,395 | ||||||||
Non-controlling interest | 1,725 | 736 | ||||||||
Profit for the period | 151,754 | 112,131 |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
CONSOLIDATED STATEMENTS OF INCOME BY FUNCTION (continued) |
January to March | ||||||||||
Note | 2012 | 2011 | ||||||||
ThUS$ | ThUS$ | |||||||||
Earnings per share | ||||||||||
Common shares | ||||||||||
Basic earnings per share (US$ per share) | 21 | 0.5700 | 0.4232 | |||||||
Basic earnings per share (US$ per share) from continuing operations | 0.5700 | 0.4232 | ||||||||
Diluted common shares | ||||||||||
Diluted earnings per share (US$ per share) | 21 | 0.5700 | 0.4232 | |||||||
Diluted earnings per share (US$ per share) from continuing operations | 0.5700 | 0.4232 |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
CONSOLIDATED STATEMEENTS OF COMPREHENSIVE INCOME
January to March | ||||||||
2012 | 2011 | |||||||
Statements of comprehensive income | ThUS$ | ThUS$ | ||||||
Profit for the period | 151,754 | 112,131 | ||||||
Components of other comprehensive income before taxes and foreign currency translation difference | ||||||||
Gain (loss) from foreign currency translation difference, before taxes | 1,437 | (100 | ) | |||||
Other comprehensive income before taxes and foreign currency translation differences | 1,437 | (100 | ) | |||||
Cash flow hedges | ||||||||
(Gain) loss from cash flow hedges before taxes | (3,708 | ) | (2,900 | ) | ||||
Other comprehensive income before taxes and cash flow hedges | (3,708 | ) | (2,900 | ) | ||||
Other comprehensive income before taxes and actuarial gains (losses) from defined benefit plans | - | |||||||
Other reserves | - | |||||||
Other components of other comprehensive income before taxes | (2,271 | ) | (3,000 | ) | ||||
Income taxes associated with components of other comprehensive income | ||||||||
Income taxes associated with cash flow hedges in other comprehensive income | 749 | 580 | ||||||
Income taxes associated with components of other comp0rehensive income | 749 | 580 | ||||||
Other comprehensive income | (1,522 | ) | (2,420 | ) | ||||
Total comprehensive income | 150,232 | 109,711 | ||||||
Comprehensive income attributable to | ||||||||
Owners of the Parent | 148,444 | 108,998 | ||||||
Non-controlling interest | 1,788 | 713 | ||||||
Total comprehensive income | 150,232 | 109,711 |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Statement of Cash Flows | Note | 03/31/2012 ThUS$ | 03/31/2011 ThUS$ | |||||||
Cash flows from (used in) operating activities | ||||||||||
Profit for the period | 151,754 | 112,131 | ||||||||
Adjustment to reconcile profit for the period | ||||||||||
Adjustment for decreases (increases) in inventories | (73,405 | ) | (14,114 | ) | ||||||
Adjustment for decreases (increases) in trade receivables | (46,666 | ) | (17,986 | ) | ||||||
Adjustment for decreases (increases) in other receivables from operating activities | (10,110 | ) | (9,988 | ) | ||||||
Adjustment for decreases (increases) in trade payables | (39,347 | ) | (29,276 | ) | ||||||
Adjustment for decreases (increases) in other payables from operating activities | (14,970 | ) | (4,452 | ) | ||||||
Adjustment for depreciation and amortization | 46,966 | 42,138 | ||||||||
Adjustment for provisions | 12,672 | (599 | ) | |||||||
Adjustment for unrealized foreign currency translation loss (gain) | 4,914 | 2,899 | ||||||||
Adjustment for undistributed profit from associates | (8,064 | ) | (3,657 | ) | ||||||
Other adjustments for items other than cash | 80,311 | 76,827 | ||||||||
Other adjustments for the effects on cash from investing or financing activities | (9 | ) | (99 | ) | ||||||
Reconciling adjustments | (47,708 | ) | 41,693 | |||||||
Net cash from (used in) operating activities | 104,046 | 153,824 | ||||||||
Dividends received | 3,675 | 454 | ||||||||
Interest paid | (5,237 | ) | (4,472 | ) | ||||||
Net cash from (used in) operating activities | 102,484 | 149,806 | ||||||||
Cash flows from (used in) investing activities | ||||||||||
Cash flows from loss of control of subsidiaries or other businesses | 961 | - | ||||||||
Payments to acquire interest in joint ventures | (197 | ) | (2,500 | ) | ||||||
Proceeds from the sale of property, plant and equipment | 162 | 794 | ||||||||
Acquisition of property, plant and equipment | (70,276 | ) | (112,431 | ) | ||||||
Cash advances and loans granted to third parties | (413 | ) | 278 | |||||||
Other cash inflows (outflows) | (28,829 | ) | 28,362 | |||||||
Net cash from (used in) investing activities | (98,592 | ) | (85,497 | ) |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
CONSOLIDATED STATEMENTS OF CASH FLOWS(continued) |
Note | 03/31/2012 ThUS$ | 03/31/2011 ThUS$ | ||||||||
Cash flows from (used in) financing activities | ||||||||||
Proceeds from long-term loans | 60,000 | 100,000 | ||||||||
Repayment of loans | (60,000 | ) | (110,000 | ) | ||||||
Other cash inflows (outflows) | (58 | ) | (9 | ) | ||||||
Net cash from (used in) financing activities | (58 | ) | (10,009 | ) | ||||||
Net increase (decrease) in cash and cash equivalents before the effect of changes in the exchange rate | 3,834 | (54,300 | ) | |||||||
Effects of exchange rate fluctuations on cash held | 326 | (15,137 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 4,160 | (39,163 | ) | |||||||
Cash and cash equivalents at beginning of period | 444,992 | 524,652 | ||||||||
Cash and cash equivalents at end of period | 7 | 449,152 | 563,815 |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
STATEMENTS OF CHANGES IN EQUITY
Share capital | Foreign currency translation difference reserves | Cash flow hedge reserves | Actuarial gains (losses) from defined benefit plans | Other reserves | Subtotal other reserves | Retained earnings | Equity attributable to owners of the Parent | Non-controlling interest | Total | |||||||||||||||||||||||||||||||
ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | |||||||||||||||||||||||||||||||
Equity at beginning of the period | 477,386 | (1,251 | ) | (10,230 | ) | (2,954 | ) | (1,677 | ) | (16,112 | ) | 1,351,560 | 1,812,834 | 51,546 | 1,864,380 | |||||||||||||||||||||||||
Restated opening balance of equity | 477,386 | (1,251 | ) | (10,230 | ) | (2,954 | ) | (1,677 | ) | (16,112 | ) | 1,351,560 | 1,812,834 | 51,546 | 1,864,380 | |||||||||||||||||||||||||
Profit (loss) | 150,029 | 150,029 | 1,725 | 151,754 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | 1,374 | (2,959 | ) | (1,585 | ) | (1,585 | ) | 63 | (1,522 | ) | ||||||||||||||||||||||||||||||
Comprehensive income | 1,374 | (2,959 | ) | - | - | (1,585 | ) | 150,029 | 148,444 | 1,788 | 150,232 | |||||||||||||||||||||||||||||
Dividends | ||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in transfers and other changes | ||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in equity | - | 1,374 | (2,959 | ) | - | - | (1,585 | ) | 150,029 | 148,444 | 1,788 | 150,232 | ||||||||||||||||||||||||||||
Equity as of March 31, 2012 | 477,386 | 123 | (13,189 | ) | (2,954 | ) | (1,677 | ) | (17,697 | ) | 1,501,589 | 1,961,278 | 53,334 | 2,014,612 |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
STATEMENTS OF CHANGES IN EQUITY
Share capital | Foreign currency translation difference reserves | Cash flow hedge reserves | Actuarial gains (losses) from defined benefit plans | Other reserves | Retained earnings | Equity attributable to owners of the Parent | Non-controlling interest | Total | ||||||||||||||||||||||||||||
ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ThUS$ | ||||||||||||||||||||||||||||
Equity at beginning of the period | 477,386 | 1,530 | (9,207 | ) | (2,036 | ) | (9,713 | ) | 1,155,131 | 1,622,804 | 48,016 | 1,670,820 | ||||||||||||||||||||||||
Restated opening balance of equity | 477,386 | 1,530 | (9,207 | ) | (2,036 | ) | (9,713 | ) | 1,155,131 | 1,622,804 | 48,016 | 1,670,820 | ||||||||||||||||||||||||
Profit (loss) | - | - | - | - | - | 111,395 | 111,395 | 736 | 112,131 | |||||||||||||||||||||||||||
Other comprehensive income | - | (77 | ) | (2,320 | ) | - | (2,397 | ) | - | (2,397 | ) | (23 | ) | (2,420 | ) | |||||||||||||||||||||
Comprehensive income | - | (77 | ) | (2,320 | ) | - | (2,397 | ) | 111,395 | 108,998 | 713 | 109,711 | ||||||||||||||||||||||||
Total changes in equity | - | (77 | ) | (2,320 | ) | - | (2,397 | ) | 111,395 | 108,998 | 713 | 109,711 | ||||||||||||||||||||||||
Equity as of March 31, 2011 | 477,386 | 1,453 | (11,527 | ) | (2,036 | ) | (12,110 | ) | 1,266,526 | 1,731,802 | 48,729 | 1,780,531 |
The accompanying notes form an integral part of these consolidated financial statements.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Sociedad Química y Minera de Chile S.A. and Subsidiaries |
Notes to the Consolidated Financial
Statements
as of March 31, 2012
Sociedad Química y Minera de Chile S.A.
and Subsidiaries
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
17 |
Notes to the consolidated financial statements as of March 31, 2012 |
Note 1 – Identification and Activities of the Company and Subsidiaries
1.1 | Historical background |
Sociedad Química y Minera de Chile S.A. "SQM" is an open stock corporation organized under the laws of the Republic of Chile, Tax Identification No.93.007.000-9. The Company was constituted by public deed issued on June 17, 1968 by the Notary Public of Santiago, Mr. Sergio Rodríguez Garcés. Its existence was approved by Decree No. 1,164 of June 22, 1968 of the Ministry of Finance, and it was registered on June 29, 1968 in the Registry of Commerce of Santiago, on page 4,537 No. 1,992. SQM's headquarters are located at El Trovador 4285, Fl. 6, Las Condes, Santiago, Chile. The Company's telephone number is +56 2 425-2000.
The Company is registered with the Securities Registry of the Chilean Superintendence of Securities and Insurance (SVS) under No. 0184 dated March 18. 1983 and is subject to the inspection of the SVS.
1.2 | Main domicile where the Company performs its production activities |
The Company’s main domiciles are: Calle Dos Sur plot No. 5 - Antofagasta; Arturo Prat 1060 - Tocopilla; Administración Building w/n - Maria Elena; Administración Building w/n Pedro de Valdivia - María Elena, Former Florencia office w/n - Sierra Gorda, Anibal Pinto 3228 - Antofagasta, Kilometer 1378 5 Norte Highway - Antofagasta, Coya Sur Plant w/n - Maria Elena, kilometer 1760 5 Norte Highway - Pozo Almonte, Pampa Yumbes w/n - Tal-tal.
1.3 | Codes of main activities |
The codes of the main activities as established by the Chilean Superintendence of Securities and Insurance are as follows:
- | 1700 (Mining) |
- | 2200 (Chemical products) |
- | 1300 (Investment) |
1.4 | Description of the nature of operations and main activities |
Our products are mainly derived from mineral deposits found in northern Chile. We mine and process caliche ore and brine deposits. The caliche ore in northern Chile contains the only known nitrate and iodine deposits in the world and is the world’s largest commercially exploited source of natural nitrates. The brine deposits of the Salar de Atacama, a salt-encrusted depression within the Atacama desert in northern Chile, contain high concentrations of lithium and potassium as well as significant concentrations of sulfate and boron.
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Notes to the consolidated financial statements as of March 31, 2012 |
Note 1 – Identification and Activities of the Company and Subsidiaries (continued)
1.4 | Description of the nature of operations and main activities, continued |
From our caliche ore deposits, we produce a wide range of nitrate-based products used for specialty plant nutrients and industrial applications, as well as iodine and iodine derivatives. At the Salar de Atacama, we extract brines rich in potassium, lithium, sulfate and boron in order to produce potassium chloride, potassium sulfate, lithium solutions, boric acid and bischofite (magnesium chloride). We produce lithium carbonate and lithium hydroxide at our plant near the city of Antofagasta, Chile, from the solutions brought from the Salar de Atacama. We market all of these products through an established worldwide distribution network.
We sell our products in more than 100 countries worldwide through a worldwide distribution network and generate approximately more than 87% of our revenue from foreign countries in 2011.
Our products are divided into six categories: specialty plant nutrition, iodine and its derivatives, lithium an its derivatives, industrial chemicals, potassium and other products and services, described as follows:
Specialty plant nutrientsThis business is characterized by being closely related to its customers to which it has specialized staff who provide expert advisory in best practices for fertilization according to each type of crop, soil and climate. Within this type of business, potassium derivative products and specially potassium nitrate have had a leading role given the contribution they make to develop crops insuring an improvement in post-crop life in addition to improving quality, flavor and fruit color. The potassium nitrate, which is sold in multiple formats and as a part of other specialty mixtures, is complemented by sodium nitrate, potassium sodium nitrate, and more than 200 fertilizing mixtures.
Iodine: is the biggest producer of iodine at worldwide level, which is a product which is widely used in the pharmaceutical industry, technology and nutrition. Additionally, iodine is used as X ray contrast media and polarizing film for LCD displays.
Lithium:the Company’s lithium is mainly used for manufacturing rechargeable batteries for cell phones, cameras and notebooks. Through the manufacturing of lithium-based products, SQM provides significant materials to face great challenges such as the efficient use of energy and raw materials. Lithium is not only used for rechargeable batteries and in new technologies for vehicles propelled by electricity, but is also used in industrial applications to lower melting temperature and to help saving costs and energy
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Notes to the consolidated financial statements as of March 31, 2012 |
Note 1 – Identification and Activities of the Company and Subsidiaries (continued)
1.4 | Description of the nature of operations and main activities, continued |
Industrial ChemicalsIndustrial chemicals are products used as supplies for a number of production processes. SQM participates in this line of business during more than 30 years producing sodium nitrate, potassium nitrate, boric acid and potassium chloride. Industrial nitrates have increased their importance over the last few years due to their use as storage means for thermal energy at solar energy plants, which are widely used in countries as Spain and the United States in their search for decreasing CO2emissions
Potassium: The potassium is a primary essential macro-nutrient, and even though does not form part of the plant’s structure, has a significant role for the developing of its basic functions, validating the quality of a crop, increasing post-crop life, improving the crop flavor, its amount in vitamins and its physical appearance. Within this business line, SQM has also potassium chlorate and potassium sulfate, both extracted from the salt layer located under the Salar de Atacama (the Atacama Saltpeter Deposit.) In this business line SQM has focused a significant part of it investments plan, allowing a significantly increase in the Company’s production levels in the last 2 years.
Potassium: The potassium is a primary essential macro-nutrient, and even though does not form part of the plant’s structure, has a significant role for the developing of its basic functions, validating the quality of a crop, increasing post-crop life, improving the crop flavor, its amount in vitamins and its physical appearance. Within this business line, SQM has also potassium chlorate and potassium sulfate, both extracted from the salt layer located under the Salar de Atacama (the Atacama Saltpeter Deposit.)
Other products and services: This operating segment includes revenue from commodities, provision of services, interest, royalties and dividends.
1.5 | Other background |
Employees
As of March 31, 2012 and December 3, 2011, the Company’s employees were as follows:
03/31/2012 | 12/31/2011 | |||||||
Permanent employees | 5,223 | 4,902 |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Notes to the consolidated financial statements as of March 31, 2012 |
Note 1 – Identification and Activities of the Company and Subsidiaries (continued)
1.5 | Other background, continued |
Main shareholders
The table below establishes certain information about the beneficial property of Series A and Series B shares of SQM as of March 31, 2012 and December 31, 2011. In respect to each shareholder which has interest of more than 5% of outstanding Series A or B shares. The information below is taken from our records and reports controlled in the Central Securities Depository and reported to the Superintendence of Securities and Insurance (SVS) and the Chilean Stock Exchange, whose main shareholders are as follows
Shareholder 03/31/2012 | Number of Series A shares with ownership | % of Series A shares | Number of Series B shares with ownership | % of Series B shares B | Total % of shares | |||||||||||||||
Inversiones El Boldo Limitada | 44,751,196 | 31.33 | % | 17,571,676 | 14.60 | % | 23.68 | % | ||||||||||||
Sociedad de Inversiones Pampa Calichera S.A.(*) | 44,758,830 | 31.34 | % | 12,241,799 | 10.17 | % | 21.66 | % | ||||||||||||
The Bank of New York | - | - | 41,693,849 | 34.64 | % | 15.84 | % | |||||||||||||
Inversiones RAC Chile Limitada | 19,200,242 | 13.44 | % | 2,699,773 | 2.24 | % | 8.32 | % | ||||||||||||
Potasios de Chile S.A.(*) | 18,179,147 | 12.73 | % | 156,780 | 0.13 | 6.97 | % | |||||||||||||
Inversiones Global Mining (Chile) Limitada (*) | 8,798,539 | 6.16 | % | - | - | 3.34 | % | |||||||||||||
Banchile Corredores de Bolsa S.A. | 141,453 | 0.10 | % | 4,287,036 | 3.56 | % | 1.68 | % | ||||||||||||
Corpbanca Corredores de Bolsa S.A. | 11,189 | 0.01 | 4,264,733 | 3.54 | % | 1.62 | % | |||||||||||||
Banco Itau on behalf of investors | - | - | 4,075,292 | 3.39 | % | 1.55 | % | |||||||||||||
Inversiones La Esperanza Limitada | 3,693,977 | 2.59 | % | - | - | 1.40 | % |
(*) Total Pampa Group 31.97%
Shareholder as of 12/31/2011 | Number of Series A shares with ownership | % of Series A shares | Number of Series B shares | % of Series B shares B | Total % of shares | |||||||||||||||
Inversiones El Boldo Limitada | 44,751,196 | 31.33 | % | 17,571,676 | 14.60 | % | 23.68 | % | ||||||||||||
Sociedad de Inversiones Pampa Calichera S.A.(*) | 44,758,830 | 31.34 | % | 12,241,799 | 10.17 | % | 21.66 | % | ||||||||||||
The Bank of New York | - | - | 42,036,912 | 34.92 | % | 15.97 | % | |||||||||||||
Inversiones RAC Chile Limitada | 19,200,242 | 13.44 | % | 2,699,773 | 2.24 | % | 8.32 | % | ||||||||||||
Potasios de Chile S.A.(*) | 18,179,147 | 12.73 | % | 156,780 | 0.13 | 6.97 | % | |||||||||||||
Inversiones Global Mining (Chile) Limitada (*) | 8,798,539 | 6.16 | % | - | - | 3.34 | % | |||||||||||||
Banchile Corredores de Bolsa S.A. | 136,919 | 0.10 | % | 4,890,193 | 4.06 | % | 1.91 | % | ||||||||||||
Corpbanca Corredores de Bolsa S.A. | 11,189 | 0.01 | 4,264,250 | 3.54 | % | 1.62 | % | |||||||||||||
Inversiones La Esperanza Limitada | 3,693,977 | 2.59 | % | - | - | 1.40 | % | |||||||||||||
Banco Itau on behalf of investors | - | - | 3,693,080 | 3.07 | % | 1.40 | % |
(*) Total Pampa Group 31.97%
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Notes to the consolidated financial statements as of March 31, 2012 |
Note 2 - Bases of presentation for consolidated financial statements
2.1 | Accounting period |
These consolidated financial statements cover the following period:
- | Consolidated Statements of Financial Position for the period ended March 31, 2014 and the year ended December 31, 2011. |
- | Consolidated Statements of Changes in Equity for the period ended March 31, 2012 and December 2011. |
- | Consolidated Statements of Comprehensive Income for the period between January 1 and March 31, 2012 and 2011. |
- | Consolidated Statements of Cash Flows, indirect method for the periods ended March 31, 2012 and 2011. |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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Notes to the consolidated financial statements as of March 31, 2012 |
Note 2 - Bases of presentation for consolidated financial statements (continued)
2.2 | Financial statements |
Interim and annual consolidated financial statements of Sociedad Química y Minera de Chile S.A. and Subsidiaries, have been prepared in accordance with International Financial Reporting Standards (hereinafter “IFRS”) and represent the full, explicit and unreserved application of the aforementioned international standards issued by the International Accounting Oversight Board (IASB).
These interim and annual consolidated financial statements reflect fairly the Company’s equity and financial position and the results of its operations, changes in the statement of recognized revenue and expenses and cash flows, which have occurred during the periods then ended.
IFRS establish certain alternatives for their application. Those applied by the Company and its subsidiaries are included in detail in this Note.
The accounting policies used in the preparation of these consolidated interim and annual accounts comply with each IFRS in force at their date of presentation.
2.3 | Basis of measurement |
The consolidated financial statements have been prepared on the historical cost basis except for the following material items:
- | inventories are recorded at the lower of cost and net realizable value; |
- | other current and non-current financial liabilities at amortized cost; |
- | financial derivatives at fair value; and |
- | staff severance indemnities and pension commitments at actuarial value. |
SQM Los Militares 4290 Las Condes, Santiago, Chile Tel: (56 2) 425 2000 www.sqm.com |
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