UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2022.

Commission File Number 33-65728

CHEMICAL AND MINING COMPANY OF CHILE INC.

(Translation of registrant’s name into English)

El Trovador 4285, Santiago, Chile (562) 2425-2000

(Address of principal executive office)

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-F: x    Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Santiago, Chile. March 4, 2022.- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reports the translation of its financial statements for the twelve months ended December 31, 2021, the Spanish version of which was filed with the Chilean Commission for the Financial Market (Comisión para el Mercado Financiero or “CMF”) on March 2, 2022.

 

CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2021

Sociedad Química y Minera de Chile S.A. and Subsidiaries

In Thousands of United States Dollars

This document includes:

- Report of Independent Register Public Accounting Firm

- Consolidated Statements of Financial Position

- Consolidated Statements of Income

- Consolidated Statements of Comprehensive Income

- Consolidated Statements of Cash Flows

- Consolidated Statements of Changes in Equity

- Notes to the Consolidated Financial Statements

Notes to the Consolidated Financial Statements  December 31, 2021  

Table of Contents –Consolidated Financial Statements

Consolidated Classified Statements of Financial Position		1
Consolidated Classified Statements of Financial Position		2
Consolidated Statements of Income		3
Consolidated Statements of Comprehensive Income		4
Consolidated Statements of Cash Flows		5
Consolidated Statements of Changes in Equity		7
Note 1	Identification and Activities of the Company and Subsidiaries	10
1.1	Historical background	10
1.2	Main domicile where the Company performs its production activities	10
1.3	Codes of main activities	10
1.4	Description of the nature of operations and main activities	10
1.5	Other background	12
1.6	Covid-19	13
1.7	Capital stock increase	14
1.8	Approval of investment in Mount Holland	14
Note 2	Basis of presentation for the consolidated financial statements	15
2.1	Accounting period	15
2.2	Consolidated financial statements	15
2.3	Basis of measurement	16
2.4	Accounting pronouncements	16
2.5	Basis of consolidation	18
2.6	Investments in associates and joint ventures	19
Note 3	Significant accounting policies	20
3.1	Classification of balances as current and non-current	20
3.2	Functional and presentation currency	20
3.3	Accounting policy for foreign currency translation	20
3.4	Consolidated statement of cash flows	22
3.5	Financial assets accounting policy	22
3.6	Financial assets impairment	23
3.7	Financial liabilities	23
3.8	Reclassification of financial instruments	23
3.9	Financial instruments derecognition	23
3.10	Derivative and hedging financial instruments	24
3.11	Derivative financial instruments not considered as hedges	25
3.12	Deferred acquisition costs from insurance contracts	25
3.13	Leases	25
3.14	Inventory measurement	26
3.15	Non-controlling interests	27
3.16	Related party transactions	27
3.17	Property, plant and equipment	27
3.18	Depreciation of property, plant and equipment	28

Notes to the Consolidated Financial Statements  December 31, 2021  

3.19	Goodwill	28
3.20	Intangible assets other than goodwill	28
3.21	Research and development expenses	30
3.22	Exploration and evaluation expenses	30
3.23	Impairment of non-financial assets	31
3.24	Minimum dividend	31
3.25	Earnings per share	31
3.26	Other provisions	32
3.27	Obligations related to employee termination benefits and pension commitments	32
3.28	Compensation plans	32
3.29	Revenue recognition	33
3.30	Finance income and finance costs	33
3.31	Current income tax and deferred	33
3.32	Operating segment reporting	35
3.33	Primary accounting criteria, estimates and assumptions	35
3.34	Environment	36
Note 4	Financial risk management	37
4.1	Financial risk management policy	37
4.2	Risk Factors	38
4.3	Risk measurement	42
Note 5	Separate information on the main office, parent entity and joint action agreements	43
5.1	Parent’s stand-alone assets and liabilities	43
5.2	Parent entity	43
Note 6	Board of Directors, Senior Management and Key management personnel	44
6.1	Remuneration of the Board of Directors and Senior Management	44
6.2	Key management personnel compensation	46
Note 7	Background on companies included in consolidation and non-controlling interests	47
7.1	Background on companies included in consolidation	47
7.2	Assets, liabilities, results of consolidated subsidiaries as of December 31, 2021	49
7.3	Background on non-controlling interests	53
Note 8	Equity-accounted investees	54
8.1	Investments in associates recognized according to the equity method of accounting	54
8.2	Assets, liabilities, revenue and expenses of associates	56
8.3	Disclosures regarding interests in associates	57
Note 9	Joint Ventures	58
9.1	Investment in joint ventures accounted for under the equity method of accounting	58
9.2	Assets, liabilities, revenue and expenses from joint ventures	61
9.3	Other Joint Venture disclosures	62
9.4	Disclosure of interests in joint ventures	63
9.5	Joint Ventures	63
Note 10	Cash and cash equivalents	64
10.1	Types of cash and cash equivalents	64
10.2	Short-term investments, classified as cash equivalents	64

Notes to the Consolidated Financial Statements  December 31, 2021  

10.3	Information on cash and cash equivalents by currency	65
10.4	Amount restricted cash balances	65
10.5	Short-term deposits, classified as cash equivalents	66
Note 11	Inventories	68
Note 12	Related party disclosures	70
12.1	Related party disclosures	70
12.2	Relationships between the parent and the entity	70
12.3	Detailed identification of related parties and subsidiaries	71
12.4	Detail of related parties and related party transactions	74
12.5	Trade receivables due from related parties, current:	75
12.6	Trade payables due to related parties, current:	75
12.7	Other disclosures:	75
Note 13	Financial instruments	76
13.1	Types of other current and non-current financial assets	76
13.2	Trade and other receivables	77
13.3	Hedging assets and liabilities	80
13.4	Financial liabilities	81
13.5	Trade and other payables	92
13.6	Financial asset and liability categories	94
13.7	Fair value measurement of finance assets and liabilities	96
13.8	Estimated fair value of financial instruments	99
13.9	Net Debt reconciliation	100
Note 14	Right-of-use assets and Lease liabilities	101
14.1	Right-of-use assets	101
14.2	Lease liabilities	102
Note 15	Intangible assets and goodwill	109
15.1	Reconciliation of changes in intangible assets and goodwill	109
Note 16	Property, plant and equipment	116
16.1	Types of property, plant and equipment	116
16.2	Conciliation of changes in property, plant and equipment by type:	118
16.3	Detail of property, plant and equipment pledged as guarantee	122
16.4	Cost of capitalized interest, property, plant and equipment	122
Note 17	Other current and non-current non-financial assets	123
Note 18	Employee benefits	126
18.1	Provisions for employee benefits	126
18.2	Policies on defined benefit plan	126
18.3	Other long-term benefits	127
18.4	Post-employment benefit obligations	127
18.5	Staff severance indemnities	129
18.6	Executive compensation plan	130
Note 19	Provisions and other non-financial liabilities	131
19.1	Types of provisions	131
19.2	Description of other provisions	132

Notes to the Consolidated Financial Statements  December 31, 2021  

19.3	Other non-financial liabilities, Current	133
19.4	Changes in provisions	134
Note 20	Disclosures on equity	135
20.1	Capital management	135
20.2	Operational restrictions and financial limits	135
20.3	Disclosures on preferred share capital	136
20.4	Disclosures on reserves in Equity	138
20.5	Dividend policies	140
20.6	Interim and provisional dividends	141
20.7	Potential and provisional dividends	142
Note 21	Contingencies and restrictions	143
21.1	Lawsuits and other relevant events	143
21.2	Environmental contingencies	145
21.3	Tax Contingencies	145
21.4	Contingencies regarding to the Contracts with Corfo	146
21.5	Contingencies associated with conflicts between shareholders of the Abu Dhabi Fertilizer Industries Company	146
21.6	Restricted or pledged cash	146
21.7	Securities obtained from third parties	147
21.8	Indirect guarantees	147
Note 22	Environment	148
22.1	Disclosures of disbursements related to the environment	148
22.2	Detailed information on disbursements related to the environment	149
22.3	Description of each project, indicating whether these are in process or have been finished	160
Note 23	Gains (losses) from operating activities in the statement of income of expenses, included according to their nature	165
23.1	Revenue from operating activities customer activities	165
23.2	Cost of sales	167
23.3	Other income	168
23.4	Administrative expenses	168
23.5	Other expenses	169
23.6	Other (losses) income	169
23.7	(Impairment) /reversal of value of financial assets impairment losses	170
23.8	Summary of expenses by nature	170
23.9	Finance expenses	171
23.10	Finance income	171
Note 24	Reportable segments	172
24.1	Reportable segments	172
24.2	Reportable segment disclosures:	174
24.3	Statement of comprehensive income classified by reportable segments based on groups of products	176
24.4	Disclosures on geographical areas	178
24.5	Disclosures on main customers	178
24.6	Segments by geographical areas	179

Notes to the Consolidated Financial Statements  December 31, 2021  

Note 25	Effect of fluctuations in foreign currency exchange rates	180
Note 26	Disclosures on the effects of fluctuations in foreign currency exchange rates	181
Note 27	Income tax and deferred taxes	187
27.1	Current and non-current tax assets	187
27.2	Current tax liabilities	188
27.3	Income tax and deferred taxes	189
Note 28	Events occurred after the reporting date	197
28.1	Authorization of the financial statements	197
28.2	Disclosures on events occurring after the reporting date	197

Notes to the Consolidated Financial Statements December 31, 2021  

Consolidated Classified Statements of Financial Position

ASSETS	Note N°	As of December 31, 2021		As of December 31, 2020
		ThUS$		ThUS$
Current Assets
Cash and cash equivalents	10.1		1,515,051		509,102
Other current financial assets	13.1		919,049		348,069
Other current non-financial assets	17		69,870		57,399
Trade and other receivables, current	13.2		654,073		365,206
Trade receivables due from related parties, current	12.5		86,152		62,601
Current inventories	11		1,183,776		1,093,028
Current tax assets	27.1		157,542		132,224
Total current assets other than those classified as held for sale or disposal			4,585,513		2,567,629
Non-current assets or groups of assets classified as held for sale			582		1,629
Total non-current assets held for sale			582		1,629
Total current assets			4,586,095		2,569,258
Non-current assets
Other non-current financial assets	13.1		9,268		51,925
Other non-current non-financial assets	17		33,487		22,042
Non-current trade receivables,	13.2		6,172		11,165
Investments classified using the equity method of accounting	8.1-9.1		39,824		85,993
Intangible assets other than goodwill	15.1		179,658		178,407
Goodwill	15.1		34,596		41,966
Property, plant and equipment net	16.1		2,012,225		1,737,319
Right-of-use assets	14.1		52,608		30,024
Non-current tax assets	27.1		90,364		90,364
Total non-current assets			2,458,202		2,249,205
Total assets			7,044,297		4,818,463

The accompanying notes form an integral part of these consolidated financial statements.

1

Notes to the Consolidated Financial Statements December 31, 2021  

Consolidated Classified Statements of Financial Position

Liabilities and Equity	Note N°	As of December 31, 2021			As of December 31, 2020
		ThUS$			ThUS$
Current liabilities
Other current financial liabilities	13.4		51,305			68,955
Lease liabilities, current	14.2		7,704			5,528
Trade and other payables, current	13.5		279,650			203,933
Trade payables due to related parties, current	12.6		-			606
Other current provisions	19.1		317,666			104,166
Current tax liabilities	27.2		166,935			22,643
Provisions for employee benefits, current	18.1		26,775			9,096
Other current non-financial liabilities	19.3		141,674			60,955
Total current liabilities			991,709			475,882
Non-current liabilities
Other non-current financial liabilities	13.4		2,587,732			1,899,513
Non-current lease liabilities	14.2		46,519			25,546
Non-current trade and other payables	13.5		3,813			4,027
Other non-current provisions	19.1		61,038			62,617
Deferred tax liabilities	27.3		110,416			156,101
Non-current provisions for employee benefits	18.1		27,099			32,199
Total non-current liabilities			2,836,617			2,180,003
Total liabilities			3,828,326			2,655,885
Equity
Equity attributable to owners of the Parent	20
Share capital			1,577,643			477,386
Retained earnings			1,648,032			1,638,267
Other reserves			(44,155	)		7,432
Equity attributable to owners of the Parent			3,181,520			2,123,085
Non-controlling interests			34,451			39,493
Total equity			3,215,971			2,162,578
Total liabilities and equity			7,044,297			4,818,463

The accompanying notes form an integral part of these consolidated financial statements.

2

Notes to the Consolidated Financial Statements December 31, 2021  

Consolidated Statements of Income

 

		For the period from January to December of the year
Consolidated Statements of Income	Note N°	2021			2020
		ThUS$			ThUS$
Revenue	23.1		2,862,315			1,817,191
Cost of sales	23.2		(1,772,208	)		(1,334,321	)
Gross profit			1,090,107			482,870
Other income	23.3		19,552			26,893
Administrative expenses	23.4		(118,893	)		(107,017	)
Other expenses	23.5		(60,605	)		(99,612	)
Impairment of financial assets and reversal of impairment losses	23.7		(235	)		4,684
Other (losses) gains	23.6		(2,638	)		(5,313	)
Profit from operating activities			927,288			302,505
Finance income	23.10		4,668			13,715
Finance costs	16-23.9		(84,626	)		(82,199	)
Share of profit of associates and joint ventures accounted for using the equity method	8.1-9.3		11,132			8,940
Foreign currency translation differences	25		(17,241	)		(4,423	)
Profit before taxes			841,221			238,538
Income tax expense	27.3		(249,016	)		(70,179	)
Net profit			592,205			168,359
Profit attributable to:
Profit attributable to Owners of the Parent			585,454			164,518
Profit attributable to Non-controlling interests			6,751			3,841
			592,205			168,359

		For the period from January to December of the year
Earnings per share	Note N°	2021		2020
		ThUS$		ThUS$
Common shares
Basic earnings per share (US$ per share)			2.0496		0.6251
Diluted common shares
Earnings per share (US$ per share)			2.0496		0.6251

The accompanying notes form an integral part of these consolidated financial statements.

3

Notes to the Consolidated Financial Statements December 31, 2021  

Consolidated Statements of Comprehensive Income

	For the period from January to December of the year
Consolidated Statements of Comprehensive Income	2021			2020
	ThUS$			ThUS$
Net profit		592,205			168,359
Items of other comprehensive income that will not be reclassified to profit for the year, before taxes
Gains from measurements of defined benefit plans		4,679			974
(Losses) gains from financial assets measured irrevocably at fair value through other comprehensive income		(12,072	)		9,784
Total other comprehensive income that will not be reclassified to profit for the year, before taxes		(7,393	)		10,758
Items of other comprehensive income that will be reclassified to profit for the year, before taxes
Foreign currency exchange gains		4,240			14,000
(Losses) from cash flow hedges		(52,762	)		(3,706	)
Total other comprehensive income that will be reclassified to profit for the year		(48,522	)		10,294
Other items of other comprehensive income, before taxes		(55,915	)		21,052
Income taxes related to items of other comprehensive income that will not be reclassified to profit for the year
Income (tax) benefit relating to measurement of defined benefit pension plans through other comprehensive income		(142	)		(145	)
Income benefit (tax) relating to (losses) gains on financial assets measured irrevocably at fair value through other comprehensive income		3,818			(2,642	)
Total income tax relating to components of other comprehensive income that will be not reclassified to profit for the year		3,676			(2,787	)
Income taxes relating to components of other comprehensive income that will be reclassified to profit for the year
Income (tax) benefit (expense) related to (losses) gains from cash flow hedges		14,246			1,001
Total income tax relating to components of other comprehensive income that will be reclassified to profit for the year		14,246			1,001
Total other comprehensive income		(37,993	)		19,266
Total comprehensive income		554,212			187,625
Comprehensive income attributable to
Comprehensive income attributable to owners of the parent		546,846			183,941
Comprehensive income attributable to non-controlling interest		7,366			3,684
		554,212			187,625

The accompanying notes form an integral part of these consolidated financial statements.

4

Notes to the Consolidated Financial Statements December 31, 2021  

Consolidated Statements of Cash Flows

		For the period from January to December of the year
Consolidated Statements of Cash Flows	Note N°	2021			2020
		ThUS$			ThUS$
Cash flows from (used in) operating activities
Classes of cash receipts from operating activities
Cash receipts from sales of goods and rendering of services			2,705,250			1,940,720
Cash receipts from premiums and benefits, annuities and other benefits from policies entered			1,902			14,763
Cash receipts derived from sub-leases			443			188
Classes of Payments
Cash payments to suppliers for the provision of goods and services			(1,713,922	)		(1,520,209	)
Cash payments relating to variable leases			(1,313	)		(1,117	)
Other payments related to operating activities			(16,726	)		(87,278	)
Net cash generated from operating activities			975,634			347,067
Dividends received			11,663			5,387
Interest paid			(82,816	)		(81,567	)
Interest paid on lease liabilities			(1,587	)		(1,133	)
Interest received			2,747			17,046
Income taxes paid			(142,730	)		(200,624	)
Other cash inflows (1)			59,609			96,058
Net cash generated from operating activities			822,520			182,234
Cash flows from (used in) investing activities
Proceeds from the sale of equity instruments			16,413			-
Cash flows arising from the loss/gain of control of subsidiaries and other businesses			-			20,996
Proceeds from the sale of property, plant and equipment			672			1,680
Other payments to acquire interest in joint ventures			-			(16,949	)
Proceeds from the sale of joint ventures			-			-
Acquisition of property, plant and equipment			(464,718	)		(322,242	)
Proceeds from sales of intangible assets			14,773			8,203
Proceeds related to futures, forward options and swap contracts			2,328			(6,902	)
Purchases of intangible assets			-			(579	)
Loans to related parties			13,086			(15,000	)
Cash flows proceeds from the sale of interests in joint ventures			13,085			-
Purchase of other long-term assets			(8,071	)		-
Other cash (outflows) inflows (2)			(594,511	)		163,702
Cash flow used in investing activities			(1,006,943	)		(167,091	)

(1) Other inflows (outflows) of cash from operating activities include net increases (decreases) of value added tax, banking expenses, expenses associated with obtaining loans and taxes associated with interest payments.

(2) Other inflows (outflows) of cash include investments and redemptions of time deposits and other financial instruments that do not qualify as cash and cash equivalent in accordance with IAS 7, paragraph 7, since they mature in more than 90 days from the original investment date.

The accompanying notes form an integral part of these consolidated financial statements.

5

Notes to the Consolidated Financial Statements December 31, 2021  

Consolidated Statements of Cash Flows

		For the period from January to December of the year
Consolidated Statements of Cash Flows	Note N°	2021			2020
		ThUS$			ThUS$
Cash flows generated from (used in) financing activities
Repayment of lease liabilities			(7,960	)		(8,015	)
Proceeds from long-term loans			700,000			400,000
Payment of borrowings			(14,110	)		(264,122	)
Paid dividends			(571,702	)		(221,995	)
Capital stock increase			1,100,257			-
Net cash generated from financing activities			1,206,485			(94,132	)
Net Increase in cash and cash equivalents before the effect of changes in the exchange rate			1,022,062			(78,989	)
Effects of exchange rate fluctuations on cash and cash equivalents			(16,113	)		(439	)
Increase in cash and cash equivalents			1,005,949			(79,428	)
Cash and cash equivalents at beginning of period			509,102			588,530
Cash and cash equivalents at end of period	10		1,515,051			509,102

The accompanying notes form an integral part of these consolidated financial statements.

6

Notes to the Consolidated Financial Statements  December 31, 2021  

Consolidated Statements of Changes in Equity

Consolidated Statements of Changes in Equity	Share capital		Foreign currency translation reserves			Hedge reserves			Gains and losses from financial assets reserve			Actuarial gains and losses from defined benefit plans reserve			Other miscellaneous reserves			Total reserves			Retained earnings			Equity attributable to owners of the Parent			Non- controlling interests			Total Equity
	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Equity at January 1, 2021		477,386		(11,569	)		4,491			6,872			(8,680	)		16,318			7,432			1,638,267			2,123,085			39,493			2,162,578
Net profit		-		-			-			-			-			-			-			585,454			585,454			6,751			592,205
Other comprehensive income		-		3,656			(38,516	)		(8,254	)		4,506			-			(38,608	)		-			(38,608	)		615			(37,993	)
Comprehensive income		-		3,656			(38,516	)		(8,254	)		4,506			-			(38,608	)		585,454			546,846			7,366			554,212
Sale of equity instruments irrevocably recognized in OCI		-		-			-			(9,764	)		-			-			(9,764	)		9,764			-			-			-
Dividends (1)		-		-			-			-			-			-			-			(585,453	)		(585,453	)		(12,408	)		(597,861	)
Capital stock increase (2)		1,100,257		-			-			-			-			-			-			-			1,100,257			-			1,100,257
Other decrease in equity		-		-			-			-			-			(3,215	)		(3,215	)		-			(3,215	)		-			(3,215	)
Total changes in equity		1,100,257		3,656			(38,516	)		(18,018	)		4,506			(3,215	)		(51,587	)		9,765			1,058,435			(5,042	)		1,053,393
Equity as of December 31, 2021		1,577,643		(7,913	)		(34,025	)		(11,146	)		(4,174	)		13,103			(44,155	)		1,648,032			3,181,520			34,451			3,215,971

Consolidated Statements of Changes in Equity	Share capital		Foreign currency translation reserves			Hedge reserves			Gains and losses from financial assets reserve			Actuarial gains and losses from defined benefit plans reserve			Other miscellaneous reserves		Total reserves			Retained earnings			Equity attributable to owners of the Parent			Non- controlling interests			Total Equity
	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Equity at January 1, 2020		477,386		(25,745	)		7,196			(270	)		(9,490	)		14,086		(14,223	)		1,623,104			2,086,267			48,205			2,134,472
Net Profit		-		-			-			-			-			-		-			164,518			164,518			3,841			168,359
Other comprehensive income		-		14,176			(2,705	)		7,142			810			-		19,423			-			19,423			(157	)		19,266
Comprehensive income		-		14,176			(2,705	)		7,142			810			-		19,423			164,518			183,941			3,684			187,625
Dividends		-		-			-			-			-			-		-			(149,355	)		(149,355	)		(10,118	)		(159,473	)
Other increase (decrease) in equity		-		-			-			-			-			2,232		2,232			-			2,232			(2,278	)		(46	)
Total changes in equity		-		14,176			(2,705	)		7,142			810			2,232		21,655			15,163			36,818			(8,712	)		28,106
Equity as of December 31, 2020		477,386		(11,569	)		4,491			6,872			(8,680	)		16,318		7,432			1,638,267			2,123,085			39,493			2,162,578

(1) See Note 20.7

(2) See Note 1.7

The accompanying notes form an integral part of these consolidated financial statements.

7

Notes to the Consolidated Financial Statements  December 31, 2021  

Glossary

The Following capitalized terms in these financial statements (including their notes) will have the following meaning:

“ADS’’ American Depositary Shares;

“CAM’’ Arbitration and Mediation Center of the Santiago Chamber of Commerce;

“CCHEN’’ Chilean Nuclear Energy Commission;

“CCS’’ cross currency swap;

“CINIIF’’ International Financial Reporting Interpretations Committee;

“CMF’’ Financial Market Commission;

“Directors’ Committee” The Company’s Directors’ Committee;

“Corporate Governance Committee’’ The Company’s Corporate Governance Committee;

“Health, Safety and Environment Committee’’ The Company’s Health, Safety and Environment Committee;

“Lease Agreement’’ the mining concessions lease agreement signed by SQM Salar and Corfo in 1993, as subsequently amended;

“Project Contract” project contract for Salar de Atacama undersigned by Corfo and SQM Salar in 1993, as subsequently amended”;

“Corfo” Chilean Economic Development Agency;

“DCV’’ Central Securities Depository;

“DGA’’ General Directorate of Water Resources;

“Board” The Company’s Board of Directors;

“Dollar’’ o “US$’’ Dollars of the United States of America;

“DPA’’ Deferred Prosecution Agreement;

“EIEP’’ Passive foreign investment company;

“United States” United States of America;

“FNE’’ Chilean National Economic Prosecutor's Office;

“Management’’ the Company’s management;

"SQM Group’’ The corporate group composed of the Company and its subsidiaries

“Pampa Group’’ Jointly the Sociedad de Inversiones Pampa Calichera S.A., Potasios de Chile S.A. and Inversiones Global Mining (Chile) Limitada;

“IASB’’ International Accounting Standards Board;

“SSI’’ Staff severance indemnities;

8

Notes to the Consolidated Financial Statements  December 31, 2021  

“IFRIC’’ International Financial Reporting Interpretations Committee;

“IPC” Consumer Price Index;

“IRS” interest rate swap;

“Securities Market Law” Securities Market Law No. 18,045;

“Corporate Law'' Ley 18,046 on corporations;

“ThUS$'' thousands of Dollars;

“MUS$'' millions of Dollars;

“IAS” International Accounting Standard;

“IFRS” International Financial Reporting Standard;

“ILO” International Labour Organization;

“WHO” World Health Organization;

“Pesos’’ or “Ch$” Chilean pesos, legal tender in Chile;

“SEC’’ Securities and Exchange Commission;

“Sernageomin’’ National Geology and Mining Service;

“SIC’’ Standard Interpretations Committee;

“SII” Chilean Internal Revenue Service;

“SMA” Environmental Superintendent’s Office;

“Company” Sociedad Química y Minera de Chile S.A.;

“SQM Industrial” SQM Industrial S.A.;

“SQM NA” SQM North America Corporation;

“SQM Nitratos” SQM Nitratos S.A.;

“SQM Potasio” SQM Potasio S.A.;

“SQM Salar” SQM Salar S.A.;

“Tianqi” Tianqi Lithium Corporation; and

“UF” Unidad de Fomento (a Chilean Peso based inflation indexed currency unit);

“WACC” Weighted Average Cost of Capital.

9

Notes to the Consolidated Financial Statements  December 31, 2021  

Note 1        Identification and Activities of the Company and Subsidiaries

1.1 Historical background

Sociedad Química y Minera de Chile S.A. is an open stock corporation founded under the laws of the Republic of Chile and its Chilean Tax Identification Number is 93.007.000-9.

The Company was incorporated through a public deed dated June 17, 1968 by the public notary 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, Floor 6, Las Condes, Santiago, Chile, The Company's telephone number is +(56 2) 2425-2000.

The Company is registered in the CMF under number 184 of March 18, 1983 and is therefore subject to oversight by that entity.

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; Administration Building w/n - Maria Elena; Administration Building w/n Pedro de Valdivia - María Elena, Anibal Pinto 3228 - Antofagasta, Kilometer 1378 Ruta 5 Norte Highway - Antofagasta, Coya Sur Plant w/n - Maria Elena, kilometer 1760 Ruta 5 Norte Highway - Pozo Almonte, Salar de Atacama (Atacama Saltpeter deposit) potassium chloride plant w/n - San Pedro de Atacama, potassium sulfate plant at Salar de Atacama w/n – San Pedro de Atacama, Minsal Mining Camp w/n CL Plant CL, Potassium– San Pedro de Atacama, formerly the Iris Saltpeter office w/n, Commune of Pozo Almonte, Iquique, Level 1, 225 Dt Georges Tce Perth WA 6000, Australia.

1.3 Codes of main activities

The codes of the main activities as established by the CMF, as follows:

· 1700 (Mining)

· 2200 (Chemical products)

· 1300 (Investment)

1.4 Description of the nature of operations and main activities

The products of the Company are mainly derived from mineral deposits found in northern Chile where mining takes place and caliche and brine deposits are processed.

(a) Specialty plant nutrition: Four main types of specialty plant nutrients are produced: potassium nitrate, sodium nitrate, sodium potassium nitrate and specialty blends. In addition, other specialty fertilizers are sold including third party products.

(b) Iodine: The Company produces iodine and iodine derivatives, which are used in a wide range of medical, pharmaceutical, agricultural and industrial applications, including x-ray contrast media, polarizing films for LCD and LED, antiseptics, biocides and disinfectants, in the synthesis of pharmaceuticals, electronics, pigments and dye components.

(c) Lithium: The Company produces lithium carbonate, which is used in a variety of applications, including electrochemical materials for batteries, frits for the ceramic and enamel industries, and it is an important ingredient in the manufacture of gunpowder, heat-resistant glass (ceramic glass), air conditioning chemicals, continuous casting powder for steel extrusion, primary aluminum smelting process, pharmaceuticals and lithium derivatives. We are also a leading supplier of lithium hydroxide, which is primarily used as an input for the lubricating greases industry and for certain cathodes for batteries.

10

Notes to the Consolidated Financial Statements  December 31, 2021  

(d) Industrial chemicals: The Company produces three industrial chemicals: sodium nitrate, potassium nitrate and potassium chloride. Sodium nitrate is used primarily in the production of glass, explosives, and metal treatment. Potassium nitrate is used in the manufacturing of specialty glass, and it is also an important raw material to produce of frits for the ceramics and enamel industries. Solar salts, a combination of potassium nitrate and sodium nitrate, are used as a thermal storage medium in concentrated solar power plants. Potassium chloride is a basic chemical used to produce potassium hydroxide, and it is also used oil drilling, and to produce carrageenan.

(e) Potassium: The Company produces potassium chloride and potassium sulfate from brines extracted from the Salar de Atacama. Potassium chloride is a commodity fertilizer used to fertilize a variety of crops including corn, rice, sugar, soybean and wheat. Potassium sulfate is a specialty fertilizer used mainly in crops such as vegetables, fruits and industrial crops.

(f) Other products and services: The Company also sells other fertilizers and blends, some of which we do not produce, mainly potassium nitrate, potassium sulfate and potassium chloride. This business line also includes revenue from commodities, services, interests, royalties and dividends.

11

Notes to the Consolidated Financial Statements  December 31, 2021  

1.5 Other background

(a) Employees

As of December 31, 2021, and 2020, the workforce was as follows:

	As of December 31, 2021						As of December 31, 2020
Employees	SQM S.A.		Other subsidiaries		Total		SQM S.A.		Other subsidiaries		Total
Executives		33		103		136		33		93		126
Professionals		117		1,639		1,756		108		1,696		1,804
Technicians and operators		275		3,914		4,189		267		3,310		3,577
Overall total		425		5,656		6,081		408		5,099		5,507

	As of December 31, 2021						As of December 31, 2020
Place of work	SQM S.A.		Other subsidiaries		Total		SQM S.A.		Other subsidiaries		Total
In Chile		425		5,246		5,671		408		4,672		5,080
Outside Chile		-		410		410		-		427		427
Overall total		425		5,656		6,081		408		5,099		5,507

(b) Main shareholders

As of December 31, 2021, there were 1,500 shareholders.

Following table shows information about the main shareholders of the Company’s Series A or Series B shares in circulation as of December 31, 2021 and 2020, in line with information provided by the DCV, with respect to each shareholder that, to our knowledge, owns more than 5% of the outstanding Series A or Series B shares. The following information is derived from our registry and reports managed by the DCV and informed to the CMF and the Chilean Stock Exchange:

Shareholders as of December 31, 2021	No. of Series A		% of Series A shares			No. of Series B		% of Series B shares			% of total shares
The Bank of New York Mellon, ADRs		-		-			67,603,420		47.34	%		23.67	%
Inversiones TLC SpA (1)		62,556,568		43.80	%		-		-			21.90	%
Sociedad de Inversiones Pampa Calichera S.A. (2)		44,989,231		31.50	%		-		-			15.75	%
Potasios de Chile S.A.		18,179,147		12.73	%		-		-			6.36	%
Banco de Chile via State Street		23,428		0.02	%		9,178,379		6.43	%		3.22	%
Banco Santander via foreign investor accounts		-		-			8,856,091		6.20	%		3.10	%
Inv. Global Mining (Chile) Ltda.		8,798,539		6.16	%		-		-			3.08	%
Banco de Chile non-resident third party accounts		445		-			7,939,865		5.56	%		2.78	%
Banco de Chile via Citi NA New York Clients		67,463		0.05	%		4,795,310		3.36	%		1.70	%
Inversiones la Esperanza de Chile Limitada		4,246,226		2.97	%		-		-			1.49	%
Larraín Vial S.A. Corredora de Bolsa		125,726		0.09	%		3,653,614		2.56	%		1.32	%
AFP Habitat S.A. for Pension Fund C		-		-			2,914,292		2.04	%		1.02	%

12

Notes to the Consolidated Financial Statements  December 31, 2021  

Shareholders as of December 31, 2020	No. of Series A		% of Series A shares			No. of Series B		% of Series B shares			% of total shares
Inversiones TLC SpA (1)		62,556,568		43.80	%		-		-			23.77	%
The Bank of New York Mellon, ADRs		-		-			50,792,452		42.19	%		19.30	%
Sociedad de Inversiones Pampa Calichera S.A. (2)		44,894,152		31.43	%		922,971		0.77	%		17.41	%
Potasios de Chile S.A.		18,179,147		12.73	%		-		-			6.91	%
Inversiones Global Mining (Chile) Limitada		8,798,539		6.16	%		-		-			3.34	%
Euroamerica C de B S. A.		1,418		-			8,788,517		7.30	%		3.34	%
Banco Santander via foreign investor accounts		-		-			7,294,827		6.06	%		2.77	%
Banco de Chile via State Street		-		-			6,971,782		5.79	%		2.65	%
Banco de Chile non-resident third party accounts		-		-			6,129,339		5.09	%		2.33	%
Inversiones la Esperanza de Chile Limitada		4,147,263		2.90	%		46,500		0.04	%		1.59	%
Banchile Corredora de Bolsa S. A.		459,202		0.32	%		2,426,758		2.02	%		1.10	%
Banco de Chile on behalf of Citibank NA New York customers		177,463		0.12	%		1,732,249		1.44	%		0.73	%

(1) As reported by DCV, which records the Company's shareholders' register as of December 31, 2021 and 2020, Inversiones TLC SpA, a subsidiary wholly owned Tianqi Lithium Corporation, is the direct owner of 62,556,568 shares of The Company equivalent to 21.90% of SQM’s shares. Tianqi Lithium Corporation it owns 5,275,318 Series B SQM shares as reported by Inversiones TLC Spa. So as of December 31, 2021, Tianqi Lithium Corporation owns 23.75% of SQM's total Series A shares and ADS holders of Series B shares. In other words, as of December 31, 2021, Tianqi Lithium Corporation directly and indirectly holds 23.75% of all SQM shares through Series A shares and ADS holders of Series B shares. As of December 31, 2020, Tianqi Lithium Corporation holds 25.86% of all SQM shares through Series A and B shares.

(2) As of December 31, 2021, Sociedad de Inversiones Pampa Calichera S.A. has 47,480,196 Series A and B shares; 2,490,965 Series B shares are held by different brokers. As of December 31, 2020, Sociedad de Inversiones Pampa Calichera S.A. has 57,235,201 Series A and B shares; 11,418,078 Series B shares are held by different brokers.

1.6 Covid-19

In January 2020, the WHO deemed COVID-19 a global pandemic. In March 2020, the Chilean Ministry of Health declared a nationwide State of Emergency. As a precaution, our management has implemented several measures to help reduce the speed at which the coronavirus spreads, including measures to mitigate the spread in the workplace, significant reductions in employee travel and a mandatory quarantine for people who have arrived from high risk destinations, in consultation with governmental and international health organization guidelines, and will continue to implement measures consistent with evolving coronavirus situation.

13

Notes to the Consolidated Financial Statements  December 31, 2021  

The Company reports on the following points in relation to the outbreak of the COVID-19 virus and its being declared to be a global pandemic by the WHO:

(1) Regarding the financial and operational effects that this situation could mean for the Company, it is worth noting that the Company sells its products worldwide, with Asia, Europe and North America being its main markets. Border closures, decrease in commercial activity and difficulties and disruptions in the supply chains in the markets in which we sell have impacted our ability to fulfill our previous sales volume estimates, the impact on our sales volumes and average prices will depend on the duration of the virus in different markets, the efficiency of the measures implemented to contain the spread of the virus in each country and fiscal incentives that may be implemented in different jurisdictions to promote economic recovery.

For now, our operations have not seen any material impacts related to the outbreak of COVID-19 virus.

We have taken measures to mitigate the impacts of this health emergency on our employees and limit the impact it could have on our operations (described below in point 2).

(2) Regarding the measures that management has adopted or intends to adopt to mitigate possible financial and/or operational effects, we inform that the Company has implemented a series of measures in its operations in Chile and abroad that seek to protect its workers and reduce the speed at which the virus spreads. The measures adopted by the Company are:

(a) The flexibility of the working day, arrival and departure times, together with the incentive to work from home in those cases where this is possible.

(b) Avoidance of crowds, seminars and large meetings in the Company´s offices and operating facilities.

(c) Strengthening personal hygiene protocols (use of alcohol-based gel, masks, etc.) and sanitation in plants, cafeterias and offices.

(d) Significant reduction in domestic and international travel, along with obligatory quarantine for people who have arrived from high risk destinations.

(e) The costs associated with the measures implemented by the company correspond primarily to increased expenses in transportation, supplies, room and board, among others.

(3) We hereby inform that we do not currently have any other information that management believes is relevant to provide.

1.7 Capital stock increase

On April 28, 2021, the Company completed a US$1.1 billion capital stock increase. The capital stock increase was approved at an extraordinary shareholders’ meeting held by the Company on January 22, 2021. It included a mandatory 30-day pre-emptive rights offering, under Chilean law, to existing holders of the Company’s Series B common stock and a corresponding pre-emptive rights offering to existing holders of American Depositary Shares (ADSs). Existing shareholders received transferable share rights to subscribe for shares of Series B common stock at a subscription price of US$50 per share and the share rights were traded in Chile on the Santiago Stock Exchange and the Electronic Stock Exchange. Existing ADS holders received transferable ADS rights to subscribe for ADSs at a subscription price of US$50 per ADS and the ADS rights were traded in the U.S. on the New York Stock Exchange. The pre-emptive rights offerings ended on April 24, 2021 with respect to the share rights in Chile and on April 19, 2021 with respect to the ADS rights in the U.S. Of the 22,441,932 new Series B shares offered in the pre-emptive rights offerings, a total of 21,687,549 Series B shares (including shares in the form of ADSs), i.e. almost 97% of the Serie B shares offered, were subscribed in the preemptive rights offerings. The remaining 754,383 Series B shares that were not subscribed for in the pre-emptive rights offerings were offered and placed in auctions conducted through the Santiago Stock Exchange to investors in Chile and outside Chile (including in the United States) on April 28, 2021, at an average price of approximately US$54 per share.

As of December 31, 2021, contributed capital is US$ 1.1 billion net of expenses and others for ThUS 24,503.

1.8 Approval of investment in Mount Holland

On February 17, 2021, the Board of Directors approved the investment in the Mount Holland lithium project in Western Australia. SQM's share of the project investment is expected to be approximately US$700 million, between 2021 and 2025. The feasibility study confirms an expected initial production capacity of 50,000 metric tons of lithium hydroxide during the second half of 2024. See Note 9.5. 

14

Notes to the Consolidated Financial Statements  December 31, 2021  

Note 2      Basis of presentation for the consolidated financial statements

2.1 Accounting period

These consolidated financial statements cover the following periods:

(a) Consolidated Statements of Financial Position as of December 31, 2021 and 2020.

(b) Consolidated Statements of Income for the periods from January 1 to December 31, 2021 and 2020.

(c) Consolidated Statements of Comprehensive Income from January 1 to December 31, 2021 and 2020.

(d) Consolidated Statements of Changes in Equity for the periods ended December 31, 2021 and 2020.

(e) Consolidated Statements of Cash Flows for the periods ended December 31, 2021 and 2020.

2.2 Consolidated financial statements

The consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with IFRS and represent the full, explicit and unreserved adoption of IFRS, issued by the International Accounting Standards Board.

These consolidated financial statements fairly reflect the Company’s financial position, as of December 31, 2021 and 2020, the comprehensive results of operations, changes in equity and cash flows occurring for the years then ended.

IFRS establish certain alternatives for their application, those applied by the Company are detailed in this Note and Note 3.

The accounting policies used in the preparation of these consolidated annual accounts comply with each IFRS in force at their date of presentation.

15

Notes to the Consolidated Financial Statements  December 31, 2021  

2.3 Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following:

(a) Inventories are recorded at the lower of cost and net realizable value.

(b) Financial derivatives measured at fair value.

(c) Certain financial investments measured at fair value with an offsetting entry in other comprehensive income.

2.4 Accounting pronouncements

New accounting pronouncements

(a) The following standards, interpretations and amendments are mandatory for the first time for annual periods beginning on January 1, 2021:

Amendments and improvements	Description	Mandatory for annual periods beginning on or after
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 “Reform to the referential interest rate (IBOR)- Phase 2” Published in August 2020.	These amendments provide certain simplifications in relation to the reform to the referential interest rates, including the replacement of a reference rate by an alternative.	01-01-2021
Amendment to IFRS 16 “Lease Concessions” - Published in March 2021.	This amendment extends by one year the period of application of the practical case of IFRS 16 Leases (contained in the amendment to that standard published in May 2020), with the purpose of assisting lessees in accounting for COVID-19 related rental concessions. The amendment is effective for annual periods beginning on or after April 1, 2021. However, early adoption is permitted even for financial statements not authorized for issue as of March 31, 2021.	01-01-2021

Management determined that the adoption of the aforementioned standards, amendments and interpretations did not significantly impact the company’s consolidated financial statements.

16

Notes to the Consolidated Financial Statements
December 31, 2021  

(b) Standards, interpretations and amendments issued that had not become effective for financial statements beginning on January 1, 2021 and which the Company has not adopted early are as follows:

Standards and Interpretations	Description	Mandatory for annual periods beginning on or after
Amendment to IAS 1 “Presentation of financial statements” on classification of liabilities.	These amendments clarify that the liabilities will be classified as current or non-current depending on the rights that exist at the close of the reporting period. The classification is not affected by the expectations of the entity or the events subsequent to the report date (for example, the receipt of a waiver or noncompliance with the pact). The amendment also clarifies what IAS 1 means when referring to “liquidation” of a liability.  The amendment must be applied retroactively in accordance with IAS 8.	01-01-2024
Reference to the Conceptual Framework - Amendments to IFRS 3.	Minor modifications were made to IFRS 3 “Definition of a Business” to update references to the conceptual framework for financial reporting without changing the requirements of business combinations.	01-01-2022
Amendment to IAS 16 “Property, plant and equipment”.	This prohibits companies from deducting from the cost of the property any revenue received from the sale of articles produced while the company is preparing the asset for its anticipated use. The company must recognize this sales revenue and associated costs in the profit or loss for the fiscal year.	01-01-2022
Amendment to IAS 37, “Provisions, contingent liabilities and contingent assets”.	This clarifies for onerous contracts which inevitable costs a company must include to assess whether a contract will result in a loss.	01-01-2022
Annual improvements to IFRS standards, 2018-2020 cycle. The following improvements were finalized in May 2020:
IFRS 9 Financial Instruments.	This clarifies which fees must be included in the 10% test for the derecognition of financial liabilities.	01-01-2022
IFRS 16 Leases.	Modification of illustrative example 13 to eliminate the illustration of lessor payments in relation to improvements to rental properties, to eliminate any confusion as to the treatment of lease incentives.	01-01-2022
Amendments to IAS 1: “Presentation of the Financial Statements” and IAS 8 “Accounting policies, changes in accounting estimates and errors”.	The amendments are intended to improve disclosures of accounting policies and to help users of financial statements distinguish between changes in accounting estimates and changes in accounting policies.	01-01-2023
Amendment to IAS 12 - Deferred taxes related to assets and liabilities that arise from a single transaction.	These amendments require companies to recognize deferred taxes on transactions that result in equal amounts in taxable and deductible temporary differences in the initial recognition.	01-01-2023
Amendment to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures”, Published in September 2014.	These amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.	undetermined

Management believes that the adoption of the above standards, amendments and interpretations will not have a significant impact on the Company’s financial statements.

17

Notes to the Consolidated Financial Statements
December 31, 2021

2.5 Basis of consolidation

(a) Subsidiaries

The Company established control as the basis of consolidation of its financial statements. The Company controls a subsidiary when it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary.

The consolidation of a subsidiary starts when the SQM Group controls it and it is no longer included in the consolidation when this control is lost.

Subsidiaries are consolidated through a line by line method, adding items that represent assets, liabilities, income and expenses with a similar content, and eliminating operations between companies within the SQM Group.

Results for dependent companies acquired or disposed of during the period are included in the consolidated accounts from the date on which control is transferred to the SQM Group or until the date when this control ends, as relevant.

To account for an acquisition of a business, the Company uses the acquisition method. Under this method, the acquisition cost is the fair value of assets delivered, equity securities issued, and incurred or assumed liabilities at the date of exchange. Assets, liabilities and contingencies identifiable assumed in a business combination are measured initially at fair value at the acquisition date. For each business combination, the Company will measure the non-controlling interest of the acquiree either at fair value or as proportional share of net identifiable assets of the acquire.

The details of the consolidated companies can be found in Note 7.

18

Notes to the Consolidated Financial Statements
December 31, 2021

2.6 Investments in associates and joint ventures

Investments in joint arrangements are classified as joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement.

(a) Joint operations

The Company recognizes its direct right to the assets, liabilities, income and expenses of the joint arrangement.

(b) Joint ventures and investments in associates

Interests in companies over which joint control is exercised (joint ventures) or where an entity has significant influence (associates) are recognized using the equity accounting method. Significant influence is presumed when the investor owns over 20% of the investee’s share capital. The investment is recognized using this method in the statement of financial position at cost plus changes subsequent to acquisition and includes the proportional share of the associate’s equity. For these purposes, the percentage interest in the associate is used. The associated acquired goodwill is included in the investee’s book value and is not amortized. The debit or credit to the income statement reflects the proportional share of the profit or loss of the associate.

Unrealized gains from transactions with joint ventures or associates are eliminated in accordance with the Company's percentage interest in such entities. Any unrealized losses are also eliminated, unless that transaction provides evidence that the transferred asset is impaired.

Changes in associate’s or joint ventures equity are recognized proportionally with a charge or credit to "Other Reserves" and are classified according to their origin. The reporting dates of the associate or joint ventures, the Company and related policies are similar for equivalent transactions and events in similar circumstances. In the event that significant influence is lost, or the investment is sold, or held for sale, the equity method is suspended, not recognizing the proportional share of the gain or loss. If the resulting value under the equity method is negative, the share of profit or loss is reflected as zero in the consolidated financial statements, unless there is a commitment by the Company to restore the capital position of the Company, in which case the related risk provision and expense are recorded.

Dividends received by these companies are recorded by reducing the value of the investment and are shown in cash flows from operating activities, and the proportional share of the gain or loss recognized in accordance with the equity method is included in the consolidated income statement under "Share of Gains (Losses) of Associates and Joint Ventures Accounted for Using the Equity Method''.

19

Notes to the Consolidated Financial Statements
December 31, 2021  

Note 3 Significant accounting policies

3.1 Classification of balances as current and non-current

In the consolidated statement of financial position, balances are classified in consideration of their recovery (maturity) dates; i.e., those maturing within a period equal to or less than 12 months are classified as current counted from the closing date of the consolidated financial statements and those with maturity dates exceeding the aforementioned period are classified as non-current.

The exception to the foregoing relates to deferred taxes, which are classified as non-current, regardless of the maturity they have.

3.2 Functional and presentation currency

The Company’s consolidated financial statements are presented in United States dollars, without decimal places, which is the Company’s functional and presentation currency and is the currency of the main economic environment in which it operates. Consequently, the term foreign currency is defined as any currency other than the U.S. dollar.

3.3 Accounting policy for foreign currency translation

(a) SQM Group entities:

The revenue, expenses, assets and liabilities of all entities that have a functional currency other than the presentation currency are converted to the presentation currency as follows:

- Assets and liabilities are converted at the closing exchange rate prevailing on the reporting date.

- Revenues and expenses of each profit or loss account are converted at monthly average exchange rates.

- All resulting foreign currency translation gains and losses are recognized as a separate component in translation reserves.

In consolidation, foreign currency differences arising from the translation of a net investment in foreign entities are recorded in shareholder’s equity (“foreign currency translation reserve”). At the date of disposal, such foreign currency translation differences are recognized in the statement of income as part of the gain or loss from the sale.

20

Notes to the Consolidated Financial Statements
December 31, 2021

The main exchange rates and UF used to translate monetary assets and liabilities, expressed in foreign currency at the end and average of each period in respect to U.S. dollars, are as follows:

	Closing exchange rates				Average exchange rates
Currencies	As of December 31, 2021		As of December 31, 2020		As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$		ThUS$		ThUS$
Brazilian real		5.57		5.18		5.66		5.14
New Peruvian sol		3.99		3.62		4.04		3.60
Japanese yen		115.18		103.30		113.87		103.81
Euro		0.88		0.81		0.88		0.82
Mexican peso		20.54		19.93		20.90		19.97
Australian dollar		1.38		1.30		1.40		1.33
Pound Sterling		0.74		0.74		0.75		0.74
South African rand		15.94		14.61		15.88		14.88
Chilean peso		844.69		710.95		849.46		731.92
Chinese yuan		6.38		6.51		6.37		6.53
Indian rupee		74.42		73.30		75.40		73.65
Thai Baht		33.32		29.94		33.55		30.08
Turkish lira		13.28		7.36		13.54		7.70
UF (*)		36.69		40.89		36.48		39.73

(*) US$ per UF

(b)           Transactions and balances

The Company’s non-monetary transactions in currencies other than the functional currency (Dollar) are translated to the respective functional currencies of SQM Group entities at the exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. All differences are recorded in the statement of income except for all monetary items that provide an effective hedge for a net investment in a foreign operation. These items are recognized in other comprehensive income until disposal of the investment, when they are recognized in the statement of income. Charges and credits attributable to foreign currency translation differences on those hedge monetary items are also recognized in other comprehensive income.

Non-monetary assets and liabilities that are measured at historical cost in a foreign currency are retranslated to the functional currency at the historical exchange rate of the transaction. Non-monetary items that are measured based on fair value in a foreign currency are translated using the exchange rate at the date on which the fair value is determined.

21

Notes to the Consolidated Financial Statements
December 31, 2021

3.4 Consolidated statement of cash flows

Cash equivalents correspond to highly liquid short-term investments that are easily convertible into known amounts of cash and subject to insignificant risk of changes in their value and mature in less than three months from the date of acquisition of the instrument.

For the purposes of the statement of cash flows, cash and cash equivalents comprise cash and cash equivalents as defined above.

The statement of cash flows present cash transactions performed during the period, determined using the direct method.

3.5 Financial assets accounting policy

Management determines the classification of its financial assets at fair value (either through other comprehensive income, or through profit or loss), and at amortized cost. The classification depends on the business model of the entity to manage the financial assets and the contractual terms of the cash flows.

In the initial recognition, the Company measures its financial assets at fair value more or less, in the case of a financial asset that is not accounted for at fair value through profit or loss, the transaction costs that are directly attributable to the acquisition of the financial asset on the date when the Company commits to the purchase or sale of an asset. In the case of account receivables and other accounts receivables, the transaction price at the initial recognition is measured.

After initial recognition, the Company measures its financial assets according to the Company's business model for managing its financial assets and the contractual terms of its cash flows:

(a) Financial instruments measured at amortized cost. Financial assets that meet the following conditions are included in this category (i) the business model that supports it aims to maintain the financial assets to obtain the contractual cash flows and the contractual conditions of the financial asset give place, on specified dates, to cash flows that are only payments of the principal and interest on the outstanding principal amount. The Company’s financial assets that meet these conditions are: (ii) cash equivalents; (iii) related party receivables; (iv) trade debtors; (v) other receivables.

(b) Financial instruments at fair value. A financial asset should be measured at fair value through profit or loss or fair value through other comprehensive income, depending on the following:

(i)

"Fair Value Through Other Comprehensive Income": Assets held to collect contractual cash flows and to be sold, where the asset cash flows are only capital and interest payments, are measured at fair value through other comprehensive income. Changes in book values are through other comprehensive income, except for the recognition of impairment losses, interest income and exchange gains and losses, which are recognized in the income statement. When a financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to the income statement. Interest income from these financial assets is included in financial income using the effective interest method.

(ii)

"Fair Value Through Profit and Loss": Assets that do not meet the amortized cost or "Fair Value Through Other Comprehensive Income" criteria are valued at "Fair Value Through Profit and Loss".

(c) Financial equity assets at fair value through other comprehensive income. Equity instruments that are not classified as held for trading and which the SQM Group has irrevocably chosen to recognize in this category. Amounts presented in other comprehensive income will not be subsequently transferred to profit or loss.

22

Notes to the Consolidated Financial Statements
December 31, 2021  

3.6 Financial assets impairment

The Company evaluates expected credit losses associated with its debt instruments carried at amortized cost and fair value through other comprehensive income. The impairment method used depends on whether there has been a significant increase in credit risk.

The Company applies simplified approach to measure expected credit losses using the lifetime expected loss on all trade receivables. Expected credit losses are measured by grouping receivables by their shared credit risk characteristics and days overdue.

The Company has concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for contract assets. Expected loss rates are based on sales payment profiles and historical credit losses within this period. Historical loss rates are adjusted to reflect current expectations and information regarding macroeconomic factors that affect the ability of customers to meet their commitments.

Impairment losses from receivables and contract assets are shown as net impairment losses in the line “Impairment of financial assets and reversal of impairment losses,” see Note 23.7. The subsequent recovery of previously canceled amounts are credited to the same line.

3.7 Financial liabilities

Management determines the classification of its financial liabilities at fair value or at amortized cost. The classification depends on the business model of the entity to manage the financial liabilities and the contractual terms of the cash flows.

At the initial recognition, the Company measures its financial liabilities by their fair value more or less, in the case of a financial liability that is not accounted for at fair value through profit or loss, the transaction costs that are directly attributable to the acquisition of the financial liability. After initial recognition, the Company measures its financial liabilities at amortized cost unless the Company, at the initial moment, irrevocably designates the financial liability as measured at fair value through profit or loss.

Financial liabilities measured at amortized cost are commercial accounts payable and other accounts payable and other financial liabilities.

Amortized cost is based using the effective interest rate method. Amortized cost is calculated by considering any premium or discount on the acquisition and includes transaction costs that are an integral part of the effective interest rate.

Financial liabilities are recorded as not current when they mature in more than 12 months and as current when they mature in less than 12 months.

3.8 Reclassification of financial instruments

When the Company changes its business model for managing financial assets, it will reclassify all its financial assets affected by the new business model. Financial liabilities cannot be reclassified.

3.9 Financial instruments derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred; and the control of the financial assets has not been retained.

The Company derecognizes a financial liability when its contractual obligations or a part of these are discharged, paid to the creditor or legally extinguished from the principle responsibility contained in the liability.

23

Notes to the Consolidated Financial Statements
December 31, 2021

3.10 Derivative and hedging financial instruments

Derivatives are recognized initially at fair value as of the date on which the derivatives contract is signed and, they are subsequently assessed at fair value. The method for recognizing the resulting gain or loss depends on whether the derivative has been designated as an accounting hedge instrument and, if so, it depends on the type of hedging, which may be as follows:

a) Fair value hedge of assets and liabilities recognized (fair value hedges);

b) Hedging of a single risk associated with a recognized asset or liability or a highly probable forecast transaction (cash flow hedge).

At the beginning of the transaction, the Company documents the relationship that exists between hedging instruments and those items hedged, as well as their objectives for risk management purposes and the strategy to conduct different hedging operations.

The Company also documents its evaluation both at the beginning and at the end of each period if the derivatives used in hedging transactions are highly effective to offset changes in the fair value or in cash flows of hedged items.

The fair value of derivative instruments used for hedging purposes is shown in Note 13.3. Changes in the cash flow hedge reserve are classified as a non-current asset or liability if the remaining expiration period of the hedged item is more than 12 months, and as a current asset or liability if the remaining expiration period of the hedged item is less than 12 months.

Derivatives that are not designated or do not qualify as hedging derivatives are classified as current assets or liabilities, and changes in the fair value are directly recognized through profit or loss.

a) Fair value hedge

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit or loss, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The gain or loss relating to the effective portion of interest rate swaps that hedge fixed rate borrowings is recognized in profit or loss within finance costs, together with changes in the fair value of the hedged fixed rate borrowings attributable to interest rate risk. The gain or loss relating to the ineffective portion is recognized in profit or loss within other income or other expenses. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to profit or loss over the period to maturity using a recalculated effective interest rate.

b) Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is initially recognized with a debit or credit to other comprehensive income, while any ineffective portion is immediately recognized with a debit or credit to income, as appropriate depending on the nature of the hedged risk. The amounts accumulated in net equity are carried over to results when the hedged items are settled or when these have an impact on results.

When a hedging instrument no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remains in equity until the forecast transaction occurs.

When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in equity are immediately reclassified to profit or loss.

24

Notes to the Consolidated Financial Statements
December 31, 2021

3.11 Derivative financial instruments not considered as hedges

Derivative financial instruments not considered as hedges are recognized at fair value with the effect in the results of the year. The Company has derivative financial instruments to hedge foreign currency risk exposure.

The Company continually evaluates the existence of embedded derivatives in both its contracts and in its financial instruments. As of December 31, 2021, and 2020, the Company does not have any embedded derivatives.

3.12 Deferred acquisition costs from insurance contracts

Acquisition costs from insurance contracts are classified as prepayments and correspond to insurance contracts in force, recognized using the straight-line method and on an accrual basis independent of payment date. These are recognized under other non-financial assets.

3.13 Leases

(a) Right-of-use assets

The Company recognizes right-of-use assets on the initial lease date (i.e., the date on which the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, adjusted by any new measurement of the lease liability. The cost of right-of-use assets includes the amount of recognized lease liabilities, direct initial costs incurred and lease payments made on the start date or sooner, less the lease incentives received. Unless the Company is reasonably sure it will take ownership of the leased asset at the end of the lease period, the assets recognized through right-of-use are depreciated in a straight line during the shortest period of their estimated useful life and lease period. Right-of-use assets are subject to impairment.

(b) Lease liabilities

On the lease start date, the Company recognizes lease liabilities measured at present value of lease payments that will be made during the lease period. Lease payments include fixed payments (including payments that are essentially fixed), less incentives for lease receivables, variable lease payments that are dependent on an index or rate and amounts that are expected to be paid as guaranteed residual value. Lease payments also include the exercise price of a purchase option if the Company is reasonably sure it will exercise this and penalty payments for terminating a lease, if the lease period reflects that the Company will exercise the option to terminate. Variable lease payments that are not dependent on an index or rate are recognized as expenses in the period that produces the event or condition that triggers payment.

When calculating the present value of lease payments, the Company uses the incremental borrowing rate on the initial lease date if the interest rate implicit in the lease cannot be determined easily. After the start date, the lease liability balance will increase to reflect the accumulation of interest and will diminish as lease payments are made. Furthermore, the book value of lease liabilities is remeasured in the event of an amendment, a change in the lease period, a change in the fixed lease payments in substance or a change in the assessment to buy the underlying asset.

Payments made that affect lease liabilities are presented as part of the financing activities in the cash flow statement.

25

Notes to the Consolidated Financial Statements
December 31, 2021

(c) Short-term leases and low-value asset leases

The Company applies the short-term lease recognition exemption to leases with a lease term of 12 months or less starting on the start date and that don’t have a purchase option. It also applies the low-value asset lease recognition exemptions to leases less than the limit specified in the respective accounting standard. Lease payments in short-term leases and low-value asset leases are recognized as lineal expenses during the lease term.

(d) Significant judgments in the determination of the lease term for contracts with renewal options.

The Company determines the lease term as the non-cancellable period of the lease, together with periods covered by an option to extend the lease if it is reasonably certain that this will be exercised, or any period covered by an option to terminate the lease, if it is reasonably certain that this will not be exercised.

The Company has the option, under some of its leases, to lease assets for additional terms. The Company applies its judgment when assessing whether it is reasonably certain that it will exercise the option to renovate. In other words, it considers all the relevant factors that create an economic incentive for it to exercise the option to renovate. After the start date, the Company reevaluates the lease term if there is a significant event or change in the circumstances that are under its control and affect its capacity to exercise (or not exercise) the option to renovate.

3.14 Inventory measurement

The method used to determine the cost of inventories is the weighted average monthly cost of warehouse storage. In determining production costs for own products, the company includes the costs of labor, raw materials, materials and supplies used in production, depreciation and maintenance of the goods that participate in the production process, the costs of product movement necessary to maintain stock on location and in the condition in which they are found, and also includes the indirect costs of each task such as laboratories, process and planning areas, and personnel expenses related to production, among others.

For finished and in-process products, the company has four types of provisions, which are reviewed quarterly:

(a) Provision associated with the lower value of stock: The provision is directly identified with the product that generates it and involves three types: (i) provision of lower realizable value, which corresponds to the difference between the inventory cost of intermediary or finished products, and the sale price minus the necessary costs to bring them to the same conditions and location as the product with which they are compared; (ii) provision for future uncertain use that corresponds to the value of those products in process that are likely not going to be used in sales based on the company’s long-term plans; (iii) reprocessing costs of products that are unfeasible for sale due to current specifications.

(b) Provision associated with physical differences in inventory: A provision is made for differences that exceed the tolerance considered in the respective inventory process (physical and annual inventories are taken for the productive units in Chile and the port of Tocopilla; the business subsidiaries depend on the last zero ground obtained, but in general it is at least once a year), these differences are recognized immediately.

(c) Potential errors in the determination of stock: The company has an algorithm that is reviewed at least once a year and corresponds to diverse percentages assigned to each inventory based on the product, location, complexity involved in the associated measurement, rotation and control mechanisms.

(d) Provisions undertaken by business subsidiaries: these are historical percentages that are adjusted as zero ground is attained based on normal inventory management.

26

Notes to the Consolidated Financial Statements
December 31, 2021

Inventories of raw materials, materials and supplies for production are recorded at acquisition cost. Cyclical inventories are performed in warehouses, as well as general inventories every three years. Differences are recognized at the moment they are detected. The company has a provision that makes quarterly calculations from percentages associated with each type of material (classification by warehouse and rotation), these percentages use the lower value resulting from deterioration or obsolescence as well as potential losses. This provision is reviewed at least annually, and considers the historical profit and loss obtained in the inventory processes.

3.15 Non-controlling interests

Non-controlling interests are recorded in the consolidated statement of financial position within equity but separate from equity attributable to the owners of the Parent.

3.16 Related party transactions

Transactions between the Company and its subsidiaries are part of the Company’s normal operations within its scope of business activities. Conditions for such transactions are those normally effective for those types of operations with regard to terms and market prices. The maturity conditions vary according to the originating transaction.

3.17 Property, plant and equipment

Property, plant and equipment are stated at acquisition cost, net of the related accumulated depreciation, amortization and impairment losses that they might have experienced.

In addition to the price paid for the acquisition of tangible property, plant and equipment, the Company has considered the following concepts as part of the acquisition cost, as applicable:

(a) Accrued interest expenses during the construction period that are directly attributable to the acquisition, construction or production of qualifying assets, which are those that require a substantial period prior to being ready for use. The interest rate used is that related to the project’s specific financing or, should this not exist, the average financing rate of the investor company.

(b) The future costs that the Company will have to experience, related to the closure of its facilities at the end of their useful life, are included at the present value of disbursements expected to be required to settle the and its subsequent variation is recorded directly in results.

Having initially recognized provisions for closure and refurbishment, the corresponding cost is capitalized as an asset in “Property, plant and equipment” and amortized in line with the amortization criteria for the associated assets.

Construction-in-progress is transferred to property, plant and equipment in operation once the assets are available for use and the related depreciation and amortization begins on that date.

Extension, modernization or improvement costs that represent an increase in productivity, ability or efficiency or an extension of the useful lives of property, plant and equipment are capitalized as a higher cost of the related assets. All the remaining maintenance, preservation and repair expenses are charged to expense as they are incurred.

The replacement of assets, which increase the asset’s useful life or its economic capacity, are recorded as a higher value of property, plant and equipment with the related derecognition of replaced or renewed elements.

Gains or losses which are generated from the sale or disposal of property, plant and equipment are recognized as income (or loss) in the period and calculated as the difference between the asset’s sales value and its net carrying value.

Costs derived from the daily maintenance of property, plant and equipment are recognized when incurred.

27

Notes to the Consolidated Financial Statements
December 31, 2021

3.18 Depreciation of property, plant and equipment

Property, plant and equipment are depreciated through the straight-line distribution of cost over the estimated technical useful life of the asset, which is the period in which the Company expects to use the asset. When components of one item of property, plant and equipment have different useful lives, they are recorded as separate assets and depreciated over their expected useful lives. Useful lives are reviewed on an annual basis.

Fixed assets located in the Salar de Atacama consider useful life to be the lesser value between the technical useful life and the years remaining until 2030.

In the case of certain mobile equipment, depreciation is performed depending on the hours of operation.

The useful lives used for the depreciation and amortization of assets included in property, plant and equipment in years are presented below:

Classes of property, plant and equipment	Minimum life or rate (years)		Maximum life or rate (years)		Life or average rate in years
Mining assets		3		10		7
Energy generating assets		3		16		9
Buildings		3		25		14
Supplies and accessories		2		10		7
Office equipment		5		10		9
Transport equipment		5		9		7
Network and communication equipment		4		10		5
IT equipment		4		11		7
Machinery, plant and equipment		2		25		13
Other fixed assets		3		20		10

3.19 Goodwill

Goodwill acquired represents the excess in acquisition cost on the fair value of the Company's ownership of the net identifiable assets of the subsidiary on the acquisition date. Goodwill acquired related to the acquisition of subsidiaries is included in the line item goodwill, which is subject to impairment tests annually or more frequently if events or changes in circumstances indicate that it might be impaired and is stated at cost less accumulated impairment losses. Gains and losses related to the sale of an entity include the carrying value of goodwill related to the entity sold.

This intangible asset is assigned to cash-generating units with the purpose of testing impairment losses. It is allocated based on cash-generating units expected to obtain benefits from the business combination from which the aforementioned goodwill acquired arose.

3.20 Intangible assets other than goodwill

Intangible assets other than goodwill mainly relate to water rights, emission rights, commercial brands, costs for rights of way for electricity lines, license costs and the development of computer software and mining property and concession rights, client portfolio and commercial agent.

28

Notes to the Consolidated Financial Statements
December 31, 2021

(a) Water rights

Water rights acquired by the Company relate to water from natural sources and are recorded at acquisition cost. The Company separates water rights into:

i) Finite rights with amortization using the straight-line method, and

ii) Indefinite rights, which are not amortized, given that these assets represent rights granted in perpetuity to the Company, which are subject to an annual impairment assessment.

(b) Rights of way for electric lines

As required for the operation of industrial plants, the Company has paid rights of way in order to install wires for the different electric lines on third party land. These rights are presented under intangible asset. Amounts paid are capitalized at the date of the agreement and amortized in the statement of income, according to the life of the right of way.

(c) Computer software

Licenses for IT programs acquired are capitalized based on their acquisition and customization costs. These costs are amortized over their estimated useful lives.

Expenses related to the development or maintenance of IT programs are recognized as an expense as and when incurred. Costs directly related to the production of unique and identifiable IT programs controlled by the SQM Group, and which will probably generate economic benefits that are higher than its costs during more than a year, are recognized as intangible assets. Direct costs include the expenses of employees who develop information technology software and general expenses in accordance with corporate charges received.

The costs of development for IT programs are recognized as assets are amortized over their estimated useful lives.

(d) Mining property and concession rights

The Company holds mining property and concession rights from the Chilean and Western Australian Governments. Property rights from the State of Chile are usually obtained at no initial cost (other than the payment of mining patents and minor recording expenses) and once the rights on these concessions have been obtained, they are retained by the Company while annual patents are paid. Such patents, which are paid annually, are recorded as prepaid assets and amortized over the following twelve months. Amounts attributable to mining concessions acquired from third parties that are not from the Chilean Government are recorded at acquisition cost within intangible assets.

(e)        Estimated useful lives or amortization rates used for finite identifiable intangible assets

The finite useful life of mining properties is calculated using the productive unit method, except for the mining properties owned by Corfo, which have been leased to the Company and grant it the right to exclusively exploit them until December 31, 2030.

The estimated useful life for software which they are amortized corresponds to the periods defined by the contracts or rights from which they originate.

29

Notes to the Consolidated Financial Statements
December 31, 2021

f) Minimum and maximum amortization lives or rates of intangible assets:

Estimated useful life or amortization rate	Minimum Life or Rate	Maximum Life or Rate
Water rights	5 years	Indefinite
Rights of way	Indefinite	Indefinite
Corfo Mining properties (1)	9 years	9 years
Mining rights	Unit-production method
Intellectual property	9 years	9 years
IT programs	2 years	8 years

(1) Mining properties owned by CORFO and leased to the Company, which grant it the exclusive right to exploit them until December 31, 2030.

3.21 Research and development expenses

Research and development expenses are charged to profit or loss in the period in which the expenditure was incurred.

3.22 Exploration and evaluation expenses

The Company holds mining concessions for exploration and exploitation of ore, the Company gives the following treatment to expenses associated with exploration and assessment of these resources:

Once the rights have been obtained, the Company records the disbursements directly associated with the exploration and evaluation of the deposit in execution as property, plant and equipment (construction in progress) at its cost. These disbursements include the following items: geological surveys, drilling, borehole extraction and sampling, activities related to the technical assessment and commercial viability of the extraction, and in general, any disbursement directly related to specific projects where the objective is to find ore resources. If the technical studies determine that the ore grade is not economically viable, the asset is directly charged to profit and loss. If determined otherwise, the asset described above is associated with the extractable ore tonnage which is amortized as it is used.

(a) Limestone and metallic exploration

These assets are included in Other Non-Current Non-Financial Assets, and the portion related to the area to be exploited in the year are reclassified to Current Inventory, if applicable.

(b) Exploration in Salar de Atacama

Exploration expenses in Salar de Atacama are included in non-current assets under Property, Plant and Equipment and are mainly bore holes that can also be used to exploit the deposit or monitoring, which are amortized over 9 years.

(c) Exploration and evaluation at the Mt. Holland Project

Mount Holland exploration and evaluation expenditure is included in Property, plant and equipment, specifically in Construction in Progress. See Note 1. 8.

30

Notes to the Consolidated Financial Statements
December 31, 2021

3.23 Impairment of non-financial assets

Assets subject to depreciation and amortization are also subject to impairment testing, provided that an event or change in the circumstances indicates that the amounts in the accounting records may not be recoverable, an impairment loss is recognized for the excess of the book value of the asset over its recoverable amount.

For assets other than goodwill, the SQM Group annually assesses whether there is any indication that a previously recognized impairment loss may no longer exist or may have decreased. Should such indications exist, the recoverable amount is estimated.

The recoverable amount of an asset is the higher between the fair value of an asset or cash generating unit less costs of sales and its value in use, and is determined for an individual asset unless the asset does not generate any cash inflows that are clearly independent from other assets or groups of assets.

In evaluating value in use, estimated future cash flows are discounted using a pre-tax discount rate that reflects current market assessment, the value of money over time and the specific asset risks.

Impairment losses from continuing operations are recognized with a debit to profit or loss in the categories of expenses associated with the impaired asset function.

For assets other than goodwill, a previously recognized impairment loss is only reversed if there have been changes in the estimates used to determine the asset’s recoverable amount since the last time an impairment loss was recognized. If this is the case, the carrying value of the asset is increased to its recoverable amount. This increased amount cannot exceed the carrying value that would have been determined, net of depreciation, if an asset impairment loss had not been recognized in prior years. This reversal is recognized with a credit to profit or loss.

Assets with indefinite lives are assessed for impairment annually.

The current value of future cash flows generated by these assets has been estimated given the variation in sales volumes, market prices and costs, discounted with a WACC rate. For December 31, 2021, the WACC rate was 9.90%.

3.24 Minimum dividend

As required by Chilean law and regulations, our dividend policy is decided upon from time to time by our Board of Directors and is announced at the Annual Ordinary Shareholders’ Meeting, which is generally held in April of each year. Shareholder approval of the dividend policy is not required. However, each year the Board must submit the declaration of the final dividend or dividends in respect of the preceding year, consistent with the then-established dividend policy, to the Annual Ordinary Shareholders’ Meeting for approval. As required by the Chilean Companies Act, unless otherwise decided by unanimous vote of the holders of issued shares, we must distribute a cash dividend in an amount equal to at least 30% of our consolidated net income for that year (determined in accordance with CMF regulations), unless and to the extent the Company has a deficit in retained earnings. (See Note 20.5).

3.25 Earnings per share

The basic earnings per share amounts are calculated by dividing the profit for the year attributable to the ordinary owners of the parent by the weighted average number of ordinary shares outstanding during the year.

The Company has not conducted any type of operation of potential dilutive effect that would entail the disclosure of diluted earnings per share.

31

Notes to the Consolidated Financial Statements 
December 31, 2021   

3.26 Other provisions

Provisions are recognized when:

·         The Company has a present, legal or constructive obligation as the result of a past event.

·         It is more likely than not that certain resources must be used, to settle the obligation.

·         A reliable estimate can be made of the amount of the obligation.

In the event that the provision or a portion of it is reimbursed, the reimbursement is recognized as a separate asset solely if there is certainty of income.

In the consolidated statement of income, the expense for any provision is presented net of any reimbursement.

Should the effect of the value of money over time be significant, provisions are discounted using a discount rate before tax that reflects the liability’s specific risks. When a discount rate is used, the increase in the provision over time is recognized as a finance cost.

The Company’s policy is to maintain provisions to cover risks and expenses based on a better estimate to deal with possible or certain and quantifiable responsibilities from current litigation, compensations or obligations, pending expenses for which the amount has not yet been determined, collaterals and other similar guarantees for which the Company is responsible. These are recorded at the time the responsibility or the obligation that determines the compensation or payment is generated.

3.27 Obligations related to employee termination benefits and pension commitments

Obligations towards the Company’s employees comply with the provisions of the collective bargaining agreements in force, which are formalized through collective employment agreements and individual employment contracts, except for the United States, which is regulated in accordance with employment plans in force up to 2002. (See more details in Note 18.4).

These obligations are valued using actuarial calculations, according to the projected unit credit method which considers such assumptions as the mortality rate, employee turnover, interest rates, retirement dates, effects related to increases in employees’ salaries, as well as the effects on variations in services derived from variations in the inflation rate.

Actuarial gains and losses that may be generated by variations in defined, pre-established obligations are directly recorded in “Other Comprehensive Income”.

Actuarial losses and gains have their origin in deviations between the estimate and the actual behavior of actuarial assumptions or in the reformulation of established actuarial assumptions.

The Company’s subsidiary SQM North America has established pension plans for its retired employees that are calculated by measuring the projected obligation using a net salary progressive rate net of adjustments for inflation, mortality and turnover assumptions, deducting the resulting amounts at present value. The net balance of this obligation is presented under the “Non-Current Provisions for Employee Benefits” (refer to Note 18.4).

3.28 Compensation plans

Compensation plans implemented through benefits provided in share-based payments settled in cash are recognized in the financial statements at their fair value, in accordance with IFRS 2. Changes in the fair value of options granted are recognized with a charge to payroll in the results for the period (see Note 18.6).

32

Notes to the Consolidated Financial Statements
December 31, 2021  

3.29 Revenue recognition

Revenue includes the fair value of considerations received or receivable for the sale of goods and services during the performance of the Company's activities. Revenue is presented net of value added tax, estimated returns, rebates and discounts and after the elimination of sales among subsidiaries.

Revenues are recognized when the specific conditions for each income stream are met, as follows:

(a)       Sale of goods

The sale of goods is recognized when the Company has delivered products to the customer, and there is no obligation pending compliance that could affect the acceptance of products by the customer. The delivery does not occur until products have been shipped to the customer or confirmed as received by the customer, and the related risks of obsolescence and loss have been transferred to the customer and the customer has accepted the products in accordance with the conditions established in the sale, when the acceptance period has ended, or when there is objective evidence that those criteria required for acceptance have been met.

Sales are recognized in consideration of the price set in the sales agreement, net of volume discounts and estimated returns at the date of the sale. Volume discounts are evaluated in consideration of annual foreseen purchases and in accordance with the criteria defined in agreements.

(b)      Sale of services

Revenue associated with the rendering of services is recognized considering the degree of completion of the service as of the date of presentation of the consolidated classified statement of financial position, provided that the result from the transaction can be estimated reliably.

(c)       Income from dividends

Income from dividends is recognized when the right to receive the payment is established.

3.30 Finance income and finance costs

Finance income is mainly composed of interest income from financial instruments such as term deposits and mutual fund deposits. Interest income is recognized in profit or loss at amortized cost, using the effective interest rate method.

Finance costs are mainly composed of interest on bank borrowing expenses, interest on bonds issued and interest capitalized for borrowing costs for the acquisition, construction or production or qualifying assets. Borrowing costs and bonds issued are also recognized in profit or loss using the effective interest rate method.

3.31 Current income tax and deferred

Corporate income tax for the year is determined as the sum of current and deferred income taxes from the different consolidated companies.

Current taxes are based on the application of the various types of taxes attributable to taxable income for the period. The Company periodically assesses the positions taken in the determination of taxes with respect to situations in which the applicable tax regulation is subject to interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The Company measures its tax balances based on the most probable amount or expected value, depending on which method provides a better prediction of the resolution of uncertainty.

Differences between the book value of assets and liabilities and their tax basis generate the balance of deferred tax assets or liabilities, which are calculated using the tax rates expected to be applicable when the assets and liabilities are realized.

33

Notes to the Consolidated Financial Statements
December 31, 2021  

In conformity with current tax regulations, the provision for corporate income tax and taxes on mining activity is recognized on an accrual basis, presenting the net balances of accumulated monthly tax provisional payments for the fiscal period and associated credits. The balances of these accounts are presented in current income taxes recoverable or current taxes payable, as applicable.

Income tax and variations in deferred tax assets or liabilities that are not the result of business combinations are recorded in income or equity, considering the origin of the gains or losses which have generated them.

At each reporting period, the carrying amount of deferred tax assets is reviewed and recognized only if it is probable that future taxable amounts will be available to allow the recovery of all or a portion of the deferred tax assets.

With respect to deductible temporary differences associated with investments in subsidiaries, associated companies and interest in joint ventures, deferred tax assets are recognized solely provided that it is more likely than not that the temporary differences will be reversed in the near future and that there will be taxable income with which they may be used. The deferred taxes related to items directly recognized in equity is registered with effect on other comprehensive income and not with effect on income.

Deferred tax assets and liabilities are offset if there is a legally receivable right of offsetting tax assets against tax liabilities and the deferred tax is related to the same tax entity and authority.

The recognized deferred tax assets refer to the amount of income tax to recover in future periods, related to:

a)	deductible temporary differences;
b)	compensation for losses obtained in prior periods, which have not yet been subject to tax deduction; and
c)	compensation for unused credits from prior periods.

The Company recognizes deferred tax assets when it has the certainty that they can be offset with tax income from subsequent periods, unused tax losses or credits to date, but only when this availability of future tax income is probable and can be used for offsetting these unused tax losses or credits.

The recognized deferred tax liabilities refer to the amount of income tax to pay in a future period, related to taxable temporary differences.

The Company does not recognize deferred tax liabilities in all cases of taxable temporary differences associated with investments in subsidiaries, branches and associates, or with joint ventures, because based on the standard, the two following conditions both apply:

(i)	the parent company, investor or shareholder is capable of controlling the moment of the reversal of temporary differences; and
(ii)	it is probable that the temporary difference will not be reversed in the foreseeable future.

Moreover, the Company does not recognize deferred tax assets for all the deductible temporary differences that originate from investments in subsidiaries, branches and associates, or from joint ventures, because it is unlikely that they meet the following requirements:

(i)	temporary differences are reversed in the foreseeable future; and
(ii)	there is taxable profit available against which temporary differences can be used.

34

Notes to the Consolidated Financial Statements
December 31, 2021  

3.32 Operating segment reporting

IFRS 8 requires that companies adopt a management approach to disclose information on the operations generated by its operating segments. In general, this is the information that management uses internally for the evaluation of segment performance and making the decision on how to allocate resources for this purpose.

An operating segment is a group of assets and operations responsible for providing products or services subject to risks and performance that are different from those of other business segments. A geographical segment is responsible for providing products or services in a given economic environment subject to risks and performance that are different from those of other segments operating in other economic environments.

Allocation of assets and liabilities, to each segment is not possible given that these are associated with more than one segment, except for depreciation, amortization and impairment of assets, which are directly allocated in accordance with the criteria established in the costing process for product inventories to the corresponding segments.

3.33 Primary accounting criteria, estimates and assumptions

Management is responsible for the information contained in these consolidated annual accounts, which expressly indicate that all the principles and criteria included in IFRS, as issued by the IASB, have been applied in full.

In preparing the consolidated financial statements of the Company and its subsidiaries, management has made significant judgments and estimates to quantify certain assets, liabilities, revenues, expenses and commitments included therein. Basically, these estimates refer to:

· Estimated useful lives are determined based on current facts and past experience and take into consideration the expected physical life of the asset, the potential for technological obsolescence, and regulations. (See Notes 3.20, 15 and 16).

· Impairment losses of certain assets - Goodwill and intangible assets that have an indefinite useful life are not amortized and are assessed for impairment on an annual basis, or more frequently if the events or changes in circumstances indicate that these may have deteriorated Other assets, including property, plant and equipment, exploration assets, goodwill and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts exceed their recoverable amounts. If an impairment assessment is required, the assessment of fair value or value in use often requires estimates and assumptions such as discount rates, exchange rates, commodity prices, future capital requirements and future operating performance. Changes in such estimates could impact the recoverable values of these assets. Estimates are reviewed regularly by management (See Notes 15 and 16).

· Assumptions used in calculating the actuarial amount of pension-related and severance indemnity payment benefit commitments (See Note 18).

· Contingencies – The amount recognized as a provision, including legal, contractual, constructive and other exposures or obligations, is the best estimate of the consideration required to settle the related liability, including any related interest charges, considering the risks and uncertainties surrounding the obligation. In addition, contingencies will only be resolved when one or more future events occur or fail to occur. Therefore, the assessment of contingencies inherently involves the exercise of significant judgment and estimates of the outcome of future events. The Company assesses its liabilities and contingencies based upon the best information available, relevant tax laws and other appropriate requirements (See Note 21). If the Company is unable to rationally estimate the obligation or concluded no loss is probable but it is reasonably possible that a loss may be incurred, no provision is recorded but disclosed in the notes to the consolidated financial statements.

35

 

Notes to the Consolidated Financial Statements
December 31, 2021  

· Volume determination for certain in-process and finished products is based on topographical measurements and technical studies that cover the different variables (density for bulk inventories and density and porosity for the remaining stock, among others), and related allowance.

· Estimates for obsolescence provisions to ensure that the carrying value of inventory is not in excess of the net realizable Inventory valuation. (See Note 11).

Even though these estimates have been made on the basis of the best information available on the date of preparation of these consolidated financial statements, certain events may occur in the future and oblige their amendment (upwards or downwards) over the next few years, which would be made prospectively.

3.34 Environment

In general, the Company follows the criteria of considering amounts used in environmental protection and improvement as environmental expenses. However, the cost of facilities, machinery and equipment used for the same purpose are considered property, plant and equipment, as the case may be.

36

Notes to the Consolidated Financial Statements
December 31, 2021  

Note 4 Financial risk management

4.1 Financial risk management policy

The Company’s financial risk management policy is focused on safeguarding the stability and sustainability of the Company and its subsidiaries with regard to all such relevant financial uncertainty components.

The Company’s operations are subject to certain financial risk factors that may affect its financial position or results. The most significant risk exposures are market risk, liquidity risk, currency risk, credit risk, and interest rate risk, among others.

There could also be additional risks, which are either unknown or known but not currently deemed to be significant, which could also affect the Company’s business operations, its business, financial position, or profit or loss.

The financial risk management structure includes identifying, determining, analyzing, quantifying, measuring and controlling these events. Management and in particular, Finance Management, is responsible for constantly assessing the financial risk.

37

Notes to the Consolidated Financial Statements
December 31, 2021  

4.2 Risk Factors

(a) Credit risk

A global economic contraction may have potentially negative effects on the financial assets of the Company, which are primarily made up of financial investments and trade receivables, and the impact on of our customers could extend the payment terms of the Company's receivables by increasing its exposure to credit risk. Although measures are taken to minimize the risk, this global economic situation could mean losses with adverse material effects on the business, financial position or profit and loss of the Company's operations.

Trade receivables: to mitigate credit risk, the Company maintains active control of collection and requires the use of credit insurance. Credit insurance covers the risk of insolvency and unpaid invoices corresponding to 80% of all receivables with third parties. The credit risk associated with receivables is analyzed in Note 13.2 b) and the related accounting policy can be found in Note 3.6.

Bank Notes: These are negotiable promissory notes issued by a bank payable at maturity. They are accepted based on the credit quality of the issuing banks.

No significant modifications have been made during the period to risk models or parameters used in comparison to December 31, 2020, and no modifications have been made to contractual cash flows that have been significant during this period.

Financial investments: correspond to time deposits whose maturity date is greater than 90 days and less than 360 days from the date of investment, so they are not exposed to excessive market risks. The counterparty risk in implementation of financial operations is assessed on an ongoing basis for all financial institutions in which the Company holds financial investments.

The credit quality of financial assets that are not past due or impaired can be evaluated by reference to external credit ratings (if they are available) or historical information on counterparty late payment rates:

Financial institution	Financial assets	Rating			As of December 31, 2021
		Moody´s	S&P	Fitch	ThUS$
Banco crédito e Inversiones	Time deposits	P-1	A-2	F2-		9,752
Banco Itaú Corpbanca	Time deposits	P-2	A-2	-		8,001
Banco Santander – Santiago	Time deposits	P-1	A-2	-		9,052
Scotiabank Sud Americano	Time deposits	P-1	A-1	F1+		10,750
Other banaanks	Time deposits	-	-	F1+		200,100
JP Morgan US dollar Liquidity Fund Institutional	Investment fund	Aaa-mf	AAAm	AAAmmf		381,297
Legg Mason - Western Asset Institutional cash reserves	Investment fund	-	AAAm	AAAmmf		233,648
Total						852,600

38

Notes to the Consolidated Financial Statements
December 31, 2021  

Financial institution	Financial assets	Rating			As of December 31, 2021
		Moody´s	S&P	Fitch	ThUS$
Banco Crédito e Inversiones	Time deposits	P-1	A-2	-		34,325
Banco Itaú Corpbanca	Time deposits	P-2	A-2	-		195,471
Banco Santander – Santiago	Time deposits	P-1	A-2	-		65,899
Scotiabank Sud Americano	Time deposits	P-1	A-1	F1+		289,421
Sumitomo Mitsui Banking	Time deposits	P-1	-	F1		320,054
Total						905,170

Financial institution	Financial assets	Rating			As of December 31, 2020
		Moody´s	S&P	Fitch	ThUS$
Banco de Crédito e Inversiones	Time deposits	P-1	A-1	-		9,002
Banco de Chile	Time deposits	P-1	A-1	-		10,503
Banco Estado	Time deposits	P-1	A-1	-		1,001
Banco Itaú Corpbanca	Time deposits	P-2	A-2	-		7,299
Banco Santander – Santiago	Time deposits	P-1	A-1	-		16,702
Scotiabank Sud Americano	Time deposits	-	-	F1+		7,002
JP Morgan US dollar Liquidity Fund Institutional	Investment fund	Aaa-mf	AAAm	AAAmmf		102,753
Legg Mason - Western Asset Institutional cash reserves	Investment fund	-	AAAm	AAAmmf		107,625
Other banks with lower balances	Time deposits	-	-	-		86
Total						261,973

Financial institution	Financial assets	Rating			As of December 31, 2020
		Moody´s	S&P	Fitch	ThUS$
Banco de Crédito e Inversiones	Time deposits	P-1	A-1	-		185,589
Banco Itaú Corpbanca	Time deposits	P-2	A-2	-		49,006
Banco Santander – Santiago	Time deposits	P-1	A-1	-		45,168
Banco Scotiabank Sud Americano	Time deposits	-	-	F1+		31,668
JP Morgan Asset Management	Investment fund	P-1	A-1	N1+		34,028
Total						345,459

39

Notes to the Consolidated Financial Statements
December 31, 2021  

Financial institution	Financial assets	Rating			As of December 31, 2021
		Moody´s	S&P	Fitch	ThUS$
Agricultural Bank of China	Bank notes	+	-	-		860
Bank of China Limited	Bank notes	+	-	-		4,167
Bank of Communications	Bank notes	+	-	-		7,422
China CITIC Bank Corp Ltd	Bank notes	++	-	-		2,623
China Construction Bank Corporation	Bank notes	+	-	-		7,122
China Everbright Bank Co. Ltd	Bank notes	++	-	-		6,569
China Merchants Bank	Bank notes	+	-	-		22,628
China Minsheng Bank Corporation	Bank notes	-	-	++		784
Industrial & Commercial Bank of China Limited	Bank notes	+	-	-		353
Industrial Bank	Bank notes	+	-	-		6,615
Ping An Bank	Bank notes	++	-	-		8,391
Shanghai Pudong Development Bank Co. Ltd	Bank notes	++	-	-		7,905
China Development Bank	Bank notes	-	-	+		16,807
Postal Savings Bank of China	Bank notes	-	+	-		4,718
KEB Hana Bank (China)	Bank notes	+	-	-		1,121
Total						98,085

(+) Good credit rating

(++) Satisfactory credit rating

(b) Currency risk

The functional currency of the company is the US dollar, due to its influence on the determination of price levels, its relation to the cost of sales and considering that a significant part of the Company’s business is conducted in this currency. However, the global nature of the Company's business generates an exposure to exchange rate variations of several currencies with the US dollar. Therefore, the Company maintains hedge contracts to mitigate the exposure generated by its main mismatches (net between assets and liabilities) in currencies other than the US dollar against the exchange rate variation, updating these contracts periodically depending on the amount of mismatching to be covered in these currencies. Occasionally, subject to the approval of the Board, the Company ensures short-term cash flows from certain specific line items in currencies other than the US dollar.

A significant portion of the Company’s costs, especially salary payments, is associated with the Peso. Therefore, an increase or decrease in its exchange rate with the US dollar will provoke a respective decrease or increase to these accounting costs, which would be reflected in the Company’s profit and loss. By the fourth quarter of 2021, approximately US$ 530 million accumulated in expenses are associated with the Peso.

As of December 31, 2021, the Company held derivative instruments classified as hedges of foreign exchange risks associated with 100% of all of the bond liabilities denominated in UF, for a liability at fair value of US$ 81.85 million, this significant variation is explained primarily by the USD/CLP exchange rate observed at the end of the period. As of December 31, 2020, an asset was recognized amounting to US$ 18.41 million.

Furthermore, on of December 31, 2021, the Company held derivative instruments classified as hedges of foreign exchange risks associated with 100% of all nominative term deposits in UF and in pesos, at a fair value of US$ 12.61 million in assets. On December 31, 2020, a liability was recognized for an amount of US$ 21 million.

The Company had the following derivative contracts as of December 31, 2021 (at the absolute value of the sum of their notional values), to hedge the difference between its assets and liabilities: US$ 85.25 CLP/US dollar derivative contracts, US$ 60.98 Euro/US dollar derivative contracts, US$ 37.07 million in South African rand/US dollar derivative contracts, US$ 207.64 million in Chinese renminbi/US dollar derivative contracts, US$ 57.51 million in Australian dollar/US dollar derivative contracts and US$ 11.95 million in other currencies.

40

Notes to the Consolidated Financial Statements
December 31, 2021  

These derivative contracts are held with domestic and foreign banks, which have the following credit ratings.

		Rating
Financial institution	Financial assets	Moody´s	S&P	Fitch
Banco Estado	Derivative	P-1	A-1	-
Merrill Lynch International	Derivative	-	A+	AA
Banco Itau-Corpbanca	Derivative	P-2	A-2	-
JP Morgan	Derivative	Aa2	A+	AA
Morgan Stanley	Derivative	A+	BBB+	A
The Bank of Nova Scotia	Derivative	A	A-	AA-

(c) Interest rate risk

Interest rate fluctuations, primarily due to the uncertain future behavior of markets, may have a material impact on the financial results of the Company. Significant increases in the rate could make it difficult to access financing at attractive rates for the Company's investment projects.

The Company maintains current and non-current financial debt at fixed rates and LIBOR rate plus spread.

As of December 31, 2021, the Company ha 2.7% of its financial liabilities linked to variations in the LIBOR rate. 100% of these obligations are covered by derivative instruments classified as interest rate hedging; therefore, a significant rate increase would not impact our financial condition.

(d) Liquidity risk

Liquidity risk relates to the funds needed to comply with payment obligations. The Company’s objective is to maintain financial flexibility through a comfortable balance between fund requirements and cash flows from regular business operations, bank borrowings, bonds, short term investments, and marketable securities, among others. For this purpose, the Company keeps a high liquidity ratio¹, which enables it to cover current obligations with clearance. (As of December 31, 2021, this was 4.76 and 5.40 for December 31, 2020).

The Company has an important capital expense program which is subject to change over time.

On the other hand, world financial markets go through periods of contraction and expansion that are unforeseeable in the long-term and may affect The Company’s access to financial resources. Such factors may have a material adverse impact on the Company’s business, financial position and results of operations.

The Company constantly monitors the matching of its obligations with its investments, taking due care of maturities of both, from a conservative perspective, as part of this financial risk management strategy. As of December 31, 2021, the Company had unused, available revolving credit facilities with banks, for a total of US$ 489 million.

The position in other cash and cash equivalents are invested in highly liquid mutual funds with an AAA risk rating.

¹ All current assets divided by all current liabilities.

41

  Notes to the Consolidated Financial Statements 
December 31, 2021  

	Nature of undiscounted cash flows
As of December 31, 2021 (Figures expressed in millions of US dollars)	Carrying amount		Less than 1 year		1 to 5 years		Over 5 years		Total
Bank borrowings		70.08		1.05		70.64		-		71.69
Unsecured obligations		2,518.64		108.06		924.03		2,980.91		4,013.00
Sub total		2,588.72		109.11		994.67		2,980.91		4,084.69
Hedging liabilities		85.25		12.38		31.58		39.70		83.66
Derivative financial instruments		1.67		1.67		-		-		1.67
Sub total		86.92		14.05		31.58		39.70		85.33
Current and non-current lease liabilities		54.22		8.88		30.97		29.08		68.93
Trade accounts payable and other accounts payable		279.65		279.65		-		-		279.65
Total		3,009.51		411.69		1,057.22		3,049.69		4,518.6

	Nature of undiscounted cash flows
As of December 31, 2020 (Figures expressed in millions of US dollars)	Carrying amount		Less than 1 year		1 to 5 years		Over 5 years		Total
Bank borrowings		70.08		0.94		71.40		-		72.34
Unsecured obligations		1,872.09		88.22		927.17		1,727.14		2,742.53
Sub total		1,942.17		89.16		998.57		1,727.14		2,814.87
Hedging liabilities		40.21		6.06		12.34		11.07		29.47
Derivative financial instruments		5.39		5.39		-		-		5.39
Sub total		45.60		11.45		12.34		11.07		34.86
Current and non-current lease liabilities		31.07		6.40		21.04		7.17		34.61
Trade accounts payable and other accounts payable		203.93		203.93		-		-		203.93
Total		2,222.77		310.94		1,031.95		1,745.38		3,088.27

As of December 31, 2021, the nominal value of the agreed cash flows in US dollars of the CCS contracts were ThUS$ 549,239 (ThUS$ 565,295 as of December 31, 2020).

4.3 Risk measurement

The Company has methods to measure the effectiveness and efficiency of financial risk hedging strategies, both prospectively and retrospectively. These methods are consistent with the risk management profile of the SQM Group. See Note 13.8.

42

  Notes to the Consolidated Financial Statements 
December 31, 2021  

Note 5 Separate information on the main office, parent entity and joint action agreements

5.1 Parent’s stand-alone assets and liabilities

Parent’s stand-alone assets and liabilities	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Assets		5,988,757			4,171,768
Liabilities		(2,807,237	)		(2,048,683	)
Equity		3,181,520			2,123,085

5.2 Parent entity

Pursuant to Article 99 of the Securities Market Law, the CMF may determine that a company does not have a controlling entity in accordance with the distribution and dispersion of its ownership. On November 30, 2018, the CMF issued the ordinary letter No. 32,131 whereby it determined that the Pampa Group do not exert decisive power over the management of the Company since it does not have a predominance in the ownership that allows it to make management decisions. Therefore, the CMF has determined not to consider Pampa Group the controlling entity of the Company and that the Company does not have a controlling entity given its current ownership structure.

43

  Notes to the Consolidated Financial Statements 
December 31, 2021  

Note 6 Board of Directors, Senior Management and Key management personnel

6.1 Remuneration of the Board of Directors and Senior Management

(a) Board of directors

SQM S.A. is managed by a Board of Directors which is composed of 8 directors, who are elected for a three-year period. The Board of Directors was elected during the ordinary shareholders’ meeting held on April 25, 2019, which included the election of 2 independent directors.

As of December 31, 2021, the Company included the following committees and committee members:

- Directors’ Committee: This committee is comprised by Georges de Bourguignon, Laurence Golborne Riveros y Alberto Salas Muñoz, and fulfills the functions established in Article 50 bis of Chilean Law on publicly-held corporations. This committee takes on the role of the audit committee in accordance with the US-based Sarbanes Oxley law.

- The Company’s Health, Safety and Environment Committee: This committee is comprised of Gonzalo Guerrero Yamamoto, Patricio Contesse Fica y Ashley Ozols¹.

- Corporate Governance Committee: This committee is comprised of Hernán Büchi Buc, Patricio Contesse Fica y Francisco Ugarte Larrain.

During the periods covered by these financial statements, there are no pending receivable and payable balances between the Company, its directors or members of Senior Management, other than those related to remuneration, fee allowances and profit-sharing. Except for a consulting contract between the Company and the Director Gonzalo Guerrero as disclosed in Note 12. There were no other transactions conducted between the Company, its directors or members of Senior Management.

(b) Board of Directors’ Compensation

Directors’ compensation differs according to the period during the corresponding year. Thus, from April 22, 2020 to April 23, 2021 (Period 2020), Directors’ compensation was determined by the annual general shareholders' meeting held on April 22, 2020. While for the following period (Period 2021), Directors’ compensation was determined by the annual general shareholders' meeting held on April 23, 2021. For each of these periods, Directors’ compensation is detailed as follows:

Period 2020:

(i)	The payment of a fixed, gross and monthly amount of UF 800 in favor of the Chairman of the Board of Directors, of UF 700 in favor of the vice-president of the board of directors and of UF 600 in favor of the remaining six directors and regardless of the number of Board of Directors’ Meetings held or not held during the related month.
(ii)	A variable gross amount payable in national currency to the Chairman and Vice President of the Company equivalent to 0.09% of the net liquid income earned by the Company in 2020;
(iii)	A variable gross amount payable in local currency to each Company director, excluding the Chairman and Vice President of the Company, equivalent to 0.045% of the net liquid income earned by the Company in 2020.

Period 2021:

(i)	The payment of a fixed, gross and monthly amount of UF 800 in favor of the Chairman of the Board of Directors, of UF 700 in favor of the vice-president of the board of directors and of UF 600 in favor of the remaining six directors and regardless of the number of Board of Directors’ Meetings held or not held during the related month.
(ii)	A variable gross amount payable in national currency to the Chairman and Vice President of the Company equivalent to 0.12% of the net liquid income that the Company effectively obtains during the 2021;
(iii)	A variable gross amount payable in local currency to each Company director, excluding the Chairman and Vice President of the Company, equivalent to 0.06% of the net liquid income that the Company effectively obtains during the 2021.

¹Ashley Ozols was appointed a Director on December 22, 2021 to replace Mr. Robert Zatta who renounced his position with effect from December 21, 2021.

44

  Notes to the Consolidated Financial Statements 
December 31, 2021  

These fixed and variable amounts for both periods shall not be challenged and those expressed in percentage terms shall be paid immediately after the respective annual general shareholders meeting approves the financial statements, the annual report, the account inspectors report and the external auditors report for the respective year. All amounts expressed in UF shall be paid in Chilean pesos at its value on the last day of the respective calendar month, as determined by the CMF (formerly Superintendence of Banks and Financial Institutions) the Chilean Central Bank or any other relevant institution that replaces them.

Accordingly, the compensation and profit sharing paid to members of the Directors' Committee and the directors as of December 31, 2021 amounted to ThUS$ 3,749 and as of December 31, 2020 to ThUS$ 4,553.

(c) Directors’ Committee compensation

Directors' Committee compensation differs according to the period during the corresponding year. Thus, for the Period 2020, Directors’ Committee compensation was determined by the annual general shareholders' meeting held on April 22, 2020. While for the Period 2021, Directors’ Committee compensation was determined by the annual general shareholders' meeting held on April 23, 2021. For each of these periods the compensation of the Directors Committee comprises:

Period 2020:

(i) The payment of a fixed, gross and monthly amount of UF 200 in favor of each of the 3 directors who were members of the Directors’ Committee, regardless of the number of meetings of the Directors’ Committee that have or have not been held during the month concerned.

(ii) The payment in domestic currency and in favor of each of the 3 directors of a variable and gross amount equivalent to 0.015% of total net profit that the Company effectively obtains during the 2020 fiscal year.

Period 2021:

(i) The payment of a fixed, gross and monthly amount of UF 200 in favor of each of the 3 directors who were members of the Directors’ Committee, regardless of the number of meetings of the Directors’ Committee that have or have not been held during the month concerned.

(ii) The payment in domestic currency and in favor of each of the 3 directors of a variable and gross amount equivalent to 0.02% of total net profit that the Company effectively obtains during the 2021 fiscal year.

These fixed and variable amounts for both periods shall not be challenged and those expressed in percentage terms shall be paid immediately after the respective annual general shareholders meeting approves the financial statements, the annual report, the account inspectors report and the external auditors report for the respective year. All amounts expressed in UF shall be paid in Chilean pesos at its value on the last day of the respective calendar month, as determined by the CMF (formerly Superintendence of Banks and Financial Institutions) the Chilean Central Bank or any other relevant institution that replaces them.

(d) Health, Safety and Environmental Matters Committee:

The remuneration of this committee for the 2020 period was composed of the payment of a fixed, gross, monthly amount of UF 100 for each of the 3 directors on the committee regardless of the number of meetings it has held. For the 2021 period, this remuneration remains unchanged.

(e) Corporate Governance Committee

The remuneration for this committee for the 2020 period was composed of the payment of a fixed, gross, monthly amount of UF 100 for each of the 3 directors on the committees regardless of the number of meetings it has held. For the 2021 period, this remuneration remains unchanged.

(f) Guarantees constituted in favor of the directors

No guarantees have been constituted in favor of the directors.

45

  Notes to the Consolidated Financial Statements 
December 31, 2021  

(g) Senior management compensation:

(i)	This includes monthly fixed salary and variable performance bonuses. (See Note 6.2)
(ii)	The Company has an annual bonus plan based on goal achievement and individual contribution to the Company’s results. These incentives are structured as a minimum and maximum number of gross monthly salaries and are paid once a year.
(iii)	In addition, there are retention bonuses for its executives (see Note 18.6)

(h) Guarantees pledged in favor of the Company’s management

No guarantees have been pledged in favor of the Company’s management.

(i) Pensions, life insurance, paid leave, shares in earnings, incentives, disability loans, other than those mentioned in the above points.

The Company’s Management and Directors do not receive or have not received any benefit during the ended December 31, 2021 and 2020 or compensation for the concept of pensions, life insurance, paid time off, profit sharing, incentives, or benefits due to disability other than those mentioned in the preceding points.

6.2 Key management personnel compensation

As of December 31, 2021 and 2020, the number of the key management personnel is 127 and 126, respectively.

Key management personnel compensation	For the year ended December 31, 2021		For the year ended December 31, 2020
	ThUS$		ThUS$
Key management personnel compensation		31,560		23,770

Please also see the description of the compensation plan for executives in Note 18.6.

46

  Notes to the Consolidated Financial Statements 
December 31, 2021  

Note 7 Background on companies included in consolidation and non-controlling interests

7.1 Background on companies included in consolidation

The following tables detail general information as of December 31, 2021 on the companies in which the SQM Group exercises control and significant influence:

			Country of	Functional	Ownership Interest
Subsidiaies	TAX ID No.	Address	Incorporation	Currency	Direct	Indirect	Total
SQM Nitratos S.A.	96.592.190-7	El Trovador 4285, Las Condes	Chile	Dollar	99.9999	0.0001	100.0000
SQM Potasio S.A.	96.651.060-9	El Trovador 4285, Las Condes	Chile	Dollar	99.9999	-	100.0000
Serv. Integrales de Tránsito y Transf. S.A.	79.770.780-5	Arturo Prat 1060, Tocopilla	Chile	Dollar	0.0003	99.9997	100.0000
Isapre Norte Grande Ltda.	79.906.120-1	Anibal Pinto 3228, Antofagasta	Chile	Peso	1.0000	99.0000	100.0000
Ajay SQM Chile S.A.	96.592.180-K	Av. Pdte. Eduardo Frei 4900, Santiago	Chile	Dollar	51.0000	-	51.0000
Almacenes y Depósitos Ltda.	79.876.080-7	El Trovador 4285, Las Condes	Chile	Peso	1.0000	99.0000	100.0000
SQM Salar S.A.	79.626.800-K	El Trovador 4285, Las Condes	Chile	Dollar	18.1800	81.8200	100.0000
SQM Industrial S.A.	79.947.100-0	El Trovador 4285, Las Condes	Chile	Dollar	99.0470	0.9530	100.0000
Exploraciones Mineras S.A.	76.425.380-9	El Trovador 4285, Las Condes	Chile	Dollar	0.2691	99.7309	100.0000
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	76.534.490-5	Anibal Pinto 3228, Antofagasta	Chile	Peso	-	100.0000	100.0000
Soquimich Comercial S.A.	79.768.170-9	El Trovador 4285, Las Condes	Chile	Dollar	-	60.6383	60.6383
Comercial Agrorama Ltda. (1)	76.064.419-6	El Trovador 4285, Las Condes	Chile	Peso	-	70.0000	70.0000
Comercial Hydro S.A.	96.801.610-5	El Trovador 4285, Las Condes	Chile	Dollar	-	100.0000	100.0000
Agrorama S.A.	76.145.229-0	El Trovador 4285, Las Condes	Chile	Peso	-	100.0000	100.0000
Orcoma Estudios SPA	76.359.919-1	Apoquindo 3721 OF 131, Las Condes	Chile	Dollar	100.0000	-	100.0000
Orcoma SPA	76.360.575-2	Apoquindo 3721 OF 131, Las Condes	Chile	Dollar	100.0000	-	100.0000
SQM MaG SpA	76.686.311-9	Los Militares 4290, Las Condes	Chile	Dollar	-	100.000	100.0000
Sociedad Contractual Minera Búfalo	77.114.779-8	Los Militares 4290, Las Condes	Chile	Dollar	99.9000	0.1000	100.0000
SQM North America Corp.	Foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA	United States of America	Dollar	40.0000	60.0000	100.0000
RS Agro Chemical Trading Corporation A.V.V.	Foreign	Caya Ernesto O. Petronia 17, Orangestad	Aruba	Dollar	98.3333	1.6667	100.0000
Nitratos Naturais do Chile Ltda.	Foreign	Al. Tocantis 75, 6° Andar, Conunto 608 Edif. West Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo	Brazil	Dollar	-	100.0000	100.0000
SQM Corporation N.V.	Foreign	Pietermaai 123, P.O. Box 897, Willemstad, Curacao	Curacao	Dollar	0.0002	99.9998	100.0000
SQM Perú S.A.	Foreign	Avenida Camino Real N° 348 of. 702, San Isidro, Lima	Peru	Dollar	0.0091	99.9909	100.0000
SQM Ecuador S.A.	Foreign	Av. José Orrantia y Av. Juan Tanca Marengo Edificio Executive Center Piso 2 Oficina 211	Ecuador	Dollar	0.00401	99.9960	100.0000
SQM Brasil Ltda.	Foreign	Al. Tocantis 75, 6° Andar, Conunto 608 Edif. West Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo	Brazil	Dollar	0.7100	99.2900	100.0000
SQMC Holding Corporation.	Foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta	United States of America	Dollar	0.1000	99.9000	100.0000
SQM Japan Co. Ltd.	Foreign	From 1st Bldg 207, 5-3-10 Minami- Aoyama, Minato-ku, Tokyo	Japan	Dollar	0.1597	99.8403	100.0000

(1) SQM controls Soquimich Comercial, which in turn controls Comercial Agrorama Ltda, SQM has management control over Comercial Agrorama Ltda.

47

  Notes to the Consolidated Financial Statements 
December 31, 2021  

			Country of	Functional	Ownership Interest
Subsidiaries	TAX ID No.	Address	Incorporation	Currency		Direct	Indirect	Total
SQM Europe N.V.	Foreign	Houtdok-Noordkaai 25a B-2030 Amberes	Belgium	Dollar		0.5800	99.4200	100.0000
SQM Indonesia S.A.	Foreign	Perumahan Bumi Dirgantara Permai, Jl Suryadarma Blok Aw No 15 Rt 01/09 17436 Jatisari Pondok Gede	Indonesia	Dollar		-	80.0000	80.0000
North American Trading Company	Foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA	United States of America	Dollar		-	100.0000	100.0000
SQM Virginia LLC	Foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA	United States of America	Dollar		-	100.0000	100.0000
SQM Comercial de México S.A. de C.V.	Foreign	Av. Moctezuma 144-4 Ciudad del Sol CP 45050, Zapopan, Jalisco México	Mexico	Dollar		0.0100	99.9900	100.0000
SQM Investment Corporation N.V.	Foreign	Pietermaai 123, P.O. Box 897, Willemstad, Curacao	Curacao	Dollar		1.0000	99.0000	100.0000
Royal Seed Trading Corporation A.V.V.	Foreign	Caya Ernesto O. Petronia 17, Orangestad	Aruba	Dollar		1.6700	98.3300	100.0000
SQM Lithium Specialties Limited Partnership	Foreign	2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA	United States of America	Dollar		-	100.0000	100.0000
Comercial Caimán Internacional S.A.	Foreign	Edificio Plaza Bancomer	Panama	Dollar		-	100.0000	100.0000
SQM France S.A.	Foreign	ZAC des Pommiers 27930, FAUVILLE	France	Dollar		-	100.0000	100.0000
Administración y Servicios Santiago S.A. de C.V.	Foreign	Av. Moctezuma 144-4 Ciudad del Sol CP 45050, Zapopan, Jalisco México	Mexico	Dollar		-	100.0000	100.0000
SQM Nitratos México S.A. de C.V.	Foreign	Av. Moctezuma 144-4 Ciudad del Sol CP 45050, Zapopan, Jalisco México	Mexico	Dollar		-	100.0000	100.0000
Soquimich European Holding B.V.	Foreign	Loacalellikade 1 Parnassustoren 1076 AZ Amsterdan	Holland	Dollar		-	100.0000	100.0000
SQM Iberian S.A.	Foreign	Provenza 251 Principal 1a CP 08008, Barcelona	Spain	Dollar		-	100.0000	100.0000
SQM Africa Pty Ltd.	Foreign	Tramore House, 3 Waterford Office Park, Waterford Drive, 2191 Fourways, Johannesburg	South Africa	Dollar		-	100.0000	100.0000
SQM Oceanía Pty Ltd.	Foreign	Level 9, 50 Park Street, Sydney NSW 2000, Sydney	Australia	Dollar		-	100.0000	100.0000
SQM Beijing Commercial Co. Ltd.	Foreign	Room 1001C, CBD International Mansion N 16 Yong An Dong Li, Jian Wai Ave Beijing 100022, P.R.	China	Dollar		-	100.0000	100.0000
SQM Thailand Limited	Foreign	Unit 2962, Level 29, N° 388, Exchange Tower Sukhumvit Road, Klongtoey Bangkok	Thailand	Dollar		-	99.9960	99.9960
SQM Colombia SAS	Foreign	Cra 7 No 32 – 33 piso 29 Pbx: (571) 3384904 Fax: (571) 3384905 Bogotá D.C. – Colombia.	Colombia	Dollar		-	100.0000	100.0000
SQM Australia PTY	Foreign	Level 16, 201 Elizabeth Street Sydney	Australia	Dollar		-	100.0000	100.0000
SQM International N.V.	Foreign	Houtdok-Noordkaai 25a B-2030 Amberes	Belgium	Dollar		0.5800	99.4200	100.0000
SQM (Shanghai) Chemicals Co. Ltd.	Foreign	Room 4703-33, 47F, No.300 Middle Huaihai Road, Huangpu district, Shanghai	China	Dollar		-	100.0000	100.0000
SQM Korea LLC	Foreign	Suite 22, Kyobo Building, 15th Floor, 1 Jongno Jongno-gu, Seoul, 03154 South Korea	Korea	Dollar		-	100.0000	100.0000
SQM Holland B.V.	Foreign	Herikerbergweg 238, 1101 CM Amsterdam Zuidoost	Holland	Dollar		-	100.0000	100.0000

48

  Notes to the Consolidated Financial Statements 
December 31, 2021  

7.2 Assets, liabilities, results of consolidated subsidiaries as of December 31, 2021.

	Assets				Liabilities						Net profit			Comprehensive
Subsidiaries	Currents		Non-currents		Currents		Non-currents		Revenue		(loss)			income (loss)
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM Nitratos S.A.		331,753		56,707		286,526		8,879		167,681		35,691			35,816
SQM Potasio S.A.		131,046		1,370,728		347,292		22,929		5,256		431,920			432,314
Serv. Integrales de Tránsito y Transf. S.A.		9,536		34,535		22,643		7,213		31,859		5,061			5,116
Isapre Norte Grande Ltda.		875		711		740		156		3,956		114			90
Ajay SQM Chile S.A.		22,779		2,020		7,028		666		47,269		1,569			1,569
Almacenes y Depósitos Ltda.		215		48		-		-		-		(27	)		(209	)
SQM Salar S.A.		1,486,477		1,193,180		1,554,539		236,477		1,502,804		472,970			473,269
SQM Industrial S.A.		941,083		706,733		474,186		88,935		896,391		200,127			202,660
Exploraciones Mineras S.A.		14,402		22,710		6,799		-		374		457			457
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		217		404		270		214		3,151		3			14
Soquimich Comercial S.A.		129,905		13,364		64,720		10,806		158,917		15,056			15,134
Comercial Agrorama Ltda.		580		778		3,327		18		1,780		185			185
Comercial Hydro S.A.		4,829		9		13		2		28		(8	)		(8	)
Agrorama S.A.		42		-		4,684		2		166		52			53
Orcoma SpA		4		8,814		6,507		-		-		(23	)		(23	)
Orcoma Estudio SpA		6,481		166		1,965		78		-		451			451
SQM MaG SPA		1,457		482		818		4		3,705		239			240
Sociedad Contractual Minera Búfalo		114		1,040		1,137		-		-		(6	)		(6	)
SQM North America Corp.		155,670		21,524		134,033		1,947		299,953		3,158			4,889
RS Agro Chemical Trading Corporation A.V.V.		5,155		-		116		-		-		(28	)		(28	)
Nitratos Naturais do Chile Ltda.		-		127		3,075		-		-		36			36
SQM Corporation N.V.		2,767		62,326		3,621		-		-		17,715			17,754
SQM Perú S.A.		26		-		83		-		-		2			2
SQM Ecuador S.A.		34,778		895		30,594		72		52,302		685			685
SQM Brasil Ltda.		193		1		451		2,088		-		(96	)		(96	)
Subtotal		3,280,384		3,497,302		2,955,167		380,486		3,175,592		1,185,303			1,190,364

49

  Notes to the Consolidated Financial Statements 
December 31, 2021  

	Assets				Liabilities						Net profit			Comprehensive income (loss)
Subsidiaries	Currents		Non-currents		Currents		Non-currents		Revenue		(loss)			Currents
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQMC Holding Corporation L.L.P.		32,157		17,984		1,707		-		-		2,929			2,929
SQM Japan Co. Ltd.		37,503		217		34,193		219		88,326		123			123
SQM Europe N.V.		474,845		2,947		359,325		2,076		904,652		58,531			58,531
SQM Indonesia S.A.		3		-		1		-		-		-			-
North American Trading Company		155		145		-		-		-		-			-
SQM Virginia LLC		14,798		14,340		14,798		-		-		(1	)		(1	)
SQM Comercial de México S.A. de C.V.		116,391		7,620		72,905		1,680		266,483		12,741			12,741
SQM Investment Corporation N.V.		13,959		184,791		5,682		866		-		52,196			52,313
Royal Seed Trading Corporation A.V.V.		34		-		18,911		-		-		(46	)		(46	)
SQM Lithium Specialties LLP		15,746		3		1,264		-		-		-			-
Comercial Caimán Internacional S.A.		256		-		1,122		-		-		(2	)		(2	)
SQM France S.A.		345		6		114		-		-		-			-
Administración y Servicios Santiago S.A. de C.V.		133		9		362		-		1,580		50			50
SQM Nitratos México S.A. de C.V.		102		2		16		-		713		31			31
Soquimich European Holding B.V.		10,552		236,960		480		-		-		70,150			70,306
SQM Iberian S.A.		81,122		2,657		53,155		549		132,690		6,353			6,353
SQM Africa Pty Ltd.		55,567		1,138		43,852		-		91,251		2,000			2,000
SQM Oceania Pty Ltd.		6,980		-		4,735		-		3,918		(3	)		(3	)
SQM Beijing Commercial Co. Ltd.		2,300		4		42		-		5,465		88			88
SQM Thailand Limited		3,191		-		8		-		-		(272	)		(272	)
SQM Colombia SAS		10,395		228		9,870		42		19,902		568			568
SQM International NV		30,021		698		13,912		3,813		99,399		1,473			1,473
SQM Shanghai Chemicals Co. Ltd.		473,004		176		421,794		-		488,971		46,172			46,172
SQM Australia Pty Ltd.		90,091		279,782		15,858		20,715		-		(5,776	)		(5,776	)
SQM Korea LLC		23,426		148		24,168		-		13,460		(1,262	)		(1,262	)
SQM Holland B.V.		8,889		14,411		3,095		-		24,546		654			654
Subtotal		1,501,965		764,266		1,101,369		29,960		2,141,356		246,697			246,970
Total		4,782,349		4,261,568		4,056,536		410,446		5,316,948		1,432,000			1,437,334

50

  Notes to the Consolidated Financial Statements 
December 31, 2021  

Assets, liabilities, results of consolidated subsidiaries as of December 31, 2020.

	Assets				Liabilities						Net profit			Comprehensive
Subsidiary	Current		Non-current		Current		Non-current		Revenue		(loss)			income (loss)
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM Nitratos S.A.		475,132		63,848		395,914		5,047		188,973		40,570			40,489
SQM Potasio S.A.		16,680		1,108,579		155,379		23,323		2,465		29,791			29,722
Serv. Integrales de Tránsito y Transf. S.A.		55,142		36,291		75,848		6,485		36,383		6,067			6,060
Isapre Norte Grande Ltda.		812		839		795		181		3,224		71			79
Ajay SQM Chile S.A.		25,441		1,549		9,563		713		38,193		1,857			1,857
Almacenes y Depósitos Ltda.		256		51		-		-		-		(5	)		50
SQM Salar S.A.		855,683		1,035,088		814,686		214,914		581,494		51,849			51,517
SQM Industrial S.A.		950,058		679,345		634,105		113,230		853,550		150,594			151,442
Exploraciones Mineras S.A.		16,572		22,293		9,010		-		13,513		1,972			1,972
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		279		571		305		396		2,390		55			32
Soquimich Comercial S.A.		136,623		13,796		56,293		12,630		117,982		7,560			7,606
Comercial Agrorama Ltda.		683		970		4,215		23		1,432		(149	)		(148	)
Comercial Hydro S.A.		4,834		15		14		4		28		12			12
Agrorama S.A.		55		-		5,631		10		244		175			179
Orcoma SpA		3		2,365		35		-		-		(13	)		(13	)
Orcoma Estudio SpA		4		4,559		411		-		-		(496	)		(496	)
SQM MaG SPA		1,491		521		1,129		6		2,559		197			197
Sociedad Contractual Minera Búfalo		50		323		350		-		-		-			-
SQM Holland B.V.		3,767		16,248		460		4		1,227		(505	)		(505	)
SQM North America Corp.		124,679		21,085		107,801		1,638		212,410		(1,059	)		1,828
RS Agro Chemical Trading Corporation A.V.V.		5,155		-		88		-		-		(24	)		(24	)
Nitratos Naturais do Chile Ltda.		-		128		3,109		-		-		195			195
Nitrate Corporation of Chile Ltd.		5,076		-		-		-		-		-			-
SQM Corporation N.V.		7,696		56,356		3,607		-		-		(5,318	)		(5,252	)
SQM Perú S.A.		25		-		83		-		-		(8	)		(8	)
SQM Ecuador S.A.		26,490		918		23,074		59		33,730		471			471
SQM Brasil Ltda.		217		1		508		2,111		-		(16	)		(16	)
Subtotal		2,712,903		3,065,739		2,302,413		380,774		2,089,797		283,843			287,246

51

Notes to the Consolidated Financial Statements
December 31, 2021

	Assets				Liabilities									Comprehensive income (loss)
Subsidiaries	Currents		Non-currents		Currents		Non-currents		Revenue		Net profit (loss)			Currents
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQMC Holding Corporation L.L.P.		30,777		16,414		1,687		-		-		2,113			2,113
SQM Japan Co. Ltd.		25,122		243		21,926		255		66,685		367			367
SQM Europe N.V.		456,357		3,844		399,930		2,411		669,693		(12,791	)		(12,791	)
SQM Indonesia S.A.		3		-		1		-		-		-			-
North American Trading Company		156		145		-		-		-		38			38
SQM Virginia LLC		14,798		14,340		14,798		-		-		(5	)		(5	)
SQM Comercial de México S.A. de C.V.		107,803		7,574		76,721		1,972		213,154		1,429			1,429
SQM Investment Corporation N.V.		13,965		132,994		5,434		864		-		(12,265	)		(12,071	)
Royal Seed Trading Corporation A.V.V.		21		-		18,851		-		-		(40	)		(40	)
SQM Lithium Specialties LLP		15,746		3		1,264		-		-		(5	)		(5	)
Comercial Caimán Internacional S.A.		258		-		1,122		-		-		3			3
SQM France S.A.		345		6		114		-		-		-			-
Administración y Servicios Santiago S.A. de C.V.		221		47		350		188		2,857		36			36
SQM Nitratos México S.A. de C.V.		141		13		77		20		993		12			12
Soquimich European Holding B.V.		5,046		172,956		245		-		-		(20,411	)		(20,151	)
SQM Iberian S.A.		41,485		2,359		20,118		4		108,156		504			504
SQM Africa Pty Ltd.		47,069		1,420		37,636		-		60,994		(920	)		(920	)
SQM Oceania Pty Ltd.		3,951		-		1,516		-		3,130		400			400
SQM Beijing Commercial Co. Ltd.		12,086		30		9,942		-		18,755		126			126
SQM Thailand Limited		3,539		-		83		-		3,033		(387	)		(387	)
SQM Colombia SAS		11,621		176		11,653		-		13,439		528			528
SQM International		31,998		923		17,374		4,027		135,386		2,587			2,587
SQM Shanghai Chemicals Co. Ltd.		84,318		379		79,482		-		82,398		3,195			3,195
SQM Australia Pty Ltd.		21,749		130,152		4,306		158		-		(2,641	)		(2,641	)
SQM Korea LLC		587		122		42		-		-		(33	)		(33	)
Subtotal		929,162		484,140		724,672		9,899		1,378,673		(38,160	)		(37,706	)
Total		3,642,065		3,549,879		3,027,085		390,673		3,468,470		245,683			249,540

52

Notes to the Consolidated Financial Statements
December 31, 2021

7.3 Background on non-controlling interests

	% of interests in the ownership		Profit (loss) attributable to non-controlling interests for the year ended			Equity, non-controlling interests for the year ended				Dividends paid to non-controlling interests for the year ended
Subsidiary	held by non- controlling interests		As of December 31, 2021	As of December 31, 2020		As of December 31, 2021		As of December 31, 2020		As of December 31, 2021	As of December 31, 2020
			ThUS$	ThUS$		ThUS$		ThUS$		ThUS$	ThUS$
SQM Potasio S.A.	0.0000001	%	-	-		-		-		-	-
Ajay SQM Chile S.A.	49.00000	%	769	910		8,382		8,189		577	1,238
Soquimich Comercial S.A.	39.36168	%	5,926	2,976		26,665		32,078		11,831	8,880
Comercial Agrorama Ltda.	30.00000	%	56	(45	)	(596	)	(775	)	-	-
SQM Indonesia S.A.	20.00000	%	-	-		-		-		-	-
Agrorama S.A.	0.00000	%	-	-		-		-		-	-
SQM Thailand Limited	0,00400	%	-	-		-		1		-	-
Total			6,751	3,841		34,451		39,493		12,408	10,118

53

Notes to the Consolidated Financial Statements
December 31, 2021

Note 8 Equity-accounted investees

8.1 Investments in associates recognized according to the equity method of accounting

As of December 31, 2021, and 2020, in accordance with criteria established in Note 2:

	Equity-accounted investees		Share in profit (loss) of associates accounted for using the equity method			Share in other comprehensive income of associates accounted for using the equity method			Share in total other comprehensive income of associates accounted for using the equity method
Associates	As of December 31, 2021	As of December 31, 2020	for the year ended December 31, 2021	for the year ended December 31, 2020		for the year ended December 31, 2021	for the year ended December 31, 2020		for the year ended December 31, 2021	for the year ended December 31, 2020
	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$	ThUS$		ThUS$	ThUS$
Abu Dhabi Fertilizer Industries WWL (**)	-	11,505	-	(156	)	-	-		-	(156	)
Doktor Tarsa Tarim Sanayi AS (*)	-	-	-	4,031		-	-		-	4,031
Ajay North America	15,899	14,468	2,802	2,191		-	-		2,802	2,191
Ajay Europe SARL	8,213	7,875	1,852	1,029		360	756		2,212	1,785
SQM Eastmed Turkey (*)	-	-	-	247		-	-		-	247
Kore Potash PLC (**)	-	26,175	-	(224	)	-	(374	)	-	(598	)
Total	24,112	60,023	4,654	7,118		360	382		5,014	7,500

(*) These investments were disposed of in 2020.

(**) For more details, see Note 8.3 (a).

54

Notes to the Consolidated Financial Statements
December 31, 2021

						Dividends received for the year ending
Associate	Description of the nature of the relationship	Address	Country of incorporation	Share of ownership in associates			December 31, 2021	December 31, 2020
							ThUS$	ThUS$
Abu Dhabi Fertilizer Industries WWL	Distribution and commercialization of specialty plant nutrients in the Middle East.	PO Box 71871, Abu Dhabi	United Arab Emirates	37	%		9,438	-
Ajay North America	Production and distribution of iodine and iodine derivatives.	1400 Industry RD Power Springs GA 30129	United States of North America	49	%		1,233	1,967
Ajay Europe SARL	Production and distribution of iodine and iodine derivatives.	Z.I. du Grand Verger BP 227 53602 Evron Cedex	France	50	%		992	1,197
Kore Potash PLC	Prospecting, exploration and mining development.	L 3 88 William ST Perth, was 6000	United Kingdom	14.65	%		-	-
Doktor Tarsa Tarim Sanayi AS	Distribution and commercialization of specialty plant nutrients in Turkey.	Organize Sanayi Bolgesi, Ikinci Kisim, 22 cadde TR07100 Antalya	Turkey	50	%		-	-
SQM Eastmed Turkey	Production and trading of specialty products.	Organize Sanayi Bolgesi, Ikinci Kisim, 22 cadde TR07100 Antalya	Turkey	50	%		-	-
Total							11,663	3,164

55

Notes to the Consolidated Financial Statements
December 31, 2021

8.2 Assets, liabilities, revenue and expenses of associates

	As of December 31, 2021				For the year ended as of December 31, 2021
	Assets		Liabilities				Other comprehensive		Comprehensive
Associate	Current	Non-current	Current	Non-current	Revenue	Net gain (loss)	income		income
	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$
Ajay North America	21,771	15,096	4,421	-	47,375	5,718	-		5,718
Ajay Europe SARL	25,927	1,241	10,742	-	48,409	3,705	(34	)	3,671
Total	47,698	16,337	15,163	-	95,784	9,423	(34	)	9,389

	As of December 31, 2020				For the year ended as of December 31, 2020
	Assets		Liabilities					Other comprehensive	Comprehensive
Associate	Current	Non-current	Current	Non-current	Revenue	Net gain (loss)		income	income
	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$	ThUS$
Abu Dhabi Fertilizer Industries WWL	29,313	8,586	6,706	101	6,641	(420	)	-	(420	)
Ajay North America	18,513	15,749	4,737	-	42,920	4,471		-	4,471
Ajay Europe SARL	22,032	1,493	7,773	-	41,950	2,058		1,736	3,794
Kore Potash PLC	5,691	124,112	786	-	-	(3,233	)	486	(2,747	)
Total	75,549	149,940	20,002	101	91,511	2,876		2,222	5,098

56

Notes to the Consolidated Financial Statements
December 31, 2021

8.3 Disclosures regarding interests in associates

(a) Transactions for the year ended December 31, 2021:

·    During the first quarter 2021, Kore Potash PLC made a share payment to its non-executive board members (remuneration shares) plus certain employees and former employees (performance shares) which resulted in a 0.05% share reduction for the company, leaving it with 20.15%. During the second quarter of 2021, Kore Potash PLC approved a capital stock increase of ThUS$ 13,931 through the issuance of common shares, which resulted in a dilution of 5.5% of SQM shares in the company, with an impact of ThUS$ (5,778) on other losses. As a result of the dilution, the Company considers that there has been a loss of significant influence on the investment, discontinued the measurement through the equity method, and recognized an amount of ThUS$ 3,739 under other gains (losses) as items in other comprehensive income associated with this investment. See Note 13.1 for more details.

· As of December 31, 2021, the Company has received dividends from Abu Dhabi Fertilizer Industries WWL of ThUS$ 9,438 and dividends receivable of ThUS$ 2,099 have been recognized, leaving the value of the investment at zero.

(b) Transactions for the year ended December 31, 2020:

·     Kore Potash PLC made a share payment to its non-executive board members, which resulted in a 0.60% share reduction for the company, finalizing with a share percentage of 19.07% at the close of the second quarter of 2020. This resulted in a transfer in equity of non-controlling interest to other reserves in an amount of ThUS$ 754.

· In the third quarter of 2020 SQM S.A. increased its shares in Kore Potash PLC to 20.26% as a result of the acquisition of 260,598,591 shares out of 584,753,846 shares issued for a capital increase corresponding to ThUS$ 1,679.

· In the third quarter of 2020, shares held in Doktor Tarsa Tarim and its subsidiaries were sold through Soquimich European Holdings B.V. at a value of ThUS$ 33,066, which brought about a loss of ThUS$ 11,408.

· In the third quarter of 2020, SQM Holland B.V., prepaid Plantacote N.V. a value of ThUS$ 10,541, corresponding to the acquisition of Plantacote N.V. assets, which are presented in the line “Other non-current financial assets.”

· In the third quarter of 2020, shares held in SQM Eastmed Turkey were sold through Soquimich European Holdings B.V. at a value of ThUS$ 618, which brought about a loss of ThUS$ 408.

·     During the fourth quarter of 2020, SQM Holland acquired the business of WSNPK from Plantacote for ThUS$ 16,757, which generated goodwill of ThUS$ 7,380.

·     During the fourth quarter of 2020, Kore Potash PLC made a share-based payment to its non-executive board members, which resulted in a 0.06% share reduction for the company, finalizing with a share percentage of 20.20%. This resulted in a decrease in consolidated equity of non-controlling interests in other reserves of ThUS$ 79.

57

Notes to the Consolidated Financial Statements
December 31, 2021

Note 9 Joint Ventures

9.1 Investment in joint ventures accounted for under the equity method of accounting.

	Equity-accounted investees				Share in profit (loss) of associates and joint ventures accounted for using the equity method					Share on other comprehensive income of associates and joint ventures accounted for using the equity method, net of taxes						Share on total other comprehensive income of associates and joint ventures accounted for using the equity method
Joint Venture	As of December 31, 2021		As of December 31, 2020		For the year ended December 31, 2021		For the year ended December 31, 2020			For the year ended December 31, 2021			For the year ended December 31, 2020			For the year ended December 31, 2021			For the year ended December 31, 2020
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
SQM Vitas Fzco.		8,682		9,720		6,304		2,010			429			(1,469	)		6,733			541
SQM Qingdao Star Corp Nutrition Co. Ltd. (*)		-		-		-		83			-			-			-			83
Pavoni & C. Spa		7,030		7,222		174		9			(317	)		349			(143	)		358
Covalent Lithium Pty Ltd. (**)		-		-		-		-			37			16			37			16
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-		9,028		-		(280	)		-			-			-			(280	)
Total		15,712		25,970		6,478		1,822			149			(1,104	)		6,627			718

(*) These investments were disposed of in 2020

(**) See more details in Note 9.4 (a).

58

Notes to the Consolidated Financial Statements
December 31, 2021

The amounts described in the following box represent numbers used in the consolidation of the company:

	Equity-accounted investees				Share in profit (loss) of associates and joint ventures accounted for using the equity method				Share on other comprehensive income of associates and joint ventures accounted for using the equity method, for the period ended						Share on total other comprehensive income of associates and joint ventures accounted for using the equity method for the period ended
Joint Venture	As of December 31, 2021		As of December 31, 2020		For the year ended December 31, 2021		For the year ended December 31, 2020		For the year ended December 31, 2021			For the year ended December 31, 2020			For the year ended December 31, 2021		For the year ended December 31, 2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$		ThUS$
SQM Vitas Brasil Agroindustria (1)		-		3,511		4,582		1,018		(429	)		(1,469	)		4,153		(451	)
SQM Vitas Perú S.A.C. (1)		4,681		1,659		1,645		660		-			-			1,645		660
Total		4,681		5,170		6,227		1,678		(429	)		(1,469	)		5,798		209

The companies are subsidiaries of:

SQM Vitas Fzco.

						Dividends received for the year ending
Joint venture	Description of the nature of the relationship	Domicile	Country of incorporation	Share of interest in ownership		December 31, 2021	December 31, 2020
						ThUS$	ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.	Production and distribution of soluble fertilizers.	Huangjing Road, Dawan Town, Qingbaijiang Dristrict, Chengdu Municipality, Sichuan Province	China	50	%	-	-
Coromandel SQM India	Production and distribution of potassium nitrate.	1-2-10, Sardar Patel Road, Secunderabad – 500003 Andhra Pradesh	India	50	%	-	-
SQM Vitas Fzco.	Production and commercialization of specialty plant, animal nutrition and industrial hygiene.	Jebel ALI Free Zone P.O. Box 18222, Dubai	United Arab Emirates	50	%	-	-
SQM Qingdao Star Corp Nutrition Co. Ltd.	Production and distribution of nutrient plant solutions with specialties NPK soluble.	Longquan Town, Jimo City, Qingdao Municipality, Shangdong Province	China	50	%	-	2,223
Pavoni & C. Spa	Production of specialty fertilizers and others for distribution in Italy and other countries.	Corso Italia 172, 95129 Catania (CT), Sicilia	Italy	50	%	-	-
Covalent Lithium Pty Ltd.	Development and operation of the Mt Holland Lithium project, which will include the construction of a lithium extraction and refining mine.	L18, 109 St Georges Tce Perth WA 6000 |PO Box Z5200 St Georges Tce Perth WA 6831	Australia	50	%	-	-
Total						-	2,223

59

Notes to the Consolidated Financial Statements
December 31, 2021

The companies described in the following table are related to the following joint ventures:

(1) SQM Vitas Fzco.

(2) Pavoni & C. Spa.

						Dividends received for the year ending
Joint venture	Description of the nature of the relationship	Domicile	Country of incorporation	Share of interest in ownership (*)		December 31, 2021	December 31, 2020
						ThUS$	ThUS$
SQM Vitas Brasil Agroindustria (1)	Production and trading of specialty vegetable and animal nutrition and industrial hygiene.	Via Cndeias, Km. 01 Sem Numero, Lote 4, Bairro Cia Norte, Candeias, Bahia.	Brazil	49.99	%	-	-
SQM Vitas Perú S.A.C. (1)	Production and trading of specialty vegetable and animal nutrition and industrial hygiene	Av. Juan de Arona 187, Torre B, Oficina 301-II, San Isidro, Lima	Peru	50	%	-	-
Arpa Speciali S.R.L. (2)	Production of specialty fertilizers and others for distribution in Italy and other countries.	Mantova (MN) Via Cremona 27 Int. 25	Italy	50.48	%	-	-
Total						-	-

(*) The percentages presented correspond to the ownership used in the consolidation of the company.

60

Notes to the Consolidated Financial Statements
December 31, 2021

9.2 Assets, liabilities, revenue and expenses from joint ventures

	As of December 31, 2021								For the year ended December 31, 2021
	Assets				Liabilities									Other comprehensive			Comprehensive
Joint Venture	Current		Non-current		Current		Non-current		Revenue		Net gain (loss)			income			income
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
SQM Vitas Fzco.		9,606		20,206		215		-		-		12,608			-			12,608
SQM Vitas Brasil Agroindustria		73,500		4,846		68,794		-		103,335		9,165			(858	)		8,307
SQM Vitas Perú S.A.C.		28,610		7,347		24,473		828		48,128		3,289			-			3,289
Pavoni & C. Spa		12,885		6,714		11,226		725		19,599		347			(634	)		(287	)
Covalent Lithium Pty Ltd.		3,904		2,636		7,498		1,489		-		(864	)		74			(790	)
Total		128,505		41,749		112,206		3,042		171,062		24,545			(1,418	)		23,127

	As of December 31, 2020									For the year ended December 31, 2020
	Assets					Liabilities									Other comprehensive			Comprehensive
Joint Venture	Current			Non-current		Current		Non-current		Revenue		Net gain (loss)			income			income
	ThUS$			ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		29,507			4,412		14,156		-		9		(562	)		-			(562	)
SQM Vitas Fzco.		(496	)		20,431		496		-		-		4,019			-			4,019
SQM Vitas Brasil Agroindustria		40,064			5,527		33,410		-		78,960		2,036			(2,938	)		(902	)
SQM Vitas Perú S.A.C.		34,548			7,928		33,145		1,080		37,591		1,319			-			1,319
Pavoni & C. Spa		10,645			7,493		9,270		836		15,958		16			698			714
Covalent Lithium Pty Ltd.		1,418			2,131		2,823		910		-		(232	)		33			(199	)
Total		115,686			47,922		93,300		2,826		132,518		6,596			(2,207	)		4,389

61

Notes to the Consolidated Financial Statements
December 31, 2021

9.3 Other Joint Venture disclosures

	Cash and cash equivalents				Other current financial liabilities				Other non-current financial liabilities
Joint Venture	As of December 31, 2021		As of December 31, 2020		As of December 31, 2021		As of December 31, 2020		As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-		30		-		-		-		-
SQM Vitas Fzco.		4,115		4,251		-		-		-		-
SQM Vitas Brasil Agroindustria		4,132		4,065		10,416		6,820		-		-
SQM Vitas Perú S.A.C.		380		1,043		238		227		289		691
Pavoni & C. Spa		787		767		7,561		5,573		-		-
Covalent Lithium Pty Ltd.		3,858		653		980		953		-		-
Total		13,272		10,809		19,195		13,573		289		691

	Depreciation and amortization expense for the year ending						Interest expense for the year ending						Income tax benefit (expense) for the year ending
Joint Venture	For the year ended December 31, 2021			For the year ended December 31, 2020			For the year ended December 31, 2021			For the year ended December 31, 2020			For the year ended December 31, 2021			For the year ended December 31, 2020
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Sichuan SQM Migao Chemical Fertilizers Co Ltd.		-			(394	)		-			-			-			244
SQM Vitas Fzco.		-			(1	)		(1	)		(2	)		-			-
SQM Vitas Brasil Agroindustria		(278	)		(355	)		(367	)		(656	)		(1,985	)		(34	)
SQM Vitas Perú S.A.C.		(354	)		(257	)		(311	)		(326	)		(1,692	)		(197	)
Pavoni & C. Spa		(245	)		(263	)		(459	)		(410	)		(173	)		(120	)
Covalent Lithium Pty Ltd.		(167	)		(213	)		(55	)		(18	)		343			714
Total		(1,044	)		(1,483	)		(1,193	)		(1,412	)		(3,507	)		607

62

Notes to the Consolidated Financial Statements 
December 31, 2021  

9.4 Disclosure of interests in joint ventures

a) Transactions for the period year December 31, 2021

· On February 9, 2021, two of the Company’s subsidiaries signed an agreement to terminate a dispute related to sales contracts and interest in the joint venture of Sichuan SQM Migao Chemical Fertilizers Co Ltd. Consequently, the Company received US$ 11.5 million.

b) Transactions for the period year December 31, 2020

· SQM Vitas BV became a wholly owned subsidiary of the Company during the second quarter of 2020, through its subsidiary Soquimich European Holdings, at a cost of ThUS$ 1,276 and its name has been changed to SQM Holland. See Note 8.1.

· In the second quarter of 2020, shares held in Arpa Speciali S.R.L. were sold through SQM Pavoni & C., SpA. At a value of ThUS$ 56, which brought about a loss of ThUS$ 125. An initial installment of ThUS$ 17 was charged, leaving two pending installments of ThUS$ 20 maturing June 30, 2021 and June 30, 2022. The pending installments are classified as other accounts receivable.

· In the third quarter of 2020, shares held in Coromandel SQM India were sold through Soquimich European Holdings B.V. at a value of ThUS$ 1,604, which brought about a loss of ThUS$ 643.

· During fourth quarter of 2020, the shares in SQM Qingdao-Star Co, Ltd. were sold through SQM Industrial S.A. for ThUS$ 1,303, which brought about a gain of ThUS$ 62. As of December 31, 2020, the sale proceeds were recorded in other receivables.

· A subsequent event associated with the joint venture with Sichuan SQM Migao Chemical Fertilizers Co Ltd. is reported in Note 31.2. Accordingly, the effect on the statement of income for the fourth quarter of 2020 under "Other gains (losses)" is a gain of ThUS$7,036 on the reversal of the impairment associated with this investment.

9.5 Joint Ventures

In 2017, together with our subsidiary SQM Australia Pty, we entered into an agreement to acquire 50% of the assets of the Mt Holland lithium project in Western Australia. The Mt Holland Lithium Project consist, to design, construct and operate a mine, concentrator and refinery to produce approximately 50,000 metric tons of lithium hydroxide per year.

As of December 31, 2020, the Company had made contributions in the amount of US$ 30 million, of which, US$ 15 million was paid in favor of the partner in the project and presented as other receivables. As of March 2021, this receivable was collected when it was contributed to Mt Holland in the Company’s name. The Company approved the investment decision referred to in Note 1.8.

63

Notes to the Consolidated Financial Statements 
December 31, 2021

Note 10     Cash and cash equivalents

10.1 Types of cash and cash equivalents

As of December 31, 2021, and 2020, cash and cash equivalents are detailed as follows:

Cash	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Cash on hand		44		54
Cash in banks		662,407		244,548
Other demand deposits		-		2,527
Total Cash		662,451		247,129

Cash equivalents	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Short-term deposits, classified as cash equivalents		237,655		51,595
Short-term investments, classified as cash equivalents		614,945		210,378
Total cash equivalents		852,600		261,973
Total cash and cash equivalents		1,515,051		509,102

10.2 Short-term investments, classified as cash equivalents

As of December 31, 2021, and 2020, the short-term investments classified as cash and cash equivalents relate to mutual funds (investment liquidity funds) for investments in:

Institution	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Legg Mason - Western Asset Institutional Cash Reserves		233,648		107,625
JP Morgan US dollar Liquidity Fund Institutional		381,297		102,753
Total		614,945		210,378

Short-term investments are highly liquid mutual funds that are basically invested in short-term fixed rate notes in the U.S. market.

64

Notes to the Consolidated Financial Statements 
December 31, 2021

10.3 Information on cash and cash equivalents by currency

As of December 31, 2021, and 2020, information on cash and cash equivalents by currency is detailed as follows:

Currency	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Peso (*)		4,416		7,190
Dollar		1,377,983		454,402
Euro		14,374		17,144
Mexican Peso		1,827		1,378
South African Rand		13,048		14,286
Japanese Yen		1,182		1,646
Peruvian Sol		6		3
Indian rupee		-		6
Chinese Yuan		30,102		11,597
Indonesian rupee		3		3
Pound Sterling		1		19
Australian Dollar		72,107		1,411
South Korean won		-		16
Dirham United Arab Emirates		1		-
Polish Zloty		1		1
Total		1,515,051		509,102

(*) The Company maintains financial derivative instruments policies which allow management to convert term deposits denominated in pesos and UF to Dollars.

10.4 Amount restricted cash balances

The Company has granted a guarantee consisting of financial instruments, specified in deposits, custody and administration to Banco de Chile, for its subsidiary Isapre Norte Grande Ltda., in compliance with the provisions of the Superintendence of Health, which regulates social security health institutions.

According to the regulations of the Superintendence of Health, this guarantee is for the total payable to its affiliates and medical providers. Banco de Chile reports the current value of the guarantee to the Superintendence of Health and Isapre Norte Grande Ltda. on a daily basis.

As of December 31, 2021, and 2020 pledged assets are as follows

Restricted cash balances	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Isapre Norte Grande Ltda.		622		731
Total		622		731

65

Notes to the Consolidated Financial Statements 
December 31, 2021

10.5 Short-term deposits, classified as cash equivalents

The detail at the end of each balance date is as follows:

Receiver of the deposit	Type of deposit	Original Currency	Interest Rate			Placement date	Expiration date	Principal		Interest accrued to-date		As of December 31, 2021
								ThUS$		ThUS$		ThUS$
Others Banks	Fixed term	Dollar		0.58	%	11-30-2021	02-28-2022		200,000		100		200,100
Banco BCI	Fixed term	Dollar		0.31	%	12-24-2021	02-28-2022		1,250		-		1,250
Banco BCI	Fixed term	Dollar		0.36	%	12-07-2021	01-14-2022		8,000		2		8,002
Banco BCI	Fixed term	Dollar		0.28	%	12-30-2021	01-14-2022		500		-		500
Banco Santander	Fixed term	Dollar		3.12	%	12-30-2021	01-06-2022		3,550		2		3,552
Banco Santander	Fixed term	Dollar		0.26	%	12-16-2021	01-31-2022		2,500		-		2,500
Banco Santander	Fixed term	Dollar		0.40	%	12-27-2021	03-04-2022		1,500		-		1,500
Banco Santander	Fixed term	Dollar		0.40	%	12-29-2021	01-27-2022		1,500		-		1,500
Banco Itaú Corpbanca	Fixed term	Dollar		0.30	%	12-14-2021	01-07-2022		5,000		1		5,001
Banco Itaú Corpbanca	Fixed term	Dollar		0.37	%	12-28-2021	01-24-2022		1,000		-		1,000
Banco Itaú Corpbanca	Fixed term	Dollar		0.34	%	12-07-2021	01-28-2022		2,000		-		2,000
Scotiabank Sud Americano	Fixed term	Dollar		0.27	%	12-24-2021	02-28-2022		2,750		-		2,750
Scotiabank Sud Americano	Fixed term	Dollar		0.06	%	12-17-2021	01-31-2022		3,000		-		3,000
Scotiabank Sud Americano	Fixed term	Dollar		0.07	%	12-03-2021	01-18-2022		5,000		-		5,000
Total									237,550		105		237,655

66

Notes to the Consolidated Financial Statements 
December 31, 2021

Receiver of the deposit	Type of deposit	Original Currency	Interest Rate			Placement date	Expiration date	Principal		Interest accrued to- date		As of December 31, 2020
								ThUS$		ThUS$		ThUS$
Banco Santander – Santiago	Fixed term	Dollar		0.35	%	12-30-2020	03-30-2021		7,000		-		7,000
Scotiabank Sud Americano	Fixed term	Dollar		0.35	%	11-30-2020	01-08-2021		1,500		1		1,501
Banco de Chile	Fixed term	Dollar		0.61	%	11-30-2020	01-08-2021		2,000		1		2,001
Banco de Chile	Fixed term	Dollar		0.61	%	11-30-2020	01-08-2021		3,500		1		3,501
Banco crédito e inversiones	Fixed term	Dollar		0.46	%	12-01-2020	01-15-2021		500		-		500
Scotiabank Sud Americano	Fixed term	Dollar		0.40	%	12-01-2020	01-15-2021		500		-		500
Scotiabank Sud Americano	Fixed term	Dollar		0.40	%	12-02-2020	01-20-2021		2,500		1		2,501
Banco Santander – Santiago	Fixed term	Dollar		0.50	%	12-09-2020	01-25-2021		500		-		500
Scotiabank Sud Americano	Fixed term	Dollar		0.50	%	12-09-2020	01-25-2021		1,000		-		1,000
Banco Santander – Santiago	Fixed term	Dollar		0.50	%	12-09-2020	01-25-2021		6,000		1		6,001
Banco crédito e inversiones	Fixed term	Dollar		0.51	%	12-09-2020	01-25-2021		6,000		1		6,001
Banco crédito e inversiones	Fixed term	Dollar		0.26	%	12-14-2020	01-29-2021		500		-		500
Banco Estado	Fixed term	Dollar		0.14	%	12-14-2020	01-29-2021		1,000		1		1,001
Scotiabank Sud Americano	Fixed term	Dollar		0.40	%	12-14-2020	01-29-2021		1,500		-		1,500
Banco de Chile	Fixed term	Dollar		0.56	%	12-14-2020	01-29-2021		5,000		1		5,001
Banco Itaú Corpbanca	Fixed term	Dollar		0.68	%	12-18-2020	02-01-2021		500		-		500
Banco Itaú Corpbanca	Fixed term	Dollar		0.68	%	12-18-2020	02-01-2021		2,000		1		2,001
Banco crédito e inversiones	Fixed term	Dollar		0.20	%	12-23-2020	02-05-2021		2,000		1		2,001
Banco Itaú Corpbanca	Fixed term	Dollar		0.40	%	12-24-2020	02-08-2021		1,000		-		1,000
Banco Santander – Santiago	Fixed term	Dollar		0.26	%	12-29-2020	01-08-2021		2,500		1		2,501
Banco Santander – Santiago	Fixed term	Dollar		0.15	%	12-30-2020	02-12-2021		700		-		700
Banco Itaú Corpbanca	Fixed term	Peso		0.35	%	12-29-2020	01-05-2021		3,798		-		3,798
BBVA Banco Francés	Fixed term	Dollar		1.80	%	12-31-2020	03-06-2021		86		-		86
Total									51,584		11		51,595

67

Notes to the Consolidated Financial Statements 
December 31, 2021

Note 11    Inventories

The composition of inventory at each period-end is as follows:

Type of inventory	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Raw material		12,508		10,694
Production supplies		41,114		31,007
Products-in-progress		527,118		487,830
Finished product		603,036		563,497
Total		1,183,776		1,093,028

As of December 31, 2021, the Company held caliche stockpiles, solutions in solar ponds and intermediary salts amounting ThUS$ 458,913 and as of December 31, 2020 was ThUS$ 422,535 (including products in progress).

As of December 31, 2021, bulk inventories recognized within work in progress and finished goods were ThUS$ 111,316 and ThUS$ 99,551 respectively. As of December 31, 2020, bulk inventories recognized within work in progress and finished goods were ThUS$ 108,909 and ThUS$ 176,561, respectively.

As of December 31, 2021, and 2020, inventory allowances recognized, amounted to ThUS$ 75,892 and ThUS$ 80,930, respectively. For finished and in-process products, recognized allowances include the provision associated with the lower value of stock (considers lower realizable value, uncertain future use, reprocessing costs of off-specification products, etc.), provision for inventory differences and the provision for potential errors in the determination of inventories (e.g., errors in topography, grade, moisture, etc.). (See Note 3.14).

For raw materials, supplies, materials and parts, the lower value provision was associated to the proportion of defective materials and potential differences.

The breakdown of inventory allowances is detailed as follows:

Type of inventory	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Raw material and supplies for production		1,865		1,934
Products-in-progress		59,858		66,122
Finished product		14,169		12,874
Total		75,892		80,930

The Company has not pledged inventory as collateral for the periods indicated above.

68

Notes to the Consolidated Financial Statements 
December 31, 2021

As of December 31, 2021, and 2020, movements in provisions are detailed as follows:

Conciliation	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Beginning balance		80,930			88,174
Increase in Lower Value (1)		(3,650	)		(5,404	)
Additional Provision Differences of Inventory (2)		330			(704	)
Increase / Decrease eventual differences and others (3)		-			1,244
Provision Used		(1,718	)		(2,380	)
Total changes		(5,038	)		(7,244	)
Final balance		75,892			80,930

(1) There are three types of Lower Value Provisions: (a) Economic Realizable Lower Value, (b) Potential Inventory with Uncertain Future Use and (c) Reprocessing Costs of Off-Specification Products.

(2) Provisions for Inventory Differences generated when physical differences are detected when taking inventory, which exceed the tolerance levels for this process.

(3) This algorithm corresponds to the provision of diverse percentages based on the complexity in the measurement and rotation of stock, as well as standard differences based on previous results, as is the case with provisions relating to Commercial Offices.

69

Notes to the Consolidated Financial Statements

December 31, 2021

Note 12    Related party disclosures

12.1 Related party disclosures

Balances pending at period-end are not guaranteed, accrue no interest and are settled in cash, no guarantees have been delivered or received for trade and other receivables due from related parties or trade and other payables due to related parties.

12.2 Relationships between the parent and the entity

Pursuant to Article 99 of Law of the Securities Market Law, the CMF may determine that a company does not have a controlling entity in accordance with the distribution and dispersion of its ownership. On November 30, 2018, the CMF issued the ordinary letter No. 32,131 whereby it determined that Pampa Group, do not exert decisive power over the management of the Company since it does not have a predominance in the ownership that allows it to make management decisions. Therefore, the CMF has determined not to consider Pampa Group as the controlling entity of the Company and that the Company does not have a controlling entity given its current ownership structure.

70

Notes to the Consolidated Financial Statements

December 31, 2021

12.3 Detailed identification of related parties and subsidiaries

As of December 31, 2021 and 2020, the detail of entities that are identified as subsidiaries or related parties of the SQM Group is as follows:

Tax ID No	Name	Country of origin	Functional currency	Nature
Foreign	Nitratos Naturais Do Chile Ltda.	Brazil	Dollar	Subsidiary
Foreign	SQM North America Corp.	United States	Dollar	Subsidiary
Foreign	SQM Europe N.V.	Belgium	Dollar	Subsidiary
Foreign	Soquimich European Holding B.V.	Netherlands	Dollar	Subsidiary
Foreign	SQM Corporation N.V.	Curacao	Dollar	Subsidiary
Foreign	SQM Comercial De México S.A. de C.V.	Mexico	Dollar	Subsidiary
Foreign	North American Trading Company	United States	Dollar	Subsidiary
Foreign	Administración y Servicios Santiago S.A. de C.V.	Mexico	Dollar	Subsidiary
Foreign	SQM Perú S.A.	Peru	Dollar	Subsidiary
Foreign	SQM Ecuador S.A.	Ecuador	Dollar	Subsidiary
Foreign	SQM Nitratos Mexico S.A. de C.V.	Mexico	Dollar	Subsidiary
Foreign	SQMC Holding Corporation L.L.P.	United States	Dollar	Subsidiary
Foreign	SQM Investment Corporation N.V.	Curacao	Dollar	Subsidiary
Foreign	SQM Brasil Limitada	Brazil	Dollar	Subsidiary
Foreign	SQM France S.A.	France	Dollar	Subsidiary
Foreign	SQM Japan Co. Ltd.	Japan	Dollar	Subsidiary
Foreign	Royal Seed Trading Corporation A.V.V.	Aruba	Dollar	Subsidiary
Foreign	SQM Oceania Pty Limited	Australia	Dollar	Subsidiary
Foreign	Rs Agro-Chemical Trading Corporation A.V.V.	Aruba	Dollar	Subsidiary
Foreign	SQM Indonesia S.A.	Indonesia	Dollar	Subsidiary
Foreign	SQM Virginia L.L.C.	United States	Dollar	Subsidiary
Foreign	Comercial Caimán Internacional S.A.	Panama	Dollar	Subsidiary
Foreign	SQM África Pty. Ltd.	South Africa	Dollar	Subsidiary
Foreign	SQM Colombia SAS	Colombia	Dollar	Subsidiary
Foreign	SQM Internacional N.V.	Belgium	Dollar	Subsidiary
Foreign	SQM (Shanghai) Chemicals Co. Ltd.	China	Dollar	Subsidiary
Foreign	SQM Lithium Specialties LLC	United States	Dollar	Subsidiary
Foreign	SQM Iberian S.A.	Spain	Dollar	Subsidiary
Foreign	SQM Beijing Commercial Co. Ltd.	China	Dollar	Subsidiary
Foreign	SQM Thailand Limited	Thailand	Dollar	Subsidiary
Foreign	SQM Australia PTY	Australia	Dollar	Subsidiary
Foreign	SQM Holland B.V.	Netherlands	Dollar	Subsidiary
Foreign	SQM Korea LLC	Korea	Dollar	Subsidiary
96.801.610-5	Comercial Hydro S.A.	Chile	Dollar	Subsidiary
96.651.060-9	SQM Potasio S.A.	Chile	Dollar	Subsidiary
96.592.190-7	SQM Nitratos S.A.	Chile	Dollar	Subsidiary
96.592.180-K	Ajay SQM Chile S.A.	Chile	Dollar	Subsidiary
79.947.100-0	SQM Industrial S.A.	Chile	Dollar	Subsidiary
79.906.120-1	Isapre Norte Grande Ltda.	Chile	Peso	Subsidiary
79.876.080-7	Almacenes y Depósitos Ltda.	Chile	Peso	Subsidiary

71

Notes to the Consolidated Financial Statements

December 31, 2021

Tax ID No	Name	Country of origin	Functional currency	Nature
79.770.780-5	Servicios Integrales de Tránsitos y Transferencias S.A.	Chile	Dollar	Subsidiary
79.768.170-9	Soquimich Comercial S.A.	Chile	Dollar	Subsidiary
79.626.800-K	SQM Salar S.A.	Chile	Dollar	Subsidiary
76.534.490-5	Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.	Chile	Peso	Subsidiary
76.425.380-9	Exploraciones Mineras S.A.	Chile	Dollar	Subsidiary
76.064.419-6	Comercial Agrorama Ltda.	Chile	Peso	Subsidiary
76.145.229-0	Agrorama S.A.	Chile	Peso	Subsidiary
76.359.919-1	Orcoma Estudios SPA	Chile	Dollar	Subsidiary
76.360.575-2	Orcoma SPA	Chile	Dollar	Subsidiary
76.686.311-9	SQM MaG SpA	Chile	Dollar	Subsidiary
77.114.779-8	Sociedad Contractual Minera Búfalo	Chile	Dollar	Subsidiary
Foreign	Abu Dhabi Fertilizer Industries WWL	Arab Emirates	Arab Emirates dirham	Associate
Foreign	Ajay North America	United States	Dollar	Associate
Foreign	Ajay Europe SARL	France	Euro	Associate
Foreign	Kore Potash PLC	United Kingdom	Dollar	Associate
Foreign	SQM Vitas Fzco.	Arab Emirates	Arab Emirates dirham	Joint venture
Foreign	Covalent Lithium Pty Ltd.	Australia	Dollar	Joint venture
Foreign	Pavoni & C, SPA	Italy	Euro	Joint venture
96.511.530-7	Sociedad de Inversiones Pampa Calichera	Chile	Dollar	Other related parties
96.529.340-K	Norte Grande S.A.	Chile	Peso	Other related parties
79.049.778-9	Callegari Agrícola S.A.	Chile	Peso	Other related parties
Foreign	SQM Vitas Brasil Agroindustria (1)	Brazil	Brazilian real	Other related parties
Foreign	SQM Vitas Perú S.A.C. (1)	Peru	Dollar	Other related parties
Foreign	Abu Dhabi Fertilizer Industries WWL (2)	Oman	United Arab Emirates dirham	Other related parties
Foreign	International Technical and Trading Agencies CO WLL (2)	Jordan	United Arab Emirates dirham	Other related parties

(1) These Companies are subsidiaries of the joint venture SQM Vitas Fzco.

(2) These Companies are subsidiaries of the joint venture Abu Dhabi Fertilizer Industries WWL Ltda. and therefore it absorbs these and takes responsibility of all of their assets and liabilities.

The following entities were considered related parties as of December 31, 2020: Sichuan SQM Migao Chemical Fertilizers Co Ltd.

72

Notes to the Consolidated Financial Statements

December 31, 2021

The following other related parties correspond to mining contractual corporations.

Tax ID No.	Name	Country of origin	Functional currency	Relationship
N/A	Ara Dos Primera del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Ara Tres Primera del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Ara Cuatro Primera del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Ara Cinco Primera del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Curicó Dos Primera del Salar de Pampa Alta, Sierra Gorda	Chile	Peso	Other related parties
N/A	Curicó Tres Primera del Sector de Pampa Alta, Sierra Gorda	Chile	Peso	Other related parties
N/A	Evelyn Veinticuatro Primera de Sierra Gorda	Chile	Peso	Other related parties
N/A	Filomena Tres Primera de Oficina Filomena, Sierra Gorda	Chile	Peso	Other related parties
N/A	Filomena Cuatro Primera de Oficina Filomena, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Primera de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Segunda del Salar de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Tercera de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Cuarta de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Cuatro Quinta de Pampa Blanca, Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Primera del Salar de Pampa Blanca de Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Segunda del Salar de Pampa Blanca de Sierra Gorda	Chile	Peso	Other related parties
N/A	Francis Tercera del Salar de Pampa Blanca de Sierra Gorda	Chile	Peso	Other related parties
N/A	Ivon Primera de Sierra Gorda	Chile	Peso	Other related parties
N/A	Ivon Décima Segunda de Sierra Gorda	Chile	Peso	Other related parties
N/A	Ivon Sexta de Sierra Gorda	Chile	Peso	Other related parties
N/A	Julia Primera de Sierra Gorda	Chile	Peso	Other related parties
N/A	Lorena Trigésimo Quinta de Sierra Gorda	Chile	Peso	Other related parties
N/A	Perseverancia Primera de Sierra Gorda	Chile	Peso	Other related parties
N/A	Tamara 40 Primera del Sector S.E. OF. Concepción, Sierra Gorda	Chile	Peso	Other related parties
N/A	Tamara Tercera de Oficina Concepción, Sierra Gorda	Chile	Peso	Other related parties
N/A	Tamara 4 Segunda del Sector S.E. OF Concepción, Sierra Gorda	Chile	Peso	Other related parties

Below is a list of transactions with clients and suppliers with whom a relationship with key Company personnel was identified:

Tax ID No	Name	Country of origin	Nature
76.389.727-3	Sociedad Periodística El Libero	Chile	Other related parties
90.193.000-7	El Mercurio S.A.P.	Chile	Other related parties
92.580.000-7	Empresa Nacional de Telecomunicaciones S.A.	Chile	Other related parties
96.806.980-2	Entel PCS Telecomunicaciones S.A.	Chile	Other related parties
97.004.000-5	Banco de Chile	Chile	Other related parties
99.012.000-5	Compañía de Seguros de Vida Consorcio Nacional	Chile	Other related parties
10.581.580-8	Gonzalo Guerrero Yamamoto	Chile	Other related parties
71.644.300-0	Universidad del Desarrollo	Chile	Other related parties
96.529.340-K	Norte Grande S.A.	Chile	Other related parties

73

Notes to the Consolidated Financial Statements

December 31, 2021

12.4 Detail of related parties and related party transactions

Transactions between the Company and its subsidiaries, associated businesses, joint ventures and other related parties are part of the Company's common transactions. Their conditions are those customary for this type of transactions in respect of terms and market prices. Maturity terms for each case vary by virtue of the transaction giving rise to them.

For the year ended December 31, 2021 and 2020, the detail of significant transactions with related parties is as follows

Tax ID No	Name	Nature	Country of origin	Transaction	As of December 31, 2021			As of December 31, 2020
					ThUS$			ThUS$
Foreign	Doktor Tarsa Tarim Sanayi AS	Associate	Turkey	Sale of products		-			1,053
Foreign	Ajay Europe S.A.R.L.	Associate	France	Sale of products		39,760			23,162
Foreign	Ajay Europe S.A.R.L.	Associate	France	Dividends		992			1,197
Foreign	Ajay North America LL.C.	Associate	USA	Sale of products		27,763			20,259
Foreign	Ajay North America LL.C.	Associate	USA	Dividends		1,233			1,967
Foreign	Abu Dhabi Fertilizer Industries WWL	Associate	United Arab Emirates	Dividends		9,438			-
Foreign	SQM Vitas Brasil Agroindustria	Other related parties	Brazil	Sale of products		79,086			41,341
Foreign	SQM Vitas Perú S.A.C.	Other related parties	Peru	Sale of products		17,016			17,723
Foreign	Coromandel SQM India	Joint venture	India	Sale of products		2,060			1,510
Foreign	SQM Star Qingdao Corp Nutrition Co., Ltd.	Joint venture	China	Dividends		-			2,223
Foreign	Terra Tarsa Ukraine LLC	Other related parties	Ukraine	Sale of products		-			737
Foreign	Pavoni & CPA	Joint venture	Italy	Sale of products		961			1,125
Chile	Banco de Chile	Other related parties	Chile	Service Provider		(20,904	)		-
Chile	Norte Grande S.A.	Other related parties	Chile	Client		146			-
Chile	El Mercurio S.A.P.	Other related parties	Chile	Service Provider		(131	)		-
Chile	Compañía de Seguros de Vida Consorcio Nacional	Other related parties	Chile	Service Provider		(134	)		-
Chile	Entel PCS Telecomunicaciones S.A.	Other related parties	Chile	Service Provider		(157	)		-
Chile	Empresa Nacional de Telecomunicaciones	Other related parties	Chile	Service Provider		(2,393	)		-

74

Notes to the Consolidated Financial Statements

December 31, 2021

12.5 Trade receivables due from related parties, current:

Tax ID No	Name	Nature	Country of origin	Currency	As of December 31, 2021		As of December 31, 2020
					ThUS$		ThUS$
Foreign	Ajay Europe S.A. R.L.	Associate	France	Euro		7,567		4,625
Foreign	Ajay North America LLC.	Associate	United States of America	Dollar		3,350		2,956
Foreign	Abu Dhabi Fertilizer Industries WWL	Associate	United Arab Emirates	United Arab Emirates Dirham		2,477		595
96.511.530-7	Soc. de Inversiones Pampa Calichera	Other related parties	Chile	Dollar		5		6
Foreign	SQM Vitas Brasil Agroindustria	Other related parties	Brazil	Dollar		55,119		24,335
Foreign	SQM Vitas Perú S.A.C.	Other related parties	Peru	Dollar		14,684		24,205
Foreign	SQM Vitas Fzco.	Joint venture	United Arab Emirates	United Arab Emirates Dirham		232		236
Foreign	Pavoni & C SpA	Joint venture	Italy	Euro		804		1,095
Foreign	Covalent Lithium Pty Ltd.	Joint venture	Australia	Australian dollar		1,914		84
Foreign	Sichuan SQM Migao Chemical Fertilizers Co Ltd.	Joint venture	China	Dollar		-		4,464
Total						86,152		62,601

As of December 31, 2021 and 2020, receivables are net of provision for ThUS$ 717 and ThUS$ 7,545, respectively. As of December 31, 2020, the most significant balance corresponds to Sichuan SQM Migao Fertilizer Co Ltd. presented net of provision of doubtful receivables amounting ThUS$ 6,502.

12.6 Trade payables due to related parties, current:

Tax ID No	Company	Nature	Country of origin	Currency	As of December 31, 2021		As of December 31, 2020
					ThUS$		ThUS$
Foreign	Ajay Europe S.A.R.L.	Associate	France	Euro		-		50
Foreign	Ajay North America LL.C.	Associate	United States of America	Dollar		-		232
Foreign	Covalent Lithium Pty Ltd	Joint venture	Australia	Australian dollar		-		324
Total						-		606

12.7 Other disclosures:

Note 6 describes the remuneration of the board of directors, administration and key management personnel.

75

Notes to the Consolidated Financial Statements

December 31, 2021

Note 13    Financial instruments

13.1 Types of other current and non-current financial assets

 

Description of other financial assets	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Financial assets at amortized cost (1)		905,170		345,459
Derivative financial instruments
- For hedging		12,625		-
- Non-hedging (2)		1,254		2,610
Total other current financial assets		919,049		348,069
Financial assets at fair value through other comprehensive income (4) (5)		8,932		14,569
Derivative financial instruments
- For hedging		245		37,276
Other financial assets at amortized cost		91		80
Total other non-current financial assets		9,268		51,925

Institution	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Banco de Crédito e Inversiones		34,325		185,589
Banco Santander (3)		65,899		45,168
Banco Itaú CorpBanca		195,471		49,006
Banco de Chile		-		-
Scotiabank Sud Americano		289,421		31,668
Sumitomo Mitsui Banking		320,054		-
JP Morgan Asset Management		-		34,028
Total		905,170		345,459

 

(1) Corresponds to term deposits whose maturity date is greater than 90 days and less than 360 days from the investment date constituted in the aforementioned financial institutions.

(2) Correspond to forwards and options that were not classified as hedging instruments (See detail in Note 13.3).

(3) As of December 31, 2021, margin calls were recorded for US$ 31,430. As of December 31, 2020, no margin calls were recorded.

(4) During the first quarter of 2021, equity instruments classified at fair value irrevocably through other comprehensive income were sold for US$ 16,413. The cumulative amount of the movements in other comprehensive income from the date of acquisition to the date of sale was transferred to retained earnings.

(5) During the second quarter of 2021, as a result of the loss of significant influence over the investment of Kore Potash (for more details, see note 8.3 letter a), the investment, which was previous recognized as an investment in associates, was reclassified as other non-current financial assets as it was classified as financial equity instrument at fair value through other comprehensive income irrevocably.

76

Notes to the Consolidated Financial Statements 
December 31, 2021  

13.2 Trade and other receivables

	As of December 31, 2021						As of December 31, 2020
Trade and other receivables	Current		Non-current		Total		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Trade receivables, current		590,312		-		590,312		313,265		-		313,265
Prepayments, current		49,168		-		49,168		19,900		-		19,900
Other receivables, current		14,593		6,172		20,765		32,041		11,165		43,206
Total trade and other receivables		654,073		6,172		660,245		365,206		11,165		376,371

See discussion about credit risk in Note 4.2.

	As of December 31, 2021							As of December 31, 2020
Trade and other receivables	Gross receivables		Impairment provision for doubtful receivables			Trade receivables, net		Gross receivables		Impairment provision for doubtful receivables			Trade receivables, net
	ThUS$		ThUS$			ThUS$		ThUS$		ThUS$			ThUS$
Receivables related to credit operations, current		600,664		(10,352	)		590,312		327,586		(14,321	)		313,265
Prepayments, current		49,952		(784	)		49,168		20,684		(784	)		19,900
Other receivables, current		17,456		(2,863	)		14,593		36,664		(4,623	)		32,041
Other receivables, non-current		6,172		-			6,172		11,165		-			11,165
Total trade and other receivables		674,244		(13,999	)		660,245		396,099		(19,728	)		376,371

77

Notes to the Consolidated Financial Statements
December 31, 2021

(a) Renegotiated portfolio

As of December 31, 2021, and 2020 the detail of the renegotiated portfolio is as follows:

As of December 31, 2021
Portfolio analysis
Past due segments	Number of customers with non-renegotiated portfolio	Gross non-renegotiated portfolio ThUS$	Number of customers with renegotiated portfolio	Gross renegotiated portfolio ThUS$
Current	1,279	570,899	7	130
1 - 30 days	112	22,632	-	-
31 - 60 days	18	2,114	-	-
61 - 90 days	11	1,015	-	-
91 - 120 days	7	202	-	-
121 - 150 days	3	43	-	-
151 - 180 days	3	4	-	-
181 - 210 days	3	130	-	-
211 - 250 days	1	1	2	4
>250 days	80	2,597	117	893
Total	1,517	599,637	126	1,027

As of December 31, 2020
Portfolio analysis
Past due segments	Number of customers with non-renegotiated portfolio	Gross non-renegotiated portfolio ThUS$	Number of customers with renegotiated portfolio	Gross renegotiated portfolio ThUS$
Current	1,281	301,939	23	179
1 - 30 days	119	12,140	8	60
31 - 60 days	12	1,226	-	-
61 - 90 days	5	159	-	-
91 - 120 days	5	1,448	1	41
121 - 150 days	2	2,384	2	2
151 - 180 days	3	1,398	4	12
181 - 210 days	1	-	2	5
211 - 250 days	3	2	6	114
>250 days	156	5,030	64	1,447
Total	1,587	325,726	110	1,860

78

Notes to the Consolidated Financial Statements
December 31, 2021

(b) Impairment provision for doubtful receivables

 

As of December 31, 2021
	Trade accounts receivable days past due											Trade
Trade and other receivables	Current		1 to 30 days		31 to 60 days		61 to 90 days		Over 90 days		Trade	receivables due from related parties
											ThUS$	ThUS$
Expected Loss Rate on	1	%	8	%	32	%	34	%	71	%	-	-
Total Gross Book Value	571,029		22,633		2,113		1,015		3,874		600,664	86,869
Impairment Estimate	4,724		1,856		673		346		2,753		10,352	717

As of December 31, 2020
	Trade accounts receivable days past due											Trade
Trade and other receivables	Current		1 to 30 days		31 to 60 days		61 to 90 days		Over 90 days		Trade	receivables due from related parties
											ThUS$	ThUS$
Expected Loss Rate on	1	%	10	%	39	%	52	%	79	%	-	-
Total Gross Book Value	302,118		12,200		1,226		159		11,883		327,586	70,146
Impairment Estimate	3,187		1,207		477		83		9,367		14,321	7,545

As of December 31, 2021, and 2020, movements in provisions are as follows:

Provisions	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Impairment provision of Accounts receivable at the beginning of the year		27,273			32,707
Increase (decrease) impairment of accounts receivable		235			(4,684	)
Write-off of receivables		(11,091	)		(750	)
Difference in exchange rate		(1,701	)		-
Impairment provision of Accounts Receivable Provision at the end of the year		14,716			27,273
(1) Trade and other Receivables Provision		10,352			14,321
(2) Current Other Receivables Provision		3,647			5,407
(3) Trade receivables with related parties, current Provision		717			7,545
Recovery of Insurance		210			347
Impairment provision of Accounts Receivable Provision		14,716			27,273
Renegotiated receivables		910			1,728
Non-renegotiated receivables		13,806			25,545

79

Notes to the Consolidated Financial Statements
December 31, 2021

13.3 Hedging assets and liabilities

The balance represents derivative financial instruments measured at fair value which have been classified as hedges for exchange and interest rate risks relating to the total obligations with the public associated with bonds in UF and investments in Chilean pesos. (See more detail in Note 4.2 b).

As of December 31, 2021	Assets		Liabilities		Total Realized			Hedging Reserve in Gross Equity (1)
Type of Instrument: Cross currency interest rate swaps UF/CLP
Cash flow hedge derivatives
Short term		12,625		8,954
Long term		245		72,900
Underlying Debt Hedge		12,870		81,854		(22,455	)		(46,529	)
Type of Instrument: Forwards/Options
Non-hedge derivatives with effect on income
Short term		1,254		1,672
Underlying Investments Hedge		1,254		1,672		4,694			-
Total Instrumentos		14,124		83,526		(17,761	)		(46,529	)

As of December 31, 2020	Assets		Liabilities		Total Realized			Hedging Reserve in Gross Equity (1)
Type of Instrument: Cross currency interest rate swaps UF/CLP
Cash flow hedge derivatives
Short term		-		26,699
Long term		37,276		13,511
Underlying Debt Hedge		37,276		40,210		(9,167	)		(6,233	)
Type of Instrument: Forwards/Options
Non-hedge derivatives with effect on income
Short term		2,610		5,393
Underlying Investments Hedge		2,610		5,393		(9,049	)		-
Total Instrumentos		39,886		45,603		(18,216	)		6,233

(1) See underlying hedges in Note 4.2 letters b) and d) and movement of cash flow hedge reserve in Note 20.4.

The balances in the column “Total Realized” consider the intermediate effects of the contracts that were in place between January 1 and December 31, 2021 and January 1and December 31, 2020.

Hedging Effect in Profit and Equity for the year as of December 31, 2021	Variation Total			Effect on Profit or Loss			Hedge Reserves from Variation in Gross Hedges
Analysis Effect by Type of Coverage
Hedging in Current and Non-Current Assets		(24,406	)
Hedging in Current and Non-Current Liabilities		41,644
Total Hedge Effect in Profit or Loss and Equity for the period		17,238			(13,288	)		30,526

80

Notes to the Consolidated Financial Statements
December 31, 2021

Derivative contract maturities are detailed as follows:

	Contract amount
Series	ThUS$		Currency	Maturity date
H		119,938	UF	01/04/2023
O		58,748	UF	02/01/2022
P		134,228	UF	01/15/2028
Q		106,933	UF	06/01/2030

Effectiveness

The Company uses cross currency swap derivative instruments to hedge the possible financial risk associated with the volatility of the exchange rate associated with Chilean pesos and UF. The objective is to hedge the exchange rate and inflation financial risks associated with bonds payable. Hedges are documented and tested to measure their effectiveness.

Based on a comparison of critical terms, hedging is highly effective, given that the hedged amount is consistent with obligations maintained for bonds denominated in Pesos and UF. Likewise, hedging contracts are denominated in the same currencies and have the same maturity dates of bond principal and interest payments.

13.4 Financial liabilities

Other current and non-current financial liabilities

As of December 31, 2021 and 2020, the detail is as follows:

Other current and non-current financial	As of December 31, 2021						As of December 31, 2020
liabilities	Currents		Non-Current		Total		Currents		Non-Current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Liabilities at amortized cost
Bank borrowings		85		69,613		69,698		82		69,376		69,458
Obligations with the public		40,594		2,445,219		2,485,813		36,781		1,816,626		1,853,407
Derivative financial instruments
For hedging		8,954		72,900		81,854		26,699		13,511		40,210
Non-Hedging		1,672		-		1,672		5,393		-		5,393
Total		51,305		2,587,732		2,639,037		68,955		1,899,513		1,968,468

Current and non-current bank borrowings

As of December 31, 2021 and 2020, the detail is as follows:

Current and non-current bank borrowings	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Current borrowings		85		82
Non-current borrowings		69,613		69,376
Current and non-current bank borrowings		69,698		69,458

81

Notes to the Consolidated Financial Statements
December 31, 2021

a)                   Bank borrowings, current:

As of December 31, 2021, and 2020, the detail of this caption is as follows:

Debtor

Creditor

Tax ID No.

Company

Country

Tax ID No.

Financial institution

Country

Currency or adjustment index

Payment of interest

Repayment

Effective rate

Nominal rate

93.007.000-9

SQM S.A.

Chile

O-E

Scotiabank Cayman

USA

USD

Upon maturity

05/31/2022

0.82

%

1.36

%

Debtor

Creditor

Nominal amounts as of December 31, 2021

Current amounts as of December 31, 2021

Company

Financial institution

Up to 90 days

90 days to 1 year

Total

Up to 90 days

90 days to 1 year

Subtotal

Borrowing costs

Total

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

SQM S.A.

Scotiabank Cayman

-

-

-

85

-

85

-

85

Total

-

-

-

85

-

85

-

85

Debtor

Creditor

Tax ID No

Company

Country

Tax ID No

Financial institution

Country

Currency or adjustment index

Repayment

maturity

Effective rate

Nominal rate

93.007.000-9

SQM S.A.

Chile

Foreign

Scotiabank Cayman

USA

US$

Upon maturity

05/31/2022

1.00

%

1.36

%

Debtor

Creditor

Nominal amounts as of December 31, 2020

Current amounts as of December 31, 2020

Company

Financial institution

Up to 90 days

90 days to 1 year

Total

Up to 90 days

90 days to 1 year

Subtotal

Borrowing costs

Total

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

ThUS$

SQM S.A.

Scotiabank Cayman

-

-

-

-

82

82

-

82

Total

-

-

-

-

82

82

-

82

82

Notes to the Consolidated Financial Statements
December 31, 2021

b) Unsecured obligations, current:

As of December 31, 2021, and 2020, the detail of current unsecured interest-bearing obligations is composed of promissory notes and bonds, as follows:

Debtor								Periodicity
Tax ID No.	Company	Country	Number of registration or ID of the instrument		Series	Maturity date	Currency or adjustment index	Payment of interest	Repayment	Effective rate			Nominal rate
93.007.000-9	SQM S.A.	Chile		-	MUS$250	01/28/2022	US$	Semiannual	Upon maturity		1.56	%		4.38	%
93.007.000-9	SQM S.A.	Chile		-	MUS$300	04/03/2022	US$	Semiannual	Upon maturity		0.74	%		3.63	%
93.007.000-9	SQM S.A.	Chile		-	MUS$450	05/07/2022	US$	Semiannual	Upon maturity		3.23	%		4.25	%
93.007.000-9	SQM S.A.	Chile		-	MUS$400	01/22/2022	US$	Semiannual	Upon maturity		4.00	%		4.25	%
93.007.000-9	SQM S.A.	Chile		-	MUS$700	03/10/2022	US$	Semiannual	Upon maturity		3.62	%		3.50	%
93.007.000-9	SQM S.A.	Chile		564	H	01/05/2022	UF	Semiannual	Semiannual		1.75	%		4.90	%
93.007.000-9	SQM S.A.	Chile		699	O	02/01/2022	UF	Semiannual	Upon maturity		2.06	%		3.80	%
93.007.000-9	SQM S.A.	Chile		563	P	01/15/2022	UF	Semiannual	Upon maturity		2.04	%		3.25	%
93.007.000-9	SQM S.A.	Chile		700	Q	06/01/2022	UF	Semiannual	Upon maturity		2.72	%		3.45	%

Effective rates of bonds in Pesos and UF are expressed and calculated in Dollars based on the flows agreed in Cross Currency Swap Agreements.

					Nominal amounts as of December 31, 2021						Carrying amounts of maturities as of December 31, 2021
					Up to 90 days		90 days to 1 year		Total		Up to 90 days		90 days to 1 year		Subtotal		Borrowing costs			Total
Company	Country		Series		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM S.A.		Chile		MUS$250		4,648		-		4,648		4,648		-		4,648		(433	)		4,215
SQM S.A.		Chile		MUS$300		-		2,658		2,658		-		2,658		2,658		(614	)		2,044
SQM S.A.		Chile		MUS$450		-		2,869		2,869		-		2,869		2,869		(679	)		2,190
SQM S.A.		Chile		MUS$400		7,508		-		7,508		7,508		-		7,508		(237	)		7,271
SQM S.A.		Chile		MUS$700		6,874		-		6,874		6,874		-		6,874		(552	)		6,322
SQM S.A.		Chile		H		16,026		-		16,026		16,026		-		16,026		(172	)		15,854
SQM S.A.		Chile		O		863		-		863		863		-		863		(82	)		781
SQM S.A.		Chile		P		1,636		-		1,636		1,636		-		1,636		(12	)		1,624
SQM S.A.		Chile		Q		-		314		314		-		314		314		(21	)		293
Total						37,555		5,841		43,396		37,555		5,841		43,396		(2,802	)		40,594

83

Notes to the Consolidated Financial Statements
December 31, 2021

Debtor								Periodicity
Tax ID No.	Company	Country	Number of registration or ID of the instrument		Series	Maturity date	Currency or adjustment index	Payment of interest	Repayment	Effective rate			Nominal rate
93.007.000-9	SQM S.A.	Chile		-	MUS$250	01/28/2021	US$	Semiannual	Upon maturity		1.95	%		4.38	%
93.007.000-9	SQM S.A.	Chile		-	MUS$300	04/03/2021	US$	Semiannual	Upon maturity		1.08	%		3.63	%
93.007.000-9	SQM S.A.	Chile		-	MUS$450	05/07/2021	US$	Semiannual	Upon maturity		3.59	%		4.25	%
93.007.000-9	SQM S.A.	Chile		-	MUS$400	01/22/2021	US$	Semiannual	Upon maturity		4.17	%		4.25	%
93.007.000-9	SQM S.A.	Chile		564	H	01/05/2021	UF	Semiannual	Semiannual		0.58	%		4.90	%
93.007.000-9	SQM S.A.	Chile		699	O	02/01/2021	UF	Semiannual	Upon maturity		2.24	%		3.80	%
93.007.000-9	SQM S.A.	Chile		563	P	01/15/2021	UF	Semiannual	Upon maturity		2.37	%		3.25	%
93.007.000-9	SQM S.A.	Chile		700	Q	06/01/2021	UF	Semiannual	Upon maturity		2.92	%		3.45	%

Effective rates of bonds in Pesos and UF are expressed and calculated in Dollars based on the flows agreed in Cross Currency Swap Agreements.

			Nominal amounts as of December 31, 2020						Carrying amounts of maturities as of December 31, 2020
			Up to 90 days		90 days to 1 year		Total		Up to 90 days		90 days to 1 year		Subtotal		Borrowing costs			Total
Company	Country	Series	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM S.A.	Chile	MUS$250		4,648		-		4,648		4,648		-		4,648		(433	)		4,215
SQM S.A.	Chile	MUS$300		-		2,658		2,658		-		2,658		2,658		(614	)		2,044
SQM S.A.	Chile	MUS$450		7,508		-		7,508		7,508		-		7,508		(679	)		6,829
SQM S.A.	Chile	MUS$400		-		2,869		2,869		-		2,869		2,869		(237	)		2,632
SQM S.A.	Chile	H		18,212		-		18,212		18,212		-		18,212		(172	)		18,040
SQM S.A.	Chile	O		962		-		962		962		-		962		(82	)		880
SQM S.A.	Chile	P		1,824		-		1,824		1,824		-		1,824		(12	)		1,812
SQM S.A.	Chile	Q		-		350		350		-		350		350		(21	)		329
Total				33,154		5,877		39,031		33,154		5,877		39,031		(2,250	)		36,781

84

Notes to the Consolidated Financial Statements
December 31, 2021

c) Classes of interest-bearing loans, non-current

The following table shows the details of bank loans as of December 31, 2021 and 2020:

Debtor

Creditor

Tax ID No.

Company

Country

Tax ID No.

Financial institution

Country

Currency or adjustment index

Type of amortization

Effective rate

Nominal rate

93.007.000-9

SQM S.A.

Chile

O-E

Scotiabank Cayman

USA

USD

Maturity

2.05

%

1.36

%

Debtor	Creditor	Nominal non-current maturities as of December 31, 2021								Carrying amounts of maturities as of December 31, 2021
Company	Financial institution	Between 1 and 2		Between 2 and 3		Between 3 and 4		Total		Between 1 and 2		Between 2 and 3		Between 3 and 4		Subtotal		Costs of obtaining loans			Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM S.A.	Scotiabank Cayman		70,000		-		-		70,000		70,000		-		-		70,000		(387	)		69,613
Total			70,000		-		-		70,000		70,000		-		-		70,000		(387	)		69,613

Debtor

Creditor

Tax ID No.

Company

Country

Tax ID No.

Financial institution

Country

Currency or adjustment index

Type of amortization

Effective rate

Nominal rate

93.007.000-9

SQM S.A.

Chile

O-E

Scotiabank Cayman

USA

USD

Maturity

1.98

%

1.36

%

Debtor	Creditor	Nominal non-current maturities as of December 31, 2020								Carrying amounts of maturities as of December 31, 2020
Company	Financial institution	Between 1 and 2		Between 2 and 3		Between 3 and 4		Total		Between 1 and 2		Between 2 and 3		Between 3 and 4		Subtotal		Costs of obtaining loans			Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM S.A.	Scotiabank Cayman		-		70,000		-		70,000		-		70,000		-		70,000		(624	)		69,376
Total			-		70,000		-		70,000		-		70,000		-		70,000		(624	)		69,376

85

Notes to the Consolidated Financial Statements
December 31, 2021

d)                   Non-current unsecured interest-bearing bonds

The following table shows the details of “unsecured debentures that accrue non-current interest” as of December 31, 2021, and 2020:

Debtor			Number of registration or ID of			Currency or	Periodicity
Tax ID No.	Company	Country	the instrument	Series	Maturity date	adjustment index	Payment of interest	Repayment	Effective rate		Nominal rate
93.007.000-9	SQM S.A.	Chile	-	MUS$250	01/28/2025	US$	Semiannual	Upon maturity	4.08	%	4.38	%
93.007.000-9	SQM S.A.	Chile	-	MUS$300	04/03/2023	US$	Semiannual	Upon maturity	3.42	%	3.63	%
93.007.000-9	SQM S.A.	Chile	-	MUS$450	05/07/2029	US$	Semiannual	Upon maturity	4.10	%	4.25	%
93.007.000-9	SQM S.A.	Chile	-	MUS$400	01/22/2050	US$	Semiannual	Upon maturity	4.19	%	4.25	%
93.007.000-9	SQM S.A.	Chile	-	MUS$700	09/10/2051	US$	Semiannual	Upon maturity	3.43	%	3.50	%
93.007.000-9	SQM S.A.	Chile	564	H	01/05/2030	UF	Semiannual	Semiannual	4.76	%	4.90	%
93.007.000-9	SQM S.A.	Chile	699	O	02/01/2033	UF	Semiannual	Upon maturity	3.69	%	3.80	%
93.007.000-9	SQM S.A.	Chile	563	P	01/15/2028	UF	Semiannual	Upon maturity	3.24	%	3.25	%
93.007.000-9	SQM S.A.	Chile	700	Q	06/01/2038	UF	Semiannual	Upon maturity	3.43	%	3.45	%

	Nominal non-current maturities as of December 31, 2021						Carrying amounts of maturities as of December 31, 2021
Series	Over 1 year to 2	Over 2 years to 3	Over 3 Years to 4	Over 4 Years to 5	Over 5 years	Total	Over 1 year to 2	Over 2 years to 3	Over 3 Years to 4	Over 4 Years to 5	Over 5 years	Subtotal	Bond issuance costs		Total
	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$
MUS$250	-	-	250,000	-	-	250,000	-	-	250,000	-	-	250,000	(903	)	249,097
MUS$300	300,000	-	-	-	-	300,000	300,000	-	-	-	-	300,000	(168	)	299,832
MUS$450	-	-	-	-	450,000	450,000	-	-	-	-	450,000	450,000	(4,343	)	445,657
MUS$400	-	-	-	-	400,000	400,000	-	-	-	-	400,000	400,000	(6,347	)	393,653
MUS$700	-	-	-	-	700,000	700,000	-	-	-	-	700,000	700,000	(15,836	)	684,164
H	-	-	-	-	100,064	100,064	-	-	-	-	100,064	100,064	(1,206	)	98,858
O	-	-	-	-	55,035	55,035	-	-	-	-	55,035	55,035	(822	)	54,213
P	-	-	-	-	110,070	110,070	-	-	-	-	110,070	110,070	(65	)	110,005
Q	-	-	-	-	110,070	110,070	-	-	-	-	110,070	110,070	(330	)	109,740
Total	300,000	-	250,000	-	1,925,239	2,475,239	300,000	-	250,000	-	1,925,239	2,475,239	(30,020	)	2,445,219

86

Notes to the Consolidated Financial Statements
December 31, 2021

Debtor			Number of registration or ID of			Currency or	Periodicity
Tax ID No.	Company	Country	the instrument	Series	Maturity date	adjustment index	Payment of interest	Repayment	Effective rate		Nominal rate
93.007.000-9	SQM S.A.	Chile	-	MUS$250	01/28/2025	US$	Semiannual	Upon maturity	4.08	%	4.38	%
93.007.000-9	SQM S.A.	Chile	-	MUS$300	04/03/2023	US$	Semiannual	Upon maturity	3.43	%	3.63	%
93.007.000-9	SQM S.A.	Chile	-	MUS$450	05/07/2029	US$	Semiannual	Upon maturity	4.18	%	4.25	%
93.007.000-9	SQM S.A.	Chile	-	MUS$400	01/22/2050	US$	Semiannual	Upon maturity	4.22	%	4.25	%
93.007.000-9	SQM S.A.	Chile	564	H	01/05/2030	UF	Semiannual	Semiannual	4.76	%	4.90	%
93.007.000-9	SQM S.A.	Chile	699	O	02/01/2033	UF	Semiannual	Upon maturity	3.68	%	3.80	%
93.007.000-9	SQM S.A.	Chile	563	P	01/15/2028	UF	Semiannual	Upon maturity	3.24	%	3.25	%
93.007.000-9	SQM S.A.	Chile	700	Q	06/01/2038	UF	Semiannual	Upon maturity	3.43	%	3.45	%

	Nominal non-current maturities as of December 31, 2020						Carrying amounts of maturities as of December 31, 2020
Series	Over 1 year to 2	Over 2 years to 3	Over 3 Years to 4	Over 4 Years to 5	Over 5 years	Total	Over 1 year to 2	Over 2 years to 3	Over 3 Years to 4	Over 4 Years to 5	Over 5 years	Subtotal	Bond issuance costs		Total
	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$	ThUS$		ThUS$
MUS$250	-	-	-	250,000	-	250,000	-	-	-	250,000	-	250,000	(1,336	)	248,664
MUS$300	-	300,000	-	-	-	300,000	-	300,000	-	-	-	300,000	(781	)	299,219
MUS$450	-	-	-	-	450,000	450,000	-	-	-	-	450,000	450,000	(5,020	)	444,980
MUS$400	-	-	-	-	400,000	400,000	-	-	-	-	400,000	400,000	(6,582	)	393,418
H	-	-	-	-	126,386	126,386	-	-	-	-	126,386	126,386	(1,378	)	125,008
O	-	-	-	-	61,334	61,334	-	-	-	-	61,334	61,334	(904	)	60,430
P	-	-	-	-	122,668	122,668	-	-	-	-	122,668	122,668	(77	)	122,591
Q	-	-	-	-	122,668	122,668	-	-	-	-	122,668	122,668	(352	)	122,316
Total	-	300,000	-	250,000	1,283,056	1,833,056	-	300,000	-	250,000	1,283,056	1,833,056	(16,430	)	1,816,626

87

Notes to the Consolidated Financial Statements
December 31, 2021

e) Additional information

Bonds

The details of each issuance are as follows:

(i) Series “H” bonds

On January 13, 2009, the Company placed the Series H bond for UF 4,000,000 equivalent to ThUS$ 139,216 at an annual interest rate of 4.9%, with a term of 21 years and amortizations of principal beginning in July, 2019.

2020

During 2020, the amortization of principal amounted to UF 363,636.36, equivalent to ThUS$ 13,296 with an associated cross currency swap hedge income of ThUS$ 814.

2021

During 2021, amortization of principal amounted to UF 363,636.36, equivalent to ThUS$ 14,870 with an associated cross currency swap hedge loss of ThUS$ 760.

For more details on restrictions. See Note 20.1.

For the periods ended December 31, 2021, and 2020, the Company has made the following payments with a charge to the Series H bonds and their associated CCS hedging:

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Payments of interest, Series H bonds		6,661		6,601
CCS Coverage		1,598		2,575

(ii) Single series bonds, second issue MUS$ 250

On April 21, 2010, the Company informed the CMF of its placement in international markets of an unsecured bond of ThUS$ 250,000, pursuant to Rule 144 -A and Regulation S of the Securities and Exchange Commission with a maturity of 10 years with an annual interest rate of 5.5%.

The Company paid the principal on April 21, 2020.

For the periods ended December 31, 2021 and 2020, the detail of payments charged to the line of single series bonds, second issue is as follows.

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Interest payment		-		6,875

88

Notes to the Consolidated Financial Statements
December 31, 2021

(iii) Series “O” bonds

On April 4, 2012, the Company issued “Series O” for UF 1,500,000 (ThUS$ 69,901) at a term of 21 years with a single payment at the maturity of the term and an annual interest rate of 3.80%.

See more details with respect a restriction in Note 20.1.

For the periods ended December 31, 2021, and 2020, the Company has made the following payments with a charge to Series O bonds and their associated CCS hedging:

 

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest, Series O bonds		2,225		2,070
CCS Coverage		438		599

(iv) Single series bonds, third issue MUS$ 300

On April 3, 2013, the Company issued a non-secured bond in the United States with a value of US$ 300 million. pursuant to Rule 144-A and Regulation S of the SEC. The bond is for a 10-year term with an annual coupon rate of 3.625%.

For the periods ended December 31, 2021, and 2020, the following payments have been made with a debit to the line of single-series bonds, third issue:

 

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		10,875		10,875

89

Notes to the Consolidated Financial Statements
December 31, 2021

(v) Single series bonds, fourth issuance MUS $250

On October 23, 2014, the Company issued unsecured bonds amounting ThUS$ 250,000 in international markets, pursuant to Rule 144-A and Regulation S of the Securities and Exchange Commission. These bonds mature in 2025 and have annual interest rate of 4.375%.

For the periods ended on December 31, 2021 and 2020, the following payments have been made.

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		10,938		10,938

(vi) Series “P” bonds

The Company on March 31, 2008 issued the placement on the stock market of the Series “P” bond (the "Bonds” Series P) with a value of UF 3,000,000, with a charge to the 10 year Bonds Line registered in the CMF Securities Registry under number 563.

The bonds Series P (i) mature on January 15, 2028; (ii) will accrue on the unpaid principal, expressed in UF, at an annual interest rate of 3.25% from January 15, 2018; and (iii) can be early redeemed by the Company starting from the date of placement, that was, as of April 5, 2018.

For the periods ended on December 31, 2021 and 2020, the following payments and their associated CCS have been made:

 

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest series P		3,835		3,534
CCS Coverage		3,119		3,439

90

Notes to the Consolidated Financial Statements
December 31, 2021

(vii) Series Q bonds

On October 31, 2018, the issuance of Series Q bonds was authorized in the general stock market for the amount of UF 3,000,000, which were registered in the Securities Registry of your Commission on February 14, 2012 under number 700.

The bonds Series Q (i) mature on the first day of June 2038; (ii) will earn an interest rate of 3.45% per annum on the outstanding capital, expressed in UF, from June 1, 2018 thereon; and (iii) may be early redeemed by the Company starting from the placement date, that was, as of November 8, 2018.

On November 8, 2018, all the Series Q Bonds have been placed and sold to Euroamerica S.A. for a total amount of $ 83,567,623,842, which was paid in full and in cash by Euroamerica S.A. to the Company.

See more details in Note 20.1

For the periods ended December 31, 2021 and 2020, the following payments have been made:

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest series Q		3,990		3,769
CCS Coverage		1,919		1,021

(viii) Single series fifth issue bonds ThUS$ 450

On May 7, 2019, the CMF was informed that the Company issued and placed unsecured bonds for ThUS$ 450,000 pursuant to Rule 144-A and Regulation S of the Securities and Exchange Commission on international markets. These bonds will mature in 2029 and carry an interest rate of 4.25% per annum.

For the periods ended on December 31, 2021 and 2020, the following payments have been made:

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		19,125		19,125

(ix) Single series sixth issue bonds MUS$ 400

On January 22, 2020, the Company has placed unsecured bonds in international markets for US$ 400 million, pursuant to Rule 144-A and Regulation S of the Securities and Exchange Commission, at an annual interest rate of 4.250% and a maturity in the year 2050.

For the periods ended on December 31, 2021 and 2020, the following payments have been made:

 

Payments made	December 31, 2021		December 31, 2020
	ThUS$		ThUS$
Payment of interest		17,000		8,500

91

Notes to the Consolidated Financial Statements
December 31, 2021

(x) Single series seventh issue bonds MUS$ 700

On September 10, 2021, the Company has placed unsecured bonds in international markets for US$ 700 million, pursuant to Rule 144-A and Regulation S of the Securities and Exchange Commission, at an annual interest rate of 3.50 % and a maturity in the year 2051.

For the periods ended on December 31, 2021 and 2020, no payments have been made.

13.5 Trade and other payables

a) Details trade and other payables

	As of December 31, 2021						As of December 31, 2020
Details trade and other payables	Current		Non-current		Current		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Accounts payable		279,092		-		279,092		203,346		-		203,346
Other accounts payable		558		-		558		587		-		587
Prepayments from customers		-		3,813		3,813		-		4,027		4,027
Total		279,650		3,813		283,463		203,933		4,027		207,960

As of December 31, 2021, and 2020, the balance of current and past due accounts payable is made up as follows:

Suppliers current on all payments 

	Amounts according to payment periods as of December 31, 2021
Type of Supplier	Up to 30 Days		31 - 60 days		61 - 90 Days		91 - 120 days		121 - 365 days		366 and more days		Total
													ThUS$
Goods		148,045		1,799		1,425		-		120		3,813		155,202
Services		80,089		335		109		2		78		-		80,613
Others		31,949		-		-		-		-		-		31,949
Total		260,083		2,134		1,534		2		198		3,813		267,764

	Amounts according to payment periods as of December 31, 2020
Type of Supplier	Up to 30 Days		31 - 60 days		61 - 90 Days		91 - 120 days		121 - 365 days		366 and more days		Total
													ThUS$
Goods		111,323		1,947		123		31		5		4,027		117,456
Services		46,187		1,380		16		757		86		-		48,426
Others		29,325		7		-		-		-		-		29,332
Total		186,835		3,334		139		788		91		4,027		195,214

92

Notes to the Consolidated Financial Statements
December 31, 2021

Suppliers past due on payments

	Amounts according to payment periods as of December 31, 2021
Type of Supplier	Up to 30 Days		31 - 60 days		61 - 90 Days		91 - 120 days		121 - 365 days		366 and more days		Total
													ThUS$
Goods		7,688		30		5		1		37		-		7,761
Services		4,055		108		533		34		181		-		4,911
Others		2,340		16		73		35		5		-		2,469
Total		14,083		154		611		70		223		-		15,141

	Amounts according to payment periods as of December 31, 2020
Type of Supplier	Up to 30 Days		31 - 60 days		61 - 90 Days		91 - 120 days		121 - 365 days		366 and more days		Total
													ThUS$
Goods		1,305		59		47		39		517		-		1,967
Services		2,298		764		-		453		505		-		4,020
Others		3,258		150		371		118		2,275		-		6,172
Total		6,861		973		418		610		3,297		-		12,159

Purchase commitments held by the Company are recognized as liabilities when the goods and services are received by the Company. As of December 31, 2021, the Company has purchase orders amounting to ThUS$ 166,209 and ThUS$ 55,516 as of December 31, 2020.

93

Notes to the Consolidated Financial Statements
December 31, 2021

13.6 Financial asset and liability categories

a)              Financial Assets

	As of December 31, 2021						As of December 31, 2020
	Current		Non-current		Total		Current		Non-current		Total
Description of financial assets	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Cash and cash equivalent		1,515,051		-		1,515,051		509,102		-		509,102
Trade receivables due from related parties at amortized cost		86,152		-		86,152		62,601		-		62,601
Financial assets measured at amortized cost		905,170		91		905,261		345,459		80		345,539
Trade and other receivables		654,073		6,172		660,245		365,206		11,165		376,371
Total financial assets measured at amortized cost		3,160,446		6,263		3,166,709		1,282,368		11,245		1,293,613
Financial instruments for hedging purposes		12,625		245		12,870		-		37,276		37,276
Financial instruments held for trading		1,254		-		1,254		2,610		-		2,610
Financial assets classified as available for sale at fair value through equity		-		8,932		8,932		-		14,569		14,569
Total financial assets at fair value		13,879		9,177		23,056		2,610		51,845		54,455
Total financial assets		3,174,325		15,440		3,189,765		1,284,978		63,090		1,348,068

94

Notes to the Consolidated Financial Statements
December 31, 2021

b)              Financial Liabilities

	As of December 31, 2021						As of December 31, 2020
	Current		Non-current		Total		Current		Non-current		Total
Description of financial liabilities	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
For hedging purposes through equity		8,954		72,900		81,854		26,699		13,511		40,210
Held for trading at fair value through profit or loss		1,672		-		1,672		5,393		-		5,393
Financial liabilities at fair value		10,626		72,900		83,526		32,092		13,511		45,603
Bank loans		85		69,613		69,698		82		69,376		69,458
Obligations to the public		40,594		2,445,219		2,485,813		36,781		1,816,626		1,853,407
Lease Liabilities		7,704		46,519		54,223		5,528		25,546		31,074
Trade and other payables		279,650		3,813		283,463		203,933		4,027		207,960
Trade payables due to related parties		-		-		-		606		-		606
Total financial liabilities at amortized cost		328,033		2,565,164		2,893,197		246,930		1,915,575		2,162,505
Total financial liabilities		338,659		2,638,064		2,976,723		279,022		1,929,086		2,208,108

95

Notes to the Consolidated Financial Statements
December 31, 2021

13.7 Fair value measurement of finance assets and liabilities

The fair value hierarchy is detailed as follows:

(a) Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in level 1.

(b) Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(c) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

96

Notes to the Consolidated Financial Statements
December 31, 2021

	As of December 31, 2021						Measurement Methodology
	Carrying Amount at Amortized Cost		Fair value (reporting purposes)		Book value		Level 1		Level 2		Level 3
Fair value measurement of assets and liabilities	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Financial Assets
Cash and cash equivalents		1,515,051		1,515,051		-		-		1,515,051		-
Other current financial assets
- Time deposits		905,170		905,170		-		-		905,170		-
- Derivative financial instruments
- Forwards		-		-		1,031		-		1,031		-
- Options		-		-		223		-		223		-
- Hedging assets		-		-		-		-		-		-
- Swaps		-		-		12,613		-		12,613		-
Non-current accounts receivable		6,172		6,172		-		-		-		-
Other non-current financial assets:
- Other		91		91		-		-		91		-
- Equity instruments		-		-		8,932		8,932		-		-
- Hedging assets – Swaps		-		-		-		-		-		-
Other current financial liabilities
- Bank borrowings		85		85		-		-		85		-
- Derivative instruments		-		-		-		-		-		-
- Forwards		-		-		1,270		-		1,270		-
- Options		-		-		402		-		402		-
-Hedging liabilities – Swaps		-		-		8,954		-		8,954		-
-Swaps hedges, investments		-		-		-		-		-		-
- Unsecured obligations		40,594		40,594		-		-		40,594		-
- Current lease liabilities		7,704		7,704		-		-		7,704		-
Other non-current financial liabilities
- Bank borrowings		69,613		70,497		-		-		70,497		-
- Unsecured obligations		2,445,219		2,871,005		-		-		2,871,005		-
- Non-current hedging liabilities		-		-		72,900		-		72,900		-
- Non-current lease liabilities		46,519		34,521		-		-		34,521		-

97

Notes to the Consolidated Financial Statements
December 31, 2021

	As of December 31, 2020						Measurement Methodology
	Carrying Amount at Amortized Cost		Fair value (reporting purposes)		Book Value		Level 1		Level 2		Level 3
Fair value measurement of assets and liabilities	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Financial Assets
Cash and cash equivalents		509,102		509,102		-		-		509,102		-
Other current financial assets
- Time deposits		345,459		345,459		-		-		345,459		-
- Derivative financial instruments
- Forwards		-		-		2,263		-		2,263		-
- Options		-		-		347		-		347		-
Non-current accounts receivable		11,165		11,165		-		-		-		-
Other non-current financial assets:
- Other		80		80		-		-		80		-
- Equity instruments		-		-		14,569		14,569		-		-
- Hedging assets – Swaps		-		-		37,276		-		37,276		-
Other current financial liabilities
- Bank borrowings		82		82		-		-		82		-
- Derivative instruments		-		-		-		-		-		-
- Forwards		-		-		4,614		-		4,614		-
- Options		-		-		780		-		780		-
- Hedging liabilities – Swaps		-		-		5,695		-		5,695		-
- Swaps		-		-		21,004		-		21,004		-
- Unsecured obligations		36,781		36,781		-		-		36,781		-
- Current lease liabilities		5,528		5,528		-		-		5,528		-
Other non-current financial liabilities
- Bank borrowings		69,376		71,029		-		-		71,029		-
- Unsecured obligations		1,816,626		2,355,943		-		-		2,355,943		-
- Non-current hedging liabilities		-		-		13,511		-		13,511		-
- Non-current lease liabilities		25,546		26,027		-		-		26,027		-

98

Notes to the Consolidated Financial Statements
December 31, 2021

13.8 Estimated fair value of financial instruments

The fair value of financial assets and liabilities is estimated using the following information. Although the data represent Management's best estimates, it is subjective and involves significant estimates regarding current economic conditions, market conditions and risk characteristics.

Methodologies and assumptions used depend on the risk terms and characteristics of instruments and include the following as a summary:

Fair value estimation for book value

Financial assets and liabilities measured at fair value consist of forwards hedging the mismatch in the balance sheet and cash flows, options hedging the mismatch in the balance sheet and cross currency swaps to hedge bonds issued in local currency (Peso/UF).

The fair value of the Company’s assets and liabilities recognized by cross currency swaps contracts is calculated as the difference between the present value of discounted cash flows of the asset (Peso/UF) and liability (Dollar) parts of the derivative. In the case of the IRS, the asset value recognized is calculated as the difference between the discounted cash flows of the asset (variable rate) and liability (fixed rate) parts of the derivative. Forwards are calculated as the difference between the strike price of the contract and the spot price plus the forwards points at the date of the contract. Financial options: the value recognized is calculated using the Black-Scholes method.

In the case of CCS, the entry data used for the valuation models are UF, Peso, Dollar and basis swap rates. In the case of fair value calculations for interest rate swaps, the Forward Rate Agreement rate and ICVS 23 Curve (Bloomberg: cash/deposits rates, futures, swaps). In the case of forwards, the forwards curve for the currency in question is used. Finally, for options, the spot price, risk-free rate and volatility of exchange rate are used, all in accordance with the currencies used in each valuation. The financial information used as entry data for the Company’s valuation models is obtained from Bloomberg, the well-known financial software company. Conversely, the fair value provided by the counterparties of derivatives contracts is used only as a control and not for valuation.

The effects on profit or loss of movements in these amounts is recognized in the caption finance costs, foreign currency translation gain (loss) or cash flow hedge reserve in the statement of comprehensive income, depending on each particular case.

Estimate of fair value for reporting purposes

· Cash equivalent approximates fair value due to the short-term maturities of these instruments.

· The fair value of current trade receivables is considered to be equal to the carrying amount due to the maturity of such accounts at short-term.

· Payables, current lease liabilities and other current financial liabilities are considered fair value equal to book value due to the short-term maturity of these accounts.

· The fair value of the debt (long-term secured and unsecured debentures; bonds denominated in local currency (Peso/UF) and foreign currency (Dollar), borrowings denominated in foreign currency (Dollar) and lease liabilities of the Company are calculated at current value of cash flows subtracted from market rates upon valuation, considering the terms of maturity and exchange rates. The UF and Peso rate curves are used as inputs for the valuation model. This information is obtained through from the renowned financial software company, Bloomberg, and the Chilean Association of Banks and Financial Institutions.

99

Notes to the Consolidated Financial Statements
December 31, 2021  

13.9 Net Debt reconciliation

This section presents an analysis of net debt plus lease liabilities and their movements for each of the reported periods. The definition of the net debt is described in Note 20.1. and includes current and non-current lease liabilities to complete its analysis.

	As of December 31, 2021			As of December 31, 2020
Net debt	ThUS$			ThUS$
Cash and cash equivalents		1,515,051			509,102
Other current financial assets		919,049			348,069
Other non-current financial hedge assets		245			37,276
Other current financial liabilities		(51,305	)		(68,955	)
Lease liabilities, current		(7,704	)		(5,528	)
Other non-current financial liabilities		(2,587,732	)		(1,899,513	)
Non-current Lease liabilities		(46,519	)		(25,546	)
Total		(258,915	)		(1,105,095	)

Net debt	As of December 31, 2020			From cash flow									Not from cash flow									As of  December 31, 2021
				Amounts from loans			Amounts from interests			Other cash income/expenses			Hedging and non- hedging instruments			Exchange rate differences			Others
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Obligations with the public and bank loans		(1,922,864	)		(685,130	)		75,578			16,570			-			44,473			(84,138	)		(2,555,511	)
Current and non-current lease liabilities		(31,074	)		7,960			1,587			-			-			181			(32,877	)		(54,223	)
Financial instruments derived from hedging		18,070			(760	)		7,238			-			(45,017	)		-			(61,128	)		(81,597	)
Assets and liabilities associated to obligations with the public and bank loans		(1,935,868	)		(677,930	)		84,403			16,570			(45,017	)		44,654			(178,143	)		(2,691,331	)
Cash and cash equivalents		509,102			-			-			1,022,061			-			(16,112	)		-			1,515,051
Deposits that do not qualify as cash and cash equivalents		345,459			-			(2,747	)		585,106			-			(27,315	)		4,667			905,170
Derivatives from hedge assets		(21,004	)		-			-			9,405			23,082			-			1,130			12,613
Derivatives from other financial non-hedge assets		(2,784	)		-			-			(2,327	)		4,693			-			-			(418	)
Total		(1,105,095	)		(677,930	)		81,656			1,630,815			(17,242	)		1,227			(172,346	)		(258,915	)

100

Notes to the Consolidated Financial Statements
December 31, 2021  

Note 14 Right-of-use assets and Lease liabilities

14.1 Right-of-use assets

Reconciliation of changes in right-of-use assets as of December 31, 2021, net value	Land			Buildings			Other property, plant and equipment		Transport equipment			Supplies and accessories		Office equipment		Network and communication equipment		Mining assets		IT equipment		Energy generating assets		Constructions in progress		Machinery, plant and equipment			Total
	ThUS$			ThUS$			ThUS$		ThUS$			ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
Opening Balance		-			23,377			-		2,479			-		-		-		-		-		-		-		4,168			30,024
Additions		17,552			1,209			-		862			-		-		-		-		-		-		-		12,203			31,826
Depreciation expenses		(199	)		(3,635	)		-		(763	)		-		-		-		-		-		-		-		(4,109	)		(8,706	)
Other increases / decreases		-			-			-		-			-		-		-		-		-		-		-		(536	)		(536	)
Total changes		17,353			(2,426	)		-		99			-		-		-		-		-		-		-		7,558			22,584
Closing balance		17,353			20,951			-		2,578			-		-		-		-		-		-		-		11,726			52,608

Reconciliation of changes in right-of-use assets as of December 31, 2020, net value	Land		Buildings			Other property, plant and equipment		Transport equipment			Supplies and accessories		Office equipment		Network and communication equipment		Mining assets		IT equipment		Energy generating assets		Constructions in progress		Machinery, plant and equipment			Total
	ThUS$		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
Opening Balance		-		25,742			-		3,356			-		-		-		-		-		-		-		8,066			37,164
Additions		-		1,782			-		-			-		-		-		-		-		-		-		121			1,903
Depreciation expenses		-		(3,535	)		-		(877	)		-		-		-		-		-		-		-		(4,019	)		(8,431	)
Other increases / decreases		-		(612	)		-		-			-		-		-		-		-		-		-		-			(612	)
Total changes		-		(2,365	)		-		(877	)		-		-		-		-		-		-		-		(3,898	)		(7,140	)
Closing balance		-		23,377			-		2,479			-		-		-		-		-		-		-		4,168			30,024

The Company’s lease activities included the following aspects:

(a) The nature of the Company’s lease activities is related to contracts focused primarily on business operations, mainly rights-of-use to equipment and real estate,

(b) The Company does not estimate any significant future cash outflows that would potentially expose the Company, and these are likewise not reflected in the measurement of lease liabilities, related to concepts such as: (i) Variable lease payments, (ii) Expansion options and termination options, (iii) Guaranteed residual value and (iv) Leases not yet undertaken but committed by the Company.

(c) These are not subject to restrictions or agreements imposed by contracts.

There were no sales transactions with leases later in the period.

101

Notes to the Consolidated Financial Statements
December 31, 2021  

14.2 Lease liabilities

Lease liabilities	As of December 31, 2021				As of December 31, 2020
	Current		Non-Current		Current		Non-Current
	ThUS$		ThUS$		ThUS$		ThUS$
Lease liabilities		7,704		46,519		5,528		25,546
Total		7,704		46,519		5,528		25,546

i) Current and non-current lease liabilities

Debtor

Creditor

Tax ID No.

Company

Country

TAX ID No.

Supplier

Country

Contract indexation unit

Type of amortization

Maturity date

Effective rate

79.626.800-K

SQM Salar S.A.

Chile

83.776.000-3

Empresa Constructora Contex Ltda

Chile

UF

Monthly

03-31-2025

5.39

%

79.626.800-K

SQM Salar S.A.

Chile

76.327.820-4

Maquinaria Astudillo y Hermanos Limitada

Chile

UF

Monthly

01-08-2026

2.89

%

79.626.800-K

SQM Salar S.A.

Chile

76.146.110-9

Transportes, Construcción y Servicios Cribach Ltda

Chile

Peso

Monthly

09-01-2020

8.93

%

79.626.800-K

SQM Salar S.A.

Chile

76.065.017-K

SKM Industrial Ltda.

Chile

Peso

Monthly

06-01-2022

8.93

%

79.626.800-K

SQM Salar S.A.

Chile

96.862.140-8

Ameco Chile S.A.

Chile

Peso

Monthly

04-24-2021

4.07

%

79.626.800-K

SQM Salar S.A.

Chile

76.327.820-4

Maquinaria Astudillo y Hermanos Limitada

Chile

Peso

Monthly

11-24-2025

2.89

%

79.626.800-K

SQM Salar S.A.

Chile

76.158.471-5

Sociedad Inmobiliaria Amaru SpA

Chile

UF

Monthly

07-11-2023

2.00

%

79.626.800-k

SQM Salar S.A.

Chile

76.327.820-4

Maquinaria Astudillo y Hermanos Ltda.

Chile

UF

Monthly

06-01-2026

3,26

%

79.947.100-0

SQM Industrial S.A.

Chile

96.856.400-5

El Trovador S.A.

Chile

UF

Monthly

02-08-2030

3.10

%

79.947.100-0

SQM Industrial S.A.

Chile

76.976.580-8

Sociedad Comercial Grandleasing Chile Ltda

Chile

UF

Monthly

08-26-2024

2.72

%

79.947.100-0

SQM Industrial S.A.

Chile

76.536.499-K

Jungheinrich Rentalif SPA

Chile

UF

Monthly

10-07-2024

3.49

%

79.947.100-0

SQM Industrial S.A.

Chile

76.320.186-4

Tecno Fast S.A.

Chile

UF

Monthly

12-31-2022

1.44

%

96.592.190-7

SQM Nitratos S.A.

Chile

76.536.499-K

Jungheinrich Rentalif SPA

Chile

UF

Monthly

10-07-2024

3.49

%

93.007.000-9

SQM S.A.

Chile

76.536.499-K

Jungheinrich Rentalif SPA

Chile

UF

Monthly

10-07-2024

3.49

%

79.768.170-9

Soquimich Comercial S.A.

Chile

96.662.540-6

Containers Operators S.A.

Chile

UF

Monthly

12-31-2022

0.81

%

79.768.170-9

Soquimich Comercial S.A.

Chile

76.729.932-K

SAAM Logistics S.A.

Chile

UF

Monthly

08-01-2022

0.81

%

102

Notes to the Consolidated Financial Statements
December 31, 2021  

Debtor

Creditor

Tax ID No.

Company

Country

TAX ID No.

Supplier

Country

Contract indexation unit

Type of amortization

Maturity date

Effective rate

79.768.170-9

Soquimich Comercial S.A.

Chile

91.577.000-2

Muelles de Penco S.A.

Chile

UF

Monthly

07-06-2023

1.30

%

79.768.170-9

Soquimich Comercial S.A.

Chile

91.577.000-2

Muelles de Penco S.A.

Chile

UF

Monthly

07-06-2023

1.30

%

79.768.170-9

Soquimich Comercial S.A.

Chile

76.722.280-7

Inmobiliaria Chincui SPA

Chile

UF

Monthly

05-01-2028

3.38

%

79.768.170-9

Soquimich Comercial S.A.

Chile

96.565.580-8

Compañía de Leasing Tattersall S.A.

Chile

UF

Monthly

07-05-2025

2.97

%

76.359.919-1

Orcoma Estudios SpA

Chile

70.017.320-8

Obispado de Iquique

Chile

CLP

Monthly

07-12-2036

6.16

%

76.359.919-1

Orcoma Estudios SpA

Chile

73.190.800-1

Comunidad Indígena Aymara Pueblo de Pisiga Choque

Chile

UF

Monthly

07-12-2024

2.53

%

76.359.919-1

Orcoma Estudios SpA

Chile

6.848.218-6

Ruth del Carmen Cortez Maturana

Chile

Peso

Monthly

07-12-2031

7.44

%

Foreign

SQM North America Corp.

USA

Foreign

Paces West LL.

USA

Dollar

Monthly

12-31-2027

3.36

%

Foreign

SQM North America Corp.

USA

Foreign

Hawkins Nunmber One, LLC

USA

Dollar

Monthly

08-31-2024

3.33

%

Foreign

SQM North America Corp.

USA

Foreign

Deep South Equipment Company

USA

Dollar

Monthly

03-24-2024

1.33

%

Foreign

SQM North America Corp.

USA

Foreign

Tennant-South

USA

Dollar

Monthly

07-02-2023

1.00

%

Foreign

SQM Comercial de México S.A. de C.V.

Mexico

Foreign

Onni Ensenada S.A. de C.V.

Mexico

Dollar

Monthly

12-03-2026

3.45

%

Foreign

SQM Comercial de México S.A. de C.V.

Mexico

Foreign

Madol Inmobiliaria S.A. de C.V.

Mexico

Mexican Peso

Monthly

10-31-2023

7.84

%

Foreign

SQM Comercial de México S.A. de C.V.

Mexico

Foreign

Madol Inmobiliaria S.A. de C.V.

Mexico

Mexican Peso

Monthly

10-31-2023

7.84

%

Foreign

SQM Europe N.V.

Belgium

Foreign

Straatsburgdok N.V.

Belgium

Euro

Monthly

03-31-2027

1.30

%

Foreign

SQM Australia PTY

Australia

Foreign

Eagle Petroleum (WA) Pty Ltd

Australia

Australian dollar

Monthly

06-21-2022

5.00

%

Foreign

SQM Australia PTY

Australia

Foreign

The trust Company (Australia) Pty Ltd

Australia

Australian dollar

Monthly

01-31-2021

3.60

%

Foreign

SQM Australia PTY

Australia

Foreign

Ausco Modular Pty Limited

Australia

Australian dollar

Monthly

01-31-2023

5.00

%

Foreign

SQM Australia PTY

Australia

Foreign

Western Australian Land Authority

Australia

Australian dollar

Monthly

08-31-2051

3.55

%

Foreign

SQM Colombia S.A.S.

Colombia

Foreign

Mareauto Colombia S.A.S.

Colombia

COP

Monthly

12-18-2023

2.01

%

Foreign

SQM Colombia S.A.S.

Colombia

Foreign

Renting Colombia S.A.

Colombia

COP

Monthly

10-16-2024

2.72

%

Foreign

SQM Colombia S.A.S.

Colombia

Foreign

Renting Colombia S.A.

Colombia

COP

Monthly

12-27-2024

2.17

%

103

Notes to the Consolidated Financial Statements
December 31, 2021  

(a) As of December 31, 2021, and 2020, current lease liabilities are analyzed as follows:

Debtor	Creditor	Nominal amounts as of December 31,2021									Amounts at amortized cost as of December 31, 2021
Company	Supplier	Up to 90 days			90 days to 1 year			Total			Up to 90 days			90 days to 1 year			Total
		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda		540			1,618			2,158			457			1,407			1,864
SQM Salar S.A.	Maquinarias Industriales Astudillo Hermanos Ltda.		100			300			400			89			272			361
SQM Salar S.A.	SKM Industrial Ltda.		202			135			337			197			133			330
SQM Salar S.A.	Maquinarias Industriales Astudillo Hermanos Ltda.		48			145			193			43			132			175
SQM Salar S.A.	Sociedad Inmobiliaria Amaru SpA		49			146			195			47			144			191
SQM Salar S.A.	Maquinarias Industriales Astudillo Hermanos Ltda.		8			23			31			7			20			27
SQM Industrial S.A.	El Trovador S.A.		466			1,399			1,865			364			1,110			1,474
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda		180			541			721			168			512			680
SQM Industrial S.A.	Jungheinrich Rentalift SpA		30			88			118			27			82			109
SQM Industrial S.A.	Tecnofast		18			56			74			18			55			73
SQM Nitratos S.A.	Jungheinrich Rentalift SpA		18			55			73			17			50			67
SQM S.A.	Jungheinrich Rentalift SpA		20			59			79			18			55			73
Orcoma Estudios SpA	Obispado de Iquique		1			4			5			1			1			2
Orcoma Estudios SpA	Comunidad Indígena Aymara Pueblo de Pisiga Choque		1			5			6			1			4			5
Orcoma Estudios SpA	Ruth del Carmen Cortez Maturana		1			3			4			1			1			2
Soquimich Comercial S.A.	Container Operators S.A.		86			257			343			85			257			342
Soquimich Comercial S.A.	Muelles de Penco S.A.		41			124			165			41			122			163
Soquimich Comercial S.A.	Muelles de Penco S.A.		44			134			178			44			131			175
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA		157			471			628			127			388			515
Soquimich Comercial S.A.	Compañía de Leasing Tattersall S.A.		58			174			232			52			161			213
SQM North America Corp.	Paces West LL.		55			168			223			44			138			182
SQM North America Corp.	Hawkins Nunmber One, LLC		32			98			130			30			91			121
SQM North America Corp.	Deep South Equipment Company		1			4			5			1			4			5
SQM North America Corp.	Tennant- South		2			4			6			1			5			6
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.		99			296			395			84			254			338
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		20			58			78			17			53			70
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		7			21			28			6			19			25
SQM Europe N.V.	Straatsburgdok N.V.		102			306			408			95			288			383
SQM Australia PTY	Ausco Modular Pty Limited		9			25			34			8			24			32
SQM Australia PTY	Western Australian Land Authority		(52	)		(227	)		(279	)		(103	)		(244	)		(347	)
SQM Australia PTY	Eagle Petroleum (WA) Pty Ltd		5			6			11			3			8			11
SQM Australia PTY	Knight Frank		12			-			12			12			-			12
SQM Colombia S.A.S.	Mareauto Colombia S.A.S.		2			4			6			2			4			6
SQM Colombia S.A.S.	Renting Colombia S.A.		2			7			9			2			7			9
SQM Colombia S.A.S.	Renting Colombia S.A.		3			7			10			3			7			10
Total			2,367			6,514			8,881			2,009			5,695			7,704

104

Notes to the Consolidated Financial Statements
December 31, 2021  

Debtor	Creditor	Nominal amounts as of December 31,2020						Amounts at amortized cost as of December 31, 2020
Company	Supplier	Up to 90 days		90 days to 1 year		Total		Up to 90 days		90 days to 1 year		Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda		536		-		536		536		-		536
SQM Salar S.A.	Transportes, Construcción y Servicios Cribach Ltda		-		-		-		-		-		-
SQM Salar S.A.	SKM Industrial Ltda.		202		607		809		181		566		747
SQM Salar S.A.	Ameco Chile S.A.		135		-		135		134		-		134
SQM Industrial S.A.	El Trovador S.A.		466		1,399		1,865		353		1,076		1,429
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda		180		540		720		164		498		662
Soquimich Comercial S.A.	SAAM Logistics S.A.		-		-		-		-		-		-
Soquimich Comercial S.A.	Muelles de Penco S.A.		41		124		165		54		107		161
Soquimich Comercial S.A.	Muelles de Penco S.A.		44		133		177		57		115		172
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA		157		471		628		123		376		499
Soquimich Comercial S.A.	Compañía de Leasing Tattersall S.A.		55		18		73		54		18		72
SQM North America Corp.	Paces West LL.		53		163		216		41		128		169
SQM North America Corp.	Hawkins Nunmber One, LLC		31		96		127		28		85		113
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.		99		296		395		81		246		327
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		20		59		79		16		49		65
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		7		21		28		6		18		24
SQM Europe N.V.	Straatsburgdok N.V.		91		302		393		83		279		362
SQM Australia PTY	The trust Company (Australia) Pty Ltd		14		42		56		14		42		56
Total			2,131		4,271		6,402		1,925		3,603		5,528

105

Notes to the Consolidated Financial Statements
December 31, 2021  

(b) As of December 31, 2021 and 2020, the non-current lease liabilities are analyzed as follows:

Debtor	Creditor	Nominal amounts as of December 31,2021								Actual amounts as of December 31,2021
Company	Supplier	1-2 Years		2-3 Years		3-4 Years		Total		1-2 Years			2-3 Years		3-4 Years		Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$			ThUS$		ThUS$		ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda		4,317		540		-		4,857		4,036			535		-		4,571
SQM Salar S.A.	Maquinarias Industriales Astudillo Hermanos Ltda.		800		434		-		1,234		754			426		-		1,180
SQM Salar S.A.	SKM Industrial Ltda.		-		-		-		-		-			-		-		-
SQM Salar S.A.	Maquinarias Industriales Astudillo Hermanos Ltda.		386		177		-		563		365			174		-		539
SQM Salar S.A.	Sociedad Inmobiliaria Amaru SpA		98		-		-		98		97			-		-		97
SQM Salar S.A.	Maquinarias Industriales Astudillo Hermanos Ltda.		62		44		-		106		57			43		-		100
SQM Industrial S.A.	El Trovador S.A.		3,730		5,594		4,040		13,364		3,086			4,997		3,905		11,988
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda		1,141		-		-		1,141		1,115			-		-		1,115
SQM Industrial S.A.	Jungheinrich Rentalift SpA		216		-		-		216		209			-		-		209
SQM Industrial S.A.	Tecnofast		-		-		-		-		-			-		-		-
SQM Nitratos S.A.	Jungheinrich Rentalift SpA		134		-		-		134		129			-		-		129
SQM S.A.	Jungheinrich Rentalift SpA		145		-		-		145		141			-		-		141
Orcoma Estudios SpA	Obispado de Iquique		10		14		41		65		5			8		32		45
Orcoma Estudios SpA	Comunidad Indígena Aymara Pueblo de Pisiga Choque		8		-		-		8		8			-		-		8
Orcoma Estudios SpA	Ruth del Carmen Cortez Maturana		8		12		14		34		5			8		12		25
Soquimich Comercial S.A.	Container Operators S.A.		-		-		-		-		-			-		-		-
Soquimich Comercial S.A.	Muelles de Penco S.A.		96		-		-		96		96			-		-		96
Soquimich Comercial S.A.	Muelles de Penco S.A.		104		-		-		104		103			-		-		103
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA		1,255		1,883		261		3,399		1,082			1,766		259		3,107
Soquimich Comercial S.A.	Compañía de Leasing Tattersall S.A.		465		116		-		581		444			115		-		559
SQM North America Corp.	Paces West LL.		465		752		-		1,217		403			714		-		1,117
SQM North America Corp.	Hawkins Nunmber One, LLC		224		-		-		224		217			-		-		217
SQM North America Corp.	Deep South Equipment Company		6		-		-		6		6			-		-		6
SQM North America Corp.	Tennant- South		3		-		-		3		3			-		-		3
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.		789		756		-		1,545		713			731		-		1,444
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		65		-		-		65		63			-		-		63
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		24		-		-		24		23			-		-		23
SQM Europe N.V.	Straatsburgdok N.V.		844		1,015		-		1,859		807			1,000		-		1,807
SQM Australia PTY	Ausco Modular Pty Limited		15		-		-		15		15			-		-		15
SQM Australia PTY	Western Australian Land Authority		1,184		2,995		24,724		28,903		(86	)		1,146		16,710		17,770
SQM Colombia S.A.S.	Mareauto Colombia S.A.S.		6		-		-		6		6			-		-		6
SQM Colombia S.A.S.	Renting Colombia S.A.		15		-		-		15		15			-		-		15
SQM Colombia S.A.S.	Renting Colombia S.A.		21		-		-		21		21			-		-		21
Total			16,636		14,332		29,080		60,048		13,938			11,663		20,918		46,519

106

Notes to the Consolidated Financial Statements
December 31, 2021  

Debtor	Creditor	Nominal amounts as of December 31,2020								Actual amounts as of December 31,2021
Company	Supplier	1-2 Years		2-3 Years		3-4 Years		Total		1-2 Years		2-3 Years		3-4 Years		Total
		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Salar S.A.	Empresa Constructora Contex Ltda		-		-		-		-		-		-		-		-
SQM Salar S.A.	Transportes, Construcción y Servicios Cribach Ltda		-		-		-		-		-		-		-		-
SQM Salar S.A.	SKM Industrial Ltda.		337		-		-		337		330		-		-		330
SQM Salar S.A.	Ameco Chile S.A.		-		-		-		-		-		-		-		-
SQM Industrial S.A.	El Trovador S.A.		3,730		5,594		5,905		15,229		2,993		4,847		5,622		13,462
SQM Industrial S.A.	Sociedad Comercial Grandleasing Chile Ltda		1,441		420		-		1,861		1,379		417		-		1,796
Soquimich Comercial S.A.	SAAM Logistics S.A.		-		-		-		-		-		-		-		-
Soquimich Comercial S.A.	Muelles de Penco S.A.		262		-		-		262		163		96		-		259
Soquimich Comercial S.A.	Muelles de Penco S.A.		281		-		-		281		175		103		-		278
Soquimich Comercial S.A.	Inmobiliaria Chincui SPA		1,255		1,883		889		4,027		1,047		1,707		867		3,621
Soquimich Comercial S.A.	Compañía de Leasing Tattersall S.A.		-		-		-		-		-		-		-		-
SQM North America Corp.	Paces West LL.		452		730		258		1,440		377		668		253		1,298
SQM North America Corp.	Hawkins Nunmber One, LLC		263		90		-		353		249		89		-		338
SQM Comercial de México S.A. de C.V.	Onni Ensenada S.A. de C.V.		789		1,151		-		1,940		689		1,094		-		1,783
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		144		-		-		144		133		-		-		133
SQM Comercial de México S.A. de C.V.	Madol Inmobiliaria S.A. de C.V.		52		-		-		52		48		-		-		48
SQM Europe N.V.	Straatsburgdok N.V.		816		1,339		113		2,268		768		1,308		113		2,189
SQM Australia PTY	The trust Company (Australia) Pty Ltd		11		-		-		11		11		-		-		11
Total			9,833		11,207		7,165		28,205		8,362		10,329		6,855		25,546

107

Notes to the Consolidated Financial Statements
December 31, 2021

Other lease disclosures

Total lease expenses related to lease payments that did not qualify under the scope of IFRS 16 were ThUS$ 71,897 and ThUS$ 61,689 for the periods ended December 31, 2021 and 2020. See Note 23.8.

Expenses related to variable payments not included in lease liabilities were MUS$ 1,313 and MUS$ 1,117 for the periods ending December 31, 2021 and 2020.

Income from subleases on right-of-use assets were ThUS$ 146 and ThUS$ 176 as of December 31, 2021 and 2020, respectively.

Payments for contractual operating leases are disclosed in Note 4.2 Liquidity Risk.

108

Notes to the Consolidated Financial Statements
December 31, 2021

Note 15 Intangible assets and goodwill

15.1 Reconciliation of changes in intangible assets and goodwill

As of December 31, 2021
Intangible assets and goodwill	Useful life	Net Value
		ThUS$
IT programs	Finite		3,447
Mining rights	Finite		149,532
Water rights and rights of way	Indefinite		4,909
Water rights	Finite		15,158
Customer-related intangible assets	Finite		-
Intellectual property	Finite		6,481
Other intangible assets	Finite		131
Intangible assets other than goodwill			179,658
Goodwill	Indefinite		34,596
Total Intangible Asset			214,254

As of December 31, 2020
Intangible assets and goodwill	Useful life	Net Value
		ThUS$
IT programs	Finite		4,826
Mining rights	Finite		150,046
Water rights and rights of way	Indefinite		23,343
Customer-related intangible	Finite		-
Other intangible assets	Finite		192
Intangible assets other than goodwill			178,407
Goodwill	Indefinite		41,966
Total Intangible Asset			220,373

109

Notes to the Consolidated Financial Statements
December 31, 2021  

a) Movements in identifiable intangible assets as of December 31, 2021:

Gross Value Movements in identifiable intangible assets	IT programs			Mining rights, Finite			Water rights, and rights of way, Indefinite			Water rights Finite		Customer-related intangible assets		Intellectual property		Other intangible assets			Goodwill			Identifiable intangible assets
	ThUS$			ThUS$			ThUS$			ThUS$		ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
Opening Balance		35,281			160,496			7,424			18,000		1,778		-		2,274			45,500			270,753
Additions		296			344			-			-		-		-		9			-			649
Other increases / decreases for foreign currency exchange rates		(19	)		2,283			(4	)		-		-		-		(6	)		-			2,254
Impairment losses recognized in profit or loss for the year		-			-			-			-		-		-		-			-			-
Decrease for classification as held for sale		-			-			-			-		-		-		-			-			-
Transferred from available for sale		-			16			-			-		-		-		-			-			16
Other increases (decreases)		58			(246	)		-			-		-		7,370		-			(7,370	)		(188	)
Total increases (decreases)		335			2,397			(4	)		-		-		7,370		3			(7,370	)		2,731
Closing balance		35,616			162,893			7,420			18,000		1,778		7,370		2,277			38,130			273,484

Accumulated amortization and impairment Movements in identifiable intangible assets	IT programs			Mining rights, Finite			Water rights, and rights of way, Indefinite			Water rights Finite			Customer-related intangible assets			Intellectual property			Other intangible assets			Goodwill			Identifiable intangible assets
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening Balance		(30,455	)		(10,450	)		(2,081	)		-			(1,778	)		-			(2,082	)		(3,534	)		(50,380	)
Other increases / decreases for foreign currency exchange rates		2			-			-			-			-			-			-			-			2
Other increases (decreases)		-			-			-			-			-			-			-			-			-
Impairment losses recognized in profit for the year (1)		-			(48	)		(430	)		-			-			-			-			-			(478	)
Amortization		(1,716	)		(2,863	)		-			(2,842	)		-			(889	)		(64	)		-			(8,374	)
Total increases (decreases)		(1,714	)		(2,911	)		(430	)		(2,842	)		-			(889	)		(64	)		-			(8,850	)
Closing balance		(32,169	)		(13,361	)		(2,511	)		(2,842	)		(1,778	)		(889	)		(2,146	)		(3,534	)		(59,230	)

(1) See Note 23.5

110

Notes to the Consolidated Financial Statements
December 31, 2021  

Net value Movements in Identifiable intangible assets	IT programs			Mining rights, Finite			Water rights, and rights of way, Indefinite			Water rights Finite			Customer-related intangible assets		Intellectual property			Other intangible assets			Goodwill			Identifiable intangible assets
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$
Opening Balance		4,826			150,046			5,343			18,000			-		-			192			41,966			220,373
Additions		296			344			-			-			-		-			9			-			649
Amortization		(1,716	)		(2,863	)		-			(2,842	)		-		(889	)		(64	)		-			(8,374	)
Impairment losses recognized in profit for the year		-			(48	)		(430	)		-			-		-			-			-			(478	)
Other increases / decreases for foreign currency exchange rates		(17	)		2,283			(4	)		-			-		-			(6	)		-			2,256
Decreases through sale		-			-			-			-			-		-			-			-			-
Transferred from available for sale		-			16			-			-			-		-			-			-			16
Other increases (decreases)		58			(246	)		-			-			-		7,370			-			(7,370	)		(188	)
Total increases (decreases)		(1,379	)		(514	)		(434	)		(2,842	)		-		6,481			(61	)		(7,370	)		(6,119	)
Closing balance		3,447			149,532			4,909			15,158			-		6,481			131			34,596			214,254

Movements in identifiable intangible assets as of December 31, 2020:

Gross Value Movements in identifiable intangible assets	IT programs		Mining rights, Finite			Water rights, and rights of way, Indefinite		Customer-related intangible assets		Other intangible assets		Goodwill		Identifiable intangible assets
	ThUS$		ThUS$			ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Opening Balance		34,471		158,337			25,423		1,778		2,188		38,120		260,317
Additions		508		2,295			-		-		72		7,380		10,255
Other increases / decreases for foreign currency exchange rates		5		-			1		-		-		-		6
Decreases through sale		-		(136	)		-		-		-		-		(136	)
Other increases (decreases)		297		-			-		-		14		-		311
Total increases (decreases)		810		2,159			1		-		86		7,380		10,436
Closing balance		35,281		160,496			25,424		1,778		2,274		45,500		270,753

111

Notes to the Consolidated Financial Statements
December 31, 2021  

Accumulated amortization and impairment Movements in identifiable intangible assets	IT programs			Mining rights, Finite			Water rights, and rights of way, Indefinite			Customer-related intangible assets			Other intangible assets			Goodwill			Identifiable intangible assets
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening Balance		(28,460	)		(767	)		(2,081	)		(505	)		(2,026	)		(3,394	)		(37,233	)
Other increases / decreases for foreign currency exchange rates		-			-			-			-			-			-			-
Other increases (decreases)		-			(2	)		-			-			-			-			(2	)
Impairment losses recognized in profit for the year		(14	)		(654	)		-			(990	)		-			(140	)		(1,798	)
Amortization		(1,981	)		(9,027	)		-			(283	)		(56	)		-			(11,347	)
Total increases (decreases)		(1,995	)		(9,683	)		-			(1,273	)		(56	)		(140	)		(13,147	)
Closing balance		(30,455	)		(10,450	)		(2,081	)		(1,778	)		(2,082	)		(3,534	)		(50,380	)

Net value Movements in Identifiable intangible assets	IT programs			Mining rights, Finite			Water rights, and rights of way, Indefinite		Customer-related intangible assets			Other intangible assets			Goodwill			Identifiable intangible assets
	ThUS$			ThUS$			ThUS$		ThUS$			ThUS$			ThUS$			ThUS$
Opening Balance		6,011			157,570			23,342		1,273			162			34,726			223,084
Additions		508			2,295			-		-			72			7,380			10,255
Amortization		(1,981	)		(9,027	)		-		(283	)		(56	)		-			(11,347	)
Impairment losses recognized in profit for the year		(14	)		(654	)		-		(990	)		-			(140	)		(1,798	)
Other increases / decreases for foreign currency exchange rates		5			-			1		-			-			-			6
Decreases through sale		-			(136	)		-		-			-			-			(136	)
Other increases (decreases)		297			(2	)		-		-			14			-			309
Total increases (decreases)		(1,185	)		(7,524	)		1		(1,273	)		30			7,240			(2,711	)
Closing balance		4,826			150,046			23,343		-			192			41,966			220,373

112

Notes to the Consolidated Financial Statements
December 31, 2021  

(b)       Movements in identifiable goodwill as of December 31, 2021:

Gross Value Movements in identifiable goodwill	Opening balance		Additional recognition		Impairment losses recognized in profit or loss for the year (-)		Total increase (decrease)			Goodwill at end of period
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM Industrial S.A.		3,214		-		-		-			3,214
SQM S.A.		22,255		-		-		-			22,255
SQM Iberian S.A.		148		-		-		-			148
SQM Investment Corporation		86		-		-		-			86
Soquimich Comercial S.A.		320		-		-		-			320
Soquimich European Holding B.V.		11,383		-		-		-			11,383
SQM Holland B.V.		7,370		-		-		(7,370	)		-
SQM Potasio S.A.		724		-		-		-			724
Total increases (decreases)		45,500		-		-		(7,370	)		38,130
Closing balance		45,500		-		-		(7,370	)		38,130

Accumulated impairment Movements in identifiable goodwill	Opening balance			Additional recognition		Impairment losses recognized in profit or loss for the year (-)		Total increase (decrease)		Goodwill at end of period
	ThUS$			ThUS$		ThUS$		ThUS$		ThUS$
SQM Industrial S.A.		(3,214	)		-		-		-		(3,214	)
SQM S.A.		-			-		-		-		-
SQM Iberian S.A.		-			-		-		-		-
SQM Investment Corporation		-			-		-		-		-
Soquimich Comercial S.A.		(320	)		-		-		-		(320	)
Soquimich European Holding B.V.		-			-		-		-		-
SQM Holland B.V.		-			-		-		-		-
SQM Potasio S.A.		-			-		-		-		-
Total increases (decreases)		(3,534	)		-		-		-		(3,534	)
Closing balance		(3,534	)		-		-		-		(3,534	)

113

Notes to the Consolidated Financial Statements
December 31, 2021  

Net Value Movements in identifiable goodwill	Opening balance		Additional recognition		Impairment losses recognized in profit or loss for the year (-)		Total increase (decrease)			Goodwill at end of period
	ThUS$		ThUS$		ThUS$		ThUS$			ThUS$
SQM Industrial S.A.		-		-		-		-			-
SQM S.A.		22,255		-		-		-			22,255
SQM Iberian S.A.		148		-		-		-			148
SQM Investment Corporation		86		-		-		-			86
Soquimich Comercial S.A.		-		-		-		-			-
Soquimich European Holding B.V.		11,383		-		-		-			11,383
SQM Holland B.V.		7,370		-		-		(7,370	)		-
SQM Potasio S.A.		724		-		-		-			724
Total increases (decreases)		41,966		-		-		(7,370	)		34,596
Closing balance		41,966		-		-		(7,370	)		34,596

Movements in identifiable goodwill as of December 31, 2020

Gross Value Movements in identifiable goodwill	Opening balance		Additional recognition		Impairment losses recognized in profit or loss for the year (-)		Total increase (decrease)		Goodwill at end of period
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
SQM Industrial S.A.		3,214		-		-		-		3,214
SQM S.A.		22,255		-		-		-		22,255
SQM Iberian S.A.		148		-		-		-		148
SQM Investment Corporation		86		-		-		-		86
Soquimich Comercial S.A.		320		-		-		-		320
Soquimich European Holding B.V.		11,373		10		-		10		11,383
SQM Holland B.V.		-		7,370		-		7,370		7,370
SQM Potasio S.A.		724		-		-		-		724
Total increases (decreases)		38,120		7,380		-		7,380		45,500
Closing balance		38,120		7,380		-		7,380		45,500

114

Notes to the Consolidated Financial Statements
December 31, 2021

Accumulated impairment Movements in identifiable goodwill	Opening balance			Additional recognition		Impairment losses recognized in profit or loss for the year (-)			Total increase (decrease)			Goodwill at end of period
	ThUS$			ThUS$		ThUS$			ThUS$			ThUS$
SQM Industrial S.A.		(3,214	)		-		-			-			(3,214	)
SQM S.A.		-			-		-			-			-
SQM Iberian S.A.		-			-		-			-			-
SQM Investment Corporation		-			-		-			-			-
Soquimich Comercial S.A.		(180	)		-		(140	)		(140	)		(320	)
Soquimich European Holding B.V.		-			-		-			-			-
SQM Holland B.V.		-			-		-			-			-
SQM Potasio S.A.		-			-		-			-			-
Total increases (decreases)		(3,394	)		-		(140	)		(140	)		(3,534	)
Closing balance		(3,394	)		-		(140	)		(140	)		(3,534	)

Net Value Movements in identifiable goodwill	Opening balance		Additional recognition		Impairment losses recognized in profit or loss for the year (-)			Total increase (decrease)			Goodwill at end of period
	ThUS$		ThUS$		ThUS$			ThUS$			ThUS$
SQM Industrial S.A.		-		-		-			-			-
SQM S.A.		22,255		-		-			-			22,255
SQM Iberian S.A.		148		-		-			-			148
SQM Investment Corporation		86		-		-			-			86
Soquimich Comercial S.A.		140		-		(140	)		(140	)		-
Soquimich European Holding B.V.		11,373		10		-			10			11,383
SQM Holland B.V.		-		7,370		-			7,370			7,370
SQM Potasio S.A.		724		-		-			-			724
Total increases (decreases)		34,726		7,380		(140	)		7,240			41,966
Closing balance		34,726		7,380		(140	)		7,240			41,966

115

Notes to the Consolidated Financial Statements
December 31, 2021

Note 16    Property, plant and equipment

As of December 31, 2021, and 2020, the detail of property, plant and equipment is as follows:

16.1 Types of property, plant and equipment

Description of types of property, plant and equipment	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Property, plant and equipment, net
Land		23,507			23,579
Buildings		270,563			239,666
Other property, plant and equipment		32,846			35,418
Transport equipment		2,463			2,880
Supplies and accessories		5,556			4,183
Office equipment		1,386			459
Network and communication equipment		1,359			1,272
Mining assets		38,241			47,052
IT equipment		3,570			4,083
Energy generating assets		3,970			4,878
Constructions in progress		731,787			486,345
Machinery, plant and equipment		896,997			887,504
Total		2,012,225			1,737,319
Property, plant and equipment, gross
Land		23,507			23,579
Buildings		767,096			705,089
Other property, plant and equipment		239,582			234,238
Transport equipment		13,357			13,030
Supplies and accessories		28,786			26,101
Office equipment		12,943			11,607
Network and communication equipment		9,577			8,951
Mining assets		195,889			194,562
IT equipment		30,456			29,629
Energy generating assets		38,540			38,540
Constructions in progress		731,787			486,345
Machinery, plant and equipment		3,464,881			3,304,061
Total		5,556,401			5,075,732
Accumulated depreciation and value impairment of property, plant and equipment, total
Accumulated depreciation and impairment of buildings		(496,533	)		(465,423	)
Accumulated depreciation and impairment of other property, plant and equipment		(206,736	)		(198,820	)
Accumulated depreciation and impairment of transport equipment		(10,894	)		(10,150	)
Accumulated depreciation and impairment of supplies and accessories		(23,230	)		(21,918	)
Accumulated depreciation and impairment of office equipment		(11,557	)		(11,148	)
Accumulated depreciation and impairment of network and communication equipment		(8,218	)		(7,679	)
Accumulated depreciation and impairment of mining assets		(157,648	)		(147,510	)
Accumulated depreciation and impairment of IT equipment		(26,886	)		(25,546	)
Accumulated depreciation and impairment of energy generating assets		(34,570	)		(33,662	)
Accumulated depreciation and impairment of machinery, plant and equipment		(2,567,904	)		(2,416,557	)
Total		(3,544,176	)		(3,338,413	)

116

Notes to the Consolidated Financial Statements
December 31, 2021

Description of classes of property, plant and equipment	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Property, plant and equipment, net
Pumps		28,889		28,184
Conveyor Belt		18,294		20,117
Crystallizer		20,189		22,145
Plant Equipment		168,370		173,335
Tanks		22,358		15,367
Filter		41,438		35,553
Electrical equipment/facilities		97,594		93,937
Other Property, Plant & Equipment		71,150		49,930
Site Closure		34,248		36,828
Piping		106,317		102,578
Well		202,982		226,347
Pond		42,547		41,906
Spare Parts (1)		42,601		41,277
Total		896,977		887,504

(1) The reconciliation of the spare parts provision as of December 31, 2021 and 2020 is as follows:

Conciliation	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Opening balance		42,881		39,265
Increase in provision		5,381		3,616
Closing balance		48,262		42,881

117

Notes to the Consolidated Financial Statements
December 31, 2021

16.2 Conciliation of changes in property, plant and equipment by type:

Reconciliation of changes in property, plant and equipment by class as of December 31, 2021 and 2020:

Reconciliation of changes in property, plant and equipment by class as of December 31, 2021, gross amount	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment		Mining assets		IT equipment			Energy generating assets		Assets under construction			Machinery, plant and equipment			Property, plant and equipment
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$		ThUS$			ThUS$		ThUS$			ThUS$			ThUS$
Opening balance		23,579			705,089			234,238			13,030			26,101			11,607			8,951		194,562		29,629			38,540		486,345			3,304,061			5,075,732
Additions		-			-			346			-			-			29			58		-		232			-		470,112			756			471,533
Disposals		-			-			-			-			-			-			-		-		-			-		-			-			-
Increase (decrease) in foreign currency translation difference		(72	)		(152	)		(8	)		(3	)		(14	)		(3	)		-		-		(9	)		-		-			(166	)		(427	)
Reclassifications		-			62,185			5,009			342			2,699			1,310			553		1,327		510			-		(224,945	)		155,900			4,890
Other increases (decreases)		-			(26	)		(3	)		(12	)		-			-			15		-		94			-		275			4,330			4,673
Decreases for classification as held for sale		-			-			-			-			-			-			-		-		-			-		-			-			-
Total changes		(72	)		62,007			5,344			327			2,685			1,336			626		1,327		827			-		245,442			160,820			480,669
Closing balance		23,507			767,096			239,582			13,357			28,786			12,943			9,577		195,889		30,456			38,540		731,787			3,464,881			5,556,401

Reconciliation of changes in property, plant and equipment by class as of December 31, 2021, accumulated depreciation	Land		Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction		Machinery, plant and equipment			Property, plant and equipment
	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening balance		-		(465,423	)		(198,820	)		(10,150	)		(21,918	)		(11,148	)		(7,679	)		(147,510	)		(25,546	)		(33,662	)		-		(2,416,557	)		(3,338,413	)
Changes
Disposals		-		-			-			-			-			-			-			-			-			-			-		-			-
Depreciation expense		-		(30,872	)		(7,848	)		(759	)		(1,384	)		(383	)		(539	)		(10,138	)		(1,387	)		(908	)		-		(141,460	)		(195,678	)
Impairment (3)		-		(456	)		(75	)		-			(16	)		(8	)		-			-			(8	)		-			-		(5,019	)		(5,582	)
Increase (decrease) in foreign currency translation difference		-		72			7			3			14			2			-			-			9			-			-		97			204
Reclassifications		-		106			(1	)		12			74			(20	)		-			-			47			-			-		(5,108	)		(4,890	)
Other increases (decreases) (1)		-		40			1			-			-			-			-			-			(1	)		-			-		143			183
Decreases for classification as held for sale		-		-			-			-			-			-			-			-			-			-			-		-			-
Total changes		-		(31,110	)		(7,916	)		(744	)		(1,312	)		(409	)		(539	)		(10,138	)		(1,340	)		(908	)		-		(151,347	)		(205,763	)
Closing balance		-		(496,533	)		(206,736	)		(10,894	)		(23,230	)		(11,557	)		(8,218	)		(157,648	)		(26,886	)		(34,570	)		-		(2,567,904	)		(3,544,176	)

118

Notes to the Consolidated Financial Statements
December 31, 2021

Reconciliation of changes in property, plant and equipment by class as of December 31, 2021, net amount	Land			Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction			Machinery, plant and equipment			Property, plant and equipment
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Opening balance		23,579			239,666			35,418			2,880			4,183			459			1,272			47,052			4,083			4,878			486,345			887,504			1,737,319
Additions		-			-			346			-			-			29			58			-			232			-			470,112			756			471,533
Disposals		-			-			-			-			-			-			-			-			-			-			-			-			-
Depreciation expense		-			(30,872	)		(7,848	)		(759	)		(1,384	)		(383	)		(539	)		(10,138	)		(1,387	)		(908	)		-			(141,460	)		(195,678	)
Impairment (3)		-			(456	)		(75	)		-			(16	)		(8	)		-			-			(8	)		-			-			(5,019	)		(5,582	)
Increase (decrease) in foreign currency translation difference		(72	)		(80	)		(1	)		-			-			(1	)		-			-			-			-			-			(69	)		(223	)
Reclassifications		-			62,291			5,008			354			2,773			1,290			553			1,327			557			-			(224,945	)		150,792			-
Other increases (decreases) (1)		-			14			(2	)		(12	)		-			-			15			-			93			-			275			4,473			4,856
Decreases for classification as held for sale (2)		-			-			-			-			-			-			-			-			-			-			-			-			-
Total changes		(72	)		30,897			(2,572	)		(417	)		1,373			927			87			(8,811	)		(513	)		(908	)		245,442			9,473			274,906
Closing balance		23,507			270,563			32,846			2,463			5,556			1,386			1,359			38,241			3,570			3,970			731,787			896,977			2,012,225

(1) The net balance of “Other Increases (Decreases)” corresponds to all those items that are reclassified to or from “Property, Plant and Equipment”, They can have the following origin: (i) work in progress which is expensed to profit or loss, forming part of operating costs or other expenses per function, as appropriate; (ii) the variation representing the purchase and use of materials and spare parts; (iii) projects corresponding mainly to exploration expenditures and ground studies that are reclassified to the item other non-current financial assets; (iv) software that is reclassified to “Intangibles (v) Provisions related to the investment plan and assets related to closing the site.

(2) The Company classifies as non-current held for sale property, plant and equipment (disposal group) that, at the closing date of the financial statements, is subject to a commitment for sale or where the sales process has been initiated and where the sale is expected to occur within twelve months of that date.

These assets or disposal groups are valued at the lower of carrying amount or the estimated sales value less the costs to sell and stop being amortized from the moment they are classified as non-current assets held for sale.

(3) See note 23.5.

119

Notes to the Consolidated Financial Statements
December 31, 2021

Reconciliation of changes in property, plant and equipment by class as of December 31, 2020, gross amount	Land			Buildings		Other property, plant and equipment			Transport equipment		Supplies and accessories			Equipment office		Network and communication equipment			Mining assets		IT equipment			Energy generating assets		Assets under construction			Machinery, plant and equipment			Property, plant and equipment
	ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$		ThUS$			ThUS$			ThUS$
Opening balance		23,620			666,027		257,247			12,143		25,531			11,441		8,009			161,619		28,693			38,495		375,316			3,142,461			4,750,602
Additions		-			838		278			-		82			33		386			-		429			-		319,192			987			322,225
Disposals		-			-		(33,048	)		-		(1	)		-		-			-		-			-		-			(149	)		(33,198	)
Increase (decrease) in foreign currency translation difference		22			49		2			1		5			-		-			-		12			-		-			53			144
Reclassifications		-			32,179		9,940			886		488			133		558			32,943		548			45		(203,412	)		125,692			-
Other increases (decreases)		(27	)		5,996		(181	)		-		(4	)		-		(2	)		-		(53	)		-		(4,751	)		35,017			35,995
Decreases for classification as held for sale		(36	)		-		-			-		-			-		-			-		-			-		-			-			(36	)
Total changes		(41	)		39,062		(23,009	)		887		570			166		942			32,943		936			45		111,029			161,600			325,130
Closing balance		23,579			705,089		234,238			13,030		26,101			11,607		8,951			194,562		29,629			38,540		486,345			3,304,061			5,075,732

Reconciliation of changes in property, plant and equipment by class as of December 31, 2020, accumulated depreciation	Land		Buildings			Other property, plant and equipment			Transport equipment			Supplies and accessories			Equipment office			Network and communication equipment			Mining assets			IT equipment			Energy generating assets			Assets under construction		Machinery, plant and equipment			Property, plant and equipment
	ThUS$		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$		ThUS$			ThUS$
Opening balance		-		(438,854	)		(224,602	)		(9,457	)		(20,952	)		(11,021	)		(7,346	)		(138,445	)		(24,334	)		(32,497	)		-		(2,273,188	)		(3,180,696	)
Changes
Disposals		-		-			33,048			-			1			-			-			-			-			-			-		148			33,197
Depreciation expense		-		(26,779	)		(7,284	)		(692	)		(966	)		(126	)		(335	)		(9,065	)		(1,242	)		(1,165	)		-		(134,230	)		(181,884	)
Impairment		-		(23	)		(21	)		-			-			-			-			-			(12	)		-			-		(9,507	)		(9,563	)
Increase (decrease) in foreign currency translation difference		-		(20	)		(2	)		(1	)		(4	)		(1	)		-			-			(10	)		-			-		(28	)		(66	)
Reclassifications		-		-			-			-			-			-			-			-			-			-			-		-			-
Other increases (decreases) (1)		-		253			41			-			3			-			2			-			52			-			-		248			599
Decreases for classification as held for sale		-		-			-			-			-			-			-			-			-			-			-		-			-
Total changes		-		(26,569	)		25,782			(693	)		(966	)		(127	)		(333	)		(9,065	)		(1,212	)		(1,165	)		-		(143,369	)		(157,717	)
Closing balance		-		(465,423	)		(198,820	)		(10,150	)		(21,918	)		(11,148	)		(7,679	)		(147,510	)		(25,546	)		(33,662	)		-		(2,416,557	)		(3,338,413	)

120

Notes to the Consolidated Financial Statements
December 31, 2021

Reconciliation of changes in property, plant and equipment by class as of	Land		Buildings		Other property, plant and equipment		Transport equipment		Supplies and accessories		Equipment office		Network and communication equipment		Mining assets		IT equipment		Energy generating assets		Assets under construction		Machinery, plant and equipment		Property, plant and equipment
December 31, 2020, net amount	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Opening balance	23,620		227,173		32,645		2,686		4,579		420		663		23,174		4,359		5,998		375,316		869,273		1,569,906
Additions	-		838		278		-		82		33		386		-		429		-		319,192		987		322,225
Disposals	-		-		-		-		-		-		-		-		-		-		-		(1	)	(1	)
Depreciation expense	-		(26,779	)	(7,284	)	(692	)	(966	)	(126	)	(335	)	(9,065	)	(1,242	)	(1,165	)	-		(134,230	)	(181,884	)
Deterioration	-		(23	)	(21	)	-		-		-		-		-		(12	)	-		-		(9,507	)	(9,563	)
Increase (decrease) in foreign currency translation difference	22		29		-		-		1		(1	)	-		-		2		-		-		25		78
Reclassifications	-		32,179		9,940		886		488		133		558		32,943		548		45		(203,412	)	125,692		-
Other increases (decreases) (1)	(27	)	6,249		(140	)	-		(1	)	-		-		-		(1	)	-		(4,751	)	35,265		36,594
Decreases for classification as held for sale (2)	(36	)	-		-		-		-		-		-		-		-		-		-		-		(36	)
Total changes	(41	)	12,493		2,773		194		(396	)	39		609		23,878		(276	)	(1,120	)	111,029		18,231		167,413
Closing balance	23,579		239,666		35,418		2,880		4,183		459		1,272		47,052		4,083		4,878		486,345		887,504		1,737,319

(1) The net balance of “Other increases (Decreases)” corresponds to all those items that are reclassified to or from property, plant and equipment, They can have the following origin: (i) work in progress which is expensed to profit or loss, forming part of operating costs or other expenses per function, as appropriate; (ii) the variation representing the purchase and use of materials and spare parts; (iii) projects corresponding mainly to exploration expenditures and ground studies that are reclassified to the item other non-current financial assets; (iv) software that is reclassified to “Intangibles”, (v) Provisions related to the investment plan and assets associated to closing the site.

(2) The Company classifies as non-current held for sale property, plant and equipment (disposal group) that, at the closing date of the financial statements, is subject to a commitment for sale or where the sales process has been initiated and where the sale is expected to occur within twelve months of that date.

These assets or disposal groups are valued at the lower of carrying amount or the estimated sales value less the costs to sell and stop being amortized from the moment they are classified as non-current assets held for sale.

121

Notes to the Consolidated Financial Statements
December 31, 2021

16.3 Detail of property, plant and equipment pledged as guarantee

There are no restrictions in title or guarantees for compliance with obligations that affect property, plant and equipment.

16.4 Cost of capitalized interest, property, plant and equipment

The cost of interest is recognized by applying an average or average weighted interest rate for all financing costs incurred by the Company to the final monthly balances for works underway and complies with the requirements of IAS 23.

Financing costs are not activated for periods that exceed the normal term for acquisition, construction or installation of the property; such is the case for delays, interruptions or temporary suspension of the project due to technical, financial or other problems that make it impossible to leave the property in usable conditions.

The rates and costs for capitalized interest of property, plant and equipment are detailed as follows:

Costs of capitalized interest	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Capitalized interest rate	4	%	4	%
Amount of interest cost capitalized	14,206		8,462

122

Notes to the Consolidated Financial Statements
December 31, 2021  

Note 17 Other current and non-current non-financial assets

As of December 31, 2021, and 2020, the detail of “Other Current and Non-current Assets” is as follows:

Other non-financial assets, current	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Domestic Value Added Tax		26,356		18,107
Foreign Value Added Tax		14,395		7,785
Prepaid mining licenses		1,233		1,025
Prepaid insurance		20,443		10,307
Other prepayments		659		946
Refund of Value Added Tax to exporters		-		14,316
Other taxes		6,030		4,499
Other assets		754		414
Total		69,870		57,399

Other non-financial assets, non-current	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Exploration and evaluation expenses (1)		26,752		17,883
Guarantee deposits		622		731
Other assets		6,113		3,428
Total		33,487		22,042

(1) Reconciliation of changes in assets for exploration and mineral resource evaluation, by type

Movements in assets for the exploration and evaluation of mineral resources as of December 31, 2021, and 2020:

Conciliation	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Opening balance		17,883		18,654
Change in assets for exploration and evaluation of mineral resources
Additions		8,071		-
Short term reclassifications		83		(526	)
Increase (decrease) due to transfers and other charges		715		(245	)
Total changes		8,869		(771	)
Total		26,752		17,883

As of the presentation date, no reevaluations of assets for exploration and assessment of mineral resources have been conducted.

123

Notes to the Consolidated Financial Statements
December 31, 2021  

Mineral resource exploration and evaluation expenditure

Given the nature of operations of the Company and the type of exploration it undertakes, disbursements for exploration can be found in 4 stages: Execution, economically feasible, not economically feasible and in exploitation:

(a)                 Not economically feasible: Exploration and evaluation disbursements, once finalized and concluded to be not economically feasible, will be charged to profit and loss. As of December 31, 2021, and 2020 there were no disbursements for this concept.

(b)                Execution: Disbursements for exploration and evaluation under implementation and therefore prior to determination of economic feasibility, are presented as part of property, plant and equipment as constructions in progress.

Explorations in execution	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Chile		12,915		14,265
Total		12,915		14,265

Conciliation of explorations in execution	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Opening balance		14,265			18,654
Disbursements		11,964			-
Reclassifications		(13,314	)		(4,389	)
Total changes		(1,350	)		(4,389	)
Total		12,915			14,265

(c)                 Economically feasible: Reimbursements for exploration and evaluation whose study concluded that its economic viability is viable are classified in “Other non-financial assets, non-current.”

Prospecting	Type of Exploration	As of December 31, 2021		As of December 31, 2020
		ThUS$		ThUS$
Chile (1)	Metalic/Non-Metallic		18,154		10,872
Total			18,154		10,872

(1) The value presented for Chile is as of December 2021 for ThUS 5,622, corresponding to non-metallic exploration and evaluation and ThUS$ 12,367 associated with metallic exploration. In December 2020, the amounts of non-metallic exploration were ThUS$ 6,576 and metallic exploration were ThUS$ 4,296 Economically feasible metallic exploration is classified as advanced exploration.

124

Notes to the Consolidated Financial Statements
December 31, 2021  

Economically feasible metallic explorations are those classified as advanced exploration.

Prospecting conciliation	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Opening balance		10,872			10,009
Additions		8,071			-
Reclassifications from Exploration in execution – Chile		1,906			863
Reclassifications to Exploration in Exploitation-Chile		(2,695	)		-
Total changes		7,282			863
Total		18,154			10,872

(d)                In Exploitation: Caliche exploration disbursements that are found in this area are amortized based on the material exploited, the portion that is expected to be exploited in the following 12 months is presented as “Current Assets” in the “Inventories in process” and the remaining portion is classified as “Other Non-current Non-Financial Assets”.

Short-Term Exploitation Conciliation	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Opening balance		1,318			1,367
Amortization		(1,359	)		(1,683	)
Reclassifications		1,276			1,634
Total changes		(83	)		(49	)
Total		1,235			1,318

Long-Term Exploitation Conciliation	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Opening balance		7,011		8,645
Amortization		-		-
Reclassifications		1,587		(1,634	)
Total changes		1,587		(1,634	)
Total		8,598		7,011

125

Notes to the Consolidated Financial Statements
December 31, 2021  

Note 18 Employee benefits

18.1 Provisions for employee benefits

Classes of benefits and expenses by employee	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Current
Profit sharing and bonuses		1,383		7,770
Performance bonds and operational targets		25,392		1,326
Total		26,775		9,096
Non-current
Profit sharing and bonuses		-		-
Severance indemnity payments		27,099		32,199
Total		27,099		32,199

18.2 Policies on defined benefit plan

This policy is applied to all benefits received for services provided by the Company's employees. This is divided as follows:

a) Short-term benefits for active employees are represented by salaries, social welfare benefits, paid time off, sickness and other types of leave, profit sharing and incentives and non-monetary benefits; e.g., healthcare service, housing, subsidized or free goods or services. These will be paid in a term which does not exceed twelve months. The Company maintains incentive programs for its employees, which are calculated based on the net result at the close of each period by applying a factor obtained from an evaluation based on their personal performance, the Company’s performance and other short-term and long-term indicators.

b) Staff severance indemnities are agreed and payable based on the final salary, calculated in accordance with each year of service to the Company, with certain maximum limits in respect of either the number of years or in monetary terms. In general, this benefit is payable when the employee or worker ceases to provide his/her services to the Company and there are a number of different circumstances through which a person can be eligible for it, as indicated in the respective agreements; e.g. retirement, dismissal, voluntary retirement, incapacity or disability, death, etc. See Note 18.3.

c) Obligations after employee retirement, described in Note 18.4.

d) Retention bonuses for a group of Company executives, described in Note 18.6.

126

Notes to the Consolidated Financial Statements
December 31, 2021  

18.3 Other long-term benefits

The actuarial assessment method has been used to calculate the Company’s obligations with respect to staff severance indemnities, which relate to defined benefit plans consisting of days of remuneration per year served at the time of retirement under conditions agreed in the respective agreements established between the Company and its employees.

Under this benefit plan, the Company retains the obligation to pay staff severance indemnities related to retirement, without establishing a separate fund with specific assets, which is referred to as not funded.

Benefit payment conditions

The staff severance indemnity benefit relates to remuneration days for years worked for the Company without a limit being imposed in regard of amount of salary or years of service. It applies when employees cease to work for the Company because they are made redundant or in the event of their death. This benefit is applicable up to a maximum age of 65 for men and 60 for women, which are the usual retirement ages according to the Chilean pensions system as established in Decree Law 3,500 of 1980.

Methodology

The determination of the defined benefit obligation is made under the requirements of IAS 19 “Employee benefits”.

18.4 Post-employment benefit obligations

Our subsidiary SQM NA, together with its employees established a pension plan until 2002 called the “SQM North America Retirement Income Plan”. This obligation is calculated measuring the expected future forecast staff severance indemnity obligation using a net salary gradual rate of restatements for inflation, mortality and turnover assumptions, discounting the resulting amounts at present value using the interest rate defined by the authorities.

Since 2003, SQM NA offers benefits related to pension plans based on the 401-K system to its employees, which do not generate obligations for the Company.

Reconciliation Changes in the benefit obligation	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Opening balance		9,864			9,586
Cost of service		-			-
Interest cost		240			280
Actuarial loss		(135	)		506
Benefits paid		(419	)		(508	)
Closing balance		9,550			9,864

127

Notes to the Consolidated Financial Statements
December 31, 2021  

Reconciliation Changes in plan assets	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Fair value of plan assets at the start of the year		12,888			8,754
Actual gain on plan assets		1,028			4,642
Benefits paid		(419	)		(508	)
Fair value of plan assets as of the year-end		13,497			12,888
Financial statements		3,947			3,025
Items not yet recognized as components of net periodic pension costs:
Net actuarial loss at the beginning of the year		192			(3,634	)
Amortization during the year		-			326
Estimated net gain for the year		847			3,500
Movement to recognize minimum pension obligations		1,039			192

Cost of service or benefits received during the year	As of December 31, 2021			As of December 31, 2020
	ThUS$				ThUS$
Cost of service or benefits received during the year	-			-
Interest cost of benefit obligation		240			280
Actual gain on plan assets		1,028			4,642
Amortization of prior year losses		-			326
Net gains during the year		847			3,500
Net periodic pension costs		(76	)		(31	)

128

Notes to the Consolidated Financial Statements
December 31, 2021

18.5 Staff severance indemnities

As of December 31, 2021, and 2020, severance indemnities calculated at the actuarial value are as follows:

Staff severance indemnities	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Opening balance		(32,199	)		(27,814	)
Current cost of service		(4,978	)		(3,804	)
Interest cost		(1,303	)		(1,486	)
Actuarial gain loss		3,999			(2,826	)
Exchange rate difference		4,971			(1,513	)
Benefits paid during the year		2,411			5,244
Total		(27,099	)		(32,199	)

(a) Actuarial assumptions

The liability recorded for staff severance indemnity is valued at the actuarial value method, using the following actuarial assumptions:

Actuarial assumptions	As of December 31, 2021			As of December 31, 2020			Annual/Years
Mortality rate		RV - 2014			RV - 2014
Actual annual interest rate		5.67	%		3.65	%
Voluntary retirement rate:
Men		6.49	%		6.49	%		Annual
Women		6.49	%		6.49	%		Annual
Salary increase		3.00	%		3.00	%		Annual
Retirement age:
Men		65			65			Years
Women		60			60			Years

(b) Sensitivity analysis of assumptions

As of December 31, 2021, and 2020, the Company has conducted a sensitivity analysis of the main assumptions of the actuarial calculation, determining the following:

Sensitivity analysis as of December 31, 2021	Effect + 100 basis points			Effect - 100 basis points
	ThUS$			ThUS$
Discount rate		(1,614	)		1,817
Employee turnover rate		(212	)		237

Sensitivity analysis as of December 31, 2020	Effect + 100 basis points			Effect - 100 basis points
	ThUS$			ThUS$
Discount rate		(1,985	)		2,234
Employee turnover rate		(261	)		291

Sensitivity relates to an increase/decrease of 100 basis points.

129

Notes to the Consolidated Financial Statements
December 31, 2021

18.6 Executive compensation plan

The Company currently has a compensation plan with the purpose of motivating the Company’s executives and encouraging them to remain with the Company, by granting payments based on the change in the price of SQM’s shares. There is a partial payment of the share benefit program in the event of termination of the contract for causes other than the resignation and application of Article 160 of the Labor Code.

(a) Plan characteristics

This compensation plan is related to the Company’s performance through the SQM Series B share price (Santiago Stock Exchange).

(b) Plan participants

The compensation plan considers 29 Company executives, who are entitled to this benefit, provided that they stay with the Company until a given date, recognizing on an accrual basis: a) a 2021 bonus, which will be made effective by paying 146,708 shares distributed between the four quarters of 2021, and b) a 2022 bonus for 42,032 shares, which will be made effective the first quarter of 2023.

Compensation

The compensation payable to each executive is calculated by multiplying:

i) the average price of the series B shares on the Santiago Stock Exchange during the fourth quarter of 2020, in its US dollar equivalent (with a value of US$ 41.93 per share).

ii) the average price of SQM’s series B shares during the final quarter of 2022, subject to a limit of US$ 54 per share.

iii) by a number equal to the quantity of shares that have been individually assigned to each executive included in the plan.

This compensation plan was approved by the Company’s Board of Directors and its application started on September 30, 2020.

The plan that was in place on December 31, 2020 considered 177,905 and 188,740 shares, for 2021. The effects on the income statement are equivalent to an expense of ThUS$ 5,979 and ThUS$ 875 in the income statement for the periods ending December 30, 2021 and 2020.

Shares exercised up to December 31, 2021 were 146,708.

130

Notes to the Consolidated Financial Statements
December 31, 2021

Note 19     Provisions and other non-financial liabilities

19.1 Types of provisions

	As of December 31, 2021						As of December 31, 2020
Types of provisions	Current		Non-current		Total		Current		Non-current		Total
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Provision for legal complaints (1)		48,518		1,223		49,741		8,905		1,260		10,165
Provision for dismantling, restoration and rehabilitation cost (2)		-		58,592		58,592		-		61,265		61,265
Other provisions (3)		269,148		1,223		270,371		95,261		92		95,353
Total		317,666		61,038		378,704		104,166		62,617		166,783

(1) These provisions correspond to legal processes that are pending resolution or that have not yet been disbursed, these provisions are mainly related to litigation involving the subsidiaries located in Chile, Brazil and the United States (see note 21.1).

(2) The commitments related to Sernageomin have been incorporated through the issuance of the guarantee for the restoration of the place where the production sites are located.

(3) See Note 19.2.

131

Notes to the Consolidated Financial Statements
December 31, 2021

19.2 Description of other provisions

Current provisions, other short-term provisions	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Rent under Lease contract (1)		260,889		85,167
Provision for additional tax related to foreign loans		1,027		740
End of agreement bonus		2,792		8,159
Directors’ per diem allowance		3,938		698
Miscellaneous provisions		502		497
Total		269,148		95,261

(1) Payment Obligations for the lease contract with CORFO: These correspond to obligations assumed in the Lease Agreement. Our subsidiary SQM Salar holds exclusive rights to exploit the mineral resources in an area covering approximately 140,000 hectares of land in the Salar de Atacama in northern Chile, of which SQM Salar is only entitled to exploit the mineral resources in 81,920 hectares. These rights are owned by Corfo and leased to SQM Salar pursuant to the Lease Agreement. Corfo cannot unilaterally amend the Lease Agreement and the Project Agreement, and the rights to exploit the resources cannot be transferred. The Lease Agreement establishes that SQM Salar is responsible for making quarterly lease payments to Corfo according to specified percentages of the value of production of minerals extracted from the Salar de Atacama brines, maintaining Corfo’s rights over the Mining Exploitation Concessions and making annual payments to the Chilean government for such concession rights. The Lease Agreement was entered into in 1993 and expires on December 31, 2030. On January 17, 2018, SQM and CORFO reached an agreement to end an arbitration process directed by the arbitrator, Mr. Héctor Humeres Noguer, in case 1954-2014 of the Arbitration and Mediation Center of Santiago Chamber of Commerce and other cases related to it.

The agreement signed in January 2018, includes important amendments to the lease agreement and project agreement signed between CORFO and SQM in 1993. The main modifications became effective on April 10, 2018 and requires an increase in the lease payments by increasing the lease rates associated with the sale of the different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide and potassium chloride. This agreement has been amended since it was signed, and it is reasonable to expect that it will continue to be amended as mutually agreed by the parties.

Additionally, SQM Salar commits to contribute to research and development efforts, as well as to the communities in close proximity to the Salar de Atacama and provide a percentage of total annual sales of SQM Salar to regional development.

SQM Salar commits to contribute between US$10.8 million and US$18.9 million per year to research and development efforts, between US$10 to US$15 million per year to the communities in close proximity to the Salar de Atacama, and 1.7% of total annual sales of SQM Salar to regional development.

132

Notes to the Consolidated Financial Statements
December 31, 2021

19.3 Other non-financial liabilities, Current

Description of other liabilities	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Tax withholdings		21,546		1,208
VAT payable		26,111		1,642
Guarantees received		746		2,636
Accrual for dividend		34,184		8,027
Monthly tax provisional payments		23,319		8,407
Deferred income		5,605		6,435
Withholdings from employees and salaries payable		5,587		5,017
Accrued vacations (1)		23,467		24,003
Other current liabilities		1,288		3,580
Total		141,674		60,955

(1) Vacation benefit (short-term benefits to employees, current) is in line with the provisions established in Chile’s Labor Code, which indicates that employees with more than a year of service will be entitled to annual vacation for a period of at least fifteen paid business days. The Company provides the benefit of two additional vacation days.

133

Notes to the Consolidated Financial Statements
December 31, 2021

19.4 Changes in provisions

Description of items that gave rise to variations as of December 31, 2021	Legal complaints			Provision for dismantling, restoration and rehabilitation cost			Other provisions			Total
	ThUS$			ThUS$			ThUS$			ThUS$
Total provisions, initial balance		10,165			61,265			95,353			166,783
Changes
Additional provisions		48,012			7,302			232,254			287,568
Provision used		(8,399	)		-			(56,959	)		(65,358	)
Increase(decrease) in foreign currency exchange		(37	)		-			(35	)		(72	)
Others		-			(9,975	)		(242	)		(10,217	)
Total Increase (decreases)		39,576			(2,673	)		175,018			211,921
Total		49,741			58,592			270,371			378,704

Description of items that gave rise to variations as of December 31, 2020	Legal complaints			Provision for dismantling, restoration and rehabilitation cost			Other provisions			Total
	ThUS$			ThUS$			ThUS$			ThUS$
Total provisions, initial balance		14,924			33,238			97,093			145,255
Changes
Additional provisions		62,922			30,974			60,685			154,581
Provision used		(67,685	)		-			(59,939	)		(127,624	)
Increase(decrease) in foreign currency exchange		4			-			(2,486	)		(2,482	)
Others		-			(2,947	)		-			(2,947	)
Total Increase (decreases)		(4,759	)		28,027			(1,740	)		21,528
Total		10,165			61,265			95,353			166,783

134

Notes to the Consolidated Financial Statements
December 31, 2021

Note 20      Disclosures on equity

The detail and movements in the funds of equity accounts are shown in the consolidated statement of changes in equity.

20.1 Capital management

The main object of capital management relative to the administration of the Company’s financial debt and equity is to ensure the regular conduct of operations and business continuity in the long term, with the constant intention of maintaining an adequate level of liquidity and in compliance with the financial safeguards established in the debt contracts in force. Within this framework, decisions are made in order to maximize the value of the company.

Capital management must comply with, among others, the limits contemplated in the Financing Policy approved by the Shareholders’ Meeting, which establish a maximum consolidated indebtedness level of 1.5 times the debt to equity ratio. This limit can be exceeded only if the Company’s management has first obtained express approval at an Extraordinary Shareholders’ Meeting.

The Company’s management controls capital management based on the following ratios:

Capital Management	As of December 31, 2021			As of December 31, 2020			Description (1)	Calculation (1)
Net Financial Debt (ThUS$)		204,692			1,074,020		Financial Debt – Financial Resources	Other current Financial Liabilities + Other Non-Current Financial Liabilities– Cash and Cash Equivalents – Other Current Financial Assets – Hedging Assets, non-current
Liquidity		4.62			5.40		Current Assets divided by Current Liabilities	Total Current Assets / Total Current Liabilities
ROE		18.41	%		7.79	%	Profit for the year divided by Total Equity	Profit for the year / Equity
Adjusted EBITDA (ThUS$)		1,185,453			579,765		Adjusted EBITDA	Profit (loss) + Depreciation and Amortization Expenses adjustments + Finance Costs + Income Tax – Other income and Share of profit of associates and joint ventures + Other expenses by function – Finance income – Currency differences
EBITDA (ThUS$)		1,140,086			524,650		EBITDA	Profit (loss) + Depreciation and Amortization Expense adjustments + Finance Costs + Income Tax
ROA		21.29	%		9.83	%	Adjusted EBITDA – Depreciation divided by Total Assets net of financial resources less related parties’ investments	(Gross Profit – Administrative Expenses)/ (Total Assets – Cash and Cash Equivalents – Other Current Financial Assets – Other Non-Current Financial Assets – Equity accounted Investments) (LTM)
Indebtedness		0.06			0.50		Net Financial Debt on Equity	Net Financial Debt / Total Equity

The Company’s capital requirements change according to variables such as: working capital needs, new investment financing and dividends, among others. The SQM Group manages its capital structure and makes adjustments bases on the predominant economic conditions so as to mitigate the risks associated with adverse market conditions and take advantage of the opportunities there may be to improve the liquidity position of the SQM Group.

There have been no changes in the capital management objectives or policy within the years reported in this document, no breaches of external requirements of capital imposed have been recorded. There are no contractual capital investment commitments.

20.2 Operational restrictions and financial limits

Bond issuance contracts in the local market require the Company to maintain a Total Borrowing Ratio no higher than 1 for Series H, Series O and Series Q bonds, calculated over the last consecutive 12 months.

Capital management must ensure that the Borrowing Ratio remains below 1.0, with respect to the Series H, Series O and Series Q bonds. This ratio was redefined at the Bondholders' Meeting held in September 2020, as the result of dividing Net Financial Debt by the company's Total Equity. Previously it had been defined as Total Liabilities divided by Equity, and the limit for this ratio was 1.44, with a prepayment option for bondholders if this ratio rose above 1.2. As of December 31, this ratio was 0.06.

135

Notes to the Consolidated Financial Statements
December 31, 2021

The financial restrictions with respect to the bonds issued by the Company for the periods ended December 31, 2021 and 2020 are as follows.

	Financial restrictions (member)
As of December 31, 2021	Financial restrictions (member)	Financial restrictions (member)	Financial restrictions (member)	Financial restrictions (member)
Instrument with restriction	Bonds	Bonds	Bonds	Bank loans
Reporting party or subsidiary restriction
Creditor	Bondholders	Bondholders	Bondholders	Scotiabank
Registration number	H	Q	O	PB 70M
Name of financial indicator or ratio (See definition in Note 20.1)	NFD/Equity	NFD/Equity	NFD/Equity	NFD/Equity
Measurement frequency	Quarterly	Quarterly	Quarterly	Quarterly
Restriction (Range, value and unit of measure)	Must be less than 1.00	Must be less than 1.00	Must be less than 1.00	Must be less than 1.00
Indicator or ratio determined by the company	0.06	0.06	0.06	0.06
Fulfilled YES/NO	yes	yes	yes	yes

	Financial restrictions (member)
As of December 31, 2020	Financial restrictions (member)	Financial restrictions (member)	Financial restrictions (member)	Financial restrictions (member)
Instrument with restriction	Bonds	Bonds	Bonds	Bank loans
Reporting party or subsidiary restriction
Creditor	Bondholders	Bondholders	Bondholders	Scotiabank
Registration number	H	Q	O	PB 70M
Name of financial indicator or ratio (See definition in Note 20.1)	NFD/Equity	NFD/Equity	NFD/Equity	Debt/Equity
Measurement frequency	Quarterly	Quarterly	Quarterly	Quarterly
Restriction (Range, value and unit of measure)	Must be less than 1.00	Must be less than 1.00	Must be less than 1.00	Must be less than 1.44
Indicator or ratio determined by the company	0.5	0.5	0.5	1.23
Fulfilled YES/NO	yes	yes	yes	yes

Bond issuance contracts in foreign markets require that the Company does not merge, or dispose of, or encumber all or a significant portion of its assets, unless all of the following conditions are met: (i) the legal successor is an entity constituted under the laws of Chile or the United States, which assumes all the obligations of the Company in a supplemental indenture, (ii) immediately after the merger or disposal or encumbrance there is no default by the issuer, and (iii) the issuer has provided a legal opinion indicating that the merger or disposal or encumbrance and the supplemental indenture comply with the requirements of the original indenture.

The Company is also committed to provide quarterly financial information.

The Company and its subsidiaries are complying with all the aforementioned limitations, restrictions and obligations.

20.3 Disclosures on preferred share capital

Issued share capital is divided into Series A shares and Series B shares. All such shares are nominative, have no par value and are fully issued, subscribed and paid.

Series B shares may not exceed 50% of the total issued, subscribed and paid-in shares of the Company and have a limited voting right, in that all of them can only elect one director of the Company, regardless of their equity interest and preferences:

(a) require the calling of an Ordinary or Extraordinary Shareholders' Meeting when so requested by Series B shareholders representing at least 5% of the issued shares thereof; and

136

Notes to the Consolidated Financial Statements 
December 31, 2021

(b) require the calling of an extraordinary meeting of the board of directors, without the president being able to qualify the need for such a request, when so requested by the director who has been elected by the shareholders of said Series B.

The limitation and preferences of Series B shares have a duration of 50 consecutive and continuous years as of June 3, 1993.

The Series A shares have the preference of being able to exclude the director elected by the Series B shareholders in the voting process in which the president of the board of directors and of the Company must be elected and which follows the one in which the tie that allows such exclusion resulted.

The preference of the Series A shares will have a term of 50 consecutive and continuous years as of June 3, 1993. The form of the titles of the shares, their issuance, exchange, disablement, loss, replacement, assignment and other circumstances thereof shall be governed by the provisions of Law No, 18,046 and its regulations.

As of December 31, 2021, the SQM Group hold 648 Series A shares treasury shares.

Detail of capital classes in shares:

As of December 31, 2021, the Company has placed share issues in the market as described in note 1.7:

Type of capital in preferred shares	As of December 31, 2021		As of December 31, 2020
	Series A	Series B	Series A	Series B
Description of type of capital in shares
Number of authorized shares	142,819,552	142,818,904	142,819,552	120,376,972
Number of fully subscribed and paid shares	142,819,552	142,818,904	142,819,552	120,376,972
Number of subscribed, partially paid shares	-	-	-	-
Increase (decrease) in the number of current shares	-	-	-	-
Number of outstanding shares	142,818,904	142,818,904	142,819,552	120,376,972
Number of shares owned by the Company or its subsidiaries or associates	648	-	-	-
Number of shares whose issuance is reserved due to the existence of options or agreements to dispose shares	-	-	-	-
Capital amount in shares ThUS$	134,750	1,442,893	134,750	342,636
Total number of subscribed shares	142,819,552	142,818,904	142,819,552	120,376,972

137

Notes to the Consolidated Financial Statements 
December 31, 2021

20.4 Disclosures on reserves in Equity

As of December 31, 2021, and 2020, this caption comprises the following:

Disclosures on reserves in equity	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Reserve for currency exchange conversion (1)	(7,913	)	(11,569	)
Reserve for cash flow hedges (2)	(34,025	)	4,491
Reserve for gains and losses from financial assets measured at fair value through other comprehensive income (3)	(11,146	)	6,872
Reserve for actuarial gains or losses in defined benefit plans (4)	(4,174	)	(8,680	)
Other reserves	13,103		16,318
Total	(44,155	)	7,432

(1) This balance reflects retained earnings for changes in the exchange rate when converting the financial statements of subsidiaries whose functional currency is different from the US dollar.

(2) The Company maintains, as hedge instruments, financial derivatives related to obligations with the public issued in UF and Chilean pesos, Changes from the fair value of derivatives designated and classified as hedges are recognized under this classification.

(3) This caption includes the fair value of equity investments that are not held for trading and that the group has irrevocably opted to recognize in this category upon initial recognition. In the event that such equity instruments are fully or partially disposed of, the proportional accumulated effect of accumulated fair value will be transferred to retained earnings.

(4) This caption reflects the effects of changes in actuarial assumptions, mainly changes in the discount rate.

138

Notes to the Consolidated Financial Statements 
December 31, 2021

Movements in other reserves and changes in interest were as follows:

	Foreign currency translation difference (1)		Reserve for cash flow hedges				Reserve for actuarial gains and losses from defined benefit plans				Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income				Other reserves		Total reserves
Movements	Before taxes		Before taxes		Tax		Before taxes		Deferred taxes		Before Taxes		Deferred taxes		Before taxes		Reserves		Deferred taxes		Total reserves
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Balances as of January 1, 2020	(25,745	)	9,879		(2,683	)	(11,482	)	1,992		392		(662	)	14,086		(12,870	)	(1,353	)	(14,223	)
Movement of reserves	(404	)	(3,706	)	1,001		955		(145	)	9,784		(2,642	)	2,537		9,166		(1,786	)	7,380
Effect on profit and loss	14,580		-		-		-		-		-		-		(305	)	14,275		-		14,275
As of December 31, 2020	(11,569	)	6,173		(1,682	)	(10,527	)	1,847		10,176		(3,304	)	16,318		10,571		(3,139	)	7,432
Movement of reserves	4,046		(52,762	)	14,246		4,648		(142	)	(12,072	)	3,818		134		(56,006	)	17,922		(38,084	)
Effect on profit and loss	(390	)	-		-		-		-		-		-		(3,349	)	(3,739	)	-		(3,739	)
Reclassification to retained earnings	-		-		-		-		-		(13,375	)	3,611		-		(13,375	)	3,611		(9,764	)
Balances as of December 31, 2021	(7,913	)	(46,589	)	12,564		(5,879	)	1,705		(15,271	)	4,125		13,103		(62,549	)	18,394		(44,155	)

(1) See details on reserves for foreign currency translation differences on conversion in Note 25, letter b).

139

Notes to the Consolidated Financial Statements 
December 31, 2021

Other reserves

This caption corresponds to the legal reserves reported in the stand-alone financial statements of the subsidiaries and associates that are mentioned below and that have been recognized in SQM’s equity through the application of the equity method.

Subsidiary – Associate	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
SQM Iberian S.A.	9,464		9,464
SQM Europe NV	1,957		1,957
Soquimich European holding B.V.	828		828
Abu Dhabi Fertilizer Industries WWL	455		455
Kore Potash PLC	-		3,414
Vitas Fzco.	(38	)	(244	)
Pavoni & C. Spa	7		-
Others	(14	)	-
Total	12,659		15,874
Other derivative reserves of the acquisition of subsidiaries, which was already under Company ownership at the acquisition date (IAS 27R)
SQM Iberian S.A.	(1,677	)	(1,677	)
Orcoma Estudios SPA	2,121		2,121
Total Other reserves	13,103		16,318

20.5 Dividend policies

As required by Article 79 of the Chilean Companies Act, unless otherwise decided by unanimous vote of the holders of issued and subscribed shares, a publicly traded corporation must annually distribute a cash dividend to its shareholders, prorated based on their shares or the proportion established in the company’s bylaws if there are preferred shares, with at least 30% of our consolidated profit for each year.

Dividend policy for commercial year 2021

Company’s dividend policy for the 2021 business year was agreed upon by the Board of Directors on April 23, 2021. This dividend policy was amended on November 17, 2021, and establishes the following:

(a) Distribute and pay to the corresponding shareholders, a percentage of the net income that shall be determined per the following financial parameters as a final dividend:

(i) 100% of the profit for 2021 if all the following financial parameters are met: (a) “all current assets” divided by “all current liabilities” is equal to or greater than 2.5 times, and (b) the sum of “all current liabilities” and “all non-current liabilities”, less “cash equivalents”, less “other current financial assets”, all of the above divided by “total equity” in equal or less than 0.85 times.

(ii) 80% of the profit for 2021 if all the following financial parameters are met: (a) “all current assets” divided by “all current liabilities” is equal to or greater than 2.0 times, and (b) the sum of “all current liabilities” and “all non-current liabilities”, less “cash equivalents”, less “other current financial assets”, all of the above divided by “total equity” in equal or less than 0.95 times.

(iii) 60% of the profit for 2021 if all the following financial parameters are met: (a) “all current assets” divided by “all current liabilities” is equal to or greater than 1.5 times, and (b) the sum of “all current liabilities” and “all non-current liabilities”, less “cash equivalents”, less “other current financial assets”, all of the above divided by “total equity” in equal or less than 1.05 times.

(iv) If none of the foregoing financial parameters are met, the Company shall distribute and pay, as a final dividend, and in favor of the respective shareholders, 50% of the 2021 net income.

140

Notes to the Consolidated Financial Statements 
December 31, 2021

(b) Distribute and pay two interim dividends during 2021, which will be charged to the final dividend indicated above against retained earnings reflected in the financial statements as of March 31, 2021 and June 30, 2021, by the percentage that corresponds according to the financial parameters expressed in (a) above.

On May 19, 2021 and August 18, 2021, the Board of Directors agreed to distribute and pay an interim dividend equivalent to US$ 0.23797 per share and US$ 0.31439 per share, respectively, out of the Company's earnings for 2021. These amounts were paid in Chilean peso equivalents at the official US dollar exchange rate on May 28, 2021 and September 1, 2021, respectively (the "Interim Dividends").

(c) The Board of Directors will not distribute any other interim dividends out of 2021 earnings.

(d) At the ordinary meeting to be held in 2022, the Company's Board of Directors will propose a final dividend in line with the percentage corresponding to the financial parameters outlined in (a) above, discounting the provisional dividends and the Interim Dividends. In the event that the amount equivalent to the percentage of the 2021 distributable earnings as described in (a) above is equal to or less than the sum of the Potential Dividend and the Interim Dividends, then no additional amount will be distributed and the Interim Dividends will be deemed to be paid as a final dividend. In any case, the final dividend may not be less than the minimum legal dividend required by law or the bylaws.

(e) Any remaining amount from the net profits from 2021 can be retained and used to finance the Company’s own operations or one or more of its investment projects, notwithstanding a possible distribution of dividends charged to accumulated profit that might be approved by the shareholders’ meeting or the possible future capitalization of all or part of it.

(f) The payment of additional dividends is not being considered.

It must be expressly stated that this dividends policy details the intention of the Company’s Board of Directors and its fulfillment depends on the actual profits obtained, as well as on the results indicated by the projections the Company makes from time to time or on the existence of particular conditions, as appropriate. In any case, if the dividend policy set forth by the Board of Directors should undergo any substantial change, the Company must communicate it as a material event.

20.6          Interim and provisional dividends

On May 19, 2021, the Board of Directors agreed to pay a provisional dividend equivalent to US$ 0.23797 per share with a charge to Company earnings for 2021. Payment began on this provisional dividend on June 10, 2021.

On August 18, 2021, the Board of Directors agreed to pay a provisional dividend equivalent to US$ 0.31439 per share with a charge to Company earnings for 2021. Payment began on this provisional dividend on September 9, 2021.

On December 22, 2021, the Board of Directors agreed to pay an interim dividend equivalent to US$1.40037 per share out of the Company's retained earnings. This interim dividend was paid on December 30, 2021.

141

Notes to the Consolidated Financial Statements 
December 31, 2021

20.7 Potential and provisional dividends

Dividends discounted from equity from January to December 2021 and 2020 were the following:

Dividends	As of December 31, 2021	As of December 31, 2020
	ThUS$	ThUS$
Ajay SQM Chile S.A. Dividends	-	556
Ajay SQM Chile S.A Payable Dividend	577	682
Soquimich Comercial S.A. Special Dividend	5,904	5,904
Soquimich Comercial S.A. Payable Dividend	5,927	2,976
Non-controlling interests	12,408	10,118
Interim dividend	157,774	44,986
Special dividend	399,998	100,000
Dividends payable	27,681	4,369
Owners of the Parent	585,453	149,355
Dividends discounted from equity for the period	597,861	159,473

142

Notes to the Consolidated Financial Statements 
December 31, 2021

Note 21        Contingencies and restrictions

In accordance with note 19.1, the Company recognizes a provision for those lawsuits in which there is a probability that the judgments will be unfavorable to the Company. The Company is party to the following lawsuits and other relevant legal actions:

21.1 Lawsuits and other relevant events

(a) In August 1996, Nitratos Naturais do Chile Ltda. was fined by Fazenda do Estado de Sao Paulo for concluding activities without attaching the necessary documentation for submission to the competent authorities. The treasury of the State of Sao Paulo initiated legal actions to collect close to ThUS$ 492. Nitratos Naturais do Chile has presented a case to the federal court of Brazil to request a reduction in the fine, which is currently pending.

(b) In August 2004, Nitratos Naturais do Chile Ltda. was fined by Fazenda do Estado de Sao Paulo for failing to report trade activities. The treasury of the State of Sao Paulo initiated legal actions to collect close to ThUS$ 265. In 2018, the Court of Appeals agreed to a reduction in the fine and the Fazenda do Estado de Sao Paulo appealed to the Court of Brazil, and this appeal is still pending.

(c) In December 2010, the city of Pomona in the state of California, United States, filed a claim against SQM NA, which was heard before the US District Court for the Central District of California. The plaintiff requested the payment of expenses and other values related to treatment of groundwater to make it apt for consumption, which involved the extraction of perchlorate in this water, which allegedly came from Chilean fertilizers, for an approximate amount of US$ 30 million. On January 27, 2022, a judgment was issued against SQM NA for MUS$ 48.1, which has been appealed. The Company has recorded a charge of MUS$ 48.1 before taxes to the income statement for the year ended December 30, 2021.

(d) In December 2010, the city of Lindsay in California, United States, filed a claim against SQM NA, which was heard before the US District Court for the Central District of California. The plaintiff requested the payment of expenses and other values related to treatment of groundwater to make it apt for consumption, which involved the extraction of perchlorate in this water, which allegedly came from Chilean fertilizers, the trial is currently suspended.

(e) In May 2014, a claim of compensation for damages was filed against SQM Nitratos for its alleged extracontractual liability derived from an explosion occurring in 2010 in the vicinity of the town of Baquedano, which caused the death of six workers. The portion of the claim that has not been settled in court is approximately MUS$ 1.2. On May 7, 2019, the 18th Civil Court of Santiago dismissed the claim. The case currently is in the Santiago Court of Appeals, which will make a determination on the motion for appeal and cassation brought about on behalf of the plaintiff.

(f) In January 2018, the company Transportes Buen Destino S.A. filed an arbitration claim under CAM rules against SQM Salar for controversies resulting from the execution of transport contracts for lithium brine and transport of salts. The amount of the claim is close to MUS$ 3. The arbitration is currently in the evidence stage.

(g) In September 2018, representatives Claudia Nathalie Mix Jiménez, Gael Fernanda Yeomans Araya, Camila Ruzlay Rojas Valderrama filed a public right annulment suit against Corfo regarding the Salar de Atacama Project Contract signed between Corfo and SQM Salar. The Company has intervened as an independent third party. This discussion stage has concluded. For more information, see Note 21.4.

143

Notes to the Consolidated Financial Statements 
December 31, 2021

(h) The Company and FPC Ingeniería y Construcción SpA were sued in May 2019 for compensation for damages resulting from alleged extracontractual liability derived from the traffic accident occurring on March 5, 2018, involving the overturn of a truck owned by FPC and the subsequent death of its two occupants, both employees of FPC. The four children of one of the deceased workers are the plaintiffs in this case and are seeking compensation for moral damages. The case is in the 19th Civil Court of Santiago and is in the evidence stage. The amount of the claim is close to MUS$ 1.2.

(i) The company Arrigoni Ingeniería y Construcción S.A. filed a claim in November 2019 against SQM Salar in arbitration court under CAM rules, requesting the conclusion of the Works Contract known as “Expansion of Lithium Carbonate Plant Phase II.” The trial is currently in the evidence stage. The amount of the claim is close to MUS$ 14.6.

(j) The Company has initiated an arbitration process against the company Sierra Gorda S.C.M. due to controversies originating from the Mining, Royalties and Other Sales Contract dated December 16, 2011. Sierra Gorda S.C.M. has filed counterclaims against the Company. The process is in its evidence stage. The counterclaims filed against the Company amount to MUS$ 46.

(k) Through resolution dated April 14, 2020, the General Water Bureau (DGA) fined SQM Salar S.A. an amount of 4,180 UTM for the alleged violation of article 294 of the Water Code. This resolution was appealed for reconsideration as established in article 136 of the Water Code, and its resolution is currently pending.

(l) On January 7, 2021, the Company Ocaña y Vega Limited has requested arbitration against the Company to claim compensation for damages associated with the early termination of two construction contracts. The case has reached the evidence gathering stage. The cost of arbitration is valued at approximately ThUS$ 377.

(m) On April 6, 2021, Empresa Eléctrica Cochrane SpA requested the constitution of arbitration to resolve a dispute in relation to electricity supply contracts signed on March 30, 2012, and February 1, 2013. The trial is currently in the discussion stage. On January 17, 2022, the Company filed a claim for early termination of the electricity supply contracts against Empresa Eléctrica Cochrane SpA. at the same arbitration tribunal.

(n) In October 2021, the Company requested the constitution of an arbitration against Chilena Consolidada Seguros Generales S.A. to resolve differences in relation to the interpretation and execution of the directors' and officers' liability insurance policy. The lawsuit has been notified to the arbitrator.

(o) In February 2022, the company Montajes Eléctricos y Construcciones RER Limitada filed a claim for damages before the 21st Civil Court of Santiago against SQM Industrial S.A. for its alleged liability derived from the breach of an electrical installation contract. The case is still in the discussion stage. The amount of the lawsuit is approximately ThUS$542 million.

The Company and its subsidiaries have been involved and will probably continue to be involved either as plaintiffs or defendants in certain judicial proceedings that have been and will be heard by the arbitration or ordinary courts of justice that will make the final decision. Those proceedings that are regulated by the appropriate legal regulations are intended to exercise or oppose certain actions or exceptions related to certain mining claims either granted or to be granted and that do not or will not affect in an essential manner the development of the Company and its subsidiaries.

Soquimich Comercial S.A. has been involved and will probably continue being involved either as plaintiff or defendant in certain judicial proceedings through which it intends to collect and receive the amounts owed, the total nominal value of which is approximately MUS$ 1.05.

The Company and its subsidiaries have made efforts and continues making efforts to obtain payment of certain amounts that are still owed to the Company due to its activities. Such amounts will continue to be required using judicial or non-judicial means by the plaintiffs, and the actions and exercise related to these are currently in full force and effect.

144

Notes to the Consolidated Financial Statements 
December 31, 2021

21.2 Environmental contingencies

The SMA issued a resolution dated November 28, 2016, rectified by a resolution dated December 23, 2016, which filed charges against SQM Salar for brine extraction in excess of authorized amounts, progressive impairment of the vitality of carob trees, providing incomplete information modification of follow-up plan variables, and other charges. SQM Salar S.A. presented a compliance program that was accepted by the SMA. On December 2019, the Environmental Court of Antofagasta rendered the accepted compliance program null. In October 2020, the SMA formulated new observations for the compliance program, which will enable the incorporation of improvements in line with the ruling of the Environmental Court of Antofagasta, to then make a determination regarding approval or rejection. If a new compliance program is not approved by the SMA, or if approved and legally challenged and rendered null and void by the Chilean courts, the sanction process against SQM Salar could be resumed. This latter event may consider the application of fines up to MUS$ 9, temporary or permanent closure of facilities and in extreme circumstances, revocation of the respective environmental permit.

21.3 Tax Contingencies

SQM Salar has filed three tax claims against the SII for taxes levied between tax years 2012 and 2018 (business years 2011 to 2017). The SII has sought to broaden the application of the specific tax on mining activities to the extraction of lithium, a substance that is not concessionable by law. The amount associated with these processes totals US$ 90.4 million, which has been paid by SQM Salar. This amount is recorded under “Non-current tax assets” in the Consolidated State of the Company as of December 30, 2021 and 2020.

The non-current tax assets presented in the Company’s Financial Statements as of December 31, 2021 of US$ 90.4 million, correspond to the three claims in the recently mentioned dispute. This amount can be broken down as follows: overcharged amount of US$ 18.9 million; potential specific tax for lithium amounting to US$ 48.6 million (minus effect on first category income tax) and interests associated with this tax for US$ 22.8 million.

The details of the claims can be found below:

(a) On August 26, 2016, a tax claim was filed with the Third Tax and Customs Court of the Metropolitan Region against tax assessments No. 169, 170, 171 and 172 for tax years 2012 to 2014. The amount in dispute is US$ 17.8 million, of which (i) US$ 11.5 million correspond to the contested tax (minus effect on first category income tax), and (ii) US$ 6.3 million correspond to interest and associated fines. On November 28, 2018, the Third Tax and Customs Court rejected the claim, and the case is currently in the Santiago Court of Appeals.

(b) On March 24, 2017, a tax claim was filed with the Third Tax and Customs Court of the Metropolitan Region against tax assessment No. 207 and resolution No. 156, both issued by the SII, for tax years 2015 to 2016. The amount in dispute is US$ 8.6 million, of which (i) US$ 1.3 million correspond to amounts assessed in excess, (ii) US$ 6.9 million correspond to the contested tax (minus effect on first category income tax), and (ii) US$ 0.5 million correspond to interest and fines. On November 28, 2018, the Third Tax and Customs Court rejected the corresponding claim, and the case is currently in the Santiago Court of Appeals.

145

Notes to the Consolidated Financial Statements 
December 31, 2021

(c) On July 15, 2021, SQM Salar filed a public right annulment suit and tax claim with the First Tax and Customs Court of the Metropolitan Region against tax assessments No. 65 and 66 for the 2017 and 2018 tax years. The amount in dispute is US$ 63.9 million, of which (i) US$ 17.7 million correspond to overcharged amounts, (ii) US$ 30.2 million correspond to the contested tax (minus effect on first category income tax), and (iii) US$ 16.1 million correspond to interest and fines. This case is under deliberation.

The SII has not issued an assessment claiming differences in the specific tax on mining activities filed for tax years 2019 onward. If the SII uses criteria similar to that used in previous years, it may issue an assessment in the future for this period. The Company estimates a potential assessment of US$ 79.8 million (minus effect on first category income tax) by the SII, without considering interests and fines.

To date, the Company has recorded no effect corresponding to this tax on its profit and loss.

21.4 Contingencies regarding to the Contracts with Corfo

On September 6, 2018, representatives Claudia Nathalie Mix Jiménez, Gael Fernanda Yeomans Araya and Camila Ruzlay Rojas Valderrama and the Poder Ciudadano political party filed an annulment suit against Corfo, which requested that the Salar de Atacama Project Agreement between Corfo and the Company, SQM Potasio and SQM Salar be annulled. The Companies have taken part of the process as interested third parties.

In the event that the annulment claim is approved for the Salar de Atacama Project Agreement, SQM Salar may be prevented from the exploitation of the mining assets in the Salar de Atacama that it has leased from Corfo.

21.5 Contingencies associated with conflicts between shareholders of the Abu Dhabi Fertilizer Industries Company

Due to differences between shareholders of the company Abu Dhabi Fertilizer Industries Company, diverse lawsuits have arisen that may result in claims against SQM Corporation N.V. and by this company against the other shareholders. These disputes may materially affect the value of the investment of the Company in Abu Dhabi Fertilizer Industries Company. At this time, it is not possible to quantify the amounts of these claims.

21.6 Restricted or pledged cash

The subsidiary Isapre Norte Grande Ltda., in compliance with the provisions established by the Chilean Superintendence of Healthcare, which regulates the running of pension-related health institutions, maintains a guarantee in financial instruments delivered in deposits, custody and administration to Banco de Chile.

This guarantee, according to the regulations issued by the Chilean Superintendence of Healthcare is equivalent to the total amount owed to its members and medical providers, Banco de Chile reports the present value of the guarantee to the Chilean Superintendence of Healthcare and Isapre Norte Grande Ltda on a daily basis. As of December 31, 2021, the guarantee amounts to ThUS$ 622.

146

Notes to the Consolidated Financial Statements

December 31, 2021

21.7 Securities obtained from third parties

The main security received (exceeding ThUS$ 100) from third parties to guarantee Soquimich Comercial S.A. their compliance with obligations in contracts of commercial mandates for the distribution and sale of fertilizers amounted to ThUS$ 8,866 and ThUS$ 10,114 on December 31, 2021 and 2020 respectively; which is detailed as follows:

Grantor	Relationship	As of December 31, 2021		As of December 31, 2020
		ThUS$		ThUS$
Ferosor Agrícola S.A.	Unrelated Third party		4,735		5,626
Tattersall Agroinsumos S.A.	Unrelated Third party		2,000		2,000
Covepa SPA	Unrelated Third party		592		703
Johannes Epple Davanzo	Unrelated Third party		264		314
Hortofrutícola La Serena	Unrelated Third party		272		303
Com. Serv Johannes Epple Davanz	Unrelated Third party		343		408
Juan Luis Gaete Chesta	Unrelated Third party		160		190
Arena Fertilizantes y Semillas	Unrelated Third party		178		211
Vicente Oyarce Castro	Unrelated Third party		205		229
Bernardo Guzmán Schmidt	Unrelated Third party		117		130
Total			8,866		10,114

21.8 Indirect guarantees

As of December 31, 2021, there are no indirect guarantees.
 

147

Notes to the Consolidated Financial Statements 
December 31, 2021  

Note 22    Environment

22.1 Disclosures of disbursements related to the environment

Environmental protection, respect for human rights and overall impact on sustainability are ongoing concerns of the Company, both in its productive processes and throughout the supply chain. This commitment is supported by the principles indicated in the Company’s Sustainable Development Policy and human rights policy. The Company is currently operating under an Environmental Management System (EMS) that has allowed it to strengthen its environmental performance through the effective application of the Company’s Sustainable Development Policy. In 2020, the company announced an ambitious Sustainable Development Plan, which establishes specific measurable goals that seek to make SQM a leader in sustainability around the world. The main goals proposed are:

i) A 65% reduction in the use of fresh water by the year 2040 and 40% by 2030, with respect to BAU (Bussiness as usual).

ii) A 50% reduction in brine extraction from the Salar de Atacama by 2030, starting with 20% by November 2020, compared to the environmental permit.

iii) Ensure that all our products are carbon neutral by 2040 and in the case of lithium, iodine and potassium chloride, this goal is for 2030.

iv) Stimulate more and better instances for dialog with the communities near the operations.

During the year 2021 we have been making progress with each of these goals, starting with quarterly management of sustainability indicators and monitoring them on a quarterly basis. This has helped us to identify initiatives that help us to achieve these goals.

Operations that use caliche as a raw material are carried out in desert areas with climatic conditions that are favorable for drying solids and evaporating liquids using solar energy. Operations involving the open-pit extraction of minerals.

Many of the Company’s products are shipped in bulk at the Port of Tocopilla. In 2007, the city of Tocopilla was declared a “zone saturated with MP10 Particles” mainly due to the emissions from the electric power plants that operate in that city. In October 2010, the “Decontamination Plan for Tocopilla” was put in place. Accordingly, the Company has committed to taking several measures to mitigate the effects derived from bulk product movements in the port, these measures have been timely implemented since 2007.

The Company carries out environmental follow-up and monitoring plans based on specialized scientific studies. Follow-up on relevant variables defined for each project enables the Company to verify the status, for example, of vegetation, flora, fauna and aquatic life in the ecosystems to protect. Follow-up plans are supported by a broad control network that includes monitoring points such as meteorological stations and wells, satellite images, plots for recording the status of vegetation and fauna, etc. The activities comprised in these plans are reported regularly to authorities based on the Company’s commitments made through resolutions that approve different SQM projects. For the specific case of the Salar de Atacama, the Company has implemented an online platform (www.sqmsenlinea.com), which enables any person to access all the environmental information compiled by the Company in keeping with its commitments.

In this context, the Company maintains environmental monitoring across the systems where it operates, which is supported by numerous studies that integrate diverse scientific efforts from prestigious research centers on a national and international level, such as the Spanish National Research Council (CSIC) and the Universidad Católica del Norte.

Furthermore, within the framework of the environmental studies which the Company is conducting, the Company performs significant activities in relation to the recording of Pre-Columbian and historical cultural heritage, as well as the protection of heritage sites, in accordance with current Chilean laws. These activities have been especially performed in the areas surrounding Maria Elena (ME) and the Nueva Victoria plant (NV). This effort is being accompanied by outreach activities for the community and development of sites of interest.

148

Notes to the Consolidated Financial Statements 
December 31, 2021  

As emphasized in its Sustainable Development Policy, the Company strives to maintain positive relationships with the communities surrounding the locations in which it carries out its operations, as well as to participate in communities’ development by supporting joint projects and activities which help to improve the quality of life for residents. For this purpose, the Company has focused its efforts on activities involving the rescue of historical heritage, education and culture, as well as development. In order to do so, it acts both individually and in conjunction with private and public entities.

22.2 Detailed information on disbursements related to the environment

The cumulative disbursements which the Company had incurred as of December 31, 2021 for the concept of investments in production processes, verification and control of compliance with ordinances and laws related to industrial processes and facilities amounted to ThUS$ 31,128 and are detailed as follows:

149

Notes to the Consolidated Financial Statements 
December 31, 2021  

Accumulated expenses as of December 31, 2021

Parent Company or Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Asset / Expense	Disbursement		Exact or Estimated Date of Disbursement
				ThUS$
Miscellaneous	Environment - Operating Area	Not classified	Expense		13,799	12-31-2021
SQM S.A.	01-I017200 - CEDAM at Puquíos at Llamara	Sustainability: Environment and Risk Prevention	Expense		1,065	12-31-2021
SQM S.A.	01-I019400 - EIA Expansion of TEA and Seawater Impulsion	Environmental processing	Assets		2,201	12-31-2021
SQM S.A.	01-I017600 - Regularization of Hazardous Substances Decree	Environmental processing	Expense		13	01-06-2021
SQM S.A.	01-I028200 - EIA Llamara	Environmental processing	Expense		874	12-30-2021
SQM S.A.	01-I028300 - Implementation PDC 2019 - Llamara sanction process	Sustainability: Environment and Risk Prevention	Expense		443	12-31-2021
SQM S.A.	01-I030700 - Sectorial Permits EIA Project TEA	Environmental processing	Expense		78	12-06-2021
SQM S.A.	01-I035800 - Sustainability DS43 Phase 2	Sustainability: Environment and Risk Prevention	Assets		19	07-31-2021
SQM S.A.	01-S015900 - SQM Sustainability	Environmental processing	Expense		120	12-31-2021
SQM S.A.	01-S014200 - Projections	Environmental processing	Expense		7	05-19-2021
SQM S.A.	01-I039600 - New Warehouse Iodine Stock NV	Environmental processing	Assets		472	10-27-2021
SQM S.A.	01-I039700 - Adapting tanks for hazardous substances NV	Environmental processing	Assets		300	12-31-2021
SQM S.A.	01-P010300 - Adapting tanks for hazardous substances PV	Environmental processing	Assets		17	03-16-2021
SQM S.A.	01-P010400 - Adaptation of dispatch warehouse PV	Environmental processing	Assets		245	12-31-2021
SQM S.A.	01-I038400 - Update APT conceptual and numerical hydrogeological model	Sustainability: Environment and Risk Prevention	Expense		83	12-28-2021
SQM S.A.	01-I041400 - EIA New ponds and stockpiles at Sur Viejo	Environmental processing	Expense		85	11-19-2021
SQM S.A.	01-I044400 - Improve NV proprietary warehouse and offices	Sustainability: Environment and Risk Prevention	Expense		6	08-31-2021
SQM S.A.	01-F000100 - EIA Pampa Blanca Maritime Project	Environmental processing	Expense		1	11-29-2021
SQM S.A.	01-I050900 – Responsible Conduct	Sustainability: Environment and Risk Prevention	Expense		29	12-31-2021
SQM S.A.	01-S022000 - Sustainability projects SQM-Sustainable luminaires iris-NV	Sustainability: Environment and Risk Prevention	Assets		15	10-31-2021
SQM Industrial S.A.	04-J015700 - Update of Closure Plans	Sustainability: Environment and Risk Prevention	Expense		59	12-24-2021
SQM Industrial S.A.	04-J017200 - Guarantee availability Pampas Industrial Water System	Sustainability: Environment and Risk Prevention	Assets		29	07-07-2021
SQM Industrial S.A.	04-I032600 - Well Water Efficiency - Water Rec. Nueva Victoria. Stage I (1)	Sustainability: Environment and Risk Prevention	Assets		6	07-09-2021
SQM Industrial S.A.	04-J022700 - DIA integration of Coya Sur site	Environmental processing	Expense		85	12-29-2021
SQM Industrial S.A.	04-J022800 - Adaptation light pollution	Sustainability: Environment and Risk Prevention	Assets		75	05-13-2021
SQM Industrial S.A.	04-M004300 - Reduction of Industrial Waste	Sustainability: Environment and Risk Prevention	Expense		161	12-31-2021
SQM Industrial S.A.	04-I038200 - Well water efficiency - Water Rec. Nueva Victoria. Stage II	Sustainability: Environment and Risk Prevention	Assets		628	09-30-2021
SQM Industrial S.A.	04-I038600 - Monitoring extractions NV	Sustainability: Environment and Risk Prevention	Assets		392	12-07-2021
SQM Industrial S.A.	04-J023700 - Regularization Hazardous Substances Decree SQM Industrial	Environmental processing	Assets		459	10-04-2021
SQM Industrial S.A.	04-I046900 - Pilot Floating Photovoltaic Solar Plant (FPV-SV) - Conceptual Engineering	Sustainability: Environment and Risk Prevention	Expense		26	09-27-2021
SQM Industrial S.A.	04-M005400 - Rio Loa preventive monitoring (water and aquatic biota quality)	Sustainability: Environment and Risk Prevention	Expense		92	12-30-2021
SQM Industrial S.A.	04-M004600 - Degreasing chamber TAS ME Plant	Sustainability: Environment and Risk Prevention	Expense		5	12-27-2021
SQM Industrial S.A.	04-J013500 Handling Equipment Associated with PCBs	Sustainability: Environment and Risk Prevention	Expense		41	11-29-2021
SQM Industrial S.A.	04-J015800 - Other Sector Regulatory 2019	Sustainability: Environment and Risk Prevention	Expense		9	08-27-2021
SQM Industrial S.A.	04-M005600 - Improve N&Y warehouse	Sustainability: Environment and Risk Prevention	Assets		11	12-24-2021
SQM Industrial S.A.	04-I050100 - Engineering for Orcoma seawater impulsion system	Sustainability: Environment and Risk Prevention	Assets		141	12-29-2021
Subtotal					22,091

150

Notes to the Consolidated Financial Statements 
December 31, 2021  

Accumulated expenses as of December 31, 2021

Parent Company or Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Asset / Expense	Disbursement		Exact or Estimated Date of Disbursement
				ThUS$
SQM Industrial S.A.	04-F000200 - Reopening of Pampa Blanca Project - Mine Operations Center / Conveyors	Sustainability: Environment and Risk Prevention	Assets		3	12-31-2021
SQM Industrial S.A.	04-J029000 - Assembly of pilot solar thermal power plant	Sustainability: Environment and Risk Prevention	Assets		8	12-31-2021
SIT S.A.	03-T009900 - Air quality monitoring system at Tocopilla	Sustainability: Environment and Risk Prevention	Assets		50	11-18-2021
SIT S.A.	03-T010500 - Hydrocarbon detection system at Tocopilla port	Sustainability: Environment and Risk Prevention	Assets		54	02-15-2021
SIT S.A.	03-T011800 - Mechanized Plant Automation	Sustainability: Environment and Risk Prevention	Assets		2	12-30-2021
SIT S.A.	03-T011400 - Purchase of spill control materials	Sustainability: Environment and Risk Prevention	Assets		39	12-09-2021
SQM Salar S.A.	19-L014700 - Industrial Waste Management	Sustainability: Environment and Risk Prevention	Expense		65	10-29-2021
SQM Salar S.A.	19-L018800 - UPC Consulting for NW and Others	Sustainability: Environment and Risk Prevention	Expense		12	02-12-2021
SQM Salar S.A.	19-L018900 - Evaporation 2018-2019	Sustainability: Environment and Risk Prevention	Assets		7	12-31-2021
SQM Salar S.A.	19-L021700 - Upgrade RH y MA 2019	Environmental processing	Expense		60	08-27-2021
SQM Salar S.A.	19-S013400- Online Monitoring	Sustainability: Environment and Risk Prevention	Expense		66	12-31-2021
SQM Salar S.A.	19-S016200 - Acquisiton of Hardware – Software 2020	Sustainability: Environment and Risk Prevention	Assets		12	11-26-2021
SQM Salar S.A.	19-S016300 - Consulting 2020	Sustainability: Environment and Risk Prevention	Assets		3	02-25-2021
SQM Salar S.A.	19-S016400 - Implementation Acquiere Environmental DB	Sustainability: Environment and Risk Prevention	Assets		3	03-11-2021
SQM Salar S.A.	19-S016700 - Improvements understanding reload	Sustainability: Environment and Risk Prevention	Assets		65	03-25-2021
SQM Salar S.A.	19-L025600 - Purchase of Generators, Variators, trafos. 2020	Sustainability: Environment and Risk Prevention	Assets		47	08-01-2021
SQM Salar S.A.	19-L025800 - Normalization of Administration System	Sustainability: Environment and Risk Prevention	Assets		6	04-09-2021
SQM Salar S.A.	19-C008600 - Asphalting plants Salar del Carmen	Sustainability: Environment and Risk Prevention	Assets		607	12-20-2021
SQM Salar S.A.	19-L026900 - Cameras and lighting at finished product plants	Environmental processing	Assets		19	03-31-2021
SQM Salar S.A.	19-L024200 - Environmental and Operational Risk Analysis Study of Salar de Atacama	Sustainability: Environment and Risk Prevention	Expense		21	12-21-2021
SQM Salar S.A.	19-S016500 - Incorporation of test models for artificial intelligence	Sustainability: Environment and Risk Prevention	Assets		5	10-31-2021
SQM Salar S.A.	19-L025300 - Compliance with sanitary water resolution	Sustainability: Environment and Risk Prevention	Assets		45	12-31-2021
SQM Salar S.A.	19-L026800 - Removal of old dryers MOP G III plant	Environmental processing	Assets		21	10-21-2021
SQM Salar S.A.	19-L030200 - Removal and disposal of non- hazardous waste at Salar de Atacama landfill site	Sustainability: Environment and Risk Prevention	Assets		183	12-31-2021
SQM Salar S.A.	19-L030700 - Electrification of wells, second stage	Sustainability: Environment and Risk Prevention	Assets		73	07-31-2021
SQM Salar S.A.	19-L028200 - Environmental Monitoring 2020	Sustainability: Environment and Risk Prevention	Expense		425	09-30-2021
SQM Salar S.A.	19-L029800 - Adaptation DS43	Environmental processing	Assets		141	12-12-2021
SQM Salar S.A.	19-L030100 - Standardization of Sectorial Environmental Permit 136 for Salar de Atacama Works	Environmental processing	Expense		52	06-30-2021
SQM Salar S.A.	19-L031300 - Global FM Compliance for Maintenance Area	Environmental processing	Expense		26	12-14-2021
SQM Salar S.A.	19-L031700 - Regulation of Emissions Sources of Light DS N°43	Environmental processing	Assets		663	12-31-2021
SQM Salar S.A.	19-L032300 - Hydrogeology EIA 2021	Sustainability: Environment and Risk Prevention	Assets		421	12-30-2021
SQM Salar S.A.	19-L019800 - Salar de Atacama paleoclimatic study	Sustainability: Environment and Risk Prevention	Expense		10	11-22-2021
SQM Salar S.A.	19-L032000 - Salar Sustainability Project	Sustainability: Environment and Risk Prevention	Assets		51	08-11-2021
SQM Salar S.A.	19-C012400 - New Disposal Salt Deposits	Sustainability: Environment and Risk Prevention	Assets		2,158	12-31-2021
SQM Salar S.A.	19-L020000 - PSAH Continuous Network Improvement and PC Rhyma	Sustainability: Environment and Risk Prevention	Assets		93	10-26-2021
SQM Salar S.A.	19-L034000 - Environmental Projects EIA + EIS 2021, 2022	Sustainability: Environment and Risk Prevention	Assets		1,944	12-31-2021
Subtotal					7,460

151

Notes to the Consolidated Financial Statements
December 31, 2021

Accumulated expenses as of December 31, 2021

Parent Company or Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Asset / Expense	Disbursement		Exact or Estimated Date of Disbursement
				ThUS$
SQM Nitratos S.A.	12-I039000 - Adapting warehouse for hazardous substances at Mina Oeste	Environmental processing	Assets		71	12-29-2021
Minera Búfalo	20-A008200 - Búfalo proyect stage 1	Environmental processing	Expense		68	09-07-2021
Orcoma Estudios Spa	15-I039100 - Sectorial permits and compliance with environmental commitments EIA Orcoma Proyect	Environmental processing	Expense		1,127	09-30-2021
SQM Potasio S.A.	14-I039400 - Adapting tank at Iris	Environmental processing	Assets		89	12-31-2021
SQM Potasio S.A.	14-I039800 - Adequacy of the IRIS hazardous substances warehouse	Environmental processing	Assets		222	12-16-2021
Subtotal					1,577
Total					31,128

152

Notes to the Consolidated Financial Statements
December 31, 2021

Committed expenses for future periods as of December 31, 2021

Parent Company or Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Asset / Expense	Disbursement		Exact or Estimated Date of Disbursement
				ThUS$
Miscellaneous	Environment - Operating Area	Not classified	Expense		15,391	12-31-2022
SQM S.A.	01-I017200 - CEDAM at Puquíos at Llamara	Sustainability: Environment and Risk Prevention	Expense		25	12-31-2022
SQM S.A.	01-I017400 - Development of Pintados and Deposit Humberstone	Sustainability: Environment and Risk Prevention	Expense		25	12-31-2022
SQM S.A.	01-I028200 - EIA Llamara	Environmental processing	Expense		28	12-31-2022
SQM S.A.	01-I028300 - Implementation PDC 2019 - Llamara sanction process	Sustainability: Environment and Risk Prevention	Expense		301	12-31-2022
SQM S.A.	01-I039600 - New Warehouse Iodine Stock NV	Environmental processing	Assets		739	12-31-2022
SQM S.A.	01-I039700 - Adapting Pond Substances NV	Environmental processing	Assets		351	12-31-2022
SQM S.A.	01-P010300 - Adapting pond substances PV	Environmental processing	Assets		435	12-31-2022
SQM S.A.	01-P010400 - Adapting dispatch warehouse PV	Environmental processing	Assets		199	12-31-2022
SQM S.A.	01-I041400 - DIA New pits and stockpiles in Sur Viejo	Environmental processing	Expense		315	12-31-2022
SQM S.A.	01-I044400 - Improve NV proprietary warehouse and offices	Sustainability: Environment and Risk Prevention	Expense		4	12-31-2022
SQM S.A.	01-I050900 – Responsible Conduct	Sustainability: Environment and Risk Prevention	Expense		1	12-31-2022
SQM S.A.	01-S022000 - Sustainability projects SQM-Sustainable luminaires iris-NV	Sustainability: Environment and Risk Prevention	Assets		25	12-31-2022
SQM S.A.	01-F000100 - Pampa Blanca EIA - Sea water Project	Environmental processing	Expense		449	12-31-2022
SQM S.A.	01-F000300 - Pampa Blanca Project Reopening - Iodide Plant	Sustainability: Environment and Risk Prevention	Assets		1,417	12-31-2022
SQM Industrial S.A.	04-I017700 - Basic Engineering and EIA for TEA industrial area and seawater impulsion N.V	Sustainability: Environment and Risk Prevention	Assets		59	12-31-2022
SQM Industrial S.A.	04-J013500 - Handling equipment associated with PCBs	Sustainability: Environment and Risk Prevention	Expense		263	12-31-2022
SQM Industrial S.A.	04-J015200 - Implementation Economizers	Sustainability: Environment and Risk Prevention	Assets		23	12-31-2022
SQM Industrial S.A.	04-J015700 - Update of Closure Plans	Sustainability: Environment and Risk Prevention	Expense		49	12-31-2022
SQM Industrial S.A.	04-J015800 - Other Sector Regulatory Measures	Sustainability: Environment and Risk Prevention	Expense		42	12-31-2022
SQM Industrial S.A.	04-J017200 - Assurance Availability Sistema Agua Industrial Pampas	Sustainability: Environment and Risk Prevention	Assets		3	12-31-2022
SQM Industrial S.A.	04-M003900 - Revocation PDME	Sustainability: Environment and Risk Prevention	Expense		47	12-31-2022
SQM Industrial S.A.	04-J022700 - DIA Integración Faena Coya Sur	Environmental processing	Expense		166	12-31-2022
SQM Industrial S.A.	04-J022800 - Adaptation light pollution	Sustainability: Environment and Risk Prevention	Assets		246	12-31-2022
SQM Industrial S.A.	04-M004300 - Reduction of Industrial Waste	Sustainability: Environment and Risk Prevention	Expense		12	12-31-2022
SQM Industrial S.A.	04-I038200 - Well Water Efficiency N.V. II	Sustainability: Environment and Risk Prevention	Assets		25	12-31-2022
SQM Industrial S.A.	04-I038600 - Extraction monitoring N.V.	Sustainability: Environment and Risk Prevention	Assets		308	12-31-2022
SQM Industrial S.A.	04-J023700 - Regularization Hazardous Substances Decree SQM Industrial	Environmental processing	Assets		156	12-31-2022
SQM Industrial S.A.	04-I046900 - Pilot Floating Photovoltaic Solar Plant (FPV-SV) - Conceptual Engineering	Sustainability: Environment and Risk Prevention	Expense		14	12-31-2022
SQM Industrial S.A.	04-J025000 - Boiler Scrubber NPT3	Sustainability: Environment and Risk Prevention	Assets		200	12-31-2022
SQM Industrial S.A.	04-M005400 - Rio Loa Preventive Monitoring (Water and Aquatic Biota Quality)	Sustainability: Environment and Risk Prevention	Expense		114	12-31-2022
SQM Industrial S.A.	04-I050100 - Engineering Seawater impulsion system	Sustainability: Environment and Risk Prevention	Assets		174	12-31-2022
SQM Industrial S.A.	04-M005600 - Improve N&Y warehouse	Sustainability: Environment and Risk Prevention	Assets		19	12-31-2022
Subtotal					21,625

153

Notes to the Consolidated Financial Statements
December 31, 2021

Committed expenses for future periods as of December 31, 2021

Parent Company or Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Asset / Expense	Disbursement		Exact or Estimated Date of Disbursement
				ThUS$
SQM Industrial S.A.	04-S022100 - Recovery of prilled heat in CS/Electric Buses	Sustainability: Environment and Risk Prevention	Assets		345	12-31-2022
SQM Industrial S.A.	04-F000200 - Pampa Blanca Project Reopening – Mining/Conveyors Operations Center	Sustainability: Environment and Risk Prevention	Assets		893	12-31-2022
SQM Industrial S.A.	04-J028700 - Electromobility pilot for passenger transportation	Sustainability: Environment and Risk Prevention	Assets		95	12-31-2022
SQM Industrial S.A.	04-J028800 - NPT2 economizers and structural improvements	Sustainability: Environment and Risk Prevention	Assets		182	12-31-2022
SQM Industrial S.A.	04-J029000 - Assembly of pilot solar thermal power plant	Sustainability: Environment and Risk Prevention	Assets		1,392	12-31-2022
SIT S.A.	03-T009900 - Air quality monitoring system Tocopilla	Sustainability: Environment and Risk Prevention	Assets		32	12-31-2022
SIT S.A.	03-T010500 - Hydrocarbon Detection System Tocopilla Port	Sustainability: Environment and Risk Prevention	Assets		21	12-31-2022
SIT S.A.	03-T011400 - Purchase of spill control materials	Sustainability: Environment and Risk Prevention	Assets		1	12-31-2022
SIT S.A.	03-T011800 - Mechanized Plant Automation	Sustainability: Environment and Risk Prevention	Assets		18	12-31-2022
SQM Salar S.A.	19-L014700 - Industrial Waste Management	Sustainability: Environment and Risk Prevention	Expense		24	12-31-2022
SQM Salar S.A.	19-L018800 - UPC Consulting for NW and Others	Sustainability: Environment and Risk Prevention	Expense		34	12-31-2022
SQM Salar S.A.	19-L018900 - Evaporation 2018-2019	Sustainability: Environment and Risk Prevention	Assets		35	12-31-2022
SQM Salar S.A.	19-L019800 - Paleoclimate Study Salar de Atacama	Sustainability: Environment and Risk Prevention	Expense		25	12-31-2022
SQM Salar S.A.	19-L020000 - Improvement of Operational Monitoring Network	Sustainability: Environment and Risk Prevention	Assets		2	12-31-2022
SQM Salar S.A.	19-L021400 - Environmental monitoring 2019 PSA	Environmental processing	Expense		21	12-31-2022
SQM Salar S.A.	19-L021700 - Update RH y MA 2019	Environmental processing	Expense		32	12-31-2022
SQM Salar S.A	19-S013400 - Online monitoring	Sustainability: Environment and Risk Prevention	Expense		390	12-31-2022
SQM Salar S.A.	19-C006800 - Renovation lighting towers - Salar del Carmen plant	Sustainability: Environment and Risk Prevention	Assets		2	12-31-2022
SQM Salar S.A.	19-L024200 - Environmental Risk Analysis Study Salar de Atacama	Sustainability: Environment and Risk Prevention	Expense		37	12-31-2022
SQM Salar S.A.	19-S016200 - Acquisition of Hardware- Software	Sustainability: Environment and Risk Prevention	Assets		4	12-31-2022
SQM Salar S.A.	19-S016300 - Consulting 2020	Sustainability: Environment and Risk Prevention	Assets		36	12-31-2022
SQM Salar S.A.	19-S016400 - Implementation Acquiere BD Amb	Sustainability: Environment and Risk Prevention	Assets		1	12-31-2022
SQM Salar S.A.	19-S016500 - Incorporation of IA prediction test models	Sustainability: Environment and Risk Prevention	Assets		7	12-31-2022
SQM Salar S.A.	19-S016700 – Improvements to recharge understanding in SdA	Sustainability: Environment and Risk Prevention	Assets		16	12-31-2022
SQM Salar S.A.	19-S016900 - Monitoring water-vegetation dynamics in the Aguas de Quelana sector	Sustainability: Environment and Risk Prevention	Assets		35	12-31-2022
SQM Salar S.A.	19-L025300 - Compliance with Sanitary Resolution	Sustainability: Environment and Risk Prevention	Assets		116	12-31-2022
SQM Salar S.A.	19-L025800 - Normalization of Admin. System	Sustainability: Environment and Risk Prevention	Assets		2	12-31-2022
SQM Salar S.A.	19-L028200 - Environmental Monitoring 2020	Sustainability: Environment and Risk Prevention	Expense		34	12-31-2022
SQM Salar S.A.	19-L029800 - Adapting to DS43	Environmental processing	Assets		34	12-31-2022
SQM Salar S.A.	19-L030100 - Compliance with Sectoral Environmental Permit 136 at Salar de Atacama site	Environmental processing	Expense		18	12-31-2022
SQM Salar S.A.	19-L030200 - Removal and final disposal of non-hazardous waste at Salar de Atacama landfill site	Sustainability: Environment and Risk Prevention	Assets		7	12-31-2022
SQM Salar S.A.	19-L031300 - Global FM Compliance Maintenance Area	Environmental processing	Expense		143	12-31-2022
SQM Salar S.A.	19-L031700 - Regulation of Emissions Sources of Light DS N°43	Environmental processing	Assets		737	12-31-2022
SQM Salar S.A.	19-L032300 - Hydrogeology EIA 2021	Sustainability: Environment and Risk Prevention	Assets		479	12-31-2022
SQM Salar S.A.	19-C012400 - New Disposal Salt Deposits	Sustainability: Environment and Risk Prevention	Assets		4,342	12-31-2022
SQM Salar S.A.	19-S021500 - SK Improvements -1300 2021	Environmental processing	Expense		14	12-31-2022
Subtotal					9,606

154

Notes to the Consolidated Financial Statements
December 31, 2021

Committed expenses for future periods as of December 31, 2021

Parent Company or Subsidiary	Project Name Associated with Disbursement	Reason for Disbursement	Asset / Expense	Disbursement		Exact or Estimated Date of Disbursement
				ThUS$
SQM Nitratos S.A.	12-I039000 - Adaptation of hazardous waste warehouse	Environmental processing	Assets		9	12-31-2022
SQM Nitratos S.A.	12-F000400 - Pampa Blanca Project Reopening – Mining Workshop	Sustainability: Environment and Risk Prevention	Assets		187	12-31-2022
Minera Búfalo	20-A008200 - Metallic Project Buffalo Stage 1	Environmental processing	Expense		21	12-31-2022
Orcoma Estudios Spa	15-I039100 - Sectoral Permits and compliance EIA Orcoma Proyect	Environmental processing	Expense		339	12-31-2022
SQM Potasio S.A.	14-I039400 - Adapting Pond Iris	Environmental processing	Assets		381	12-31-2022
SQM Potasio S.A.	14-I039800 - Adapting hazardous substances warehouse IRIS	Environmental processing	Assets		212	12-31-2022
Subtotal					1,149
Total					32,380

155

Notes to the Consolidated Financial Statements
December 31, 2021

Accumulated expenses as of December 31, 2020

Parent Company or Subsidiary	Project Name	Reason for Disbursement	Asset / Expense	Disbursement		Exact or Estimated Date of Disbursement
				ThUS$
Miscellaneous	Environment - Operating Area	Not classified	Expense		10,376	06-30-2020
SQM S.A.	01-I017200 - CEDAM at Puquíos (ponds) at Llamara	Sustainability: Environment and Risk Prevention	Expense		4	11-12-2020
SQM S.A.	01-I017600 - Regularization of Substances Decree	Environmental processing	Expense		121	10-22-2020
SQM S.A.	01-I018700 - Penalization Process for Salar de Llamara	Environmental processing	Assets		-	03-31-2020
SQM S.A.	01-I019400 - EIA Expansion of TEA and Seawater Impulsion	Environmental processing	Assets		791	12-31-2020
SQM S.A.	01-I028200 - EIA Llamara	Environmental processing	Expense		722	12-30-2020
SQM S.A.	01-I028300 - Implementation of PDC 2019	Sustainability: Environment and Risk Prevention	Expense		593	12-31-2020
SQM S.A.	01-I030700 - Sector Permits EIA Project	Environmental processing	Expense		280	11-20-2020
SQM S.A.	01-I035800 - Sustainability DS43 Phase 2	Sustainability: Environment and Risk Prevention	Assets		20	11-03-2020
SQM S.A.	01-I038400 - Update hydrogeological model	Sustainability: Environment and Risk Prevention	Gasto		76	12-31-2020
SQM S.A.	01-I039600 - New warehouse iodine stock NV	Environmental processing	Assets		54	12-31-2020
SQM S.A.	01-P010400 - Adequacy of office cellar PV	Environmental processing	Assets		16	12-06-2020
SQM S.A.	01-S014200 - Proyect	Environmental processing	Gasto		63	10-01-2020
SQM S.A.	01-S015900 - Sustainability SQM	Environmental processing	Gasto		975	10-26-2020
SQM Industrial S.A.	04-I017700 - Basic Engineering and EIA for TEA industrial area and seawater impulsion N.V.	Sustainability: Environment and Risk Prevention	Assets		133	07-10-2020
SQM Industrial S.A.	04-I025000 - Re-drilling Well 2PL-2	Sustainability: Environment and Risk Prevention	Expense		1	02-29-2020
SQM Industrial S.A.	04-I032600 - Well Water Efficiency – Rec	Sustainability: Environment and Risk Prevention	Assets		123	07-30-2020
SQM Industrial S.A.	04-I038200 - Well Water Efficiency 2	Sustainability: Environment and Risk Prevention	Assets		79	12-31-2020
SQM Industrial S.A.	04-I038600 - Monitoring Extractions NV	Sustainability: Environment and Risk Prevention	Assets		15	12-24-2020
SQM Industrial S.A.	04-J012200 - DIA and regularization of wells CS	Environmental processing	Assets		-	02-25-2020
SQM Industrial S.A.	04-J015200 - Implement Economizers	Sustainability: Environment and Risk Prevention	Assets		-	09-25-2020
SQM Industrial S.A.	04-J015700 - Update closure plans	Sustainability: Environment and Risk Prevention	Expense		83	12-31-2020
SQM Industrial S.A.	04-J015800 - Other sectoral regularizations	Sustainability: Environment and Risk Prevention	Expense		42	09-24-2020
SQM Industrial S.A.	04-J017200 - Guarantee availability S	Sustainability: Environment and Risk Prevention	Assets		109	07-02-2020
SQM Industrial S.A.	04-J022700 - DIA Integración Faena Coya Sur	Environmental processing	Expense		87	12-31-2020
SQM Industrial S.A.	04-J022800 - Adequacy of light pollution	Sustainability: Environment and Risk Prevention	Assets		48	11-30-2020
SQM Industrial S.A.	04-J023700 - Regularization Decree Hazardous Substances	Environmental processing	Assets		35	11-20-2020
SQM Industrial S.A.	04-M004300 - Industrial Waste Reduction	Sustainability: Environment and Risk Prevention	Expense		77	12-31-2020
SQM Industrial S.A.	04-P010200 - PV Piles Project (DIA)+ Study	Sustainability: Environment and Risk Prevention	Expense		57	11-24-2020
SQM Salar S.A.	19-C006800 - Renovation of lighting towers	Sustainability: Environment and Risk Prevention	Assets		19	09-07-2020
SQM Salar S.A.	19-C008600 - Asphalting plants Salar del Carmen	Sustainability: Environment and Risk Prevention	Assets		432	12-30-2020
SQM Salar S.A.	19-L014700 - Industrial Waste Handling	Sustainability: Environment and Risk Prevention	Expense		45	09-30-2020
SQM Salar S.A.	19-L018800 - UPC Consulting for NW and others	Sustainability: Environment and Risk Prevention	Expense		26	11-13-2020
SQM Salar S.A.	19-L018900 - Evaporation 2018-2019	Sustainability: Environment and Risk Prevention	Assets		1	12-31-2020
SQM Salar S.A.	19-L019800 - Paleoclimate Study (Iberian)	Sustainability: Environment and Risk Prevention	Expense		14	07-16-2020
SQM Salar S.A.	19-L021400 - Environmental Monitoring 2019	Environmental processing	Expense		11	12-31-2020
SQM Salar S.A.	19-L021700 - Improvement of RH and MA 2019	Environmental processing	Expense		40	12-30-2020
Total					15,568

156

Notes to the Consolidated Financial Statements
December 31, 2021

Accumulated expenses as of December 31, 2020

Parent Company or Subsidiary	Project Name	Reason for Disbursement	Asset / Expense	Disbursement	Exact or Estimated Date of Disbursement
				ThUS$
SQM Salar S.A.	19-L023200 - Surveying equipment 2019	Sustainability: Environment and Risk Prevention	Assets	3	03-18-2020
SQM Salar S.A.	19-L025300 - Compliance with Sanitary Resolution	Sustainability: Environment and Risk Prevention	Assets	51	12-13-2020
SQM Salar S.A.	19-L025600 - Purchase of Generators, Miscellaneous	Sustainability: Environment and Risk Prevention	Assets	62	12-31-2020
SQM Salar S.A.	19-L025800 - Standardization of Admin. System	Sustainability: Environment and Risk Prevention	Assets	14	12-31-2020
SQM Salar S.A.	19-L026800 - Removal of old Dryers in MOP G III Plant	Environmental processing	Assets	20	12-22-2020
SQM Salar S.A.	19-S013400 - On-Line Monitoring	Sustainability: Environment and Risk Prevention	Expense	363	12-15-2020
SQM Salar S.A.	19-S016200 - Acquisition of Hardware - Software	Sustainability: Environment and Risk Prevention	Assets	8	11-30-2020
SQM Salar S.A.	19-S016300 - 2020 Consultancy	Sustainability: Environment and Risk Prevention	Assets	33	11-30-2020
SQM Salar S.A.	19-S016400 - Implementation Acquisition of BD Amb.	Sustainability: Environment and Risk Prevention	Assets	4	12-31-2020
SQM Salar S.A.	19-S016700 - Improved understanding of reloading	Sustainability: Environment and Risk Prevention	Assets	49	12-31-2020
Orcoma Estudios Spa	15-I039100 - Sectoral Permitting and Compliance Amb.	Environmental processing	Expense	252	12-31-2020
Minera Búfalo	20-A008200 - Buffalo Project	Environmental processing	Expense	61	11-19-2020
SQM Potasio S.A.	14-I039800 - Adequacy of IRIS Hazardous Substances Warehouse	Environmental processing	Assets	9	12-06-2020
Subtotal				929
Total				16,497

157

Notes to the Consolidated Financial Statements
December 31, 2021

Future expenses as of December 31, 2020

Parent Company or Subsidiary	Project Name	Reason for Disbursement	Asset / Expense	Disbursement	Exact or Estimated Date of Disbursement
				ThUS$
Miscellaneous	Environment - Operating Area	Not classified	Expense	12,276	12-31-2021
SQM S.A.	01-I017200 - CEDAM at Puquíos (ponds) at Llamara	Sustainability: Environment and Risk Prevention	Expense	42	12-31-2021
SQM S.A.	01-I017400 - Development of Pintados and surrounding area.	Sustainability: Environment and Risk Prevention	Expense	108	12-31-2021
SQM S.A.	01-I018700 - Salar de Llamara Sanction Process	Environmental processing	Assets	-	12-31-2021
SQM S.A.	01-I019400 - EIA Expansion of TEA and Seawater Impulsion	Environmental processing	Assets	5	12-31-2021
SQM S.A.	01-I028300 - Implementation of PDC 2019	Sustainability: Environment and Risk Prevention	Expense	332	12-31-2021
SQM S.A.	01-I030700 - Sectorial Permits EIA Project Tente en el Aire	Environmental processing	Expense	66	12-31-2021
SQM S.A.	01-I031300 - DIA Actualization RCA TEA	Environmental processing	Expense	369	12-31-2021
SQM S.A.	01-I035800 - Substantiation DS43 Phase 2	Sustainability: Environment and Risk Prevention	Assets	39	12-31-2021
SQM S.A.	01-I038400 - Hydrogeological model update	Sustainability: Environment and Risk Prevention	Expense	124	12-31-2021
SQM S.A.	01-I039600 - New Warehouse Stock Iodine NV	Environmental processing	Assets	606	12-31-2021
SQM S.A.	01-I039700 - Substance Pond Adaptation	Environmental processing	Assets	380	12-31-2021
SQM S.A.	01-P010300 - Adequacy of substance tanks	Environmental processing	Assets	355	12-31-2021
SQM S.A.	01-P010400 - Adaptation of PV dispatch warehouse	Environmental processing	Assets	294	12-31-2021
SQM S.A.	01-S014200 - Proyecta	Environmental processing	Expense	7	12-31-2021
SQM S.A.	01-S015900 – SQM Sustainability	Environmental processing	Expense	155	12-31-2021
SQM Industrial S.A.	04-I025000 - Re-drilling Well 2PL-2	Sustainability: Environment and Risk Prevention	Expense	127	12-31-2021
SQM Industrial S.A.	04-I032600 - Well Water Efficiency – Rec.	Sustainability: Environment and Risk Prevention	Assets	27	12-31-2021
SQM Industrial S.A.	04-I038200 - Well Water Efficiency 2	Sustainability: Environment and Risk Prevention	Assets	551	12-31-2021
SQM Industrial S.A.	04-I038600 - Monitoring Extractions NV	Sustainability: Environment and Risk Prevention	Assets	240	12-31-2021
SQM Industrial S.A.	04-J015200 - Implementation Economizers	Sustainability: Environment and Risk Prevention	Assets	30	12-31-2021
SQM Industrial S.A.	04-J015700 - Update of Closure Plans	Sustainability: Environment and Risk Prevention	Expense	17	12-31-2021
SQM Industrial S.A.	04-J015800 - Other Sector Regulatory Measures	Sustainability: Environment and Risk Prevention	Expense	120	12-31-2021
SQM Industrial S.A.	04-J017200 - Guarantee availability S	Sustainability: Environment and Risk Prevention	Assets	32	12-31-2021
SQM Industrial S.A.	04-J019900 - Provisional Access to Cerro Domina	Sustainability: Environment and Risk Prevention	Expense	4	12-31-2021
SQM Industrial S.A.	04-J022700 - DIA Integration of the Coya Sur mine site	Environmental processing	Expense	296	12-31-2021
SQM Industrial S.A.	04-J022800 - Adjustment of Light Pollution	Sustainability: Environment and Risk Prevention	Assets	321	12-31-2021
SQM Industrial S.A.	04-J023700 - Regularization of SQM Industrial Hazardous Substances Decree	Environmental processing	Assets	615	12-31-2021
SQM Industrial S.A.	04-M004300 - Reducción de Residuos Industriales	Sustainability: Environment and Risk Prevention	Expense	173	12-31-2021
SQM Industrial S.A.	04-P010200 - PV Piles Project (EIS)+ Study	Sustainability: Environment and Risk Prevention	Expense	275	12-31-2021
SIT S.A.	03-T009900 - Air Quality Monitoring System Tocopilla	Sustainability: Environment and Risk Prevention	Assets	82	12-31-2021
SIT S.A.	03-T010500 - Hydrocarbon Detection System Tocopilla Port	Sustainability: Environment and Risk Prevention	Assets	75	12-31-2021
SQM Salar S.A.	19-C006800 - Renovation of lighting tower park	Sustainability: Environment and Risk Prevention	Assets	2	12-31-2021
SQM Salar S.A.	19-L014700 - Industrial Waste Management	Sustainability: Environment and Risk Prevention	Expense	89	12-31-2021
SQM Salar S.A.	19-L018800 - UPC Consulting for NW and others	Sustainability: Environment and Risk Prevention	Expense	46	12-31-2021
SQM Salar S.A.	19-L018900 - Evaporation 2018-2019	Sustainability: Environment and Risk Prevention	Assets	41	12-31-2021
SQM Salar S.A.	19-L019800 - Paleoclimate Study (Iberian)	Sustainability: Environment and Risk Prevention	Expense	35	12-31-2021
Total				18,356

158

Notes to the Consolidated Financial Statements
December 31, 2021

Future expenses as of December 31, 2020

Parent Company or Subsidiary	Project Name	Reason for Disbursement	Asset / Expense	Disbursement		Exact or Estimated Date of Disbursement
				ThUS$
SQM Salar S.A.	19-L020000 - Improvement of Operations Monitoring Network	Sustainability: Environment and Risk Prevention	Assets		95	12-31-2021
SQM Salar S.A.	19-L021400 - Environmental Monitoring 2019	Environmental processing	Expense		21	12-31-2021
SQM Salar S.A.	19-L021700 - Update RH y MA 2019	Environmental processing	Expense		92	12-31-2021
SQM Salar S.A.	19-L024200 - Environmental Risk Analysis Study	Sustainability: Environment and Risk Prevention	Expense		58	12-31-2021
SQM Salar S.A.	19-L025300 - Compliance with Sanitary Resolution	Sustainability: Environment and Risk Prevention	Assets		161	12-31-2021
SQM Salar S.A.	19-L025600 - Purchase of Generators, Variators	Sustainability: Environment and Risk Prevention	Assets		46	12-31-2021
SQM Salar S.A.	19-L025800 - Normalization of Admin. System	Sustainability: Environment and Risk Prevention	Assets		8	12-31-2021
SQM Salar S.A.	19-L026800 - Removal of old dryers at Plant MOP G III	Environmental processing	Assets		20	12-31-2021
SQM Salar S.A.	19-L026900 - Cameras and Lighting Products	Environmental processing	Assets		17	12-31-2021
SQM Salar S.A.	19-S013400- Online Monitoring	Sustainability: Environment and Risk Prevention	Expense		187	12-31-2021
SQM Salar S.A.	19-S016200 - Acquisition of Hardware- Software	Sustainability: Environment and Risk Prevention	Assets		14	12-31-2021
SQM Salar S.A.	19-S016300 - Consulting 2020	Sustainability: Environment and Risk Prevention	Assets		39	12-31-2021
SQM Salar S.A.	19-S016400 - Implementation Acquiere BD Amb	Sustainability: Environment and Risk Prevention	Assets		4	12-31-2021
SQM Salar S.A.	19-S016500 - Incorporation of test models	Sustainability: Environment and Risk Prevention	Assets		12	12-31-2021
SQM Salar S.A.	19-S016700 – Improvements to recharge understanding	Sustainability: Environment and Risk Prevention	Assets		81	12-31-2021
SQM Salar S.A.	19-S016900 - Water dynamics monitoring	Sustainability: Environment and Risk Prevention	Assets		35	12-31-2021
SQM Nitratos S.A.	12-I039000 - Adaptation of hazardous waste warehouse	Environmental processing	Assets		80	12-31-2021
Orcoma Estudios Spa	15-I039100 - Sectoral Permits and compliance	Environmental processing	Expense		235	12-31-2021
Minera Búfalo	20-A008200 - Búfalo Project	Environmental processing	Expense		189	12-31-2021
SQM Potasio S.A.	14-I039400 - Adapting Pond Iris	Environmental processing	Assets		370	12-31-2021
SQM Potasio S.A.	14-I039800 - Adapting hazardous substances warehouse IRIS	Environmental processing	Assets		261	12-31-2021
Subtotal					2,025
Total					20,381

159

  Notes to the Consolidated Financial Statements 
December 31, 2021  

22.3 Description of each project, indicating whether these are in process or have been finished

Sociedad Quimica y Minera de Chile S.A.

Environmental Commitments Implementation Projects

I0172: The project includes the commitments the Tamarugos Environmental Management Plan, which contemplates an Environmental Education Program that includes the design, construction and start-up of an Environmental Education Center (CEDAM) at Puquios de Llamara.

I0283: The project involves the implementation of actions committed in the PDC. The implementation considers consulting with consultants (legal, hydrogeological and in processing with PDC), studies and additional follow-up.

I0307: The project involves the preparation and processing of sectoral and environmental permits with the DGA and SERNAGEOMIN for the “Tente en el Aire” Project.

I0384: The project contemplates updating the Conceptual and Numerical Hydrogeological Model for the Pampa del Tamarugal Aquifer.

Environmental Improvement Initiatives and Projects

I0176: The project involves diagnosis of works for their adaptation to the recently enacted Regulation of Hazardous Substances.

I0396: The project involves improving NV's hazardous substances pond facilities, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.

I0397: The project involves constructing a new NV warehouse, in accordance with the Hazardous Substances Regulation DS 43.

I0444: The project considers improving the proprietary warehouse and environmental offices in Nueva Victoria.

P0103: The project involves improving the hazardous substances pond facilities at PV, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.

P0104: The project involves adapting the PV warehouse, in accordance with the Hazardous Substances Regulation DS 43.

I0509: The project involves improving the NV Iodine plant sectors aligned with the CR principles in each of the principles that this requires (safety, environment, waste).

S0220: The goal of the project is to finance the change in lighting with less energy consumption in the Iris Camp, aligned with the goals of the company’s sustainable development plan.

Projects for the Studies and Presentations to the Environmental Assessment System

I0194: The project consists of the preparation and processing of the Environmental Impact Study for Expansion of TEA and Impulsion.

I0282: The project consists of the preparation and processing of the Environmental Impact Study for Llamara.

I0358: The project contemplates standardizing facilities in accordance with standard DS43, Hazardous Substances regulation.

I0414: The project includes the preparation and processing of an Environmental Impact Statement (EIS) required to obtain environmental authorization for additional surface ponds, new scrap storage areas, increased transport of nitrate-rich salts to Coya Sur and increased BF portage (AFA) from Nueva Victoria to Sur Viejo.

160

  Notes to the Consolidated Financial Statements 
December 31, 2021  

S0142: The project considers SQM baseline survey in terms of ESG, we will compare ourselves to the industry and best practices to later plan how to reduce the gaps in the future with concrete initiatives.

S0159: The project considers surveying all the company’s sustainability initiatives, integrating the different practices in the areas of the company, identifying its strengths and opportunities to strengthen the management of its sustainability, aligning the strategy with the SDGs for all SQM operations in Chile. Support in completing the DJSI survey.

F0001: The project will develop the engineering and studies required to prepare the EIA, sectorial and territorial permits to operate the Pampa Blanca Mine.

SQM Industrial S.A.

Environmental Commitments Implementation Projects

J0158: The project will prepare and process sectorial permits for favorable reports to construct in Coya Sur (CS) and permits for hydraulic works defined in Article 294 of the Water Code (evaporation wells) at CS and NV.

Environmental Improvement Initiatives and Projects

I0326: The project considers installation of floating covers to reduce evaporation in water collection wells in NV.

I0382: The project consists of acquisition of floating covers to decrease evaporation, reducing the loss of water resources for the productive phase of iodine.

I0386 The project considers a monitoring and transmission system for effective extractions and dynamic levels in extraction wells owned by SQM, which supply the Nueva Victoria site.

I0469: The project considers the development of conceptual engineering studies for assessment of technical-economic feasibility for the implementation of a pilot floating photovoltaic solar plant in the Sur Viejo water ponds (FPV-SV).

J0135: This project consists of dealing with all the oils and components that contain 50ppm or more of Policlorobife (PCB) by 2025 at the latest.

J0157: The project will update the closure plans in accordance with the normal regime established by current legislation. These requirements include an initial external audit, detailed risks analysis and their control, and other requirements.

J0172: The project will ensure the availability of water resources in "CS, ME, VE and CV" adductions.

J0228: The project considers the installation and normalization of lighting in Coya Sur and María Elena.

J0237: The project involves improving the hazardous substance pond facilities at CS and improvements to the hazardous substance storage facilities at CS and ME, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.

M0043: The project considers the removal of industrial waste to free up the sites defined for this purpose.

M0046: The project involves controlling and eliminating the passage of grease from the TAS plant into the CS plants.

M0056: The project involves improving electrical facilities in the storage warehouses, repairing structures and roofs, improving patio floors, reducing waste generation, reducing the risk of fatigue among warehouse staff and increasing productivity, including equipment with electrical traction and mechanical support for storage and dispatch.

I0501: The project involves constructing a 400 l/s seawater collection and impulsion system for watering the leach heap, iodide plant and evaporation pond.

161

  Notes to the Consolidated Financial Statements 
December 31, 2021  

J0290 The project will implement a solar pilot plant to generate thermal energy for heating solutions in NPT3. This first stage will draw O&M conclusions as well as yields for a potential industrial plant.

Projects for the Studies and Presentations to the Environmental Assessment System

J0227: The project consists of the preparation and processing of an Environmental Impact Declaration (DIA) to extend the useful life of the NPT2 plant and incorporate fuel with KNO3. Prepare and process a DIA for the expansion and updating of Coya Sur.

M0054: The project involves developing the preliminary identification studies of the mine and PV heap area, identification of intake points and layouts for the sea water impulsion line.

F0002: The project includes the reconstruction and repair of the Mine Operations Centers that treat the leaching process solutions, install the conveyor solutions at the Pampa Blanca site.

SIT S.A.

Environmental Improvement Initiatives and Projects

T0099: The project involves preparing a detailed emissions inventory, particulate matter dispersion model and protocol development. Measurement of fugitive emissions from Tocopilla Port operations and Air Quality Monitoring.

T0105: The purpose of the project is to install a system that detects and issues early warnings of hydrocarbons in the sea near the facilities at Tocopilla Port.

T0114: The goal of the project is to have a containment system to protect against water contamination from hydrocarbons or other contaminant liquid substances.

T0118: The objective of the project is to review and engineer all the equipment comprising this shipping circuit, conveyor belts, feeders and control system of the mechanized arm, in order to achieve automation.

SQM Salar S.A.

Environmental Commitments Implementation Projects

L0198: The project will date sediment in the depositional environments of the last 50,000 years to complement the facies sedimentological model provided by the consultant. The project will try to reconstruct the variability history of the lagoon system with absolute ages.

L0200: The project will identify an appropriate device. Field testing of sensors. Purchase of sensors for all points. Installation of sensors. Analyze remote data transmission (future project).

L0217: The project involves quoting new equipment. Purchase of new equipment. Reparation of old equipment for use as backup in the event of unexpected failure of new equipment.

L0301: The project will identify the requirements to request landfill permits and ensure their physical and chemical stability. It will include the safety measures that apply to construction and any future growth, in order to protect the environment and the life and welfare of people.

L0323: This considers undertaking hydrogeological and hydroecological studies, improvements in hydrogeological numerical modeling, instrumentation in environmentally sensitive areas and topographical surveys, to improve the hydrogeological-environmental understanding of the Salar de Atacama, to better respond to questions from environmental officials.

162

  Notes to the Consolidated Financial Statements 
December 31, 2021  

S0134: The project involves showing information online regarding extractions and reinjections from the Salar. Additionally, it includes biotic and hydrogeological information to show authorities and the community the actions implemented by SQM for the environmental variable it has committed to.

C0124: The project involves the construction of discarded salt deposits, required by the increase in production in the lithium hydroxide and lithium carbonate plant.

Environmental Improvement Initiatives and Projects

C0086: The project involves asphalting the Salar de Carmen plants to reduce the dust particles in suspension raised during the movement of trucks.

L0147: This project contemplates the reduction of these industrial waste storage points and packaging of different industrial waste according to the RCA and legislation in force.

L0188: The project involves the participation of an external consulting team to narrow down the sources of the risks identified, propose operational optimization plans, improvements to control systems (monitoring networks) and support in modeling this deposit with a view to a better evolution of short- and medium-term projections (5 years).

L0189: It includes improving the current lysimeter stations and implementing new stations in important sectors that are not currently measured, with the ability to remotely transmit information. This will improve the spatial coverage of the stations that measure evaporation within the basin. This considers consulting with an expert to propose methodological improvements.

L0242: This contemplates consulting to study the large-scale behavior of lagoon systems through the development of analytic or semi-analytic solutions.

L0253: This considers the regularization of the potable water system and the disposal of sewage waters from management.

L0256: This contemplates the renovation of generators in SQM Salar to extend their useful life and purchase variators and transformers in different strengths to have stock in the event of failures and thereby ensure ongoing operations.

L0258: This considers the normalization of the Electricity System for maintaining and operating the transformer substations.

L0268: This considers the removal of old dryers and their final disposal at authorized facilities.

L0269: This considers improving controls over plant equipment and feed mixtures to keep products within specifications, to comply with current regulations regarding lighting and mitigate substandard conditions at the plant.

L0282: It will consider an ecological assessment plan and environmental variables, a monitoring and early warning plan, a contingency plan and a vegetation response model. Hydro-geological modeling and early warning well modeling.

L0298: It will consider adapting civil works to store hazardous substances, according to DS43.

L0302: It will consider removing non-hazardous industrial waste stored on site and reduce the amount of waste in authorized landfills.

L0307: It will consider electrifying 21 wells, which represent almost 27% of wells, from the Salar de Atacama generator, to optimize the use of the fuel supply truck, reduce the carbon footprint, and the losses associated with fuel distribution.

L0313: This considers generating protection and backup systems to ensure reliable operation of medium voltage equipment, which may provoke harm to people or damages to facilities.

163

  Notes to the Consolidated Financial Statements 
December 31, 2021  

L0317: This considers standardizing all external sources of lighting that do not have DS 43 certification for light pollution. The main activity involves regulating or changing all sources of emission that do not meet standards, considering the scopes and procedures established in this decree.

S0162: This contemplates the acquisition of technology for optimization and traceability of GHS data.

S0163: The project contains measurement methodology for different terrain parameters and subsequent conceptual modeling.

S0164: This contemplates the unification of proprietary and third-party databases.

S0165: This project takes responsibility for an opportunity to improve the speed of data analysis and efficiency in decision-making.

S0167: This contemplates a series of measures in the conceptualization of the Salar de Atacama basin, as well as updating data sets, which must be implemented to strengthen the model and which will be the management tool model for the basin.

L0320: The project aims to finance waste separation and recycling initiatives in the Salar de Atacama.

L0340: Elaboración EIA “Plan de Desarrollo Sustentable Salar de Atacama” y Elaboración DIA “Aumento Capacidad y Optimización Producción Planta de Litio Carmen”."

SQM Nitratos S.A.

Environmental Improvement Initiatives and Projects

I0390: The project contemplates making improvements to the common warehouse in Mina Oeste based on the commitments defined in the adaptation plan presented to the Health SEREMI, thereby complying with DS43.

Sociedad Contractual Minera Búfalo

Environmental Improvement Initiatives and Projects

A0082: The project contemplates the characterization of a potential copper deposit, through the execution of a 3D geophysics program, drilling and sample studies, decreasing the uncertainty of the geological model, as well as processing environmental and sectoral permits that enable the development of activities in the area.

Orcoma Estudios Spa

Environmental Commitments Implementation Projects

I0391: The project consists of obtaining sectoral and environmental sectoral permits for the Orcoma Project.

SQM Potasio S.A.

Environmental Improvement Initiatives and Projects

I0394: The project involves improving Iris's hazardous substances pond facilities, in accordance with the Adaptation Plan for Hazardous Substances Regulation DS 43.

I0398: The project involves adapting the hazardous substances warehouse at the NV Iodine Plant, in accordance with Hazardous Substances Regulation DS 43.

164

  Notes to the Consolidated Financial Statements 
December 31, 2021  

Note 23 Gains (losses) from operating activities in the statement of income of expenses, included according to their nature

23.1 Revenue from operating activities customer activities

The SQM Group derives revenues from the sale of goods (which are recognized at one point in time) and from the provision of services (which are recognized over time) and are distributed among the following geographical areas and main product and service lines:

(a) Geographic areas:

For the year ended December 31, 2021
Geographic areas	Specialty plant nutrition		Iodine and derivatives		Lithium and derivatives		Potassium		Industrial chemicals		Other		Total ThUS$
Chile		136,523		1,538		901		50,573		4,125		25,988		219,648
Latin America and the Caribbean		88,990		10,198		4,905		214,304		7,367		523		326,287
Europe		179,744		173,329		75,674		33,948		18,662		1,408		482,765
North America		314,895		102,746		50,349		57,682		29,860		2,470		558,002
Asia and Others		188,663		150,120		804,292		60,085		71,997		456		1,275,613
Total		908,815		437,931		936,121		416,592		132,011		30,845		2,862,315

For the year ended as of December 31, 2020
Geographic areas	Specialty plant nutrition		Iodine and derivatives		Lithium and derivatives		Potassium		Industrial chemicals		Other		Total ThUS$
Chile		100,353		1,234		399		23,963		4,059		23,737		153,745
Latin America and the Caribbean		69,535		10,843		1,597		72,697		4,951		367		159,990
Europa		145,896		142,161		49,719		30,029		11,585		735		380,125
North America		246,737		90,292		25,558		39,432		23,963		1,588		427,570
Asia and Others		139,167		90,127		306,100		43,173		116,050		1,144		695,761
Total		701,688		334,657		383,373		209,294		160,608		27,571		1,817,191

165

  Notes to the Consolidated Financial Statements 
December 31, 2021  

(b) Main product and service lines:

Products and Services	For the period from January to December of the year
	2021		2020
	ThUS$		ThUS$
Specialty plant nutrition		908,815		701,688
- Sodium Nitrates		24,829		18,291
- Potassium nitrate and sodium potassium nitrate		539,336		424,041
- Specialty Blends		234,369		163,033
- Other specialty fertilizers		110,281		96,323
Iodine and derivatives		437,931		334,657
Lithium and derivatives		936,121		383,373
Potassium		416,592		209,294
Industrial chemicals		132,011		160,608
Other		30,845		27,571
- Services		3,428		3,241
- Income from property leases		1,531		1,457
- Income from subleases on right-of-use assets		146		176
- Commodities		12,468		11,938
- Other ordinary income of Commercial Offices		13,272		10,759
Total		2,862,315		1,817,191

166

  Notes to the Consolidated Financial Statements 
December 31, 2021  

23.2 Cost of sales

Cost of sales broken down by nature of expense:

Nature of expense	For the period from January to December of the year
	2021			2020
	ThUS$			ThUS$
Raw materials and consumables used		(345,356	)		(287,877	)
Classes of employee benefit expenses		(211,771	)		(178,956	)
Depreciation expense		(195,678	)		(182,314	)
Depreciation of Right-of-use Assets (contracts under IFRS 16)		(5,963	)		(5,814	)
Amortization expense		(9,737	)		(12,938	)
Investment plan expenses		(15,059	)		(14,286	)
Provision for materials, spare parts and supplies		(505	)		640
Contractors		(157,571	)		(142,017	)
Operating leases		(67,106	)		(57,461	)
Mining concessions		(7,325	)		(6,645	)
Operational transportation		(76,003	)		(68,730	)
Freight / product transportation costs		(77,353	)		(52,156	)
Purchase of products from third parties		(329,464	)		(260,089	)
Insurance		(21,869	)		(17,657	)
CORFO rights and other agreements		(247,604	)		(74,418	)
Export costs		(99,212	)		(88,176	)
Expenses related to variable lease payments (contracts under IFRS 16)		(1,313	)		(1,117	)
Variation in gross inventory		85,709			102,446
Variation in inventory provision		5,038			7,244
Other		5,934			6,000
Total		(1,772,208	)		(1,334,321	)

167

Notes to the Consolidated Financial Statements
December 31, 2021

23.3 Other income

	For the period from January to December of the year
	2021		2020
Other income	ThUS$		ThUS$
Discounts obtained from suppliers		896		665
Fines charged to suppliers		83		267
Taxes recovered		287		1,487
Amounts recovered from insurance		1,811		14,861
Overestimate of provisions for third-party obligations		293		118
Sale of assets classified as properties, plant and equipment		1,923		1,626
Sale of mining rights		8,796		5,852
Easements, pipelines and roads		4,949		1,619
Refunds for mining patents and notarial expenses		198		85
Others		316		313
Total		19,552		26,893

23.4 Administrative expenses

	For the period from January to December of the year
	2021			2020
Administrative expenses	ThUS$			ThUS$
Employee benefit expenses		(60,552	)		(55,152	)
Marketing costs		(2,415	)		(2,377	)
Amortization expenses		(118	)		(91	)
Entertainment expenses		(4,906	)		(4,858	)
Advisory services		(17,332	)		(13,880	)
Lease of buildings and facilities		(3,478	)		(3,111	)
Insurance		(3,901	)		(3,478	)
Office expenses		(6,363	)		(6,204	)
Contractors		(5,106	)		(5,079	)
Depreciation of Right-of-use Assets (contracts under IFRS 16)		(2,743	)		(2,617	)
Other expenses		(11,979	)		(10,170	)
Total		(118,893	)		(107,017	)

168

Notes to the Consolidated Financial Statements
December 31, 2021

23.5 Other expenses

	For the period from January to December of the year
	2021			2020
Other expenses	ThUS$			ThUS$
Depreciation and amortization expense
Depreciation of assets not in use		-			(138	)
Subtotal		-			(138	)
Impairment losses / reversals of impairment losses recognized in profit for the year
Properties, plant and equipment		(5,582	)		(9,563	)
Intangible assets other than goodwill		(478	)		(1,941	)
Goodwill		-			(140	)
Non-current assets and disposal groups held for sale		-			-
Subtotal		(6,060	)		(11,644	)
Other expenses, by nature
Legal expenses		(42,253	)		(69,965	)
VAT and other unrecoverable taxes		(1,015	)		(626	)
Fines paid		(882	)		(314	)
Investment plan expenses		1			(768	)
Exploration expenses		-			(5,262	)
Contributions and donations		(9,321	)		(8,793	)
Other operating expenses		(1,075	)		(2,102	)
Subtotal		(54,545	)		(87,830	)
Total		(60,605	)		(99,612	)

23.6 Other (losses) income

	For the period from January to December of the year
	2021			2020
Other (losses) income	ThUS$			ThUS$
Adjustment to prior periods due to applying the equity method		(198	)		(48	)
Sale of investments in associates		-			(11,830	)
Impairment of interests in associates		(2,009	)		7,235
Sale of investments in joint ventures		-			(481	)
Others		(431	)		(189	)
Total		(2,638	)		(5,313	)

169

Notes to the Consolidated Financial Statements
December 31, 2021

23.7 (Impairment) /reversal of value of financial assets impairment losses

	For the period from January to December of the year
	2021			2020
Description	ThUS$			ThUS$
(Impairment) /reversal of value of financial assets impairment losses (See Note 13.2)		(235	)		4,684
Totals		(235	)		4,684

23.8 Summary of expenses by nature

The following summary considers notes 23.2, 23.4 and 23.5

	For the period from January to December of the year
	2021			2020
Expenses by nature	ThUS$			ThUS$
Raw materials and consumables		(345,356	)		(287,877	)
Employee Benefit Expenses		(272,323	)		(234,108	)
Depreciation expense		(195,678	)		(182,452	)
Depreciation of right-of-use Assets		(8,706	)		(8,431	)
Impairment of properties, plant and equipment, intangible and Goodwill		(6,060	)		(11,644	)
Amortization expense		(9,855	)		(13,029	)
Legal expenses		(42,253	)		(69,965	)
Investment plan expenses		(15,058	)		(15,054	)
Exploration expenses		-			(5,262	)
Provision for materials, spare parts and supplies		(505	)		640
Contractors		(162,677	)		(147,096	)
Operational leases		(70,584	)		(60,572	)
Mining concessions		(7,325	)		(6,645	)
Operational transportation		(76,003	)		(68,730	)
Freight and product transportation costs		(77,353	)		(52,156	)
Purchase of products from third parties		(329,464	)		(260,089	)
CORFO rights y other agreements		(247,604	)		(74,418	)
Export costs		(99,212	)		(88,176	)
Expenses related to variable lease payments (contracts under IFRS 16)		(1,313	)		(1,117	)
Insurance		(25,770	)		(21,135	)
Consultant and advisor services		(17,332	)		(13,880	)
Variation in gross inventory		85,709			102,446
Variation in inventory provision		5,038			7,244
Other expenses		(32,022	)		(29,444	)
Total expenses by nature		(1,951,706	)		(1,540,950	)

170

Notes to the Consolidated Financial Statements
December 31, 2021

23.9 Finance expenses

	For the period from January to December of the year
	2021			2020
Finance expenses	ThUS$			ThUS$
Interest expense from bank borrowings and overdrafts		(2,664	)		(2,797	)
Interest expense from bonds		(90,859	)		(87,030	)
Interest expense from loans		(1,135	)		(1,598	)
Reversal of capitalized interest expenses		14,206			8,462
Financial expenses for restoration and rehabilitation provisions		(1,259	)		2,947
Interest on lease agreement		(1,587	)		(1,133	)
Interest and bank charges		(1,328	)		(1,050	)
Total		(84,626	)		(82,199	)

23.10 Finance income

	For the period from January to December of the year
	2021		2020
Finance income	ThUS$		ThUS$
Interest from term deposits		3,635		10,260
Interest from marketable securities		68		2,147
Interest from maintenance of minimum bank balance in current account		2		18
Other finance income		107		259
Other finance interests		856		1,031
Total		4,668		13,715

171

Notes to the Consolidated Financial Statements
December 31, 2021

Note 24 Reportable segments

24.1 Reportable segments

(a) General information:

The amount of each item presented in each operating segment is equal to that reported to the highest authority that makes decisions regarding the operation, in order to decide on the allocation of resources to the defined segments and to assess its performance.

These operating segments mentioned are consistent with the way the Company is managed and how results will be reported by the Company. These segments reflect separate operating results that are regularly reviewed by the executive responsible for operational decisions in order to make decisions about the resources to be allocated to the segment and assess its performance (See Note 24.2).

The performance of each segment is measured based on net income and revenues. Inter-segment sales are made using terms and conditions at current market rates.

(b) Factors used to identify segments on which a report should be presented:

The segments covered in the report are strategic business units that offer different products and services. These are managed separately because each business requires different technology and marketing strategies.

(c) Description of the types of products and services from which each reportable segment obtains its income from ordinary activities

The operating segments, which obtain income from ordinary activities, generate expenses and have its operating results reviewed on a regular basis by the highest authority who makes decisions regarding operations, relate to the following groups of products:

(i) Specialty plant nutrients

(ii) Iodine and its derivatives

(iii) Lithium and its derivatives

(iv) Industrial chemicals

(v) Potassium

(vi) Other products and services

(d) Description of income sources for all the other segments

Information regarding assets, liabilities, profits and expenses that cannot be assigned to the segments indicated above, due to the nature of production processes, is included under the "Unallocated amounts” category of the disclosed information.

172

Notes to the Consolidated Financial Statements December 31, 2021  

(e) Description of the nature of the differences between measurements of results of reportable segments and the result of the entity before the expense or income tax expense of incomes and discontinued operations

The information reported in the segments is extracted from the Company’s consolidated financial statements and therefore there is no need to prepare reconciliations between the data mentioned above and those reported in the respective segments, according to what is stated in paragraph 28 of IFRS 8, "Operating Segments".

For the allocation of inventory valuation costs, we identify the direct expenses (can be directly allocated to products) and the common expenses (belong to coproduction processes, for example common leaching expenses for production of Iodine and Nitrates), Direct costs are directly allocated to the product and the common costs are distributed according to percentages that consider different variables in their determination, such as margins, rotation of inventories, revenue, production etc.

The allocation of other common costs that are not included in the inventory valuation process, but go straight to the cost of sales, use similar criteria: the costs associated with a product or sales in particular are assigned to that particular product or sales, and the common costs associated with different products or business lines are allocated according to the sales.

(f) Description of the nature of the differences between measurements of assets of reportable segments and the Company´s assets

Assets are not shown classified by segments, as this information is not readily available, some of these assets are not separable by the type of activity by which they are affected since this information is not used by management in decision-making with respect to resources to be allocated to each defined segment. All assets are disclosed in the "unallocated amounts" category.

(g) Description of the nature of the differences between measurements of liabilities of reportable segments and the Company’s liabilities

Liabilities are not shown classified by segments, as this information is not readily available, some of these liabilities are not separable by the type of activity by which they are affected, since this information is not used by management in decision-making regarding resources to be allocated to each defined segment. All liabilities are disclosed in the "unallocated amounts" category.

173

Notes to the Consolidated Financial Statements December 31, 2021  

24.2 Reportable segment disclosures:

Operating segment items as of December 31, 2021	Specialty  plant  nutrients			Iodine and its  derivatives			Lithium and  its derivatives			Industrial  chemicals			Potassium			Other  products and  services			Reportable  segments			Operating  segments			Unallocated  amounts			Total as of  December 31,  2021
		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		908,815			437,931			936,121			132,011			416,592			30,845			2,862,315			2,862,315			-			2,862,315
Revenues from transactions with other operating segments of the same entity		-			-			-			-			-			-			-			-			-			-
Revenues from external customers and transactions with other operating segments of the same entity		908,815			437,931			936,121			132,011			416,592			30,845			2,862,315			2,862,315			-			2,862,315
Costs of sales		(646,930	)		(240,341	)		(494,794	)		(109,067	)		(253,125	)		(27,951	)		(1,772,208	)		(1,772,208	)		-			(1,772,208	)
Administrative expenses		-			-			-			-			-			-			-			-			(118,893	)		(118,893	)
Finance expense		-			-			-			-			-			-			-			-			(84,626	)		(84,626	)
Depreciation and amortization expense		(58,808	)		(41,215	)		(65,014	)		(13,743	)		(35,290	)		(169	)		(214,239	)		(214,239	)		-			(214,239	)
The entity’s interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			-			-			11,132			11,132
Income before taxes		261,885			197,590			441,327			22,944			163,467			2,894			1,090,107			1,090,107			(248,886	)		841,221
Income tax expense		-			-			-			-			-			-			-			-			(249,016	)		(249,016	)
Net income (loss)		261,885			197,590			441,327			22,944			163,467			2,894			1,090,107			1,090,107			(497,902	)		592,205
Assets		-			-			-			-			-			-			-			-			7,044,297			7,044,297
Equity-accounted investees		-			-			-			-			-			-			-			-			39,824			39,824
Incorporation of non-current assets other than financial instruments, deferred tax assets, net defined benefit assets and rights arising from insurance contracts		-			-			-			-			-			-			-			-			152,663			152,663
Other Liabilities		-			-			-			-			-			-			-			-			3,828,326			3,828,326
Impairment loss of financial assets recognized in profit or loss																				-						(235	)		(235	)
Impairment loss of non-financial assets recognized in profit or loss		-			-			-			-			-			-			-			-			(6,060	)		(6,060	)
Cash flows from operating activities		-			-			-			-			-			-			-			-			822,520			822,520
Cash flows used in investing activities		-			-			-			-			-			-			-			-			(1,006,943	)		(1,006,943	)
Cash flows from financing activities		-			-			-			-			-			-			-			-			1,206,485			1,206,485

174

Notes to the Consolidated Financial Statements December 31, 2021  

Operating segment items as of December 31, 2020	Specialty  plant  nutrients			Iodine and its  derivatives			Lithium and  its derivatives			Industrial  chemicals			Potassium			Other  products and  services			Reportable  segments			Operating  segments			Unallocated  amounts			Total as of  December 31,  2020
		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Revenue		701,688			334,657			383,373			160,608			209,294			27,571			1,817,191			1,817,191			-			1,817,191
Revenues from transactions with other operating segments of the same entity		-			-			-			-			-			-			-			-			-			-
Revenues from external customers and transactions with other operating segments of the same entity		701,688			334,657			383,373			160,608			209,294			27,571			1,817,191			1,817,191			-			1,817,191
Costs of sales		(537,801	)		(168,499	)		(297,048	)		(119,092	)		(187,019	)		(24,862	)		(1,334,321	)		(1,334,321	)		-			(1,334,321	)
Administrative expenses		-			-			-			-			-			-			-			-			(107,017	)		(107,017	)
Finance expense		-			-			-			-			-			-			-			-			(82,199	)		(82,199	)
Depreciation and amortization expense		(55,335	)		(40,687	)		(56,092	)		(14,136	)		(34,570	)		(3,092	)		(203,912	)		(203,912	)		-			(203,912	)
The entity’s interest in the profit or loss of associates and joint ventures accounted for by the equity method		-			-			-			-			-			-			-			-			8,940			8,940
Income tax expense, continuing operations		163,887			166,158			86,325			41,516			22,275			2,709			482,870			482,870			(244,332	)		238,538
Income tax expense		-			-			-			-			-			-			-			-			(70,179	)		(70,179	)
Net income (loss)		163,887			166,158			86,325			41,516			22,275			2,709			482,870			482,870			(314,511	)		168,359
Assets		-			-			-			-			-			-			-			-			4,818,463			4,818,463
Equity-accounted investees		-			-			-			-			-			-			-			-			85,993			85,993
Incorporation of non-current assets other than financial instruments, deferred tax assets, net defined benefit assets and rights arising from insurance contracts		-			-			-			-			-			-			-			-			358,009			358,009
Other Liabilities		-			-			-			-			-			-			-			-			2,655,885			2,655,885
Impairment loss of financial assets recognized in profit or loss		-			-			-			-			-			-			-			-			4,684			4,684
Reversal of impairment losses recognized in profit or loss		-			-			-			-			-			-			-			-			(11,644	)		(11,644	)
Cash flows from operating activities		-			-			-			-			-			-			-			-			182,234			182,234
Cash flows used in investing activities		-			-			-			-			-			-			-			-			(167,091	)		(167,091	)
Cash flows used in financing activities		-			-			-			-			-			-			-			-			(94,132	)		(94,132	)

175

Notes to the Consolidated Financial Statements December 31, 2021  

24.3 Statement of comprehensive income classified by reportable segments based on groups of products

Items in the statement of comprehensive income as of  December 31, 2021	Specialty plant  nutrients		Iodine and its  derivatives		Lithium and its  derivatives		Industrial  chemicals		Potassium		Other products  and services		Corporate Unit		Total segments  and corporate  unit
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Revenue	908,815		437,931		936,121		132,011		416,592		30,845		-		2,862,315
Costs of sales	(646,930	)	(240,341	)	(494,794	)	(109,067	)	(253,125	)	(27,951	)	-		(1,772,208	)
Gross profit	261,885		197,590		441,327		22,944		163,467		2,894		-		1,090,107
Other incomes by function	-		-		-		-		-		-		19,552		19,552
Administrative expenses	-		-		-		-		-		-		(118,893	)	(118,893	)
Other expenses by function	-		-		-		-		-		-		(60,605	)	(60,605	)
Impairment of gains and review of impairment losses (impairment losses) determined in accordance with IFRS 9	-		-		-		-		-		-		(235	)	(235	)
Other losses	-		-		-		-		-		-		(2,638	)	(2,638	)
Financial income	-		-		-		-		-		-		4,668		4,668
Financial costs	-		-		-		-		-		-		(84,626	)	(84,626	)
Interest in the profit (loss) of associates and joint ventures accounted for by the equity method	-		-		-		-		-		-		11,132		11,132
Exchange differences	-		-		-		-		-		-		(17,241	)	(17,241	)
Profit (loss) before taxes	261,885		197,590		441,327		22,944		163,467		2,894		(248,886	)	841,221
Income tax expense	-		-		-		-		-		-		(249,016	)	(249,016	)
Profit (loss) net	261,885		197,590		441,327		22,944		163,467		2,894		(497,902	)	592,205

176

Notes to the Consolidated Financial Statements December 31, 2021  

Items in the statement of comprehensive income as of December 31, 2020	Specialty plant nutrients		Iodine and its derivatives		Lithium and its derivatives		Industrial chemicals		Potassium		Other products and services		Corporate Unit		Total segments and corporate unit
	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Revenue	701,688		334,657		383,373		160,608		209,294		27,571		-		1,817,191
Cost of sales	(537,801	)	(168,499	)	(297,048	)	(119,092	)	(187,019	)	(24,862	)	-		(1,334,321	)
Gross profit	163,887		166,158		86,325		41,516		22,275		2,709		-		482,870
Other incomes by function	-		-		-		-		-		-		26,893		26,893
Administrative expenses	-		-		-		-		-		-		(107,017	)	(107,017	)
Other expenses by function	-		-		-		-		-		-		(99,612	)	(99,612	)
Impairment of gains and review of impairment losses (impairment losses) determined in accordance with IFRS 9	-		-		-		-		-		-		4,684		4,684
Other losses	-		-		-		-		-		-		(5,313	)	(5,313	)
Financial income	-		-		-		-		-		-		13,715		13,715
Financial costs	-		-		-		-		-		-		(82,199	)	(82,199	)
Interest in the profit or loss of associates and joint ventures accounted for by the equity method	-		-		-		-		-		-		8,940		8,940
Exchange differences	-		-		-		-		-		-		(4,423	)	(4,423	)
Profit (loss) before taxes	163,887		166,158		86,325		41,516		22,275		2,709		(244,332	)	238,538
Income tax expense	-		-		-		-		-		-		(70,179	)	(70,179	)
Profit (loss) from continuing operations	163,887		166,158		86,325		41,516		22,275		2,709		(314,511	)	168,359

177

Notes to the Consolidated Financial Statements
December 31, 2021  

24.4 Disclosures on geographical areas

As indicated in paragraph 33 of IFRS 8, the entity discloses geographical information on its revenue from operating activities with external customers and from non-current assets that are not financial instruments, deferred income tax assets, assets related to post-employment benefits or rights derived from insurance contracts.

24.5 Disclosures on main customers

With respect to the degree of dependency of the Company on its customers, in accordance with paragraph 34 of IFRS 8, the Company has no external customers who individually represent 10% or more of its revenue.

178

Notes to the Consolidated Financial Statements
December 31, 2021  

24.6 Segments by geographical areas

	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
Items as of December 31, 2021	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Revenue		219,648		326,287		482,765		558,002		1,275,613		2,862,315
Investment accounted for under the equity method		-		-		15,242		15,899		8,683		39,824
Intangible assets other than goodwill		89,019		496		6,996		1,809		81,338		179,658
Goodwill		22,979		86		11,531		-		-		34,596
Property, plant and equipment, net		1,815,997		671		11,380		3,704		180,473		2,012,225
Right-of-use assets		29,803		68		2,040		3,351		17,346		52,608
Other non-current assets		27,626		16		6		3,950		1,889		33,487
Non-current assets		1,985,424		1,337		47,195		28,713		289,729		2,352,398

	Chile		Latin America and the Caribbean		Europe		North America		Asia and others		Total
Items as of December 31, 2020	ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Revenue		153,745		159,990		380,126		427,572		695,758		1,817,191
Investment accounted for under the equity method		-		-		41,273		14,468		30,252		85,993
Intangible assets other than goodwill		95,934		565		825		2,274		78,809		178,407
Goodwill		23,065		-		18,901		-		-		41,966
Property, plant and equipment, net		1,667,824		642		12,592		3,494		52,767		1,737,319
Right-of-use assets		23,461		2,298		2,428		1,776		61		30,024
Other non-current assets		19,377		17		7		2,641		-		22,042
Non-current assets		1,829,661		3,522		76,026		24,653		161,889		2,095,751

179

Notes to the Consolidated Financial Statements
December 31, 2021  

Note 25 Effect of fluctuations in foreign currency exchange rates

(a) Foreign currency exchange differences recognized in profit or loss and other comprehensive income:

Foreign currency exchange differences recognized in profit or loss and other comprehensive income	As of December 31, 2021			As of December 31, 2020
		ThUS$			ThUS$
Conversion foreign exchange gains (losses) recognized in the result of the year		(17,241	)		(4,423	)
Conversion foreign exchange reserves
Conversion foreign exchange reserves attributable to the owners of the controlling entity		3,656			14,176
Conversion foreign exchange reserves attributable to the non-controlling entity		584			(176	)
Total		4,240			14,000

(b) Reserves for foreign currency exchange differences:

As of December 31, 2021, and 2020, are detailed as follows:

Details	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Changes in equity generated by the equity method value through conversion:
Comercial Hydro S.A.		1,004			1,004
SQMC Internacional Ltda.		(9	)		(9	)
Proinsa Ltda.		(10	)		(10	)
Comercial Agrorama Ltda.		155			(19	)
Isapre Norte Grande Ltda.		(121	)		(14	)
Almacenes y Depósitos Ltda.		305			211
Sacal S.A.		(3	)		(3	)
Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A.		(36	)		(13	)
Agrorama S.A.		628			92
SQM Vitas Fzco		(4,165	)		(3,736	)
Ajay Europe		(1,413	)		(693	)
SQM Oceanía Pty Ltd.		(579	)		(579	)
SQM Indonesia S.A.		(124	)		(124	)
Abu Dhabi Fertillizers Industries WWL.		372			372
SQM Holland B.V.		99			99
SQM Thailand Limited		(68	)		(68	)
SQM Europe		(1,983	)		(1,983	)
SQM Australia Pty Ltd.		(1,732	)		(4,052	)
Pavoni & C. Spa		(153	)		164
Kore Potash PLC (a)		-			(2,128	)
SQM Colombia SAS		(80	)		(80	)
Total		(7,913	)		(11,569	)

(c) Functional and presentation currency

The functional currency of these companies corresponds to the currency of the country of origin of each entity, and its presentation currency is the dollar.

(d) Reasons to use one presentation currency and a different functional currency

-        A relevant portion of the revenues of these subsidiaries are associated with the local currency.

-        The cost structure of these companies is affected by the local currency.

180

Notes to the Consolidated Financial Statements
December 31, 2021  

Note 26 Disclosures on the effects of fluctuations in foreign currency exchange rates

a) Assets held in foreign currency subject to fluctuations in exchange rates are detailed as follows:

Class of Asset	Currency	As of December 31, 2021		As of December 31, 2020
		ThUS$		ThUS$
Cash and cash equivalents	USD		1,377,983		454,402
Cash and cash equivalents	CLP		4,416		7,190
Cash and cash equivalents	CNY		30,102		11,597
Cash and cash equivalents	EUR		14,374		17,144
Cash and cash equivalents	GBP		1		19
Cash and cash equivalents	AUD		72,107		1,411
Cash and cash equivalents	INR		-		6
Cash and cash equivalents	MXN		1,827		1,378
Cash and cash equivalents	PEN		6		3
Cash and cash equivalents	AED		1		-
Cash and cash equivalents	JPY		1,182		1,646
Cash and cash equivalents	ZAR		13,048		14,286
Cash and cash equivalents	KRW		-		16
Cash and cash equivalents	IDR		3		3
Cash and cash equivalents	PLN		1		1
Subtotal cash and cash equivalents			1,515,051		509,102
Other current financial assets	USD		668,360		145,893
Other current financial assets	BRL		48		-
Other current financial assets	CLP		250,641		202,176
Subtotal other current financial assets			919,049		348,069
Other current non-financial assets	USD		18,486		20,645
Other current non-financial assets	AUD		11,066		224
Other current non-financial assets	CLF		150		53
Other current non-financial assets	CLP		27,536		27,837
Other current non-financial assets	CNY		5,213		1,661
Other current non-financial assets	EUR		1,050		1,531
Other current non-financial assets	COP		153		70
Other current non-financial assets	MXN		6,092		4,488
Other current non-financial assets	THB		8		70
Other current non-financial assets	JPY		73		157
Other current non-financial assets	ZAR		42		646
Other current non-financial assets	SEK		1		17
Subtotal other non-financial current assets			69,870		57,399
Trade and other receivables	USD		400,753		230,214
Trade and other receivables	PEN		-		1
Trade and other receivables	BRL		21		23
Trade and other receivables	CLF		459		545
Trade and other receivables	CLP		43,496		47,133
Trade and other receivables	CNY		108,822		22,882
Trade and other receivables	EUR		35,514		22,868
Trade and other receivables	GBP		46		682
Trade and other receivables	MXN		237		355
Trade and other receivables	AED		1,888		533
Trade and other receivables	THB		-		1,167
Trade and other receivables	JPY		36,000		23,010
Trade and other receivables	AUD		1,214		589
Trade and other receivables	ZAR		23,568		12,504
Trade and other receivables	COP		2,055		2,675
Trade and other receivables	SEK		-		25
Subtotal trade and other receivables			654,073		365,206
Receivables from related parties	USD		83,088		61,379
Receivables from related parties	EUR		1,150		1,222
Receivables from related parties	AUD		1,914		-
Subtotal receivables from related parties			86,152		62,601

181

Notes to the Consolidated Financial Statements
December 31, 2021  

Class of assets	Currency		As of December 31, 2021		As of December 31, 2020
			ThUS$		ThUS$
Current inventories		USD		1,183,776		1,093,028
Subtotal Current Inventories				1,183,776		1,093,028
Current tax assets		USD		154,709		128,529
Current tax assets		BRL		1		-
Current tax assets		CLP		1,727		3,015
Current tax assets		EUR		171		218
Current tax assets		MXN		31		-
Current tax assets		PEN		3		4
Current tax assets		ZAR		13		26
Current tax assets		COP		887		417
Current tax assets		THB		-		15
Subtotal current tax assets				157,542		132,224
Non-current assets or groups of assets classified as held for sale		USD		582		1,629
Subtotal Non-current assets or groups of assets classified as held for sale				582		1,629
Total current assets				4,586,095		2,569,258
Other non-current financial assets		USD		9,180		51,828
Other non-current financial assets		CLP		20		20
Other non-current financial assets		JPY		68		77
Subtotal Other non-current financial assets				9,268		51,925
Other non-current non-financial assets		USD		30,906		21,236
Other non-current non-financial assets		BRL		16		17
Other non-current non-financial assets		KRW		12		-
Other non-current non-financial assets		EUR		6		7
Other non-current non-financial assets		CLP		670		782
Other non-current non-financial assets		AUD		1,877		-
Subtotal Other non-current non-financial assets				33,487		22,042
Other receivables, non-current		USD		5,239		10,061
Other receivables, non-current		CLF		86		152
Other receivables, non-current		MXN		26		102
Other receivables, non-current		CLP		821		850
Subtotal Other receivables, non-current				6,172		11,165
Investments classified using the equity method of accounting		USD		20,526		23,417
Investments classified using the equity method of accounting		TRY		-		792
Investments classified using the equity method of accounting		AED		7,879		47,774
Investments classified using the equity method of accounting		EUR		11,419		11,082
Investments classified using the equity method of accounting		INR		-		1,304
Investments classified using the equity method of accounting		THB		-		1,624
Subtotal Investments classified using the equity method of accounting				39,824		85,993
Intangible assets other than goodwill		USD		172,399		176,282
Intangible assets other than goodwill		MXN		-		1,025
Intangible assets other than goodwill		CLP		124		182
Intangible assets other than goodwill		EUR		6,963		696
Intangible assets other than goodwill		CNY		145		222
Intangible assets other than goodwill		KRW		27		-
Subtotal intangible assets other than goodwill				179,658		178,407
Purchases goodwill, gross		USD		34,438		34,438
Purchases goodwill, gross		EUR		158		7,528
Subtotal Purchases goodwill, gross				34,596		41,966
Property, plant and equipment		USD		1,990,120		1,719,358
Property, plant and equipment		CLP		3,180		3,237
Property, plant and equipment		EUR		9,972		10,954
Property, plant and equipment		AED		6,008		923
Property, plant and equipment		BRL		111		111
Property, plant and equipment		MXN		2,620		2,494
Property, plant and equipment		COP		105		120
Property, plant and equipment		KRW		109		122
Subtotal property, plant and equipment				2,012,225		1,737,319
Right-of-use assets		USD		31,360		25,238
Right-of-use assets		EUR		2,040		2,428
Right-of-use assets		AED		17,346		60
Right-of-use assets		MXN		1,862		2,298
Subtotal Right-of-use assets				52,608		30,024
Non-current tax assets		USD		90,364		90,364
Subtotal non-current tax assets				90,364		90,364
Total non-current assets				2,458,202		2,249,205
Total assets				7,044,297		4,818,463

182

Notes to the Consolidated Financial Statements
December 31, 2021

			As of December 31, 2021						As of December 31, 2020
			Up to 90 days		More than 90 days to 1 year		Total		Up to 90 days		More than 90 days to 1 year		Total
Class of liability	Currency		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Current liabilities
Other current financial liabilities		USD		28,519		4,234		32,753		43,218		4,676		47,894
Other current financial liabilities		CLF		18,259		293		18,552		20,732		329		21,061
Subtotal other current financial liabilities				46,778		4,527		51,305		63,950		5,005		68,955
Lease liabilities, current		USD		-		4,625		4,625		-		4,750		4,750
Lease liabilities, current		CLF		-		2,263		2,263		-		-		-
Lease liabilities, current		MXN		-		434		434		-		416		416
Lease liabilities, current		EUR		-		382		382		-		362		362
Subtotal Lease liabilities, current				-		7,704		7,704		-		5,528		5,528
Trade and other payables		USD		98,918		76		98,994		83,425		-		83,425
Trade and other payables		CLF		1,330		-		1,330		123		-		123
Trade and other payables		BRL		5		-		5		9		-		9
Trade and other payables		THB		2		-		2		30		-		30
Trade and other payables		CLP		115,504		-		115,504		73,857		-		73,857
Trade and other payables		CNY		3,198		-		3,198		1,323		-		1,323
Trade and other payables		EUR		41,242		984		42,226		40,280		-		40,280
Trade and other payables		GBP		18		-		18		18		-		18
Trade and other payables		INR		1		-		1		1		-		1
Trade and other payables		MXN		881		-		881		584		-		584
Trade and other payables		PEN		1		-		1		5		-		5
Trade and other payables		AUD		15,876		-		15,876		2,935		-		2,935
Trade and other payables		ZAR		1,288		-		1,288		1,168		-		1,168
Trade and other payables		JPY		99		-		99		-		-		-
Trade and other payables		COP		227		-		227		175		-		175
Subtotal trade and other payables				278,590		1,060		279,650		203,933		-		203,933
Trade payables due to related parties, current		USD		-		-		-		-		282		282
Trade payables due to related parties, current		AUD		-		-		-		324		-		324
Subtotal Trade payables due to related parties, current				-		-		-		324		282		606
Other current provisions		USD		54,134		263,332		317,466		103,252		698		103,950
Other current provisions		CLP		200		-		200		216		-		216
Subtotal other current provisions				54,334		263,332		317,666		103,468		698		104,166

183

Notes to the Consolidated Financial Statements
December 31, 2021

			As of December 31, 2021						As of December 31, 2020
			Up to90 days		91 days to 1 year		Total		Up to90 days		91 days to 1 year		Total
Class of liability	Currency		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Current tax liabilities		USD		-		159,535		159,535		-		20,981		20,981
Current tax liabilities		CLP		-		12		12		-		61		61
Current tax liabilities		EUR		-		5,547		5,547		-		642		642
Current tax liabilities		MXN		-		1,841		1,841		-		959		959
Subtotal current tax liabilities				-		166,935		166,935		-		22,643		22,643
Provisions for employee benefits, current		USD		14,341		11,776		26,117		2,981		6,011		8,992
Provisions for employee benefits, current		AUD		-		272		272		58		-		58
Provisions for employee benefits, current		CLP		-		-		-		3		-		3
Provisions for employee benefits, current		EUR		214		-		214		-		-		-
Provisions for employee benefits, current		MXN		172		-		172		43		-		43
Subtotal Provisions for employee benefits, current				14,727		12,048		26,775		3,085		6,011		9,096
Other current non-financial liabilities		USD		99,643		8,593		108,236		51,995		397		52,392
Other current non-financial liabilities		BRL		1		-		1		2		-		2
Other current non-financial liabilities		CLP		6,342		2,941		9,283		6,264		792		7,056
Other current non-financial liabilities		CNY		20,736		-		20,736		60		-		60
Other current non-financial liabilities		EUR		1,281		423		1,704		913		119		1,032
Other current non-financial liabilities		MXN		562		-		562		121		53		174
Other current non-financial liabilities		JPY		32		-		32		52		-		52
Other current non-financial liabilities		PEN		70		-		70		70		-		70
Other current non-financial liabilities		COP		-		157		157		-		-		-
Other current non-financial liabilities		ARS		47		-		47		-		117		117
Other current non-financial liabilities		ZAR		846		-		846		-		-		-
Subtotal other current non-financial liabilities				129,560		12,114		141,674		59,477		1,478		60,955
Total current liabilities				523,989		467,720		991,709		434,237		41,645		475,882

184

Notes to the Consolidated Financial Statements
December 31, 2021

			As of December 31, 2021
			Over 1 year to 2 years		Over 2 years to 3 years		Over 3 years to 4 years		Over 4 years to 5 years		Over 5 years		Total
Class of liability	Currency		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Non-current liabilities
Other non-current financial liabilities		USD		369,446		72,900		249,097		-		1,523,473		2,214,916
Other non-current financial liabilities		CLF		-		-		-		-		372,816		372,816
Subtotal Other non-current financial liabilities				369,446		72,900		249,097		-		1,896,289		2,587,732
Non-current lease liabilities		USD		-		6,695		-		23,174		-		29,869
Non-current lease liabilities		UF		-		-		-		13,313		-		13,313
Non-current lease liabilities		MXN		-		-		-		1,530		-		1,530
Non-current lease liabilities		JPY		-		-		-		1,807		-		1,807
Subtotal non-current lease liabilities				-		6,695		-		39,265		-		45,960
Non-current Trade and other payables		USD		-		3,813		-		-		-		3,813
Subtotal Non-current Trade and other payables				-		3,813		-		-		-		3,813
Other non-current provisions		USD		-		4,257		-		31,017		25,764		61,038
Subtotal Other non-current provisions				-		4,257		-		31,017		25,764		61,038
Deferred tax liabilities		USD		-		919		-		-		109,497		110,416
Subtotal Deferred tax liabilities				-		919		-		-		109,497		110,416
Provisions for employee benefits, non-current		USD		26,710		-		-		-		-		26,710
Provisions for employee benefits, non-current		CLP		389		-		-		-		-		389
Subtotal Provisions for employee benefits, non-current				27,099		-		-		-		-		27,099
Total non-current liabilities				396,545		88,584		249,097		70,841		2,031,550		2,836,617
Total liabilities														3,828,326

185

Notes to the Consolidated Financial Statements
December 31, 2021

			As of December 31, 2020
			Over 1 year to 2 years		Over 2 years to 3 years		Over 3 years to 4 years		Over 4 years to 5 years		Over 5 years		Total
Class of liability	Currency		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$		ThUS$
Non-current liabilities
Other non-current financial liabilities		USD		-		312,730		69,376		248,664		838,399		1,469,169
Other non-current financial liabilities		CLF		-		-		-		-		430,344		430,344
Subtotal Other non-current financial liabilities				-		312,730		69,376		248,664		1,268,743		1,899,513
Non-current lease liabilities		USD		1,977		-		-		-		4,158		6,135
Non-current lease liabilities		UF		15,258		-		-		-		-		15,258
Non-current lease liabilities		MXN		2,189		-		-		-		-		2,189
Non-current lease liabilities		JPY		1,964		-		-		-		-		1,964
Subtotal non-current lease liabilities				21,388		-		-		-		4,158		25,546
Non-current Trade and other payables		USD		-		4,027		-		-		-		4,027
Subtotal Non-current Trade and other payables				-		4,027		-		-		-		4,027
Other non-current provisions		USD		-		36,391		-		-		26,226		62,617
Subtotal Other non-current provisions				-		36,391		-		-		26,226		62,617
Deferred tax liabilities		USD		-		919		-		-		155,182		156,101
Subtotal Deferred tax liabilities				-		919		-		-		155,182		156,101
Provisions for employee benefits, non-current		USD		31,585		-		-		-		-		31,585
Provisions for employee benefits, non-current		CLP		610		-		-		-		-		610
Provisions for employee benefits, non-current		JPY		4		-		-		-		-		4
Subtotal Provisions for employee benefits, non-current				32,199		-		-		-		-		32,199
Total non-current liabilities				53,587		354,067		69,376		248,664		1,454,309		2,180,003
Total liabilities														2,655,885

Effects of changes in foreign currency exchange rates on the statement of net income and other comprehensive income.

	For the period from January to December of the year
	2021			2020
Foreign currency exchange rate changes	ThUS$			ThUS$
Profit (loss) in foreign currency		(17,241	)		(4,423	)
Foreign currency translation reserve		4,240			14,000
Total		(13,001	)		9,577

The average and closing exchange rate for foreign currency is disclosed in Note 3.3

186

Notes to the Consolidated Financial Statements
December 31, 2021

Note 27 Income tax and deferred taxes

Tax receivables as of December 31, 2021 and 2020, are as follows:

27.1 Current and non-current tax assets

(a) Current

	As of December 31, 2021		As of December 31, 2020
Current tax assets	ThUS$		ThUS$
Monthly provisional income tax payments, Chilean companies		435		37,123
Monthly provisional income tax payments, foreign companies		62		1,265
Corporate tax credits (1)		674		1,566
1st category tax absorbed by tax losses (2)		26,848		2,322
Taxes in recovery process		129,523		89,948
Total		157,542		132,224

(b) Non-current

	As of December 31, 2021		As of December 31, 2020
Non-current tax assets	ThUS$		ThUS$
Monthly provisional income tax payments, Chilean companies compensated by the specific tax on mining activity (Lithium)		6,398		6,398
Specific tax on mining activities (IEAM) paid by Lithium (on consignment)		83,966		83,966
Total		90,364		90,364

(1) These credits are available for companies and are related to corporate tax payments in April of the following year. These credits include, among others, credits for training expenses (SENCE), credits for acquisition of fixed assets, donations and credits in Chile for taxes paid abroad.

(2) This concept corresponds to the tax loss absorption determined by the company at the end of the year, which must be attributed to the dividends received during the year.

187

Notes to the Consolidated Financial Statements
December 31, 2021

27.2 Current tax liabilities

Current tax liabilities	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
1st Category income tax		139,842		14,736
Foreign company income tax		27,055		7,838
Article 21 single tax		38		69
Total		166,935		22,643

Income tax is calculated based on the profit or loss for tax purposes that is applied to the effective tax rate applicable in Chile. As established by Law No. 20,780 is 27%.

The royalty is determined by applying the taxable rate to the net operating income obtained, according to the chart in force. The Company currently provisioned 6.51% for mining royalties that involve operations in the Salar de Atacama and 5.22% for caliche extraction operations.

The income tax rate for the main countries where the Company operates is presented below:

	Income tax			Income tax
Country	2021			2020
Spain		25	%		25	%
Belgium		25	%		25	%
Mexico		30	%		30	%
United States		21% + 3.51	%		21% + 3.36	%
South Africa		28	%		28	%
China		25%+12	% (1)		25	%

(1) Additional 12% tax over the VAT calculation.

188

Notes to the Consolidated Financial Statements
December 31, 2021

27.3 Income tax and deferred taxes

(a) Deferred tax assets and liabilities as of December 31, 2021

	Net liability position
Description of deferred tax assets and liabilities as of December 31, 2021	Assets		Liabilities
	ThUS$		ThUS$
Unrealized loss		144,181		-
Property, plant and equipment and capitalized interest		-		(189,073	)
Restoration and rehabilitation provision		6,567		-
Manufacturing expenses		-		(108,181	)
Employee benefits and unemployment insurance		-		(7,485	)
Vacation accrual		6,039		-
Inventory provision		20,557		-
Materials provision		10,554		-
Others employee benefits		929		-
Research and development expenses		-		(5,387	)
Bad debt provision		2,708		-
Provision for legal complaints and expenses		334		-
Loan acquisition expenses		-		(8,967	)
Financial instruments recorded at market value		5,242		-
Specific tax on mining activity		-		(4,545	)
Tax loss benefit		7,113		-
Other		8,862		-
Foreign items (other)		136		-
Balances to date		213,222		(323,638	)
Net balance				(110,416	)

189

Notes to the Consolidated Financial Statements
December 31, 2021

(b) Deferred tax assets and liabilities as of December 31, 2020

	Net liability position
Description of deferred tax assets and liabilities as of December 31, 2020	Assets		Liabilities
	ThUS$		ThUS$
Unrealized loss		90,585		-
Property, plant and equipment and capitalized interest		-		(187,168	)
Restoration and rehabilitation provision		6,598		-
Manufacturing expenses		-		(107,215	)
Employee benefits and unemployment insurance		-		(6,669	)
Vacation accrual		6,138		-
Inventory provision		22,200		-
Materials provision		8,812		-
Research and development expenses		-		(3,580	)
Bad debt provision		5,072		-
Provision for legal complaints and expenses		19,637		-
Loan acquisition expenses		-		(5,212	)
Financial instruments recorded at market value		-		(3,929	)
Specific tax on mining activity		-		(3,014	)
Tax loss benefit		844		-
Other		1,454		-
Foreign items (other)		-		(654	)
Balances to date		161,340		(317,441	)
Net balance				(156,101	)

190

Notes to the Consolidated Financial Statements
December 31, 2021

(c) Reconciliation of changes in deferred tax liabilities (assets) as of December 31, 2021

Reconciliation of changes in deferred tax liabilities (assets)	Deferred tax liability (asset) at beginning of period			Deferred tax (expense) benefit recognized in profit (loss) for the year			Deferred taxes related to items credited (charged) directly to equity			Total increases (decreases) in deferred tax liabilities (assets)			Deferred tax liability (asset) at end of period
		ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Unrealized loss		(90,585	)		(53,596	)		-			(53,596	)		(144,181	)
Property, plant and equipment and capitalized interest		187,168			1,905			-			1,905			189,073
Restoration and rehabilitation provision		(6,597	)		30			-			30			(6,567	)
Manufacturing expenses		107,215			966			-			966			108,181
Employee benefits and unemployment insurance		6,669			687			130			817			7,486
Vacation accrual		(6,138	)		99			-			99			(6,039	)
Inventory provision		(22,200	)		1,643			-			1,643			(20,557	)
Materials provision		(8,812	)		(1,742	)		-			(1,742	)		(10,554	)
Derivative financial instruments		-			14,246			(14,246	)		-			-
Others employee benefits		-			(929	)		-			(929	)		(929	)
Research and development expenses		3,581			1,806			-			1,806			5,387
Bad debt provision		(5,072	)		2,364			-			2,364			(2,708	)
Provision for legal complaints and expenses		(19,637	)		19,303			-			19,303			(334	)
Loan approval expenses		5,212			3,755			-			3,755			8,967
Financial instruments recorded at market value		3,929			(5,354	)		(3,818	)		(9,172	)		(5,243	)
Specific tax on mining activity		3,012			1,521			12			1,533			4,545
Tax loss benefit		(844	)		(6,269	)		-			(6,269	)		(7,113	)
Others		(1,454	)		(7,408	)		-			(7,408	)		(8,862	)
Foreign items (other)		654			(790	)		-			(790	)		(136	)
Total temporary differences, unused losses and unused tax credits		156,101			(27,763	)		(17,922	)		(45,685	)		110,416

191

Notes to the Consolidated Financial Statements
December 31, 2021

(d) Reconciliation of changes in deferred tax liabilities (assets) as of December 31, 2020

Reconciliation of changes in deferred tax liabilities (assets)	Deferred tax liability (asset) at beginning of period			Deferred tax (expense) benefit recognized in profit (loss) for the year			Deferred taxes related to items credited (charged) directly to equity			Total increases (decreases) in deferred tax liabilities (assets)			Deferred tax liability (asset) at end of period
	ThUS$			ThUS$			ThUS$			ThUS$			ThUS$
Unrealized loss		(82,076	)		(8,509	)		-			(8,509	)		(90,585	)
Property, plant and equipment and capitalized interest		197,167			(9,999	)		-			(9,999	)		187,168
Facility closure provision		(7,312	)		714			-			714			(6,598	)
Manufacturing expenses		106,420			795			-			795			107,215
Employee benefits and unemployment insurance		6,000			514			155			669			6,669
Vacation accrual		(5,591	)		(547	)		-			(547	)		(6,138	)
Inventory provision		(23,885	)		1,685			-			1,685			(22,200	)
Materials provision		(7,982	)		(830	)		-			(830	)		(8,812	)
Derivative financial instruments		-			1,001			(1,001	)		-			-
Others employee benefits		(2,689	)		2,689			-			2,689			-
Research and development expenses		3,534			46			-			46			3,580
bad debt provision		(3,542	)		(1,530	)		-			(1,530	)		(5,072	)
Provision for legal complaints and expenses		(2,546	)		(17,091	)		-			(17,091	)		(19,637	)
Loan approval expenses		3,856			1,356			-			1,356			5,212
Financial instruments recorded at market value		1,287			-			2,642			2,642			3,929
specific tax on mining activity		1,356			1,668			(10	)		1,658			3,014
Tax loss benefit		(2,296	)		1,452			-			1,452			(844	)
Others		2,021			(3,475	)		-			(3,475	)		(1,454	)
Foreign items (other)		(311	)		965			-			965			654
Total temporary differences, unused losses and unused tax credits		183,411			(29,096	)		1,786			(27,310	)		156,101

(e) Deferred taxes related to benefits for tax losses

The Company’s tax loss carryforwards were mainly generated by losses in Chile, which in accordance with current Chilean tax regulations have no expiration date.

As of December 31, 2021, and 2020, tax loss carryforwards are detailed as follows:

Deferred taxes related to benefits for tax losses	As of December 31, 2021		As of December 31, 2020
	ThUS$		ThUS$
Chile		7,113		818
Foreign		-		26
Total		7,113		844

The tax losses as of December 31, 2021, which are the basis for these deferred taxes correspond mainly to SQM S.A., SQM Potasio S.A., Comercial Hydro S.A., Orcoma SpA., Orcoma Estudio SpA y SCM Bufalo.

192

Notes to the Consolidated Financial Statements
December 31, 2021

(f)        Movements in deferred tax assets and liabilities

Movements in deferred tax assets and liabilities as of December 31, 2021 and 2020 are detailed as follows:

	Assets (liabilities)
Movements in deferred tax assets and liabilities	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Deferred tax assets and liabilities, net opening balance		(156,101	)		(183,411	)
Increase (decrease) in deferred taxes in profit or loss		27,763			29,096
Increase (decrease) deferred taxes in equity		17,922			(1,786	)
Total		(110,416	)		(156,101	)

(g)       Disclosures on income tax (expenses) benefit

Current and deferred tax (expenses) benefit are detailed as follows:

	(Expense) Income
Disclosures on income tax (expense) benefit	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Current income tax (expense) benefit
Current tax (expense)		(279,105	)		(97,374	)
Adjustments to prior year current income tax (expense) benefit		2,326			(1,901	)
Current income tax expense, net, total		(276,779	)		(99,275	)
Deferred tax (expense) benefit
Deferred tax benefits relating to the creation and reversal of temporary differences		28,445			26,219
Tax adjustments related to the creation and reversal of temporary differences from the previous year		(682	)		2,877
Total deferred tax benefits, net		27,763			29,096
Income tax expense		(249,016	)		(70,179	)

Tax (expenses) benefits for foreign and domestic parties are detailed as follows:

	(Expense) Income
Income tax (expense) benefit	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Current income tax benefit (expense) by foreign and domestic parties, net
Current income tax (expenses), foreign parties, net		(46,748	)		(9,782	)
Current income tax (expenses), domestic, net		(230,031	)		(89,493	)
Current income tax expense, net, total		(276,779	)		(99,275	)
Deferred tax benefit (expense) by foreign and domestic parties, net
Current income tax benefit (expense) benefit, foreign parties, net		(6,679	)		10,284
Current income tax benefits, domestic, net		34,442			18,812
Deferred tax expense, net, total		27,763			29,096
Income tax expense		(249,016	)		(70,179	)

193

Notes to the Consolidated Financial Statements
December 31, 2021

(h)       Disclosures on the tax effects of other comprehensive income components:

	As of December 31, 2021
Income tax related to other income and expense components with a charge or credit to net equity	Amount before taxes (expense) gain			(Expense) income for income taxes			Amount after taxes
	ThUS$			ThUS$			ThUS$
Gain (losses) from defined benefit plans		4,679			(142	)		4,537
Cash flow hedge		(52,762	)		14,246			(38,516	)
Reserve for gains (losses) gains from financial assets measured at fair value through other comprehensive income		(12,072	)		3,818			(8,254	)
Total		(60,155	)		17,922			(42,233	)

	As of December 31, 2020
Income tax related to other income and expense components with a charge or credit to net equity	Amount before taxes (expense) gain			(Expense) income for income taxes			Amount after taxes
	ThUS$			ThUS$			ThUS$
Gains (losses) from defined benefit plans		974			(145	)		829
Cash flow hedges		(3,706	)		1,001			(2,705	)
Reserve for gains (losses) from financial assets measured at fair value through other comprehensive income		9,784			(2,642	)		7,142
Total		7,052			(1,786	)		5,266

(i)        Explanation of the relationship between (expense) benefit for tax purposes and accounting income.

Based on IAS 12, paragraph 81, letter “c”, the company has estimated that the method that discloses the most significant information for users of the financial statements is the numeric conciliation between the tax benefit (expense) and the result of multiplying the accounting profit by the current rate in Chile. The aforementioned choice is based on the fact that the Company and subsidiaries established in Chile generate a large part of the Company’s tax benefit (expense). The amounts provided by subsidiaries established outside Chile have no relative importance in the overall context.

194

Notes to the Consolidated Financial Statements
December 31, 2021

Reconciliation between the tax benefit (expense) and the tax calculated by multiplying income before taxes by the Chilean corporate income tax rate.

	(Expense) Benefit
Income Tax Expense (Benefit)	As of December 31, 2021			As of December 31, 2020
	ThUS$			ThUS$
Consolidated income before taxes		841,221			238,538
Statutory Income tax rate in Chile		27	%		27	%
Tax expense using the statutory tax rate		(227,130	)		(64,405	)
Net effect of royalty tax payments		(13,350	)		(4,659	)
Effect of other additional taxes affected by article 21 and passive income		(2,617	)		(1,804	)
Tax effect of revenue from regular activities exempt from taxation		(260	)		1,786
Tax rate effect of non-tax-deductible expenses for determining taxable profit (loss)		(2,226	)		(2,987	)
Tax effect of tax rates supported abroad		(3,016	)		(2,077	)
Effects of changes resulting from classifying a permanent item as a temporary one		-			4,826
Other tax effects		(417	)		(859	)
Tax expense using the effective tax rate		(249,016	)		(70,179	)

195

Notes to the Consolidated Financial Statements
December 31, 2021

(j) Tax periods potentially subject to verification:

The SQM Group’s Companies are potentially subject to income tax audits by tax authorities in each country These audits are limited to a number of interim tax periods, which, in general, when they elapse, give rise to the expiration of these inspections.

Tax audits, due to their nature, are often complex and may require several years. Below, we provide a summary of tax periods that are potentially subject to verification, in accordance with the tax regulations in force in the country of origin:

(i) Chile

According to article 200 of Decree Law No 830, the taxes will be reviewed for any deficiencies in terms of payment and to generate any taxes that might arise. There is a 3-year prescriptive period for such review, dating from the expiration of the legal deadline when payment should have been made. This prescriptive period can be extended to 6 years for the revision of taxes subject to declaration, when such declaration has not been filed or has been presented with maliciously false information.

(ii) United States

In the United States, the tax authority may review tax returns for up to 3 years from the expiration date of the tax return. In the event that an omission or error is detected in the tax return of sales or cost of sales, the review can be extended for a period of up to 6 years.

(iii) Mexico:

In Mexico, the tax authority can review tax returns up to 5 years from the expiration date of the tax return.

(iv) Spain:

In Spain, the tax authority can review tax returns up to 4 years from the expiration date of the tax return.

A subsidiary of the Company, SQM Iberian S.A., is being reviewed by the Spanish Tax Authority. This audit could involve adjustments to tax returns filed in Spain.

(v) Belgium:

In Belgium, the tax authority may review tax returns for up to 3 years from the expiration date of the tax return if no tax losses exist. In the event of detecting an omission or error in the tax return, the review can be extended for a period of up to 5 years.

(vi) South Africa:

In South Africa, the tax authority may review tax returns for up to 3 years from the expiration date of the tax return. In the event that an omission or error in the tax return is detected, the review can be extended for a period of up to 5 years.

A subsidiary of the Company, SQM Africa Pty., is being reviewed by the South African Tax Authority. This audit could involve adjustments to tax returns filed in South Africa.

196

Notes to the Consolidated Financial Statements
December 31, 2021

Note 28     Events occurred after the reporting date

28.1 Authorization of the financial statements

The consolidated financial statements of the Company and its subsidiaries, prepared in accordance with IFRS for the year ended December 31, 2021, were approved and authorized for issuance by the Company´s Board of Directors on March 2, 2022.

28.2 Disclosures on events occurring after the reporting date

The total financial impact of COVID-19 cannot be reasonably estimated at this time, due to uncertainty as to its severity and duration. It was anticipated that average sales volumes and prices will depend on the duration of the coronavirus in different markets, the efficiency of the measures implemented to contain the spread of the virus in each country, and the fiscal and national incentives that can be implemented in different jurisdictions to promote economic recovery. The Company continues to monitor and evaluate the spread of the coronavirus and its impact on our operations, business, financial condition and results of operations.

On February 25, 2022 SQM NA submitted to the Central District Court of California an appeal bond for US$ 60.1 million to guarantee the final settlement, in connection with the case reported in Note 21.1 (c).

Management is not aware of any other significant events that occurred between December 31, 2021, and the date of issuance of these consolidated financial statements that may significantly affect them.

197

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CHEMICAL AND MINING COMPANY OF CHILE INC.

(Registrant)

Date: March 4, 2022	/s/ Gerardo Illanes
	By: Gerardo Illanes
	CFO

Persons who are to respond to the collection of information contained SEC 1815 (04-09) in this form are not required to respond unless the form displays currently valid OMB control number.

198