Sociedad Quimica y Minera S.A.
Annual Report 2023

Plain-text annual report

SQM Sociedad Química y Minera de Chile S.A. ANNUAL REPORT 2023 TABLE OF CONTENT 1. MESSAGE OF THE CEO OF THE COMPANY 2. COMPANY PROFILE 2.1 MISSION, VISION, PURPOSES AND VALUES 2.2 HISTORICAL INFORMATION 2.3 OWNERSHIP AND SHARES 3. OUR CORPORATE GOVERNANCE 3.1 CORPORATE GOVERNANCE FRAMEWORK 3.2 BOARD OF DIRECTORS 3.3 BOARD COMMITTEES 3.4 MAIN EXECUTIVES 3.5 ADHERENCE TO NATIONAL AND INTERNATIONAL CODES 3.6 RISK MANAGEMENT 3.7 RELATIONSHIP WITH STAKEHOLDERS AND THE GENERAL PUBLIC 4. STRATEGY 4.1 TIME HORIZONS 4.2 STRATEGIC OBJECTIVES 4.3 CAPITAL EXPENDITURE PLANS 5. OUR PEOPLE 5.1 LABOR ENDOWMENT 5.2 TYPES OF EMPLOYMENT CONTRACTS 5.3 WORKING HOURS 5.4 WAGE EQUITY 5.5 WORKPLACE AND SEXUAL HARASSMENT 5.6 OCCUPATIONAL SAFETY 5.7 POSTNATAL LEAVE 5.8 TRAINING AND BENEFITS 5.9 SUBCONTRACTING POLICY 6. OUR BUSINESS 6.1 INDUSTRIAL SECTOR 6.2 BUSINESS SEGMENTS 6.3 STAKEHOLDERS 4 6 6 8 11 19 19 24 34 37 38 39 47 50 52 52 58 60 61 65 67 68 69 69 71 73 75 79 79 87 101 6.4 PROPERTIES, RESERVES AND FACILITIES 6.5 SUBSIDIARIES AND ASSOCIATES 7. SUPPLIERS MANAGEMENT 7.1 PAYMENT TO SUPPLIERS 7.2 SUPPLIER EVALUATION 8. INDICATORS 8.1 LEGAL AND REGULATORY COMPLIANCE 8.2 SUSTAINABILITY INDICATORS BY INDUSTRY TYPE 9. RELEVANT OR ESSENTIAL FACTS 10. SHAREHOLDER AND DIRECTORS' COMMITTEE COMMENTS 11. FINANCIAL REPORTING ANNEXES 105 139 140 140 141 145 145 149 189 191 191 192 192 ANNEX 1. RISK FACTORS 215 ANNEX 2. STAKEHOLDER IMPACTS AND MATERIALITY ANNEX 3. SUBSIDIARIES, ASSOCIATES AND INVESTMENTS IN OTHER COMPANIES 221 1. MESSAGE OF THE CEO OF THE COMPANY Dear shareholders, customers, communities, collaborators and stakeholders in general, I would like to present SQM’s 2023 Annual Report, year on which we have achieved several of our Company goals, such as, for example, record sales volumes for our lithium business and record in iodine production, which meant that in terms of income, 2023 is the second best year in SQM's history. In the iodine segment, we successfully started operations in Pampa Blanca, which brought with it greater production to be available on the market. We also began the construction of the seawater pipeline, a project that will bring higher returns and is in line with our sustainability objectives in terms of our aspirations to reduce continental water consumption in our operations. In the fertilizer business, significantly lower prices were observed than in 2022, however, in the Potassium segment this was compensated by higher sales volumes and in Specialty Plant Nutrition we observed a recovery in demand towards the end of the year, which which makes us start 2024 with a more optimistic vision for the rest of the year. In lithium, we continue working on capacity expansion projects in both lithium carbonate and lithium hydroxide at our Lithium Chemical Plant in Chile. Also, we began producing lithium hydroxide from lithium sulfate - an absolute innovation by our team of professionals - at our refining plant in China and, towards the end of the year, our mining and concentrator facilities at our Mt. Holland project. , in Australia, began operations. The year 2023 was also a year to increase our presence in Australia, where at the beginning of the year we acquired a portion of Azure Minerals and at the end of the year, we announced together with Hancock Prospecting our intention to jointly acquire the rest of the company. This will allow us to diversify and expand our lithium production to supply the market in this growing industry, contributing with our participation towards the transition that the world is experiencing towards electromobility and helping to decarbonize the planet. Our commitment to sustainability is in our priorities and this is how in September 2023, our lithium mining operations in the Salar de Atacama reached IRMA 75, the first and only lithium producer in the world to achieve this score. The ranking reflects our commitment to producing the most sustainable lithium in the world in the Salar de Atacama. And not only that, in 2023 we completed several certifications within the ISO Standards (International Organization for Standardization) and were accepted in the Dow Jones Sustainability Index World and Emerging Markets indices, two years ahead of our internal goal. In relation to our contribution to the development of the towns in the regions where we operate, I would like to highlight the joint work of our teams deployed in the north of our country who, together with the communities, have managed to carry out interesting projects that are a contribution to development. social and community development of the region, among them I highlight the Atacama Tierra Fértil program, giving a boost to local agriculture and demonstrating that, using certain horticulture and water use techniques, agriculture can be developed in desert lands. Another successful program has been the continuation of the Alianza Mujer Atacameña (AMA) program, to strengthen the role of Lickanantay women and promote the labor development of entrepreneurial women in the towns surrounding our Salar de Atacama site. For its part, in Tarapacá two Shared Social Value projects promoted by SQM were recognized by Conecta 2023, of the United Nations Global Compact. The Alfalfa Productive Center in the People category, and the Pozo Almonte de la Tirana Agricultural Research and Development Center, recognized in SDG Interconnection and Alliances. All of this, among other milestones related to the sustainability of our operations, can be reviewed in greater detail in our soon-to-be-published 2023 Sustainability Report and Social Report. MESSAGE OF THE CEO OF THE COMPANY 4 Another important activity that kept us busy throughout the year were the negotiations we had with the National Copper Corporation (Codelco), under the announced National Lithium Strategy, to be able to extend our operation beyond the expiration date of the lease contract. from the Salar de Atacama to Corfo on December 31, 2030. Thus, at the end of the year we announced the signing of a non-binding Memorandum of Understanding (MoU) with Codelco for the joint operation and development of the Salar de Atacama during the period 2025 to 2060. Finally, I would like to thank our employees and stakeholders for their support, since each of them, in their own capacity, contributes towards SQM's efforts to improve people's quality of life by providing solutions for human progress. With my warmest rewards, Ricardo Ramos Rodríguez Chief Executive Officer SQM IN NUMBERS SQM is a global chemical company that is listed on the New York Stock Exchange and the Santiago Stock Exchange (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A). SQM develops and produces diverse products for several industries essential for human progress, such as health, nutrition, renewable energy and technology through innovation and technological development. We aim to maintain our leading world position in the lithium, potassium nitrate, iodine and thermo-solar salts markets. Through the specialized international commercial network, SQM reaches more than 110 countries with its products with 98% of its total sales during 2023 coming from export. TOTAL REVENUE US$7,467.5 million NET INCOME US$2,012.7 million 7,682 employees IN CHILE AND GLOBALLY 20% of employees ARE WOMEN MESSAGE OF THE CEO OF THE COMPANY 5 2. COMPANY PROFILE 2.1 MISSION, VISION, PURPOSES AND VALUES The following corporate principles guide SQM's actions and are continuously indorsed in the interactions with all of our stakeholders. Mission We are a global company with a team of people committed to excellence. Our activities focus on the extraction of minerals that can be selectively integrated into the processing and sale of products for industries essential for human development. Vision We are a global company that is recognized for its competitiveness, excellence and innovation in its lines of business. We focus on the development of products essential for human development in accordance with the highest standards of integrity. Purpose We aspire to make a distinctive contribution to the world's sustainable development, delivering solutions for industries essential to human progress, in harmony with our environment and our people. Values Excellence ▪ We are an organization that challenges itself permanently to achieve better results every time, with the purpose of creating shared value for shareholders, collaborators, clients, suppliers and communities. ▪ In our daily work and challenges we face, we strive to be creative, agile and innovative. ▪ We operate within a framework of sustainability and respect for the environment. ▪ We aim at creating an organization culture of excellence based on the ten principles of the Lean methodology (M1). ▪ We encourage and value internal meritocracy as the main way of professional growth, favoring equal opportunities, inclusion and diversity. We seek to generate professional growth opportunities for people to reach their maximum potential. Security ▪ Caring for people is an organizational priority commitment that mobilizes us daily, working towards safe and accident-free operations. ▪ We are responsible for creating the conditions for the safe development of each job; as well as promoting behaviors focusing on the physical and psychological safety of all people who work at SQM. ▪ Each person in the organization is responsible for taking care of themselves and looking out for the other members of the team, as well as maintaining a mandatory safe behavior commitment. We promote open and permanent feedback to make safety improvement opportunities visible. 2 COMPANY PROFILE 6 Integrity ▪ We seek to carry out our daily work with high standards of integrity described in the internal Code of Ethics. At the same time, we are open and interested in identifying and implementing better ways of working that ensure and facilitate compliance with these standards. ▪ We encourage respect for and compliance with each of the commitments assumed with shareholders, clients, collaborators, regulators, communities, suppliers and authorities. Sustainability ▪ A voluntary commitment that envisions a future where SQM becomes a relevant actor in a cultural change, contributing to the sustainability of the planet that we all want and dream of, and doing it not only through the contribution that its products make to health, food, green energies and technology, but also through the sustainability of its supply chain. ▪ Sustainability leads us to rethink our processes, activities and operation to materialize concrete actions. SQM, as a company with a global reach, understands the responsibility that its work entails and aims at the continuity of its business in the long term. For this reason, since its inception the Company has been committed to sustainable development in harmony with its environment, business ethics and respect for and promotion of human rights, in accordance with current national and international standards. With the aim of consolidating these commitments from the highest corporate level - and throughout the entire operational chain - in 2021, the company published its Sustainability, Ethics and Human Rights Policy, based on the United Nations Sustainable Development Goals (SDGs). . ; the Principles of the International Council on Mining and Metals; the International Standard ISO 14001 (Environmental Management Systems); the applicable standards of the International Finance Corporation (IFC) and the “Protection, Respect and Remediation” framework of the United Nations Guiding Principles on Business and Human Rights, inspired - in turn - by the Universal Declaration of Human Rights , Convention 169 on Indigenous and Tribal Peoples of the International Labor Organization, to mention some guidelines on the matter. SQM's Sustainability, Ethics and Human Rights policy is available at: https://s25.q4cdn.com/757756353/files/governance_doc/2021/Sustainability-Ethics-and-Human- Rights-Policy.pdf and considers all areas of the company and the business, such as: Ethics and Corporate Governance; Workers; Value chain; Environment and Sustainable Development; and Communities. 2 COMPANY PROFILE 7 2.2 HISTORICAL INFORMATION Below are the milestones in the company's history: 1968: SQM was formed through a joint venture between Compañía Salitrera Anglo Lautaro S.A. (“Anglo Lautaro”) and the Production Development Corporation (Corporación de Fomento de la Producción or “Corfo”), a Chilean government entity. 1971: Anglo Lautaro sold all its shares to Corfo and SQM was wholly owned by the Chile Government. 1983: Corfo began a process of privatization by selling our shares to the public and subsequently listing such shares on the Santiago Stock Exchange. 1985: SQM began to use heap leaching processes to extract nitrates and iodine. 1986: The potassium nitrate production commenced at the Coya Sur facility. 1988: The company's privatization process concluded with all the shares publicly owned. 1993: SQM´s ADSs started to trade on the NYSE under the ticker symbol “SQM”. Each ADS represents one Series B common share. 1994: Investments into the development of the Salar de Atacama project in northern Chile began, which enabled us to produce potassium chloride, lithium carbonate, potassium sulfate and boric acid. 1996: Production of lithium carbonate began at the Carmen Lithium Chemical Plant, near the city of Antofagasta. 2005: Lithium hydroxide production began at the Carmen Lithium Chemical Plant. 2011: The expansions of lithium carbonate capacity were completed, achieving 48,000 metric tons of capacity per year. During this year, the construction of a new potassium nitrate facility in Coya Sur was completed, increasing the overall production capacity of potassium nitrate by 300,000 metric tons per year. 2013: The expansions in the production capacity of iodine plants in Nueva Victoria were completed. 2015: Focusing on increasing the efficiency of our operations, the Company announced a plan to restructure the iodine and nitrate operations. 2017: The iodine production capacity at Nueva Victoria was increased to approximately 10,000 metric tons per year. Including Pedro de Valdivia and Nueva Victoria, the total effective iodine capacity reached approximately 14,000 metric tons per year. This year, SQM entered a 50/50 joint venture with Wesfarmers Limited to develop a Mt. Holland lithium hydroxide project in Western Australia. The project includes design, construction and operation of a mine, concentrator and refinery for the production of lithium hydroxide with total capacity of 50,000 metric tons. 2 COMPANY PROFILE 8 2020: SQM announced the Sustainable Development Plan, which included voluntarily expanding monitoring systems, promoting better and more meaningful conversations with neighboring communities, becoming carbon neutral and reducing water by 65% and brine extraction by 50%. As part of this plan, the company also set a goal to obtain international certifications and participate in international sustainability indices, and for the first time entering the Dow Jones Sustainability Chile and the Dow Jones Sustainability MILA Pacific Alliance Indices. 2021: The Board approved the investment of approximately US$700 million for the 50% share of the development costs of the Mt. Holland lithium hydroxide project in Western Australia. The Company completed the US$1.1 billion capital increase. 2022: We completed the lithium carbonate and lithium hydroxide expansions in Chile, reaching an effective capacity of 180,000 and 30,000 metric tons, respectively. The purchase and development of a new plant in China is announced, which will allow the production of lithium hydroxide, from lithium sulfate from Chile. We completed phase 2 of the ISO 14001 and 45001 certification process in the Salar de Atacama and our Lithium Chemical Plant, and we continued with the ISO 50001 implementation process in the Salar de Atacama, Nueva Victoria and Coya Sur operations. We are assessed on the Carbon Disclosure Project (CDP) where we received a Category B climate change rating, which is above the global average (Category C) and in line with the global chemical industry average (Category B-). 2023: During the year we completed the ISO 14001 and 45001 recertification of our management systems at the Salar de Atacama and our Lithium Chemical Plant, along with the implementation of the ISO 50001 standard, as recommended by the certification body to certify our management system. energy management. We also obtained ISO 50001 certification for our Nueva Victoria, Coya Sur sites. In line with our sustainability objectives, during 2023 we continue with the evaluation process against the IRMA standard and complete the on-site evaluation audit (phase 2) in the Salar de Atacama operation. In September 2023, our lithium mining operations in the Salar de Atacama achieved IRMA 75, the highest score to date. The ranking is an additional reinforcement of our commitment to the transparency of our operations and reflects our commitment to producing the most sustainable lithium in the world in the Salar de Atacama. As a result of our participation in the DJSI evaluation during 2023, we were accepted into the DJSI World and Emerging Markets indices, two years ahead of our internal goal, maintained our inclusion in the DJSI Mila and Chile indices, and were included in the Sustainability Yearbook 2024. We also completed the CDP assessment for water in which we achieved a category B- rating, above the global average and the chemical industry average (category C). We continue to work on capacity expansion projects in our main business lines, for example, expanding our mining and nitrate and iodine production facilities and at the Pampa Blanca site, delivering additional production volumes. For its part, in the lithium segment, our Lithium Chemical Plant reached 200,000 metric tons of lithium carbonate by the end of the year. We expect our lithium carbonate capacity to reach 210,000 metric tons during 2024, as we work to expand our total lithium hydroxide capacity in Chile to reach 100,000 metric tons in 2025. Our mining and concentrator facilities in Mt. Holland have begun operations during the fourth quarter of 2023. We expect our refining capacity in Kwinana, Perth, to be completed during 2025. We also completed the refurbishment process of the lithium hydroxide plant in China and commenced production of lithium hydroxide from sulphate of lithium produced in the Salar de Atacama. 2 COMPANY PROFILE 9 In March 2023, we completed a transaction to acquire 19.99% of Azure Minerals Limited (Azure) for a total consideration of approximately US$13.5 million. Azure's principal asset consists of ownership of 60% of the mining rights comprising the Andover lithium project, which is located in the West Pilbara region of Western Australia, and comprises hundreds of outcrops of lithium-rich pegmatites containing spodumene . Azure announced an exploration target for the Andover lithium project of 100 to 240 million metric tons grading 1.0 to 1.5% lithium oxide, equivalent to 2.5 to 8.9 million metric tons of equivalent lithium carbonate. As a result of the capital raising transaction completed by Azure in October 2023, where we acquired additional shares for a total amount of approximately US$17.2 million and the exercise of stock options, our current ownership in Azure is approximately 19 ,4%. On December 18, 2023, together with Hancock Prospecting Pty ("Hancock"), owner of approximately 18.4% of the shares of Azure, we entered into a transaction implementation deed to acquire all of the outstanding shares of Azure through a joint scheme of arrangement for a cash price of A$3.70 per share, and a simultaneous conditional joint off-market takeover bid for a cash price of A$3.65 per share. On December 27, 2023, we announced the signing of a non-binding Memorandum of Understanding (MoU) with Codelco for the joint operation and development of the Salar de Atacama during the period 2025 to 2060. The MoU can be found on our website, at investor site, news section, year 2023, at the following link: https://s25.q4cdn.com/757756353/files/doc_news/2023/12/Codelco_MOU_27Dec2023_eng.pdf 2 COMPANY PROFILE 10 2.3 OWNERSHIP AND SHARES 2.3.1 Ownership control situation As of December 31, 2023, SQM does not have a “controlling group” as such term is defined in Title XV of Chilean Law No. 18,045. 2.3.2 Significant changes in share ownership During 2023, there have been no significant changes in the ownership or control of the Company. 2.3.3 Identification of major shareholders The following chart represents the ownership and major shareholder groups as of December 31, 2023. STOCK BROKERS, 4,31% BANKS FOR FOREIGN ACCOUNTS, 11,76% OTHERS, 4,11% PAMPA GROUP, 25,76% PENSION FUNDS, 13,80% THE BANK OF NEW YORK MELLON (ADRS), 15,90% KOWA, 2,20% INVERSIONES TLC SPA (TIANQI LITHIUM), 22,16% 2 COMPANY PROFILE 11 As of December 31, 2023, the following shareholders own more than 1% of the Company's shares, and/or can appoint at least one member to the Company's Board of Directors. INVERSIONES LA ESPERANZA CHILE LIMITADA 79.798.650-K 4.246.226 Company name SOCIEDAD DE INVERSIONES PAMPA CALICHERA S.A. POTASIOS DE CHILE S.A. INVERSIONES GLOBAL MINING CHILE LTDA Subtotal GRUPO PAMPA INVERSIONES TLC SPA1 THE BANK OF NEW YORK MELLON ADRS2 KOCHI S.A. KOWA CO. LTD KOWA HOLDINGS AMERICA INC. Subtotal GRUPO KOWA BANCO DE CHILE POR CUENTA DE STATE STREET AFP HABITAT BANCO SANTANDER POR CUENTA DE INV EXTRANJEROS AFP PROVIDA AFP CUPRUM AFP CAPITAL BANCO DE CHILE POR CUENTA DE CITI NA NEW YORK CLIENT BANCO DE CHILE POR CUENTA DE TERCEROS NO RESIDENTES Subtotal Accionistas Mayoritarios Total Acciones Chilean Tax ID 96.511.530-7 N° of Series A shares 44.989.231 N° of Series B shares 1.611.227 N° of Series A + Series B shares 46.600.458 - - 1.611.227 18.179.147 8.798.539 73.578.144 - 62.556.568 - 46.174.681 76.165.311-3 18.179.147 96.863.960-9 8.798.539 71.966.917 62.556.568 76.902.021-7 59.030.820-K 96.518.570-4 59.046.730-8 59.023.690-K 97.004.000-5 98.000.100-8 97.036.000-K 76.265.736-8 76.240.079-0 98.000.000-1 97.004.000-5 97.004.000-5 1.014.860 781.429 227.550 6.270.065 603.789 - - - - 67.463 57.382 - - - - - 11.744.230 9.991.619 8.499.930 8.299.626 7.979.983 7.525.912 6.339.986 5.371.658 46.174.681 4.246.226 1.014.860 781.429 227.550 6.270.065 11.744.230 10.595.408 9.504.885 8.299.626 7.979.983 7.525.912 6.407.449 5.429.040 % Ownership 16,31% 6,36% 3,08% 25,76% 21,90%1 16,17% 1,49% 0,36% 0,27% 0,08% 2,20% 4,11% 3,71% 2,98% 2,91% 2,79% 2,63% 2,24% 1,90% 141.522.184 113.538.852 255.061.036 89,30% 142.819.552 142.818.904 285.638.456 100,00% 1 The number of shares does not include 748,490 ADRs (equivalent to 0.26% of SQM's total) of Tianqi Lithium Corporation. Tianqi's total stake in SQM is 22.16% 2 The Bank of New York Mellon is the depositary bank for the Company's ADSs that trade on the New York Stock Exchange. Includes 748,490 Tianqi ADRs. 2 COMPANY PROFILE 12 2.3.4 Shares and their characteristics and rights Description of series of shares The Company's capital is US$1,577,385,979 and divided in 142,819,552 Series A shares and 142,819,552 Series B shares. All these shares are registered, have no par value, and are issued, subscribed and paid. Article 5 of the Company's By-laws establishes that Series B shares have a restricted right to vote as they can only elect one Director of the Company, regardless of their capital stock’s share, and have the right to : (a) 5% of the Series B shares request so; and call for an Ordinary or Extraordinary Shareholders’ Meeting when the shareholders of at least (b) when it is requested by the Director elected by the shareholders of the Series B shares. call for an Extraordinary Board of Directors Meeting without the Chairman’s authorization The limitation and preferences of the Series B shares have a duration of 50 consecutive and continuous years starting as of June 3, 1993. Series A shares have the option to exclude the Director elected by Series B shareholders from the voting process in which the Chairman of the Board is to be elected, if there is a tie in the first voting process. The limitation and preferences of the Series A shares have a duration of 50 consecutive and continuous years starting as of June 3, 1993. The second transitory article and articles 31 and 31 bis of the Company’s By-laws establish that in General Shareholders’ Meetings each shareholder will have a right to one vote for each share he owns or represents and (a) that no shareholder will have the right to vote for himself or on behalf of other shareholders of the same Series A or Series B shares representing more than 37.5% of the total outstanding shares with right to vote of each Series and (b) that no shareholder will have the right to vote for himself or on behalf of other shareholders representing more than 32% of the total outstanding shares with a right to vote. In calculating a single shareholder’s ownership of Series A or B shares, the shareholder’s stock and those pertaining to third parties related to them are to be added. The second transitory article provides as follows: “Throughout the period running from the date of the extraordinary shareholders’ meeting at which this transitory article is incorporated, and December 31, 2030, the restriction against voting on behalf of more than 37.5% of any series of shares in the Company, established in Article 31 hereof, shall be subject to the following exception, applicable only to the election of board members by means of Series A shares in the Company: If two or more persons, regardless of whether or not they are related parties to each other (the incoming shareholders), act prior to December 31, 2030 such as to acquire a sufficient number of Series A shares to allow them to hold voting powers for the selection of directors of the Company amounting to more than 37.5% of that series, then any registered shareholder or group of shareholders holding more than 37.5% of all Series A shares in the Company shall be entitled to vote for the selection of directors of the Company amounting to whichever is less, between a number of the Series A shares that are held (i) by existing shareholders as of that date, and (ii) by the incoming shareholders with voting rights. 2 COMPANY PROFILE 13 Similarly, if for any reason a registered shareholder in the Company as of the date hereof who holds more than 37.5% of Series A shares in the company between the date hereof and December 31, 2030, comes to hold more voting shares for the selection of directors of the Company than the votes allocated for holding 37.5% of said Series A shares, either through a joint action agreement with other shareholders, including existing shareholders, or by any other means, then any other shareholder or group of shareholders in the Company that is not a related party to the same and holds more than 37.5% of all voting Series A shares in the Company, including both existing and incoming shareholders, shall be entitled to vote for the selection of directors of the Company in accordance with whichever number of Series A shares in the Company is the lesser, between (i) the number held by this shareholder or group of shareholders, and (ii) the existing shareholder may have the capacity to vote in excess of the restriction amounting to 37.5% of said shares.” Article 5 bis of the Company's By-laws establishes that no person can directly or through third parties, state owned companies, decentralized, autonomous, municipal or other institutions, hold more than 32% of the Company’s total shares with right to vote. Each Series A share and Series B share is entitled to share equally in the Company’s profits, i.e., they have the same rights on any dividends declared on the outstanding shares of SQM. The Company By-laws do not contain any provision relating to (a) redemption provisions (b) sinking funds or (c) liability to capital calls by the Company. As established in article 103 of Law No. 18,046, a company subject to the supervision of the SVS may be liquidated in the following cases: • Expiration of the duration term, if any, as established in its By-laws; • All the shares end up in the possession of one individual for more than ten continuous days; • By agreement of an Extraordinary Shareholders Meeting; • By abolition, pursuant to applicable laws, of the decree that authorized its existence; • Any other reason contemplated in its By-laws. Article 40 of the Company’s By-laws states that in the event of liquidation, the Shareholders’ Meeting will appoint a three-member receiver committee that will have the authority to carry out the liquidation process. Any surplus will be distributed equally among the shareholders. The only way to change the rights of the holders of the SQM shares, including holders of our ADSs, is by modifying its By-laws, which can only be carried out by an Extraordinary Shareholders’ Meeting, as established in article 28 of the Company By-laws. 2 COMPANY PROFILE 14 Dividend Policy Dividends are annually distributed to the Series A and Series B shareholders of record on the fifth business day prior to the date for payment of the dividends. The By-laws do not specify a time limit after which dividend entitlement elapses but Chilean regulations establish that after 5 years, unclaimed dividends are to be donated to the Chilean Fire Department. SQM’s dividend policy for 2023, reported at the Annual General Shareholders’ Meeting held on April 6, 2023, included the following: a) distribute and pay, as a final dividend (dividendo definitivo) to the corresponding shareholders, a percentage of the net income that shall be determined per the following financial parameters: Dividend Payment (% of the 2023 Net Income) 100% 80% 60% “Total Current Assets” / “Total Financial Liabilities” ≥ 2.5 "Total current and non/current liabilities −Cash and cash equivalents −Other current financial assets"/ “Total equity” ≤ 0.8 2.0 0.9 1.5 1.0 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 2023 net income. b) The amount of provisional dividends may be higher or lower, depending on whether, according to the information available to the Company's board of directors on the date on which their distribution is agreed, it does not materially and negatively affect the capacity of the Company. Company to make its investments, comply with its obligations, and in general, comply with the investment and financing policy approved by the general shareholders meeting c) For the ordinary meeting held during fiscal year 2024, the Company's board of directors will propose a final dividend according to the corresponding percentage according to the financial parameters expressed in letter (a) above, discounting the amount of the provisional dividends previously distributed during fiscal year 2023. d) If there is a remaining balance of the liquid profits of the commercial year of 2023, it may be retained and used to finance its own operations, or to one or more of the Company's investment projects, without prejudice to a possible distribution of eventual dividends charged to accumulated profits approved by the shareholders' meeting, or the possible and future capitalization of all or part of it e) The payment of additional dividends (dividendos adicionales) is not considered. It is expressly stated that the aforementioned dividend policy corresponds to the intention of the Company's board of directors, so its compliance will be conditional on the profits that are obtained, as well as the results indicated by the projections that may be periodically made by the Company, or to the existence of certain conditions, as applicable. In any case, if the dividend policy set forth by the Company's board of directors undergoes any substantial change, the Company must communicate it as an essential fact. 2 COMPANY PROFILE 15 The proposed dividend policy for 2024 is expected to be announced at the Shareholders' Meeting to be held on April 25, 2024. Statistical information: dividends All series A and series B shares carry equal rights to share in any dividend declared on SQM’s shareholder capital in circulation. During the past three years, the Company has paid out the following dividends: Payout Year Earnings for the Year US$ Total (in millions) US$/Share 2021 (Final) 2021 (Interim) 2021 (Interim) 2021 (Special) 2022 (Final) 2022 (Interim) 2022 (Interim) 2022 (Interim) 2023 (Interim) 2023 (Interim) 2023 (Interim) 2023 (Interim) 2020 2021 2021 retained 2021 2022 2022 2022 2022 2023 2023 2023 4.4 68.0 89.8 400.0 27.7 796.1 528.2 879.9 920.8 225.0 174.1 143.8 0.01530 0.23797 0.31439 1.40037 0.09691 2.78716 1.84914 3.08057 3.22373 0.78760 0.60940 0.50347 2 COMPANY PROFILE 16 Statistical information: share transactions SQM’s Series A and Series B shares are traded on the Santiago Stock Exchange and the Santiago Electronic Stock Exchange. The Company’s Series B shares have been traded as ADSs on the New York Stock Exchange since September 20, 1993. Information on SQM’s shares on Chilean stock exchanges: Average Price (Ch$/Share) SQM-A 50.819 50.819 48.788 51.901 44.593 SQM-B 58.239 69.683 57.129 57.707 47.711 Number of Shares Traded SQM-A 2.094.559 1.220.671 493.893 222.065 157.930 SQM-B 100.238.550 26.363.299 20.241.172 29.052.026 24.582.053 SQM-A 106.443 62.033 24.096 11.525 704 2023 I Quarter II Quarter III Quarter IV Quarter Source: Bloomberg, Composite Exchange Amount Traded (Millions of Ch$) 2023 I Quarter II Quarter III Quarter IV Quarter Source: Bloomberg, Composite Exchange Average Price (US$/ADS) SQM-B 69.38 86.09 71.09 67.44 52.90 Number of Shares Traded SQM-B 409.173.382 99.283.449 117.639.805 85.733.737 106.516.391 Statistical information: number of shareholders The following table details the total number of SQM shareholders as of December 31, 2023: SQM-B 5.837.793 1.837.074 1.156.358 1.676.505 1.172.834 Amount Traded (Millions of Ch$) SQM-B 28.388 8.547 8.363 5.782 5.635 Total shareholders Series A y B Total number of Series A shareholders Total number of Series B shareholders 1,173 359 1,093 154 - 154 Shareholders’ Registry ADSs holders’ Registry Total 1,327 359 1,247 2 COMPANY PROFILE 17 2.3.5 Other Securities The Company has issued securities other than shares that correspond to different types of bonds placed in national and international markets to finance its activities and businesses. The following table sets forth key information about other securities issued by the Company as of December 31, 2023. Security (1) 4.38% Notes due 2025 — US$250 million 4.25% Notes due 2029 — US$450 million 6.50% Notes due 2033 — US$750 million (Green Bond) 4.25% Notes due 2050 — US$400 million 3.50% Notes due 2051 — US$700 million (Green Bond) Series H Bond— UF 4 million Series O Bond — UF 1,5 million Serie P Bond — UF 3 million Serie Q Bond — UF 3 million Monto a Corto Plazo (MMUS$) 4.6 2.9 7.3 7.5 7.6 17.6 1.0 1.8 0.4 Monto a Largo Plazo (MMUS$) Tasa de Interés Fecha de emisión Fecha de vencimiento Amortización 249.7 447.0 736.6 394.1 685.2 4.38% 23/10/2014 4.25% 07/05/2019 6.50% 02/11/2023 28/01/2025 07/05/2029 07/11/2033 4.25% 22/01/2020 3.50% 10/09/2021 22/01/2050 10/09/2051 Bullet Bullet Bullet Bullet Bullet 83.0 4.90% 13/01/2009 05/01/2030 62.3 125.8 125.5 3.80% 04/04/2012 3.25% 05/04/2018 3.45% 08/11/2018 01/02/2033 15/01/2028 01/06/2038 Semi-annual, starting in 2019 Bullet Bullet Bullet (1) UF-denominated bonds are fully hedged to US dollars with currency swaps. The bond issuance contracts in the local market require the Company to maintain a total debt level ratio of no more than one times for Series H, Series O and Series Q bonds, calculated for the period of the last 12 months. 2 COMPANY PROFILE 18 3. OUR CORPORATE GOVERNANCE 3.1 CORPORATE GOVERNANCE FRAMEWORK SQM has a Corporate Governance Model based on the Corporate Governance Policy, which is the reference framework for directors, applying its last update in October 2022. The corporate governance policy is available on the SQM website of the Company, in the Investors section, then Sustainability- Corporate governance- documents and policies, or at the following link: https://s25.q4cdn.com/757756353/files/governance_doc/2022/11/Corporate-Governance- Policy_eng_Oct2022.pdf The corporate governance policy is available to be voted on by shareholders each year before the first notice to the ordinary shareholders' meeting on our website. This policy establishes the duty of the board of directors to exercise its best judgment in accordance with what it reasonably believes represents the interest of the Company and its shareholders. In this way, it is a guide to guide the responsible exercise of the functions of the directors, without constituting legal obligations, since they are assumed to be known. Annually the Board, or a committee of the Board, will review its corporate governance policy. As part of this process, the Board will review corporate governance best practices adopted by other entities, both locally and internationally. (available Furthermore, in line with best practices worldwide, SQM's Sustainability, Ethics and Human Rights website: Policy https://s25.q4cdn.com/757756353/files/governance_doc/2021/Sustainability-Ethics-and-Human- Rights-Policy.pdf and the commitments that emanate from it, reflect the company's comprehensive approach to sustainability. Progress in relation to these good governance, environmental and social commitments is led and supervised by the board of directors and involves workers, including contractors; shareholders, the supplier and supply chain, customers, as well as the communities and territories where operations are located. The data regarding the 2023 management in the areas of sustainability are reported in Section 8.2 of this Report. our on Acting ethically begins with the basic commitment of each SQM member to the law and the company's values: Excellence, Integrity, Safety and Sustainability. In this context, the Code of Ethics and the Code of Conduct for Business Partners are essential documents for the management of these matters and are supported by related policies, procedures and financial controls, which - together - are a relevant component of the Ethics Program. and Compliance of the company. These regulatory instruments and the program apply to all members of the organization: senior executives, board members, managers, full- time and part-time workers, in all operations, whether local or international. Among those regulatory instruments that make up the company's ethical action framework are also the Conflict of Interest Policy, which aims to protect the integrity of the company's decision-making process; the Free Competition Policy, which establishes rules around conduct that should never be carried out in the context of the market, in order to avoid anti-competitive practices; and the Crime Prevention Model (the “CPM”), which complies with the provisions established in Law 20,393, on Criminal Liability of Legal Entities, and its modifications. This procedure has global application and in line with global regulations to the operations of SQM and all its affiliates, subsidiaries and companies in which it has more than 50% interest, at the discretion of the Risk Management and Compliance Manager. 3 OUR CORPORATE GOVERNANCE 19 The CPM has the organizational structure established for this purpose, with a Crime Prevention Officer whose duties include: • Ensuring the proper development, implementation, operation, and update of the CPM. • Reporting semiannually, or as circumstances warrant, to the Board of Directors on his/her management and the operation of the CPM. • Performing specific reviews to verify compliance with the main controls that prevent the crimes referred to in Law 20,393. Implementing a training program on the CPM aimed at SQM members. • • Ensuring the correct operation of the whistleblower channels and their respective procedures. • Conducting or requesting that investigations be conducted when an unusual or suspicious situation arises. • Leading the control and analysis process of the risks and controls related to offenses under Law 20,393. It should be noted that the Crime Prevention Officer has the autonomy and independence to access and report directly to the Board of Directors, in order to report on his or her work. The CPM includes prevention, detection, and response activities, including training and communication to strengthen the company's ethics culture. All other policies related to matters that represent potential risks, which have been duly disseminated throughout the organization, are part of this crime control and prevention environment: • Anti-Bribery and Corruption Compliance Policy • Corporate Reimbursement and Expense Claim Policy • Sponsorship and Membership Procedures • Donation and Contribution Procedures • Global Procedure for Internal Investigations and Sanctions • Global Whistleblower Procedure SQM's formal Whistleblower Channels include the web form (https://www.sqm.ethicspoint.com/), which is also available on the company's website and intranet, as well as telephone numbers according to the geographic location of the SQM unit or operation. It is worth noting that the use of these channels is protected by confidentiality mechanisms, guaranteeing the anonymity of the whistleblower, both employees and third parties, as required by local legislation. Reported allegations are reviewed by the Crime Prevention Officer in conjunction with Audit Management to assess whether they merit an investigation, as described in the Global Procedure for Internal Investigations and Sanctions. International anti-corruption laws which SQM is subject to include the Foreign Corrupt Practice Act (FCPA), the regulations established by the Security and Exchange Commission (SEC) of the United States, as well as similar laws applicable in the countries where the Company operates. and codes policies aforementioned The at https://ir.sqm.com/English/home/default.aspx Sustainability tab, Corporate Governance section) also constitute the framework that sets out the criteria for a constructive relationship with SQM's stakeholders. As stated in the Sustainability, Ethics, and Human Rights Policy, along with promoting a culture of integrity and ethics, the Company encourages respect for and compliance with the commitments made to customers, employees, regulators, communities, authorities, shareholders, and suppliers. In order to regulate relations with the latter stakeholder, Chile has a Responsible Sourcing Policy, which expresses specific commitments regarding fair treatment, environmental protection, and unrestricted respect for human rights, as per its adherence to the UN Universal Declaration of Human Rights, the Guiding available (publicly 3 OUR CORPORATE GOVERNANCE 20 Principles on Human Rights and Business, and the International Labor Organization (ILO) Conventions, to which Chile is a signatory. Aware of the need to address, among other relevant issues, the common challenges of the climate crisis, inequalities, and emerging diseases, SQM aspires to a long-term and collaborative relationship with its stakeholders, based on a responsible business strategy that includes action points and their respective metrics. This model integrates technological developments and innovation to offer effective solutions that contribute to the progress and well-being of people, co-constructing an economic, social, and environmental value proposition together with the communities, workers, innovation centers, and academia, as well as the Company's suppliers and customers. The Company identifies its interest groups, as indicated in Section 6.3 Stakeholders, based on their interests and expectations, as well as the Company's activities that generate an impact on the interest groups. In 2023, the Company has identified 54 impacts on stakeholders; 33 are positive impacts and 21 are negative. These impacts are discussed and treated in the Company's Safety, Health, and Environment Committee and in turn in the full Board of Directors. The table of impacts and materiality is found in Annex 2 of this Report. In the area of innovation, the Company has a focus on investing in research and development to improve and optimize its processes to deliver high-value solutions to customers in the markets in which it operates. The Company has three teams especially dedicated to research and development. Our efforts in innovation have resulted in new value-added markets for our products, some examples of this are the use of lithium sulfate for the production of lithium hydroxide and the use of sodium nitrate and potassium nitrate as thermal storage in solar power plants. During the year 2023, we developed conceptually and in the laboratory twenty new technologies for the Salar Futuro Project in the Salar de Atacama and we developed four technologies on a pilot scale, some of which were Direct Lithium Extraction technology. For more detail on this topic, please refer to the subsection “Research and Development, Patents and Licenses” in Section 6.2 of this Report. Regarding the detection of possible organizational, social or cultural barriers and the identification of the breadth of capabilities, knowledge, conditions and experiences in the performance of different functions, in the Equality, Diversity and Inclusion approach of the Sustainability Policy, Ethics and Human Rights at SQM, three axes are defined to guarantee equal opportunities, with a view to the development of all members of the company, in an environment of cordiality, equality, respect and openness: • Ensuring non-discrimination in salary, hiring, promoting and making work decisions based on objective criteria related to the person's abilities to perform the position. • Blind recruitment, evaluating applicants according to their skills and requirements for the position, without discrimination of any kind. • Development of activities or programs aimed at audiences of interest that require improvement or preparation. Likewise, in the Approach to Opportunities, Development and Satisfaction of Workers, included in the same policy, the duty to generate the conditions so that each SQM worker can reach their maximum potential is established. The Company systematically manages the following objectives or work axes in its hiring and development policies: • Creation of competitions and internal mobility opportunities. • Training workers to perfect the skills for the position. 3 OUR CORPORATE GOVERNANCE 21 • Continuous evaluation of the performance of workers, in the implementation of plans that allow continuous improvement in their work. • Implementation of a recognition system that allows promoting SQM values in work teams. • Monitoring through surveys of work teams to determine strengths and opportunities for improvement, establishing an action plan for this. Below is the organization chart of SQM's organizational structure, showing the management and/or leadership units within the organization, and the internal control, risk management, sustainable development, and shareholder relations units. , investors and media. 3 OUR CORPORATE GOVERNANCE 22 Board of Directors Committee SQM Corporate Structure Board of Directors Chief Executive Officer Ricardo Ramos Audit & Risk Management Officer Carolina Salinas Ethics & Compliance Officer Alberto Llona Executive VP Nitrates&Iodine Business Pablo Altimiras Executive VP Lithium Business Carlos Díaz Finance VP and CFO Gerardo Illanes Legal VP Gonzalo Aguirre Investor Relations Irina Axenova Senior VP Corporate Services José Miguel Berguño Sustainability Manager Javier Silva Public Affairs Manager Ignacia López 3 OUR CORPORATE GOVERNANCE 23 3.2 BOARD OF DIRECTORS Board Member Identification SQM's Board of Directors consists of eight regular members. There are no alternate members. The entire Board of Directors is regularly elected every three years at our Ordinary Shareholders’ Meeting. The Board of Directors may appoint replacements to fill any vacancies that occur during periods between elections. If a vacancy occurs, the entire Board must be elected or re-elected at the next regularly scheduled Ordinary Shareholders’ Meeting. The last election of directors was at the Ordinary Shareholders' Meeting on April 26, 2023. Name, Chilean ID, Nationality Position Experience and Expertise Gonzalo Guerrero Yamamoto Chilean ID: 10.581.580-8 Chilean Election date: April 2023 Chairman of the Board of Directors of SQM S.A. and member of the Safety, Health, and Environment Committee. Patricio Contesse Fica Chilean ID: 15.315.085-0 Chilean Election date: April 2023 Hernán Büchi Buc Chilean ID: 5.718.666-6 Swiss Election date: April 2023 Vice Chairman and Member of the Corporate Governance Committee and the Safety, Health and Environment Committee. Director and Member of the Corporate Governance Committee. Antonio Gil Nievas Chilean ID: 23.605.789-5 Spanish Election date: April 2023 Director and Member of the Directors' Committee. Independent. Mr. Guerrero earned a law degree from the Universidad de Chile and a Master of Business Law from the Universidad Adolfo Ibáñez. In addition to his position at SQM, he is currently president of the board of directors of SQM Salar S.A., CEO of SONAMI, president of the María Elena Foundation for social and patrimonial development, director of ICARE, elective advisor of SOFOFA, president of the SOFOFA business council Chile/ Australia and director of SOFOFA HUB. Mr. Contesse is a lawyer with a degree from the Pontificia Universidad Católica de Chile. Previously, he was a Board member of SQM from 2013 until 2015. Since 2011, he has held senior executive positions in Pampa Group through 2021, where he is currently Vice Chairman of the Boards of Directors of the Pampa Group entities. His areas of knowledge include regulatory and corporate governance matters. Mr. Büchi earned a degree in Civil Engineering from the Universidad de Chile. He served on the SQM Board of Directors for several years until April 2016, before rejoining in 2017. During his career, he advised different governments in Latin America, Eastern Europe and Asia on the design and implementation of economic policies. He served the Government of Chile in different capacities, including the positions of Undersecretary of Economy (1979 -1980) and Minister of Finance (1985-1989). He is currently a Board member of Quiñenco S.A., among others. He is also Chairman of the Board of Directors of the Universidad del Desarrollo. In addition to his experience in various industries, his areas of expertise include Finance, Corporate Governance, Regulations and Public Policies. Mr. Gil earned a degree in Industrial Engineering from ICAI (Universidad Pontificia Comillas, Spain), MBA from Harvard University, Stanford Executive Program. He has more than 25 years of experience in strategic leadership, risk management financial and investment roles at a global, European and Latin American level. Currently, he is director of Latam Airlines Group and strategic and financial advisor to various national and international companies. Previously, he was CEO of Moneda Asset Management, Vice President of ACAFI, Managing Director, global CFO and member of the global executive committees of various businesses at JPMorgan and was a strategic consultant for BCG in Spain. In addition, he has knowledge in Finance, regulatory matters and Corporate Governance. 3 OUR CORPORATE GOVERNANCE 24 Name, Chilean ID, Nationality Gina Ocqueteau Tacchini Chilean ID: 8.431.507-9 Chilean Election date: April 2023 Director and Member of the Directors' Committee. Independent. Ashley Ozols Chilean ID: 48.218.888-5 Australian Election date: April 2023 Director and Member of the Directors' Committee. Position Experience and Expertise Ms. Ocqueteau graduated as a nurse from the Universidad de Chile, holds an MBA from ESADE Business School and have more than 30 years of career in different areas of ACHS. She is currently the director of the Asia Pacific Chamber of Commerce, Fundación Imagen Chile and UDD Ventures. Advisor of Chile Mujeres, Teacher in BOW Mujeres Empresarias, vicepresident of Unión Emprendedora, founding partner of Crosscheck and CEO of Waygroup Chile. Throughout her professional career, she has accumulated extensive experience in risk management, security, and cybersecurity. Previously, she was also the director of ASECH and was a member of the Advisory Council of the Ministry of Women and Gender Equality in 2021. Aspects of Corporate Governance, sustainable development, and relations with communities are among her areas of experience. Mr. Ozols earned a Bachelor of Commerce degree from the University of New South Wales, Sydney and is also a CFA charterholder., He has extensive experience in international business, specializing in providing strategic and financial advice to American, Australian and Asian clients. Between 2003 and 2017, he worked at numerous investment banks, including Macquarie Group, Grant Samuel and CLSA. Between 2017 and the beginning of his role as a member of the board of directors of SQM, he served at Tianqi Lithium as an executive focused on corporate development. In addition, he has knowledge on regulatory and corporate governance matters. Antonio Schneider Chaigneau Chilean ID: 6.027.199-2 Chilean Election date: April 2023 Director and Member of and the Safety, Health and Environment Committee. Mr. Schneider has a doctorate from The New School, New York and has a degree in Economics from Universidad de Chile. He has worked in Chile in the cosmetics, forest products, salmon and food crops, fruit export, and food products industries He has been a director at InvertecFoods, Pesquera Yadran, ChileFoods, Indura Peru, Salmonfood, and Banco Estado, among others. Tieying Xu Chilean ID: 48.224.251-0 Chinese Election date: April 2023 Director and Member of the Corporate Governance Committee Mr. Xu earned a doctorate degree in law from the Università degli studi di Roma Tor Vergata, Italy. He studied at the Centro di Studi Giuridici Latinoamericani of the same university. He is also a P.R. China Legal Professional Qualifications Certificate holder. Currently, he is an Associate Professor at the Sichuan University, China, specializing in Civil and Commercial Law. He has also released several publications and books on Civil and Commercial Law. Mr. Xu has knowledge of corporate governance and regulatory affairs. 3 OUR CORPORATE GOVERNANCE 25 Board of Directors Diversity Diversity Women (12.5%) Men (87.5%) Chilean Directors (50%) Foreign Directors (50%) Independence Under the Chilean Law (25%) Under the NYSE regulations (88%) Age 30 to 40 years old (25%): 41 to 50 years old (12.5%): 51 to 60 years old (25%): Over 60 years old (37.5%): Board Tenure Less than 3 years (63%): Between 3 and 6 years (13%): Between 6 and 9 years (25%): Board Attendence > 85% of ordinary sessions Gonzalo Guerrero Yamamoto Patricio Contesse Fica Hernán Büchi Buc Antonio Gil Nievas Gina Ocqueteau Tacchini ● Ashley Ozols Antonio Schneider Chaigneau Tieying Xu ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● None of our directors has a disability. 3 OUR CORPORATE GOVERNANCE 26 Board of Directors Compensation At the Ordinary Shareholders’ Meeting held on April 26, 2023, shareholders approved the compensation for the Board of Directors and members of the Audit and Financial Risk Committee, Corporate Governance Committee and the Safety, Health and Environmental Committee for the 2023 business year, as follows: Board Position Fixed compensation, gross monthly payment, regardless of attendance and number of sessions Chairman Vice Chairman Director Member of the Directors’ Committee Member of the Safety, Health and Environment Committee Member of the Corporate Governance Committee 800 UF2 700 UF 600 UF 200 UF 100 UF 100 UF Variable compensation1, as a percentage of the Company's net income obtained during the business year of 2023 0,12% 0,12% 0,06% 0,02% - - 1 For the calculation of the variable compensation that the directors will be entitled to receive, the 2023 net income will be considered with a maximum limit of 110% of the 2022 net income. The variable compensation will not be paid together with the amounts of the fixed compensation, and will be paid after the approval of the Company's financial statements as of December 31, 2023 by the ordinary shareholders' meeting, in proportion to the time served by the director, considering the period from May 2023 to April 2024, based on the Company's 2023 financial results. 2 Unidades de Fomento. The UF is an inflation-indexed, peso-denominated unit that is linked to, and adjusted daily to reflect changes in, the previous month’s Chilean consumer price index. Shareholders also approved a budget for board operating expenses equal to the sum of the directors' annual remunerations. The Board compensation is equal for all board members, regardless of their gender, and only differs for the position held within the Board and participation in committees as presented in the table above. The following tables show the remuneration paid to each of our directors who served on the Board of Directors during 2023 and 2022 (amounts in thousands of Chilean pesos): 3 OUR CORPORATE GOVERNANCE 27 Summary of Board Compensation January - December 2023 (thousands of Chilean pesos) Board of Directors SQM S.A. Directors’ Committee SQM S.A. Corporate Governance Committee SQM S.A. Safety, Health and Environment SQM S.A. Representation & Travel Expenses Total Fijo 345,961 Variable 608,194 302,716 608,194 259,471 304,097 259,471 304,097 259,471 304,097 258,464 304,097 106,393 304,097 259,471 304,097 152,070 Fijo Variable Fijo 86,490 86,490 86,155 101,366 101,366 101,366 43,245 43,245 14,221 25,345 Fijo 43,245 43,245 17,732 29,024 2,203,489 3,040,968 259,135 304,097 126,057 133,247 1,265 35,772 54,423 621 89,669 55,820 33,902 95 50,021 321,588 998,665 1,033,172 661,236 752,045 841,093 805,902 462,124 606,908 227,436 6,388,581 Directores GONZALO GUERRERO YAMAMOTO PATRICIO CONTESSE FICA HERNAN BÜCHI BUC ANTONIO GIL NIEVAS GINA OCQUETEAU TACCHINI ASHLEY OZOLS DANG QI1 ANTONIO SCHNEIDER CHAIGNEAU XU TIEYING2 TOTAL 1 Board member until April 26, 2023. 2 Board member since April 26, 2023. 3 OUR CORPORATE GOVERNANCE 28 Summary of Board Compensation January - December 2022 (thousands of Chilean pesos) Directores ALBERTO SALAS MUÑOZ1 PATRICIO CONTESSE FICA HERNAN BÜCHI BUC Board of Directors SQM S.A. Directors’ Committee SQM S.A. Fijo 101,325 Variable 597,760 Fijo 25,331 Variable 99,627 Corporate Governance Committee SQM S.A. Safety, Health and Environment SQM S.A. Fijo Fijo 278,920 597,760 239,075 298,881 39,846 39,846 39,846 GEORGES DE BOURGUIGNON ARNDT1 75,994 298,881 ANTONIO GIL NIEVAS 163,081 LAURENCE GOLBORNE RIVEROS1 75,994 298,881 GONZALO GUERRERO YAMAMOTO 293,435 298,881 GINA OCQUETEAU TACCHINI 163,081 ASHLEY OZOLS DANG QI ANTONIO SCHNEIDER CHAUGNEAU FRANCISCO UGARTE LARRAIN1 ROBERT ZATTA2 TOTAL 224,006 107,597 142,014 163,081 75,994 14,696 298,881 191,284 99,627 99,627 25,331 54,360 25,331 54,360 47,338 39,846 20,000 13,665 20,555 27,180 12,666 Consulting Contract Representation & Travel Expenses Total 48,866 46,729 315 16,877 53,214 91,399 86,611 315 824,043 1,005,238 624,531 499,833 217,756 499,833 669,039 270,655 484,005 249,180 190,576 387,541 205,980 2,010,696 2,988,806 232,051 298,881 119,538 113,912 20,000 344,326 6,128,210 1 Board member until April 26, 2022. 2 Board member until December 2021. The remuneration received in 2022 corresponds to what was worked until December 2021. 3 OUR CORPORATE GOVERNANCE 29 Policy for Hiring Advisors by the Board of Directors The Company has no policy in place for the Board of Directors to hire experts to advise it on accounting, tax, financial, legal, or other matters. Under the Corporations Act, companies are subject to "pre-approval" requirements, whereby all audit and non-audit services provided by the independent auditor must be pre-approved by the Directors' Committee. SQM's Board of Directors approves all audit, tax, and other services provided by the auditors. Any services provided by the auditors that are not specifically included within the scope of the audit must be previously approved by the Directors' Committee prior to their execution. In 2023, the Board of Directors hired the following consultants: Entity PriceWaterhouseCoopers Otros TOTAL Type of Service Audit of Financial Statements Legal and other advisory servcies Amount (US$) US$1,97 millones1 US$0,09 millones US$2,06 millones 1 It corresponds to the amount approved by the 2023 Ordinary Shareholders' Meeting. Matrix of knowledge, skills, and experience of board members The Company does not have a formal procedure to disclose a matrix of competencies of board members. The Company does publish, in any case, the curriculum vitae of the director candidates who are nominated by the shareholders before a shareholder meeting at which directors must be elected. This information is made available to shareholders on the Company's website (Investors section, events and presentations, Shareholders meetings https://ir.sqm.com/English/events-and-presentations/shareholder- meetings/default.aspx). Likewise, the experience of each board member is found in point (i) of this same chapter. Onboarding of New Board Members All new directors receive orientation on the Company, its business, risks, policies, procedures, key accounting criteria, sustainability and the legal framework applicable to the Company and its directors. Within 60 days after the election of a new Board of Directors, the latter will be provided with pertinent information regarding the Company, which includes, among others, the Bylaws, Code of Ethics, Manual for the Management of Information of Interest to the Market , Free Competition Policy, Sustainability Report, Annual Report in the 20-F format and the most recent annual report of the Company. General Management will coordinate meetings between directors and relevant management to review business issues and risks, including those related to sustainability, site visits and other briefings as appropriate. Through the Sustainability Report, the Board of Directors is informed about the relevant interest groups, and a meeting is coordinated with the Sustainability and Community Relations Manager to explain to the members of the Board of Directors the relevance of said groups and their expectations, in an effort to maintain a stable long-term relationship with them. Likewise, with the Compliance Manager, at least one annual training on corruption risks, the Company's Ethics and Compliance Program and free competition risks is coordinated. This training can be carried out in conjunction with that developed for new directors or as a stand-alone activity. 3 OUR CORPORATE GOVERNANCE 30 Frequency of meetings with the Compliance, Risk Management, Internal and External Audit area Through the Directors' Committee, the Board meets as necessary, but at least twice a year, with the Audit and Risk Management Manager to review: (i) the annual audit program or plan; (ii) the recommendations and improvements that in the opinion of the Audit and Risk Management Manager would be pertinent to make to prevent the occurrence of irregularities or fraud; (iii) the effectiveness of the crime prevention models implemented by the Company; and (iv) that the entire organization actually complies with the controls, procedures and internal policies of the Company and know the opinion of the Audit and Risk Management Manager in relation to the effectiveness and suitability of said policies, procedures and controls and possible improvements in them. Additionally, the Board meets as necessary, but no less than twice a year, with the Audit and Risk Management Manager and the Ethics and Compliance Manager to (i) analyze the proper functioning of the risk management process. ; which is developed in accordance with international principles, directions and recommendations of the Committee of Sponsoring Organizations (COSO) 2013; (ii) review the risk matrix used by the unit, as well as the main sources of risk and methodologies for detecting new risks, and of those new risks, the probability of their occurrence and the impact they would have; (iii) review the recommendations and improvements that, in the opinion of the Audit and Risk Management Manager, make the Company's risk management more efficient; and (iv) review contingency plans designed to react to the materialization of critical events, including the continuity of the Board of Directors in crisis situations. Likewise, the Board of Directors meets as necessary, but at least twice a year, with the external audit company in charge of auditing the Financial Statements to review: (i) the audit program or annual program; (ii) possible differences detected in the audit regarding accounting practices, administrative systems and internal audit; (iii) any serious deficiencies that have been detected and those irregular situations that, due to their nature, must be communicated to the corresponding supervisory bodies; (iv) the results of the annual audit program; and (v) possible conflicts of interest that may exist in the relationship with the audit company or its staff, both due to the provision of other services to the Company or to the companies in its business group, as well as due to other situations. Periodicity of reporting on environmental and social matters this reason, its decisions. For The Board considers the social and community impact, in safety, health, environment and sustainability of the Safety, Health and Environment Committee (the “S.H.E.”Committee) where the Committee meets with the Company executives in charge of dealing with issues relating to communities, the environment, safety and health, in order to help the Board of Directors in its review of the Company's policies, and the changes or improvements thereto, related to these matters that may affect the Company. Each year, the S.H.E. Committee reviews the framework of the Company's sustainability policies and strategies including, in addition to the topics already mentioned, human rights aspects, supervising the Company's performance regarding these challenges and reviewing their adequate dissemination in the Company’s Sustainability Report. The S.H.E Committee meets at least four times a year. Site visits The Board of Directors makes reasonable efforts to hold at least one Board meeting per year at or near the Company's operating facilities. The Board of Directors visits at least one facility to get a better idea of the unit’s condition and operation, the main responsibilities and concerns of those who work in those 3 OUR CORPORATE GOVERNANCE 31 offices and facilities, and the recommendations and improvements that, in the opinion of those responsible for those units and facilities, should be made to optimize their operation. In October 2023, The Board of Directors held the ordinary session at the company's facilities located in Coya Sur, María Elena commune. Evaluation and Training of the Board of Directors Once a year the Board analyzes its processes and performance through an evaluation designed to promote current efficiency and continuous improvement. For the year 2023, the Board Evaluation was carried out by the Institute of Directors of Chile. During the course of the year, the Board of Directors is trained and has access to specialists in different subjects to have training on topics that require it. For example, during the year 2023, the Board received experts in matters such as free competition, the new law on economic crimes, among others. a) Detection of improvements and training subjects: through a self-assessment and after a feedback interview, directors are evaluated on the pillars of: business strategy (profitability), control environment (asset protection), access to information (transparency), equal treatment ofshareholders (transparency) and sustainability management. b) Organizational, social or cultural barriers: the Company's Safety, Health and Environment Committee, which operates at the level of the Company's Board of Directors, is responsible for ensuring the detection and reduction of organizational, social and cultural barriers that could be inhibiting the natural diversity of the board of directors and the Company. The Board analyzes this matter to ensure that it represents a multiplicity of approaches and the greatest expertise to examine and address the matters of its concern. Director Assistance Pursuant to Article 15 of the Company's Bylaws, the Board of Directors shall meet at least once a month. Directors may attend the sessions in person or by conference call or videoconference, for which appropriate means are available. Members of the Board of Directors and of the various committees on which they serve are expected to attend meetings fully prepared and to remain for the duration of the meeting. Attendance at Board meetings is disclosed annually in the Board of Directors' report card, which is published on the Web Site. Pursuant to Article 13 of the Bylaws, a director who fails to attend three consecutive meetings without a cause qualified as sufficient by the Board of Directors, shall cease to hold office ipso jure and shall be replaced without further proceedings. In such case, and in the event of incompatibility, resignation, removal, death, bankruptcy, or any other incapacity of a director that disqualifies him/her from holding office, the Board of Directors shall appoint the corresponding replacement or replacements in conformity with the provisions of the Corporations Law and they shall remain in office until the next ordinary meeting of shareholders to be held by the Company, at which time, moreover, all of the directors shall be elected. Board members are expected to have at least 75% attendance at meetings each year. During 2023, the Company’s Board met 27 times, of which 13 meetings were ordinary and 14 meetings were extraordinary. No director attended less than 85% of the total number of regular Board meetings. The Board's average attendance was 97%. 3 OUR CORPORATE GOVERNANCE 32 Operational continuity plan SQM has an Operational Continuity Policy intended to ensure that all the Company's activities and those of its subsidiaries can remain stable in the event of an incident with the potential to interrupt or affect critical business processes or assets. People's health and safety is the first priority in the event of incidents or catastrophic events, for which SQM has Emergency Plans in addition to this policy (see Section 5.6). Thus, the Business Continuity Policy sets the foundations for each of the procedures aimed at minimizing the impact that events of this nature could have on the normal development of the Company's operations. The Operational Continuity Policy has Operational Continuity Plans (OCP) for each of the following areas: • Mining area • Process and production areas • Camp and passenger transportation areas • Logistics, warehousing, and product transportation areas • IT and information security areas In addition, each site has its own OCP covering the aforementioned areas. Each vice-presidency is responsible for assessing the critical processes and assets required to meet its objectives and commitments, and for planning to mitigate potential impacts of possible incidents. Information system The directors of the Company have access to an electronic platform called BoardWorks, in which the information that will be presented in each Board of Directors or committee of the Board is uploaded and which also serves as a repository for the information presented, as well as other corporate information that is frequently used directory. a) This platform allows directors to access the minutes and other documents discussed in board sessions. BoardWorks is a platform that has been specially designed to share information between companies and their directors. Its main features can be reviewed on the BoardWorks website: https://www.cgsboardworks.com/ . On the other hand, it is necessary to point out that the Company has had BoardWorks for its directors since December 2016 and the information uploaded there is available to all directors since that date, and all historical information can be consulted. b) In advance of the ordinary Board meeting, the Board Agenda is uploaded to BoardWorks, and a notice is also sent to the Company's directors about it. In general, the information that will be presented to the Board is also uploaded within the week prior to said meeting. c) The Company has a complaints channel that is managed by the Company's Compliance team based on a service provided by the company Navex (https://www.navex.com/en-us/ ). The Company's directors do not have direct access to the complaints channel, although the Compliance team regularly reports to the Company's Directors' Committee on the main complaints received in a given period. 3 OUR CORPORATE GOVERNANCE 33 d) Since April 2020, all minutes of the Board of Directors and Board Committees are signed through the Adobe Sign platform, an electronic signature. This platform presents international standards of security and reliability. Once a minute has been signed by all the directors who subscribe to it, each director receives a copy of the respective minute in their email. These minutes are kept in the repository of the Legal Vice Presidency of the Company and pasted in the respective books. The minutes of each Board meeting are uploaded to the BoardWoks platform in advance of the next Board meeting. In addition to the electronic platform that board members have access to, SQM has business information systems that technologically support the company's BackOffice processes in areas such as Finance, Accounting, Human Resources, and Logistics. It also has information systems that support operational processes for maintenance, production management, product inventory, and quality, among others. SQM has a corporate ERP system for its base in Chile, as well as an ERP system for its commercial offices, which then consolidate the information in the head office’s platforms. SQM seeks to optimize the management and deployment of its technological services through leading cloud service platforms, achieving cost efficiencies and response times that allow rapid adaptation to business flows and market conditions. With regard to information security and cybersecurity, we have an awareness program aligned with the strategic goals of the business and risk committee, in order to safeguard our most important information assets and ensure high standards of information security, with world-class tools to mitigate potential attacks on our infrastructure. 3.3 BOARD COMMITTEES There are 3 Committees of the Board of Directors, each focused on specifically addressing different issues of the Company. The 3 Committees are: Directors Committee, Corporate Governance Committee and Environment, Safety and Health Committee. Directors' Committee/ Audit & Financial Risk As of December 31, 2023, the Company has a Committee of Directors to perform the functions contemplated in article 50 bis of Law No. 18,046. The Directors' Committee meets as needed, but no less than four times a year. The chairman of the Committee reports on its activities no later than at the next session of the Company's Board of Directors. The Directors' Committee for the last two years has been constituted by the directors: Antonio Gil Nievas, Gina Ocqueteau Tacchini and Ashley Ozols. Considering the provisions applicable as of December 31, 2023, Antonio Gil Nievas, Gina Ocqueteau Tacchini had and still have the status of Independent Director. Ashley Ozols was and still is the President of the Company's Committee of Directors. On April 26, 2023, the Ordinary Shareholders' Meeting of SQM agreed to pay each director who is a member of the Directors' Committee a monthly remuneration equivalent to UF 200 and an annual remuneration equivalent to 0.02% of the net profit that the Company obtains. during the business year of 2023. For the details of the remuneration received by each of the members of the Committee during the years 2023 and 2022, see Section 3.2, specifically the Board of Directors' per diem summary tables. 3 OUR CORPORATE GOVERNANCE 34 In 2023, the Committee analyzed or reviewed, as the case may be, the following matters: • the Unaudited Financial Reports and Statements of the Company; • the Reports and Audited Financial Statements of the Company; • the Reports and proposals of the Company's External Auditors, Account Inspectors and Independent Risk Rating Agencies; • the proposal to the Board of Directors regarding the External Auditors and Independent Risk Raters that said Board of Directors could recommend to the respective Shareholders' Meeting for their subsequent appointment; • tax and other services, other than audit services themselves, provided by the Company's External Auditors on behalf of the Company and its subsidiaries in Chile and abroad; • the remuneration systems and compensation plans of the Company's workers, managers and main executives; • proposals to the Board of Directors on corporate policies that the Company must have, in accordance with the law; • the Company's risk matrix; • the activity related to the Company's compliance program; • the Company's Internal Control Report; and • the different matters referred to in the chapter “Committee of Directors”, which is inserted in the Financial Statements of the Company as of December 31, 2023. Within said context and in relation to the above, the Committee: a) Examined the background information regarding the Company's Financial Statements corresponding to the business year of 2023 and the Report issued in this regard by the Company's External Auditors. Similarly, it also examined the Interim Consolidated Financial Statements of the Company corresponding to the business year of 2023. b) Proposed to the Board of Directors the names of the external auditors and independent risk raters of the Company and that the Board of Directors of the latter, in turn, could suggest for their appointment to the respective Ordinary General Meeting of Shareholders of the Company. The Board of Directors approved these suggestions and the Board, for its part, also accepted them. c) Examined and approved the remuneration systems and compensation plans for the Company's workers and Senior Executives. d) Examined the background relating to negotiations for SQM Australia Pty Ltd., (“SQM Australia”) to acquire nearly 80% of the issued shares of Azure Minerals Limited (“Azure”), a company that is an affiliate of the Company, since SQM Australia owns 19.9% of its shares. The Committee recommended to the Board of Directors approval of the negotiations with Azure. The Committee also (i) authorized the contracting by the Company of various consulting services with PwC, in matters not related to the audit, (ii) reviewed the expenses of the Company's general manager, (iii) reviewed the reports of the internal audit and risk and compliance areas of the Company, and (iv) examined the information presented by the external auditors. The Committee issued the Annual Management Report referred to in Law No. 18,046. Except for the transaction indicated in letter (d) above, during 2023, the Company did not carry out other transactions 3 OUR CORPORATE GOVERNANCE 35 with related parties that must be executed with the requirements and procedures established in title XVI of the Corporations Law. During the year 2023, the Committee incurred internal audit expenses for an approximate amount of ThUS$1,281.6. Corporate Governance Committee The purpose of the Corporate Governance Committee (“CGC”) is to assist the Board of Directors in meeting its responsibilities in reviewing and recommending policies related to corporate governance matters that affect the Company. The CGC is made up of three directors and meets as needed, but no less than four times a year. The members of the Corporate Governance Committee for the last two years have been the directors: Patricio Contesse Fica, Hernán Büchi Buc and Tieying Xu in 2023 and Patricio Contesse Fica, Hernán Büchi Buc and Antonio Schneider in 2022. The quorum will exist with the presence of two members of the CGC. The responsibilities of the CGC are, among others: • Annually, the CGC reviews the corporate governance policy and, if appropriate, will recommend changes to the document; • Annually, the CGC reviews compliance with the corporate governance policy and ensures that applicable regulatory requirements are met. As part of the process, the Board reviews the best corporate governance practices adopted by other entities, both locally and internationally; • The CGC ensures that it has a correct succession plan for the General Manager and management. This will include a list of possible candidates available to replace the General Manager in the event that the Board of Directors determines to change him or in the event that an emergency replacement is necessary, taking into consideration their skills, experience, independence and knowledge necessary for their position. • The CGC ensures that it has a correct succession plan for the president of the Board of Directors, taking into consideration his or her skills, experience, independence and knowledge necessary for his position. The CGC will use its best efforts to identify suitable potential candidates to propose to the Board; • The CGC receives and reviews, upon management's request, an update on communication to and with the Company's shareholders, including institutional shareholders, and analysts, as well as potential shareholders; • The CGC receives and reviews any Directors’ and Officers’ Liability Policy before it is executed by the Company. Safety, Health, and Environment Committee The purpose of the Safety, Health and Environment Committee (the “S.H.E.” Committee) is to assist the Board of Directors in meeting its responsibilities in the review and recommendation of policies related to social, safety, health, environmental and sustainability issues that affect the Company. The S.H.E. Committee meets as needed, but no less than four times a year. The members of the Health, Safety and Environment Committee for fiscal year 2023 were Gonzalo Guerrero Yamamoto (president of the board of directors), Patricio Contesse Fica and Antonio Schneider Chaigneau, and for fiscal year 2022 this committee was constituted by Gonzalo Guerrero Yamamoto, Patricio Contesse Fica and Dang Qi, who ceased to be a member of the Board of Directors in April 2023. The quorum will exist with the presence of two members of the S.H.E. The S.H.E. will report its key findings to the Board periodically. Its main responsibilities, among others, are: 3 OUR CORPORATE GOVERNANCE 36 • Review the Company's safety, health, environmental and sustainability policies periodically and recommend changes to said policies to the Board or Management. In relation to the definition of policies, indicators and reports, the Board will ensure that international standards are followed such as the guidelines of the Sustainability Accounting Standards Board (SASB), Global Reporting Initiative or equivalent; • Receive and review, at least once a year, reports written by Management on the status of compliance with safety, health, environmental and sustainability policies and on compliance with applicable regulations; • Receive and review, at least once a year, management reports on any material non-compliance with the Company's safety, health, environmental and sustainability policies or any material non- compliance with applicable regulations; • Review monthly management reports received by the Board of Directors that mention any occurrence of a safety, health or environmental incident that must be reported to the relevant regulatory authorities. If a CSSMA member deems it necessary, he or she may call a meeting of relevant staff to receive further information detailing the nature of the incident and describing the action taken to remedy it; • Review the Company's management of emergency response planning procedures on safety, health and the environment; and • Receive and review, at least once a year, the organizational, social or cultural barriers detected that could be inhibiting the natural diversity that would have occurred if these barriers did not exist. There is no policy implemented by the Company for the hiring by the Board of Directors of experts to advise it on accounting, tax, financial, legal or other matters. 3.4 MAIN EXECUTIVES Identification of the main executives As of December 31, 2023, the main executives of SQM are the following: Name Position Profession Chilena ID Appointment Date Ricardo Ramos R. CEO Civil Industrial Engineer Gonzalo Aguirre T. General Counsel Lawyer Pablo Altimiras C. José Miguel Berguño C. Carlos Díaz O. Executive Vice President Nitrates and Iodine Senior Vice President of Corporate Services Executive Vice President Lithium Gerardo Illanes G. CFO Ignacia López B. Natalia Pizarro G. Rodrigo Vera D. Public Affairs Manager Vice President of Human Recourses and Performance Vice President of Mining Operations 8.037.690-1 January 2019 13.441.419-7 September 2016 13.657.862-6 December 2021 10.903.992-6 December 2021 10.476.287-5 December 2021 13.904.120-8 October 2018 10.777.962-0 October 2019 Civil Industrial Engineer Civil Industrial Engineer Civil Industrial Engineer Civil Industrial Engineer Journalist Civil Engineer 14.167.897-3 March 2019 Civil Industrial Engineer 9.120.446-0 March 2020 3 OUR CORPORATE GOVERNANCE 37 Remuneration of main executives For the years 2023 and 2022, the total remunerations received by the main executives are the following: Year Number of Executives Fixed Remuneration (in millions of CLP) Variable Remuneration (in millions of CLP) Total Remuneration (in millions of CLP) 2023 2022 9 9 3,725 3,365 4,648 3,575 8,373 6,940 Compensation plans We maintain incentive programs for our employees based on individual performance, company performance and short-term indicators. We offer executives an annual and long-term bonus plan. Their incentives are based on achievement of objectives, individual contribution to the Company's operating results, and Company performance. As of December 31, 2023, we had a provision related to all incentive programs totaling US$62.0 million. We do not maintain any pension or retirement program for members of the Board of Directors or for our executives in Chile. Executive compensation plan according to financial goals This compensation plan is linked to the Company's fulfillment of specific financial goals. This compensation plan includes 41 Company executives, who are entitled to this benefit with a payment date during the first quarter of 2026 as long as they remain in the Company until the end of 2025. As of December 31, 2023 , the Company's obligation related to this compensation plan is ThUS$18,428. We have been informed that the following senior executives and directors own shares of SQM as of December 31, 2023: Name Antonio Gil N. Position Director Gerardo Illanes G. Vicepresidente de Finanzas y CFO Percentage of SQM’s outstanding shares <1% <1% José Miguel Berguño C. Vicepresidente Senior de Servicios Corporativos <1% 3.5 ADHERENCE TO NATIONAL AND INTERNATIONAL CODES The Company does not adhere to any Code issued by public or private organizations. Nevertheless, it has a corporate Code of Ethics and a Sustainability, Ethics, and Human Rights Policy, based on the United Nations Sustainable Development Goals (SDGs); the Principles of the International Council on Mining and Metals; the International Standard ISO 14001 (Environmental Management Systems); the International Standard ISO 50001 (Energy Management Systems) the applicable standards of the 3 OUR CORPORATE GOVERNANCE 38 International Finance Corporation (IFC) and the "Protect, Respect, and Remedy" framework of the United Nations Guiding Principles on Business and Human Rights, inspired—in turn—by the Universal Declaration of Human Rights, Convention 169 on Indigenous and Tribal Peoples of the International Labor Organization, to mention some guidelines on the subject. 3.6 RISK MANAGEMENT The risk management area is responsible for promoting the company's risk culture, managing the Business Risk Management Model, and providing methodological support to the different areas involved in the process. Its main responsibilities are: • To evaluate and monitor the activities developed by the business areas: identifying, evaluating, treating, monitoring, and communicating business risks and their associated controls. • To define an annual risk management work plan. This plan should consider the information and evaluation provided by the different areas involved in risk management, monitoring of the activities carried out by these areas, updating of the risk identification and evaluation, and training or dissemination activities. • To facilitate risk management training, mainly for areas that manage critical processes. • To ensure the efficient application of the risk management methodology, adhering to the organization's policies, standards, manuals, and procedures. • To facilitate and coordinate the identification, evaluation, treatment, and follow-up of critical risks with the business areas. • To provide methodological support to the different areas involved in risk management, regarding the implementation of the risk management policy and procedure. • To monitor that the corresponding responsible parties adequately implement the action plans for critical risks. • To periodically report to the Directors/Audit and Financial Risk Committee. This report shall contain, at a minimum, the management activities performed (including identification, evaluation, and action plans) with regard to the risks and critical processes. There is also an Internal Audit area, where the scope of activities includes, but is not limited to, objective examinations of evidence for the purpose of providing independent assessments to the Directors/Audit and Financial Risk Committee and senior management on the adequacy and effectiveness of the Company's processes, risk management, and controls. The audits performed by the Internal Audit area include verifying whether: • The actions of the Company's directors, officers, employees, and contractors comply with the Company's policies, procedures, and applicable laws and regulations. 3 OUR CORPORATE GOVERNANCE 39 • The processes and systems in place enable control and compliance with policies, procedures, laws, and regulations that could significantly affect the Company. • The information and the means used to identify, measure, analyze, classify, and report such information are reliable and of high integrity. • Resources and assets are acquired cost-effectively, used efficiently, and adequately protected. Internal Audit also provides the following services: • Risk management and control consulting, as required by senior management and not affecting the objectivity and independence of the function. • To evaluate the design and effectiveness of internal controls for issuing financial statements, reporting the results to the Chief Executive Officer and the Vice President of Finance, in order to comply with Section 302 of the Sarbanes-Oxley Act. The Audit and Risk Manager will report periodically to senior management and the Directors/Audit and Financial Risk Committee, regarding: • The purpose, authority, and responsibilities of the Audit and Risk Manager. • The Audit Plan and its development. • Internal Audit's compliance with the Standards, and action plans to address any significant breaches. • Significant risk exposures and control issues, including fraud risks, FCPA, governance issues, and other matters requiring the Committee's attention. • Results of audit work or other activities. • Resource requirements. • Any risk that may be assumed by senior management that is unacceptable to the Company. The Audit and Risk Manager also coordinates activities, where possible, and may rely on the work of other internal and external assurance and consulting service providers as needed. The audits may identify opportunities to improve the efficiency of risk management processes and controls. These opportunities are communicated to the appropriate level of senior management, the Chief Executive Officer and the Directors/Audit and Financial Risk Committee. Risk Management Model Based on the Corporate Policy on the matter, the company's Risk Management Model consists of a methodology that establishes a process under the principles and guidelines of the ISO 31000 standard and COSO ERM (Committee of Sponsoring Organizations of the Treadway). , which determine a set of coordinated activities to direct and control in a reasonable way the achievement of its objectives. The risk management process considers the following stages: 3 OUR CORPORATE GOVERNANCE 40 a) Identification b) Evaluation c) Treatment d) Monitoring e) Communication Risk assessment consists of determining two dimensions for each risk: the probability of occurrence and the impact it would generate on the Company if the risk materializes. The risk assessment is carried out on the basis of the inherent risk, to document what the impact and probability would be of not mediating with controls, or in the event that they do not operate satisfactorily, and then on the residual risk, that is, considering the measures of mitigation that the areas identify. Probability and impact are quantified from 1 to 5, with 1 being the lowest level. The impact can be: Negligible, Minor, Moderate, High or Very high, while the probability can be: Unlikely, Unlikely, Possible, Probable or Almost Certainty. If an unwanted event could have more than one type of consequence, the impact is determined by the highest consequence. On the other hand, the level of risk is determined through the weighting between impact and probability. Being a 5x5 matrix, there are 25 risk levels, which for simplicity are divided into 4 main categories: Extreme (red), Significant (orange), Medium (yellow) and Low (green). For the proper management of each risk, the Risk Owner(s) is defined. In addition to the risk assessment, the area identifies the Control Activities it has implemented for each risk. This allows the risk management area, together with the Control Owner, to identify the specific controls for each risk. Once the evaluation is completed, and the subsequent identification of controls is completed, the risk management area sends the risk matrix to each area for their management and control, including the identified controls. Independent of this update, each area is responsible for keeping its matrix updated and managing the correct application of controls. In addition, you must inform the risk management area in the event that an identified risk materializes or a significant change has occurred in the matrix. Risk factors The Company's operations are subject to certain risk factors that may affect SQM's business, financial condition, cash flows or results of operations. In addition to other information contained in this Annual Report, the risks described below and detailed in Annex 1 of this Annual Report should be carefully considered. These risks are not the only ones the company faces. Additional risks that are not currently known or that the company is aware of, but that is not currently considered to be material, may also affect business operations. Risks Related to our Business • Our inability to extend or renew the mineral exploitation rights relating to the Salar de Atacama concession, upon which our business is substantially dependent, beyond their current expiration date in December 2030 could have a material adverse effect on our business, financial condition and results of operations. 3 OUR CORPORATE GOVERNANCE 41 • Volatility of world lithium, fertilizer and other chemical prices and changes in production capacities could affect our business, financial condition and results of operations. • Our sales could be impacted by global shipping constraints. • Our sales to emerging markets and expansion strategy expose us to risks related to economic conditions and trends in those countries. • Our inventory levels may vary for economic or operational reasons. • New production of lithium, iodine, or potassium nitrate from current or new competitors in the markets in which we operate could adversely affect prices. • We have a capital expenditure program that is subject to significant risks and uncertainties. • High raw materials and energy prices could increase our production costs and cost of sales, and energy may become unavailable at any price. • Our reserve estimates could be subject to significant changes, which may have a material adverse effect on our business, financial condition and results of operations. • Chemical and physical properties of our products could adversely affect their commercialization. • Changes in technology or other developments could result in preferences for substitute products • We are exposed to labor strikes and labor liabilities that could impact our production levels and costs. • We are and might be subject to new and upcoming labor laws and regulations in Chile and may be exposed to liabilities and potential costs for non-compliance. • Lawsuits and arbitrations could adversely impact us. • We have operations in multiple jurisdictions with differing regulatory, tax and other regimes • Environmental laws and regulations could expose us to higher costs, liabilities, claims and failure to meet current and future production targets • A significant percentage of our shares are held by two principal shareholder groups who may have interests that are different from that of other shareholders and of each other. Any change in such principal shareholder groups may result in a change of control of the Company or of its Board of Directors or its management, which may have a material adverse effect on our business, financial condition and results of operations. • Tianqi is a significant shareholder and a competitor of the Company, which could result in risks to free competition. • Our information technology systems may be vulnerable to disruption which could place our systems at risk from data loss, operational failure, or compromise of confidential information. International trade tensions could have a negative effect on our financial performance. • • Heightened tensions in international relations with China could result in political and economic measures against Chinese-owned companies, which may adversely impact our business, financial condition, and results of operations. • Outbreaks of communicable infections or diseases, or other public health pandemics, such as the outbreak of COVID-19 impacted and may further impact the markets in which we, our customers and our suppliers operate or market and sell products and could have a material adverse effect on our operations business, financial condition and results of operations. If our stakeholders and other constituencies believe we fail to appropriately address sustainability and other environmental, social and governance (ESG) concerns it may adversely affect our business. • • Climate change and a global transition to a low carbon economy can create physical risks and other risks that could adversely affect our business and operations and adverse weather conditions or significant changes in weather patterns could have a material adverse impact on our results of operations. 3 OUR CORPORATE GOVERNANCE 42 Risks Relating to Financial Markets • Currency fluctuations may have a negative effect on our financial performance. • We may be subject to risks associated with the discontinuation, reform or replacement of benchmark indices. Risks relating to Chile • The new National Lithium Strategy announced by the Chilean government in April 2023 has created and may continue to create uncertainty in the Chilean lithium industry, which could have a material adverse effect on the performance of our business or the value of our shares and ADSs. • As we are a company based in Chile, we are exposed to political risks and civil unrest in Chile. • Changes to the Chilean Constitution could impact a wide range of rights, including mining rights, water rights, and property rights in general could affect our business, financial conditions and results of operations. • Changes in regulations regarding, or any revocation or suspension of mining, port or other concessions could affect our business, financial condition and results of operations. • Changes in water rights laws and other regulations could affect our business, financial condition and results of operations. • The Chilean Congress is considering a draft bill that declares lithium mining to be in the national interest, which if passed in its current form, could enable the expropriation of our lithium assets. • The Chilean government could levy additional taxes on mining companies, which may include lithium exploitation companies, operating in Chile. • New legislation affecting mining licenses could materially adversely affect our mining licenses and mining concessions. • Ratification of the International Labor Organization’s Convention 169 concerning indigenous and tribal peoples might affect our development plans. • Our operations and projects are subject to risks related to our relationships and/or agreements with local communities and laws on the rights of indigenous peoples.. • Chile has different corporate disclosure and accounting standards than those you may be familiar with in the United States. • Chile is located in a seismically active region. Risks Relating to our Shares and to our ADSs • The price of our ADSs and the U.S. dollar value of any dividends will be affected by fluctuations in the U.S. dollar/Chilean peso exchange rate. • Developments in other emerging markets could materially affect the value of our ADSs and our shares. • The volatility and low liquidity of the Chilean securities markets could affect the ability of our shareholders to sell our ADSs. • Our share or ADS price may react negatively to future acquisitions, divestitures, capital increases and investments. • ADS holders may be unable to enforce rights under U.S. securities laws. • As preemptive rights may be unavailable for our ADS holders, they have the risk of their holdings being diluted if we issue new stock. 3 OUR CORPORATE GOVERNANCE 43 • If we were classified as a Passive Foreign Investment Company by the U.S. Internal Revenue Service, there could be adverse consequences for U.S. investors. • Receipt of dividends and distributions by ADS holders may be limited by practical considerations and legal limitations, which may delay the payment and receipt of dividends and distributions by ADS holders. • Changes in Chilean tax regulations could have adverse consequences for U.S. investors. General risks factors: • Our measures to minimize our exposure to bad debt may not be effective and a significant increase in our accounts receivable coupled with the financial condition of customers may result in losses that could have a material adverse effect on our business, financial condition, and results of operations. • Quality standards in markets in which we sell our products could become stricter over time. • Our business is subject to many operating and other risks for which we may not be fully covered under our insurance policies. • Our water supply could be affected by geological changes or climate change • Any loss of key personnel may materially and adversely affect our business • We are subject to Chilean and international anti-corruption, anti-bribery, anti-money laundering and international trade laws. Failure to comply with these laws could adversely impact our business, financial condition and results of operations. • We are subject to risks related to the ongoing military conflict between Ukraine and Russia and it may have a material adverse effect on our business, financial condition and results of operations. Regarding risks related to the health and safety of consumers, SQM is a Company that does not sell its products to final consumers (it is a Business to Business (B2B) Company and not a Business to Consumer (B2C)). Without prejudice to the foregoing, the Company has procedures that ensure that the products it produces and markets comply with current regulations in all the countries where it operates and with respect to each of the areas described in Section 6.1, Legal or Regulatory Framework. Also please refer to Section 8.2 of this Report in the subsection Management of chemicals to protect safety and the environment, to see how we manage these risks. Also, please refer to Section 8.1 of this Report, Legal and Regulatory Compliance. Human Rights Risk Management In order to comply with the Human Rights Due Diligence commitments undertaken by the company and reflected in its Sustainability, Ethics, and Human Rights Policy, SQM commissioned a Human Rights Impact Assessment (HRIA) from a specialized law firm. This first HRIA followed the methodological standard developed by the Danish Institute for Human Rights, coupled with the reporting criteria of the Global Reporting Initiative (GRI) and based on the UN Principles on Business and Human Rights. The purpose of this survey was to identify, understand, evaluate, and take charge of any potential adverse effects of SQM's activities on the enjoyment of its main stakeholders' human rights (workers, communities surrounding the project, suppliers, etc.). This survey's baseline and findings were subsequently subject to an on-site participatory review process with the principal stakeholders, carried out by a consultant, in order to corroborate and/or modify the 3 OUR CORPORATE GOVERNANCE 44 initial findings and generate the controls, policies, and action and monitoring plans suitable for responding to these challenges. Based on the aforementioned inputs, SQM's Risk Management area proceeded to consolidate and unify the information to generate the Participatory Matrix that was in the Sustainability Committee of the second quarter of 2023. In the second half of 2023, a similar exercise was carried out at the Lithium Chemical Plant and the results are expected to be available within the first half of 2024. Role of the Board of Directors and Senior Management in Risk Management The Board of Directors oversees the supervision and development of the business risk management model through the Directors/Audit and Financial Risk Committee. The Vice-Presidencies are responsible for identifying, evaluating, quantifying, and communicating the risks associated with their activity and the defined goals, as well as for defining controls and risk treatment, each with defined responsibilities and deadlines, and for monitoring control and its principal risks. These processes are conducted following the risk management procedure for the Business. The Business Risk Committee supervises, analyzes, and evaluates the development of the Risk Management Model. This committee, together with the vice presidencies, defines the company's strategic risks. In addition, the Sustainability Committee monitors the main commitments and risks related to: Water Management, Emissions, Waste Management, Electric Power, and Communities. This committee is formed by the General Manager, the senior vice presidents and those responsible for the areas according to the topics discussed. Succession Plans The Company does not have a Succession Plan as such, but the Corporate Governance Policy defines that it is the Board's responsibility to annually identify potential replacements for the Chief Executive Officer and other senior executives of the Company, who possess the skills, knowledge, conditions, experiences, and vision necessary for each position and to ensure that there is a plan to replace the Chief Executive Officer and other senior executives in a timely manner, in the event of their unforeseen absence, minimizing any possible impacts on the Company. Salary Structure Review Salary structures and compensation and indemnification policies for the CEO and other senior executives are not subject to shareholder approval or review by outside parties. It should be noted, however, that the Board of Directors and its respective committees act in accordance with what is reasonably in the best interest of the Company and its shareholders. The Corporate Governance Policy establishes that the Directors/Audit and Financial Risk Committee's responsibilities include reviewing the compensation and remuneration plans of the chief executives, the Chief Executive Officer and the company's employees, as well as reviewing in detail the quarterly expenses incurred by the Chief Executive Officer. 3 OUR CORPORATE GOVERNANCE 45 Code of Conduct and Whistleblower Channel As mentioned above, the company's Code of Ethics establishes the standards to be followed by all employees in the performance of their duties. By complying with the Code, SQM ensures that work is being done in the right way with the right people and in a way that everyone can be proud of, creating value for all stakeholders. The Code is supported by policies, procedures, and related financial controls, which together are an important part of the Ethics and Compliance Program, based on a corporate culture of integrity and adherence to best practices. Violations of the Code of Ethics are reported through the formal support and reporting channels that are available to all SQM employees worldwide and also to third parties (shareholders, customers, suppliers, and business partners, among others). The corporate website and intranet have direct access to the whistleblower channel for people to access and make their respective reports. The formal channels are: website: http://www.SQM.ethicspoint.com In addition to encouraging employees to access the corporate Whistleblower Channel, there is also the possibility for them to consult directly with the Ethics and Compliance Management on different matters related to the program. All reports of concerns are kept confidential in accordance with SQM policies and procedures. Reports may also be made anonymously, where permitted by local law. Whistleblowers can know the status of their submission, if required. Anyone expressing concerns in good faith will be protected from retaliation. Retaliation can occur in many forms, including harassment, intimidation, demotion, or the assignment of unwanted tasks as a result of making a report in good faith. Retaliation against workers who report is, in itself, a violation of this Code. This will be investigated and, if proven, sanctioned. A good faith report is one in which the whistleblower believes that what they are reporting is true or that there is a strong possibility that misconduct has occurred or is occurring, and the report was not made maliciously. A report does not necessarily have to be substantiated to be made in good faith, but the whistleblower must believe that it is a genuine concern of possible misconduct. Regarding the use of the Whistleblower Channel, during 2023 a communication campaign was conducted to promote it by sending periodic emails to employees and placing posters in different parts of the facilities, among others. Complementing the above, it should be noted that the Code of Ethics is available on the Company's intranet platforms and is publicly accessible; new workers entering the company must complete the Compliance e-learning course; and for the rest of the workers, as the case may be, they can access each year the “Reinforcement of Ethics and Compliance Program” course for executive, supervisory and general roles. Likewise, the Ethics and Compliance Management carries out an annual training plan that includes an onboarding program for collaborators. Crime Prevention Model As explained in item 3.1, SQM has a Crime Prevention Model, which includes a set of policies, procedures, standards, and controls that constitute a preventive and monitoring process through different 3 OUR CORPORATE GOVERNANCE 46 control activities on the processes that are exposed to the risks of committing the crimes indicated in Law 20,393. The Model establishes the Prevention, Detection, and Response activities and the roles of each of the stakeholders involved in the CPM. This document sets out the activities that involve the company's Crime Prevention Officer, as well as the different support areas. During the year 2023, and by virtue of the legislative changes that incorporate Law 21,595 on Economic Crimes, the company has carried out a process of risk assessment and identification of controls associated with a new catalog of crimes stipulated in said legal body. In this way, it ensures that a program is established that is effective in preventing the commission of any crime that could affect the Company. As of today, the Company is constantly reviewing said CPM and in the process of recertification, considering the profound changes that the law itself has established in this regard. 3.7 RELATIONSHIP WITH STAKEHOLDERS AND THE GENERAL PUBLIC Regarding the units and channels of relations with interest groups identified in Section 6.3 of this Report, SQM has the Investor Relations area and the Communications area in the case of the press. Also through our social networks. In the case of Shareholders and Investors, their means of contact is email ir@sqm.com. Through this email, shareholders can clarify doubts on various business matters. Also, investors can find out everything that happens in the company through the portal especially focused on them on the website: https://ir.sqm.com/English/home/default.aspx In addition to strictly complying with the legal obligations related to market disclosures, SQM has a series of additional mechanisms that allow it to disseminate these relevant facts, as well as the Company's performance, to a wider public through press releases issued by the Communications unit. (See summary table on following page) At the same time, these units, together with SQM's Sustainability area, prepare the Annual Report and Sustainability Report and disseminate them to all stakeholders, along with other communication media, allowing stakeholders to evaluate the information reported on the Company's economic, social, and environmental performance. This feedback is given through surveys and consultations that are managed both via e-mail (sustentabilidad@sqm.com; ir@sqm.com) and social media platforms, as well as in person, in the case of the Sustainability Report, when it is presented to the communities in the area of influence of the Company's operations in various on-site meetings. These mechanisms as a whole provide valuable input and information for continuous improvement in the process of developing and disseminating topics of interest. Below are the main channels and forums for relations with SQM's stakeholders, as well as the frequency with which they are carried out: 3 OUR CORPORATE GOVERNANCE 47 Main Relationship Channels with Stakeholders Stakeholders How We Engage and Communicate Employees Daily interactions in the workplace/ Direct communication between supervisors and area managers and the workers reporting to them/ Regular union meetings, meetings between workers, management, senior vice-presidents and managers. Internal communication channels, such as data screens in common areas, newsletters, bulletin boards, intranet and mailings/ Key information is delivered on digital platforms such as: the website, email, Facebook, Instagram, LinkedIn, YouTube channel and the app “Mi SQM” (My SQM). Shareholders / Investors Board meetings, regularly issued information, direct contact with Investor Relations, financial reports, web page, site visits, shareholder meetings, meetings like SQM Day, provision of key information about the company through digital platforms such as: the website, e-mail, Facebook, Instagram, LinkedIn and our YouTube channel. Contractors and Suppliers Meetings with personnel from the supply and contracting departments, as well as operational managers and supervisors where services are provided/ Visits by the Supply Department to supplier facilities or offices/ Orientation courses, safety training/ Follow-up and ongoing contacts with service providers selling our products in order to guarantee deliveries/ Special programs for supplier training attended by SQM in the regions/ Meetings with trade associations attended by SQM/ Delivery of important information on digital platforms such as: the website, e-mail, Facebook, Instagram, LinkedIn and our YouTube channel. Customers Periodic, direct communication and visits with customers/ Site visits and surveys on products and operating standards/ Delivery of important information about the company through digital platforms such as: the website, e-mail, Facebook, Instagram, LinkedIn and our YouTube channel. Community Communication and regular meetings with SQM representatives, community leaders and members/ Site visits/ Involvement in local working groups and operational inspections alongside public agencies/ Community activities and festivities/ Daily interaction with programs developed in conjunction with the community or organizations/ Delivery of important information about the company through digital platforms such as: the website, e-mail, Facebook, Instagram, LinkedIn and our YouTube channel. Organizations and Institutions Meetings with participation by our representatives/ Meetings to support initiatives/ Technical meetings/ Visits to sites or areas of interest/ Participation in seminars, training, etc./ Delivery of key information for the company through digital platforms such as: the website, e-mail, Facebook, Instagram, LinkedIn and our YouTube channel. Innovation, Academic and Research and Development Centers Meetings with participation by our representatives/ Meetings to support initiatives/ Technical meetings/ Visits to sites or areas of interest/ Participation in seminars, training, etc./ Delivery of key information for the company through studies, publications promoted or supported by SQM and digital platforms such as: the website, e-mail, Facebook, Instagram, LinkedIn and our YouTube channel. Authorities Official or formal meetings/ Technical meetings/ Work meetings related to public and private initiatives/ Inspections / Delivery of information using official platforms, documents or e-mail. Media Contact with media through communications area/ Press releases, interviews or meetings/ Delivery of important information about the company through digital platforms such as: the website, e-mail, Facebook, Instagram, LinkedIn and our YouTube channel. The Company does not have a formal continuous improvement procedure to detect and implement possible improvements in the processes of preparation and dissemination of the disclosures that the Company makes to the market. 3 OUR CORPORATE GOVERNANCE 48 The Company does not have a formal procedure to disclose a matrix of competencies of the members of the Board of Directors. In any case, the Company does publish the curriculum vitae of the candidates for directors who are nominated by the shareholders before a shareholders' meeting at which directors must be elected. This information is made available to shareholders on the Company's website1. Since 2020, the Company has held its shareholder meetings remotely, which has allowed its shareholders to participate and exercise their right to vote in such meetings by remote means, as well as to be informed in real time of the resolutions adopted there. This system has been provided by the E-Voting company, which has been recorded in the minutes of each of the shareholder meetings from 2020 to date. These minutes are published on the Company's website and are available to the public on the website of the Commission for the Financial Market.2. In turn, the Company makes available to its shareholders a procedure or instructions to remotely access the shareholders' meetings, which is published on the Company's website along with the other information of each shareholder meeting.3. 1 See, for example, the information published for the ordinary shareholders' meetings for the years 2023 and 2022, on the Company's website: https://s25.q4cdn.com/757756353/files/doc_downloads/2023/04/24/candidate-relationships-and-biographies.pdf ; https://s25.q4cdn.com/757756353/files/shareholder_meetings/eng/2022/Candidate-Relationships-and-biographies.pdf 2 Please refer to the Company’s website and search for the Meeting minutes: https://s25.q4cdn.com/757756353/files/shareholder_meetings/eng/2023/05/acta- junta-ordinaria-sqm-2023_eng.pdf or in the Comisión para el Mercado Financiero (Chilean regulator), CMF at: https://www.cmfchile.cl/institucional/mercados/entidad.php?mercado=V&rut=93007000&grupo=&tipoentidad=RVEMI&row=AAAwy2ACTAAAAWdAAg&vi g=VI&control=svs&pestania=78&tipo_junta=O&tipo_documento=A 3 See https://ir.sqm.com/English/events-and-presentations/shareholder-meetings/default.aspx . 3 OUR CORPORATE GOVERNANCE 49 4. STRATEGY SQM is a global company that develops and produces diverse products for various industries essential to human progress such as health, nutrition, clean energy, and technology, through innovation and technological advancement. Our goal is to sustain our world leadership position in the lithium, potassium nitrate, iodine, and salts markets. • Securing access to the best assets related to our current businesses, expanding our global presence • Actively pursuing attractive minerals, allowing us opportunities for diversification to replicate and expand our current mining capabilities • Strengthening our operational, logistical, and commercial excellence, from end to end, while seeking to be cost leaders; and • Maintaining a conservative financial policy that allows us to successfully face economic cycles that could affect the markets where we sell. We are a dynamic company. In pursuit of our goals, we expect to acquire and develop projects and interests that are consistent with our existing and new businesses, either alone or with joint venture partners. We may also divest or sell interests we have acquired to deploy funds for other investments or other purposes in pursuit of our goals or to adjust risk or diversify our asset base. We are a company built and managed by a culture based on excellence, safety, sustainability, and integrity. We work every day to expand this culture by fostering talent attraction, retention, and development, as well as an inclusive work environment to ensure distinctive knowledge and innovation to sustain our business. We strive for safe and accident-free operations by promoting behaviors that promote the physical safety and psychological well-being of all those who work directly and indirectly with the Company. We position ourselves as leaders in sustainability and are committed to a sustainable future where we work consistently to responsibly manage natural resources, protect human rights, care for the environment, build close and trusting relationships with our neighboring communities, and create value. Within these communities, we support projects and activities with a focus on education, business development, and protection of the environment and historical heritage. We create value for our customers through established business models and the production and development of distinguishing products that respond to the specific needs of the industry and the market, constantly creating and providing a sustainable improvement in quality of life. We will continue to create value for all of our stakeholders through responsible natural resource management, sustainable expansion projects, and enhancement of our existing operations, with a focus on minimizing our environmental impacts by reducing our carbon, energy, and water footprints and working together with our shareholders, employees, customers, suppliers, and communities. Below is our strategy per business line: 4 STRATEGY 50 Specialty Plant Nutrition Our strategy in our specialty plant nutrition business is to: (i) leverage the advantages of our specialty products over basic type fertilizers; (ii) selectively expand our business by increasing our sales of higher- margin specialty plant nutrients based on potassium and natural nitrates, particularly soluble potassium nitrate and specialty blends; (iii) seek investment opportunities in complementary businesses to improve our product portfolio, increase production, reduce costs and add value to the marketing of our products; (iv) develop new specialty nutrient blends produced at our blending plants that are strategically located in or near our core markets to meet specific customer needs; (v) focus primarily on markets where we can sell our plant nutrients in soluble and foliar applications to establish a leadership position; (vi) further develop our global distribution and marketing system directly and through strategic alliances with other global or local producers and distributors; (vii) reduce our production costs through better processes and higher labor productivity to compete more effectively and (viii) supply a product with consistent quality in accordance with the specific requirements of our customers. Iodine and Derivatives Our strategy in our iodine business is to: (i) achieve and maintain sufficient market share in the iodine market to optimize the use of our available production capacity; (ii) encourage growth in demand and promote new uses of iodine; (iii) participate in iodine recycling projects through the Ajay-SQM Group (“ASG”); (iv) reduce our production costs through better processes and higher productivity to compete more effectively and (v) supply a product with consistent quality following our customers’ requirements. Lithium and Derivatives Our strategy in our lithium business is to: (i) strategically allocate our sales of lithium carbonate and lithium hydroxide; (ii) encourage growth in demand and promote new uses of lithium; (iii) selectively pursue opportunities in the lithium derivatives business through the creation of new lithium compounds; (iv) reduce our production costs through better processes and greater productivity to compete more effectively; (v) supply a product with consistent quality in accordance with the requirements of our customers; (vi) diversify our operations geographically and jurisdictionally; and (vii) diversify our asset base or adjust risk by acquiring new projects and interests (either alone or through joint venture partners), divesting existing projects or selling our interests in projects. Potassium Our strategy in our potassium business is to: (i) have flexibility to offer products in crystallized (standard) or granular (compacted) form in accordance with market requirements; (ii) focus on markets where we have logistical advantages and synergies with our specialty plant nutrition business and (iii) supply a product with consistent quality in accordance with the specific requirements of our customers. Industrial Chemicals Our strategy in our industrial chemicals business is: (i) maintain our leadership position in the industrial nitrates market; (ii) encourage demand growth in different applications, as well as explore new potential applications; (iii) position ourselves as a reliable long-term supplier for the thermal storage industry, maintaining close relationships with R&D programs and industrial initiatives; (iv) reduce our production costs through better processes and higher productivity to compete more effectively and (v) supply a product with consistent quality in accordance with the requirements of our customers. 5 OUR PEOPLE 51 4.1 TIME HORIZONS Items of property, plant and equipment are depreciated by distributing their cost over their estimated technical useful life on a straight-line basis, which is the period the Company expects to use them. When separate components of an item of property, plant and equipment have different useful lives, they are recorded as separate items and depreciated over their own useful lives. Useful lives are reviewed annually. The useful lives of items of property, plant, and equipment located in the Salar de Atacama are the lesser of their technical useful life and the remaining years to 2030. Specific items of mobile equipment are depreciated on the basis of operational hours. The principal useful lives used to depreciate property, plant and equipment are as follows in years: Clases de Propiedades Plantas y Equipos Vida o tasa mínima en años (corto plazo) Vida o tasa máxima en años (largo plazo) Vida o tasa promedio en años (mediano plazo) Mining assets1 Power generating assets Buildings Household goods and accessories Office equipment Transportation equipment Network and equipment communications Computer equipment Machinery, plants and equipment 5 5 4 4 5 6 4 4 3 10 16 25 15 10 20 12 11 24 8 8 13 8 6 9 7 7 11 Other fixed assets 1 Within the mining equipment there are SQM Australia exploration assets, which are amortized based on units produced. 20 3 9 4.2 STRATEGIC OBJECTIVES Our Strategy, how do we understand our approach? The approach of a responsible business strategy includes, by definition, sustainability in its design and operation. When we evaluate and analyze, we make the decision to commit to sustainability in the business, which is set out in our Sustainability, Ethics, and Human Rights Policy. Then, we define our strategic axes that respond to the materialization of our purpose. From this approach we organize business development proposals based on establishing targets and goals and linking them to the SDG targets that are integrated into these definitions. At the same time, we work to reduce our ecological footprint throughout our value chain, from our suppliers to our production and responsible consumption practices. We have set targets related to decarbonization, biodiversity conservation, and environmental impact reduction. Responsible action is part of our culture. This also includes respecting the interests of our employees, customers, investors, and the community. 5 OUR PEOPLE 52 In addition, our business has been marked by constant innovation challenges, which have become opportunities to strengthen the internal management of our business. Given the above, there are constant changes and adaptations. Our innovative, high-quality products help us contribute to solving global challenges and, at the same time, ensure our financial performance. Safety and ethics are fundamental drivers for a sustainable approach to our business, both for labor relations and for our stakeholders. We mitigate ethical, economic, social, and environmental risks by applying strong control measures. We strive to minimize our impact on the environment by applying safe and innovative production techniques, generating high environmental standards and strict quality management, which are key processes for our organization. Moreover, we aim to strengthen our company by recruiting, developing, and motivating talented employees. We closely follow new global trends and challenges. To understand the nature and complexity of the expected changes, we make use of the so-called scenario technique, which allows us to identify and incorporate aspects that are of strategic relevance. We also participate in dialogues and initiatives, share lessons learned and best practices with other organizations in our industry, and assess developments of cross-cutting concern to humanity. This allows us to minimize risks while taking advantage of new business opportunities. Our Sustainability Plan Our Sustainability Plan commits us to meeting new environmental, social, and governance requirements and expectations. We have developed a plan based on the United Nations Sustainable Development Goals, which is complemented by a series of initiatives to ensure that we live in harmony with the environment, the communities surrounding our operations, and our own employees. The plan has 3 work pillars, based on which we have set medium- and long-term goals in the areas of: water, carbon neutrality, waste management, ecosystem protection, contributing to sustainable industries, as well as the co-creation of value with communities and workers. Contributions to Sustainable Industries • To continue being a relevant player in the sustainable development of the world, with a high participation in key industries for human development (health, food, renewable energies, and sustainable mobility) that improve the quality of life of people around the world. • To build trust and credibility for years to come, enhancing a brand that is publicly associated with the world's other green industries. Our People • Establish a strong local presence and be a good neighbor. • Participate in sustainable value co-creation with communities over time. • Enhance local economies and the development of neighboring communities, contributing to the creation of shared social value. • All SQM employees are responsible community agents. • Through its operations, SQM ensures safe and inclusive working conditions while participating in local economies and the sustainable development of neighboring communities. Our Environment 5 OUR PEOPLE 53 • Improve the monitoring systems of the ecosystems that surround our operations in order to provide an even more timely response. • • Aim to reduce brine extraction by 50% by 2030, a process that began with a 20% reduction in extraction in November 2020. • Aim to reduce continental water consumption by 65% by 2040, starting with a decrease of 40% by 2030, as projected in 2020. • Aspire to be carbon neutral in all our products from the origin to the end customer by the year 2040 and in the case of lithium by the year 2030. • Creation of a corporate waste management system to promote a cultural change towards Sustainability. The first step is to measure, and then know how to reduce, also include those of your suppliers, workers, collaborators, and offices in Chile and the rest of the world. • SQM is committed to responsibly managing the natural resources used, tending to minimize their direct impact on flora and fauna, and working together with communities to support the care and protection of these ecosystems. SDG and Business Strategy Goals 5 OUR PEOPLE 54 At the center SDG Integration into the Business Strategy SDG 12 y SDG 13 (12) Responsible consumption and production and (13) Climate action: We work towards responsible consumption and production as part of our purpose. We develop products to contribute to meeting society’s needs, and we do so based on challenging ecological footprint reduction goals. • 12.2 By 2030, achieve the sustainable management and efficient use of natural resources. 12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment.. 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse. Some of the SDG targets that we support: • 13.2 Integrate climate change measures into national policies, strategies and planning. 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning. Algunas de nuestras Acciones/Avances: Solar power use at our operations. • Responsible Care Certification. • Certification from the International Fertilizer Association. • • Waste management system at the corporate level. • Recycling plans at operations and in offices. • Air Decontamination Plan in communities production sites. • Development and implementation of the Sustainability, Ethics and Human Rights Policy. • Carbon footprint measurement (GHG). • • • Obtaining IRMA 75 Standard for Salar de Atacama operations. Establishment of greenhouse gas reduction targets based on science (SBTi). Sustainability talks. Outcome SDG Integration into the Business Strategy The results that we are seeking to produce through responsible business activities are related to our purpose: (3) Good health and wellbeing: One of our goals is contributing to the development of innovative solutions in order to improve access to and the quality of healthcare and thus move towards wellbeing for all people. SDG 3, SDG 7 y SDG 15 (15) Life on land: We protect our ecosystems, improving our production processes and developing products that contribute to the preservation of biodiversity. (7) Affordable and clean energy: We understand the opportunity that we have to contribute key solutions for generating and storing NCREs with affordable and effective solutions. We also contribute to the production of foods, providing solutions for the efficient use of soil and water resources. 5 OUR PEOPLE 55 Some of the SDG targets that we support: 3.9 By 2030 substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination. 7.2 Increase substantially the share of renewable energy in the global energy mix by 2030. 15.1 By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements. Some of our actions/examples of our progress: • Compliance with Operational Risk Management System. • • • • • • Certification of the Occupational Health and Safety Management System under the criteria of ISO Training on Occupational Health and Safety. Implementation of photovoltaic plants. Solar power use at our operations. Implementation of Environmental Monitoring Plan in the Salar de Llamara. Implementation of Environmental Monitoring Plan in the Salar de Atacama. 45001:2018. • Certification of the Energy Management System under the criteria of the ISO 50001:2018 Standard • Dental Health Programs, medical specialty operations in the communities, and mammography programs with FALP, in communities in the Tarapacá and Antofagasta Regions. Articulators and Facilitators SDG Integration into the Business Strategy These are levers for establishing good, responsible and viable business. They sustain our ethical practices and teamwork, which promote and catalyze the development and innovation proposals that yield our products and technologies. (5) Gender equality: for SQM, inclusion, diversity and gender equity are fundamental for the sustainable generation of value and comprehensive development. We work with various programs to achieve gender equality and empower the role of women inside and outside the company. (9) Industry, innovation and infrastructure: R+D+I is one of the axes of our strategy. It is a cross-cutting practice related to how and what we do. We maintain practices of innovation, development and research as one of the critical processes in our business. We are responsible for uncovering and integrating our customers’ new needs and global challenges. We are continually changing and improving our processes and proposals in order to respond to these needs. SDG 5, SDG 9, SDG 16 y SDG 17 (16) Peace, justice and strong institutions: This is a cross-cutting process that is part of the strategic operational decisions that we make on a daily basis. It builds the context in which we engage with all of our stakeholders. We are constantly improving and strengthening our business integrity practices. We establish ethics and transparency as the foundations of having a viable business. (17) Partnerships for achieving our goals: We could not develop our business without the support and strengthening that we achieve through our partnerships. An active connection to the community helps us to understand our customers’ needs and challenges and to promote effective solutions. This is also how we perform our role as an entity that contributes to the following areas: Social and economic: We make local development investments through partnerships with public- and private sector organizations based on our social investment focus areas. Science-based development: We support research programs through academic and public production development organizations, strengthening acceleration programs for innovative enterprises. We also contribute to the public good through scientific publications and patents. 5 OUR PEOPLE 56 Some of the SDG targets that we support: Some of our actions / examples of our progress: 5.1 End all forms of discrimination against women and girls everywhere. 5.5 Ensure the full and effective participation of women and equal leadership opportunities at all decision-making levels in political, economic and public life. 9.2 Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries. 9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities. 16.5 Substantially reduce corruption and bribery in all their forms. 16.b Promote and enforce non-discriminatory laws and policies for sustainable development. 17.16 Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries. 17.17 Encourage and promote effective public, public- private, and civil society partnerships, building on the experience and resourcing strategies of partnerships. • Atacameña Women's Alliance (AMA as of its Spanish acronym), composed of indigenous Atacameño women from the territory of Atacama and representatives of SQM salar. 20% of the company's staff is female. As an aspiration, reach 25% of female participation by 2025. • • Apprenticeship program. • Work with local suppliers. • Development of and compliance with the Code of Conduct for Business Partners. • Responsible Sourcing Policy for SQM suppliers. • Responsible Supply Policy Implementation. • Participation in the Más Proveedores program in Tarapacá. • Solar power use at our operations. • Compliance with the Code of Ethics. • • • Development of and compliance with the Sustainability, Ethics and Human Rights Policy. • Compliance with the Diversity and Inclusion Policy. • Development of Inclusive Labor Practices. • Development of the Apprentices Program. • Development of the Internal Mobility Program. • Alliances with: Global Battery Alliance, the Global Compact, Acción Empresas and other entities. • • Development of working groups with communities. • Development and implementation of social programs with communities. Implementation of and compliance with the Ethics and Compliance Program. Implementation of and compliance with the Crime Prevention Model. Participation in HuellaChile. Our main policy to generate positive impact on different objectives of social interest is the Sustainability, Ethics and Human Rights Policy, which is based on the Sustainable Development Goals (SDG) of the United Nations, the Principles of the International Council on Mining and Metals, International Standard ISO 14001 Environmental Management Systems, International Standard ISO 50001 Energy Management Systems, the applicable standards of the International Finance Corporation (IFC) and the “protection, respect and remedy” framework of the Guiding Principles on Business and Human Rights of the United Nations, and inspired by the Universal Declaration of Human Rights, Convention 169 on Indigenous and Tribal Peoples of the International Labor Organization, among others. Our policy considers the areas of the Company and the business such as: ethics and corporate governance; workers; value chain; environment and sustainable development; and communities. 5 OUR PEOPLE 57 4.3 CAPITAL EXPENDITURE PLANS We regularly review different opportunities to improve our production methods, reduce costs, increase production capacity of existing products and develop new products and markets. Additionally, significant capital expenditures are required every year in order to sustain our production capacity. We are focused on developing new products in response to identified customer demand, as well as new products that can be derived as part of our existing production or other products that could fit our long- term development strategy. Our capital expenditures in Chile have been mainly related to the organic growth and sustainability of our business, including the construction of new facilities and the renovation of plants and equipment. In 2023, we also worked on the expansion of our lithium carbonate and lithium hydroxide capacity in Chile, which reached 200,000 metric tons and 30,000 metric tons respectively, by the end of 2023. We also continued with expansions related to the mining and production facilities of nitrates and iodine in Chile, with our operations at Pampa Blanca delivering additional nitrates and iodine production volumes. Our capital expenditures for the years ended December 31, 2023, 2022 and 2021 were as follows: (In milions of US$) 2023 2022 Capital expenditures………………. 1.103,6 905,2 2021 464,7 2023 During 2023, we had total capital expenditures of US$1,103.6 million. Our 2023 capital expenditure was primarily related to: • Capacity expansion projects related to the completion of the increase of our lithium carbonate production in Chile from 180,000 metric tons per year to 210,000 metric tons per year by the end of 2024; • Capacity expansion of lithium hydroxide production in Chile from 30,000 metric tons per year • • to 100,000 metric tons per year by 2025; Investment in Mt. Holland lithium project in Western Australia, completion of mine and concentrator capacity and construction of refinery to produce 50,000 metric tons of lithium hydroxide in 2025. Investment in the development of new caliche projects in Pampa Blanca and Nueva Victoria to increase the iodine and nitrate production capacity; and • General maintenance of all production facilities, among others. 2022 During 2022, we had total capital expenditures of US$905.2 million. Our 2022 capital expenditure was primarily related to: • Capacity expansion projects related to the completion of our increase of our lithium carbonate production in Chile from 120,000 metric tons per year to 180,000 metric tons per year by the end of 2022; • Completion of capacity expansion of lithium hydroxide production in Chile from 21,500 metric tons per year to 30,000 metric tons per year; 5 OUR PEOPLE 58 • Investment in our new 50,000 metric ton Mt. Holland lithium hydroxide mine and refining plant in Western Australia; • Acquisition of the 20,000 metric ton lithium hydroxide refining plant in China; and • Investment in the development of new caliche projects to optimize the iodine and nitrate production plants and carry out general maintenance of all production facilities, among others. 2021 During 2021, we had total capital expenditures of US$464.7 million. Our 2021 capital expenditure was primarily related to: • Capacity expansion projects related to the completion of our increase of our lithium carbonate production in Chile from 70,000 metric tons per year to 120,000 metric tons per year by the end of 2021 and investment in further lithium carbonate production capacity expansion from 120,000 to 180,000 metric tons per year in 2022; • Completion of capacity expansion of lithium hydroxide production in Chile from 13,500 metric tons per year to 21,500 metric tons per year and commencement of a further expansion of lithium hydroxide production capacity in Chile from 21,500 metric tons per year to 30,000 metric tons per year in 2022; Investment in our new 50,000 metric ton Mt. Holland lithium hydroxide facility in Western Australia; • • Optimization projects related to iodine production plants in Nueva Victoria; and • General maintenance of all production units in order to ensure the fulfillment of production and sales targets. We believe that our capital expenditures for 2024 could reach approximately US$1.3 billion focused on the increase of our production capacity, primarily related to lithium hydroxide capacity and nitrates and iodine capacity expansions in Chile, construction of a lithium hydroxide refinery in Australia as part of our Mt. Holland lithium project in Western Australia, as well as the maintenance of our production facilities in order to strengthen our ability to meet our production goals. We expect our installed capacity of lithium carbonate in Chile to reach approximately 210,000 metric tons during 2024, while we will continue with our lithium hydroxide capacity expansion to reach 100,000 metric tons in 2025. We will also continue to invest in the construction of our Mt. Holland lithium hydroxide refinery in Western Australia and will complete the acquisition of the lithium hydroxide production plant in China to produce from lithium sulfate. We expect our capital expenditure for the 2024-2025 period to reach approximately US$2.4 billion, including maintenance. As we continue with lithium capacity expansion in Chile, we expect to invest approximately US$1.4 billion to increase our lithium capacity to 210,000 metric tons by 2024, including 100,000 metric tons of lithium hydroxide capacity by 2025. Our investment in the Mt. Holland project and exploration projects in Australia during this period is expected to be close to US$340 million. Nitrates and iodine capacity expansion will require a total capex of approximately US$700 million, including maintenance. Maintenance capex during this period is expected to be approximately US$150 million per annum 5 OUR PEOPLE 59 5. OUR PEOPLE People are the center and the basis of our activities. This is why we foster respectful labor relations, creating the necessary conditions for each person to develop his or her capabilities. At SQM we value meritocracy, and we favor equal opportunities, inclusion and diversity, non-discrimination, and respect for human rights and individual and collective labor rights recognized by the main instruments of the International Labor Organization, as well as by the applicable legislation in each of the countries where we operate. To build our human team, we have done important work to adapt our selection and recruitment systems to include diverse groups of people, ensuring the inclusion of women in the mining industry. We have people from different professions and trades, operators, technicians, men and women of different ages and nationalities who contribute with their qualities, experience, and capabilities. Our Diversity and Inclusion Policy commits us as a company to: • Promote an internal culture of diversity, non-discrimination, and respectful treatment. • Promote equal opportunities, valuing and evaluating people based on their merits, performance, and efforts to generate value. • Adopt conditions and jobs, when required, to facilitate the gradual incorporation of people with disabilities. • Continuously challenge selection and evaluation processes to facilitate meritocracy and attract, develop, and retain talented people. • Build heterogeneous work teams, with people who share a common purpose in SQM and who permanently seek excellence. • Expand female participation at all levels and in all areas of the organization, and increase local employment around our operations. As of December 31, 2023, SQM's workforce in Chile and worldwide consists of 7,682 people. 80.7% of our employees work in the Company's operations in the north of Chile, mainly in the TarapacA and Antofagasta Regions. For us, human capital—its technical and intellectual capabilities—are the foundation of our business approach to achieve our development, innovation, and product quality goals. Experience and competence is of high value for us to implement our business plan. Some important figures to highlight regarding our staff: 20% of Company's employees are women Of the total number of people in leadership positions (senior management, management, and head of division) un 18% are women 64% of the workforce works in the Antofagasta region and 17% in the Tarapacá region Un 94% of the workforce has an indefinite-term contract 5 OUR PEOPLE 60 5.1 LABOR ENDOWMENT 5.1.1 Number of People by Gender We have a staff of 7,682 SQM workers, 20.3% of whom are women. Much of our workforce is found in the positions "operators", "other professionals" and "other technicians". Direct Employees by Position Category and Gender in 2023 Position Category Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Total Male 16 162 583 2.718 39 43 4 1.360 1.199 6.124 Female 2 34 145 251 47 81 3 852 143 1.558 Total 18 196 728 2.969 86 124 7 2.212 1.342 7.682 5.1.2 Number of People by Nationality We have a workforce made up of 88.2% Chilean nationality, followed by Chinese nationality with 2.22%. We have a diverse staff, where we have people of 24 different nationalities. Direct Employees by Position Category, Gender, and Nationality in 2023, table 1 Position Category Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Gender Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Chile China Mexico Venezuela Bolivia Belgium Country/Nationality 16 2 130 32 548 116 2.494 217 4 3 37 72 1 1 1.158 693 1.135 123 0 0 4 0 3 4 10 0 9 14 0 1 0 0 59 32 25 7 0 0 9 1 8 8 68 11 0 0 3 1 2 2 30 17 3 4 0 0 1 0 6 2 11 2 0 0 0 1 0 0 24 27 6 2 0 0 0 0 0 1 42 3 0 0 1 0 0 0 4 11 5 1 0 0 5 0 5 2 2 0 7 12 0 2 0 0 11 20 1 0 5 OUR PEOPLE 61 Male Female Subtotal Total 5.523 1.259 6.782 110 58 168 123 44 167 48 34 82 52 16 68 31 36 67 Direct Employees by Position Category, Gender and Nationality in 2023, table 2 Position Category Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Subtotal Total Gender Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Country/Nationality Colombia Spain Peru 0 0 5 0 1 0 28 6 0 0 0 2 0 0 10 3 9 2 53 13 66 0 0 1 1 5 4 15 0 1 6 0 0 0 0 14 12 1 0 37 23 60 Southafrica 0 0 2 0 2 0 20 3 3 1 0 1 0 0 5 5 0 0 32 10 42 0 0 0 0 0 1 12 6 0 0 1 1 0 0 10 1 10 4 33 13 46 USA Ecuador 0 0 0 0 3 2 5 0 10 6 1 0 0 0 2 6 0 0 21 14 35 0 0 1 0 1 2 5 1 1 0 0 0 1 0 6 7 2 0 17 10 27 Direct Employees by Position Category, Gender and Nationality in 2023, table 3 Position Category Senior Management Managers Division Head Operators Sales Force Administrator Gender Male Female Male Female Male Female Male Female Male Female Male Female 5 OUR PEOPLE Australia Holland 0 0 2 0 0 1 0 0 0 0 0 0 Country/Nationality South Korea 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 2 0 0 0 0 0 Brazil Italy Japan 0 0 0 0 0 1 1 2 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 2 0 0 62 Auxiliary Other Professionals Other Technicians Subtotal Total Male Female Male Female Male Female Male Female 0 0 13 5 0 0 15 6 21 0 0 4 2 2 0 8 2 10 0 0 4 2 0 0 4 5 9 0 0 1 2 0 0 3 5 8 0 0 2 3 0 0 4 3 7 Direct Employees by Position Category, Gender, and Nationality in 2023, table 4 Position Category Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Subtotal Total Gender Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Germany 0 0 0 0 0 1 0 0 1 0 0 0 0 0 1 1 0 0 2 2 4 Country/Nationality Argentina India France Paraguay Cuba 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 2 0 2 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 2 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 2 0 2 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 2 0 0 1 4 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 5.1.3 Number of People by Age Range We have a young workforce, with 82.5% of employees between 18 and 50 years old 5 OUR PEOPLE 63 Direct Employees by Position Category, Gender and Age Range in 2023 Position Gender <30 years old Age Range 30-40 years old 0 0 53 7 226 69 994 109 15 23 15 26 1 1 643 420 498 50 2.445 705 41-50 years old 10 1 54 17 190 48 647 42 10 9 5 17 1 0 281 139 280 26 1.478 299 51-60 years old 6 1 38 6 104 14 460 20 9 5 4 21 0 0 124 44 162 16 907 127 61-70 years old 0 0 13 4 29 3 138 2 1 3 5 4 1 1 34 11 42 4 263 32 0 0 1 0 32 11 477 78 4 7 13 13 1 1 276 238 213 47 1.017 395 1.412 3.150 1.777 1.034 295 >70 years old Total 16 0 2 0 162 3 34 0 583 2 0 145 2 2.718 251 0 39 0 47 0 43 1 81 0 4 0 0 3 2 1.360 852 0 4 1.199 0 143 14 6.124 0 1.558 14 7.682 Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Subtotal Total Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female 5.1.4 Years of Service Direct Employees by Position Category, Gender and Years of Service in 2023 Years of Service Position Gender <3 years 3-6 years 6-9 years 9-12 years >12 years Total Senior Management Managers Division Head Operators Sales Force Male Female Male Female Male Female Male Female Male Female 2 0 44 9 183 52 1.059 165 10 22 1 0 28 8 128 34 545 65 12 9 2 0 12 1 67 8 415 12 3 4 4 0 16 4 81 15 356 4 6 4 7 2 62 12 124 36 343 5 8 8 16 2 162 34 583 145 2.718 251 39 47 5 OUR PEOPLE 64 Administrator Auxiliary Other Professionals Other Technicians Subtotal Total Male Female Male Female Male Female Male Female Male Female 19 30 1 2 774 539 429 70 7 19 1 1 278 167 278 27 2.521 1.278 889 330 3.410 1.608 5 9 0 0 84 46 212 7 800 87 887 7 10 0 0 111 47 142 23 723 107 5 13 2 0 113 53 138 16 802 145 43 81 4 3 1.360 852 1.199 143 6.124 1.558 830 947 7.682 5.1.5 Number of People with Disabilities Direct Employees with Disabilities by Position Category and Gender in 2023 Position Category Senior Management Gerencia Managers Operarios Division Head Administrativo Operators Otros Profesionales Sales Force Total Men N° Women N° Total N° 0 0 7 12 0 3 0 12 8 42 0 0 0 1 0 0 0 1 0 2 0 0 7 13 0 3 0 13 8 44 5.2 TYPES OF EMPLOYMENT CONTRACTS Out of our workforce, 97% has an indefinite-term contract and the remaining 3% has a fixed-term contract. We do not have any employment regimes per specific task, per mining site or per hour payment 5 OUR PEOPLE 65 Direct Employees by Position Category, Gender and Contract Type in 2023 Position Category Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Subtotal Total Gender Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Employment Contract Indefinite-Term 16 2 162 34 580 145 2,612 235 39 46 43 77 4 3 1,324 817 1,169 135 5,949 1,494 7,443 Fixed-Term 0 0 0 0 3 0 106 16 0 1 0 4 0 0 36 35 30 8 175 64 239 Total 16 2 162 34 583 145 2,718 251 39 47 43 81 4 3 1,360 852 1,199 143 6,124 1,558 7,682 % of Direct Employees by Position Category, Gender and Contract Type in 2023 Position Category Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Subtotal Total Gender Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Employment Contract Indefinite-Term 0.2% 0.0% 2.1% 0.4% 7.6% 1.9% 34.0% 3.1% 0.5% 0.6% 0.6% 1.0% 0.1% 0.0% 17.2% 10.6% 15.2% 1.8% 77.4% 19.5% 96.9% Fixed-Term 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.4% 0.2% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 0.5% 0.5% 0.4% 0.1% 2.3% 0.8% 3.1% Total 0.2% 0.0% 2.1% 0.4% 7.6% 1.9% 35.4% 3.3% 0.5% 0.6% 0.6% 1.1% 0.1% 0.0% 17.7% 11.1% 15.6% 1.9% 79.7% 20.3% 100.0% 5 OUR PEOPLE 66 5.3 WORKING HOURS Approximately 29.3% of our employees work the standard hours and 70.7% of our employees work various shift schedules (shifts of 10x5, 4x3, 7x7, 14x14). We do not have formal employment contracts with adaptable and/or remote working hours. Direct Employees by Position Category, Gender and Working Hours in 2023 Position Category Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Subtotal Total Gender Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Standard Working Hours Shifts Part-time Total 16 2 162 34 259 108 166 22 39 47 25 55 4 3 683 497 81 44 1,435 812 2,247 0 0 0 0 324 37 2,551 229 0 0 18 26 0 0 676 355 1.118 98 4,687 745 5,432 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 1 2 1 3 16 2 162 34 583 145 2,718 251 39 47 43 81 4 3 1.360 852 1.199 143 6,124 1,558 7,682 % of Direct Employees by Position Category, Gender and Working Hours in 2023 Gender Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Position Category Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Subtotal Total 5 OUR PEOPLE Standard Working Hours Shifts Part-time 0.2% 0.0% 2.1% 0.4% 3.4% 1.4% 2.2% 0.3% 0.5% 0.6% 0.3% 0.7% 0.1% 0.0% 8.9% 6.5% 1.1% 0.6% 18.7% 10.6% 29.3% 0.0% 0.0% 0.0% 0.0% 4.2% 0.5% 33.2% 3.0% 0.0% 0.0% 0.2% 0.3% 0.0% 0.0% 8.8% 4.6% 14.6% 1.3% 61.0% 9.7% 70.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total 0.2% 0.0% 2.1% 0.4% 7.6% 1.9% 35.4% 3.3% 0.5% 0.6% 0.6% 1.1% 0.1% 0.0% 17.7% 11.1% 15.6% 1.9% 79.7% 20.3% 100.0% 67 5.4 WAGE EQUITY 5.4.1 Equity Policy Our company is made up of talented people with the capabilities to contribute to the development of our activities. We do not have plans or targets to reduce wage inequalities; however, our goal is to provide our employees with the opportunities and conditions necessary for each of them to develop and contribute in an environment of cordiality, equality, respect, and openness. To this end, in our Sustainability, Ethics, and Human Rights Policy, in our Equality, Diversity, and Inclusion Approach, we have defined the following development axes: • Ensuring no salary discrimination, hiring, promoting, and making employment decisions based on objective criteria related to the person's aptitude for the position. • Development of activities or programs aimed at target audiences that require improvement or preparation. • Blind recruitment, evaluating applicants according to their competencies and requirements for the position, with no discrimination of any kind. 5.4.2 Wage Gap The wage gap presented was calculated using the gross hourly wage of each labor category considering workers active as of December 31, 2023. People working abroad and the subsidiary Ajay are excluded from the calculation. The gaps reported are mainly due to the fact that the data represent Group companies with very different lines of business, and therefore, the roles of their employees and their job evaluations differ. In the case of operators, their salaries are established in the collective bargaining agreements and are the same for each position for both men and women. Each position has a different remuneration according to its evaluation. Moreover, we meet the gender gap measured in the Chilean Norm n°3262 certification process. Salary Gap by Position Category, Mean and Median Position Category Average Salary Gap Median Salary Gap Senior Management Managers Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians 58% 85% 99% 90% N/A 99% 100% 92% 90% 70% 82% 104% 95% N/A 104% 100% 82% 88% N/A: It does not apply because it includes people who work in Chile and have the same sex. 5 OUR PEOPLE 68 5.5 WORKPLACE AND SEXUAL HARASSMENT The company has a procedure for investigating sexual harassment, which is contained in the RIOHS (Internal Regulations for Order, Hygiene and Safety), as well as a procedure for investigating and sanctioning workplace harassment contained in the same regulation. As part of the above procedures, the company has set up a website for reporting complaints related to the ethics hotline, including complaints regarding workplace and sexual harassment (website: www.SQM.ethicspoint.com), Chile, Belgium, USA, Mexico, Spain, South Africa, Ecuador, China (Shanghai), China (Beijing). In case of complaints, these can be received through the specified channels or directly by the human resources teams deployed in all locations in the country, which are analyzed and investigated within a period not exceeding 30 days. In 2023, the following complaints of harassment were filed both at SQM and at the Labor Directorate (DT): Subject Labor harrasment Sexual harrasment Total N° of cases 4 2 6 Labor Directorate (DT) Conclusions The result was reported to the DT in all cases 1 case was investigated directly by the DT 3 cases not proven; 1 case proven (dismissal) 1 case proven; 1 case not proven During 2023, the Ethics and Compliance Management carried out a training program in person, online and through e-learning on Management matters, with special emphasis on the Corporate Code of Ethics. This training material incorporated aspects related to workplace and sexual harassment for the Company's workers, of which 78.5% and 76.9% of Supervisors and Executives, respectively, were trained. 5.6 OCCUPATIONAL SAFETY Workplace health and safety are material aspects of managing mining operations. For this reason, SQM has a permanent, systematic process to keep workers protected and safe in each of the tasks they perform in its operations. In addition to the role played by the Company in this important matter, the Chilean State has a regulatory function, enacting and enforcing regulations to protect and ensure worker health and safety. The Chilean Government, acting through the Ministry of Labor and Social Security, the Ministry of Health, and Sernageomin, oversees occupational health and safety standards at mining sites; in particular, Sernageomin supervises mining projects, among other tasks, and has exclusive powers to enforce standards related to environmental conditions and the health and safety of persons engaged in mining-related activities. As mentioned above, SQM has a Sustainability, Ethics, and Human Rights Policy that sets out its commitment to the sustainable development of its business, as well as to guaranteeing Occupational Health and Safety and respect for the people who work at its facilities, the community, and its customers. To this end, it has a Risk Prevention and Occupational Health Management System capable of identifying, developing, and sustaining behaviors and conditions that guarantee the care of all those who work at the Company's sites, projects, and offices. This policy applies to all SQM operations. 5 OUR PEOPLE 69 As part of the operationalization of its Occupational Health and Safety (OHS) commitments, SQM has developed an Integrated Occupational Health and Safety System, the purposes of which are as follows: • To establish obligations and responsibilities in order to adopt all necessary measures to effectively protect and safeguard the life and health of all employees working at SQM, including contractors and subcontractors. • To define and establish standards to control all risks inherent to the processes, in order to define and set the minimum specifications for Occupational Health and Safety Management. • To safeguard the facilities, equipment, machinery, and all critical materials related to SQM's operations and processes. As part of the implementation of the Occupational Health and Safety management system, SQM has developed an Operational Risk Management System (SISGRO), which contains a series of activities grouped into 13 elements: 1.- Leadership 2.- Behavior- Based Prevention 3.- Health and Safety Joint Committee 4.- Incident reporting and investigation 5.- Field Activities 6.- Legality 7.- Control of Contractors 8.- Personal Protection Elements 9.- Occupational hygiene and health 10.- Emergency Plans 11.- Training 12.- Order and cleanliness 13.- Management System Audit All these SISGRO activities are integrated into the Operational Excellence Program, called M1, which allows us to homologate the tools of the M1 Lean system to risk management, thus obtaining better results. The following are the main indicators of SQM's Occupational Health and Safety management, which correspond only to management in Chile. We are updating our internal processes so that this information is available soon. Regarding the Occupational Safety goals for the "Accident Rate per 100 workers", "Occupational Illness Rate per 100 workers" and "Average Days Lost due to accidents", the information is not available, since the targets have yet to be defined as requested by General Character Norm 461. We expect to define these targets in the medium term. It should be noted that additional OHS indicators corresponding to Sustainability Accounting Standards Board (SASB) metrics are reported in item 8.2 of this Report. 5 OUR PEOPLE 70 Occupational Safety Goals by Type of Indicators Type of Indicator Accident rate per hundred workers Fatality rate per hundred thousand workers Rate of Occupational Diseases per hundred workers Average days lost due to accidents 1N/A: Not available Occupational Safety Goals by Type of Indicators Tipos de Indicadores Accident rate per hundred workers Fatality rate per hundred thousand workers Rate of Occupational Diseases per hundred workers Average days lost due to accidents Fatality rate (or mortality) Lithium Potassium Divison N/A1 0 N/A N/A Nitrates Iodine Division N/A 0 N/A N/A Lithium Potassium Divison 0.61 0 0 69 Nitrates Iodine Division 0.27 0 0.08 89 Type of Employees Lithium Potassium Divison Nitrates Iodine Division Direct Employees Contrators SQM Total Note: Calculation factor for 200 thousand hours. 5.7 POSTNATAL LEAVE 0 0 0 0 0 0 The Company complies with current legislation in each country in which it operates, granting pre- and postnatal licenses as appropiate. The Company does not have a postnatal policy that provides a longer leave period than is legally in force. The data reported correspond only to Chile. Data for the countries where we operate is not available; we are working internally on our internal systems so that this information is available in the medium term. It is worth mentioning that the difference in women between those eligible and those who used the normal and/or parental postnatal is mainly due to the fact that there are women who left prenatal in 2022 and took normal and/or parental postnatal in 2023 and that there are women who will leave postnatal in 2024. Those women who: • They used their prenatal in 2022 and continued with postnatal in 2023, • They used their prenatal in 2023 and continued with postnatal in 2023, and • They used their prenatal in 2023 and will continue with postnatal in 2024. Direct Employees eligible to make use of the Postnatal by Position Category, Gender and Country in 2023 Position Category Senior Management Managers Gender Male Female Male Female Chile 0 0 2 1 5 OUR PEOPLE 71 Division Head Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Subtotal Total Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female 9 3 72 15 0 0 1 2 0 0 36 35 31 7 151 63 214 Number and Percentage of Employees who used the Postnatal (normal and parental) by Position Category and Country in 2023 Category Position Senior Management Managers Division Head Operators Sales Force Administrators Auxiliary Other Professionals Other Technicians Total Men Women N° 0 2 9 72 0 1 0 36 31 151 % 0.0% 0.9% 4.2% 33.6% 0.0% 0.5% 0.0% 16.8% 14.5% 70.5% N° 0 1 2 15 0 2 0 32 5 57 % 0.0% 0.5% 0.9% 7.0% 0.0% 0.9% 0.0% 14.9% 2.3% 26.6% Note: in the case of men, the 5-day postnatal period is reported. Table 1 shows people eligible to use postnatal care. In the case of men, all those men who received the birth bonus were chosen as eligible; In the case of women, all those who made use of their prenatal, normal postnatal and parental postnatal care were considered eligible. Table 2 shows the workers who made use of the normal and parental postnatal period. In the case of men, all those who made use of the birth bonus are assumed to have made use of the 5 legal postnatal days; In the case of women, women with pre- and postnatal cases between the years 2022 and 2024 are considered as described in the points indicated above. Average Days Used by the Own Staff for making use of the Postnatal by Position Category, Gender and Country in 2023 Category Position Senior Management Managers Division Head Gender Male Female Male Female Male Chile 0 0 5 84 5 5 OUR PEOPLE 72 Operators Sales Force Administrator Auxiliary Other Professionals Other Technicians Average Days Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female 84 5 89 0 0 5 88 0 0 5 87 5 84 5 87 Note: It is worth mentioning that the categories above the average 84 days are mainly due to the fact that women used the 18 weeks allowed by law as parental postnatal. SQM does not have formalized objectives to promote parental co-responsibility. 5.8 TRAINING AND BENEFITS SQM employees receive ongoing training on relevant topics, in line with their functions, to support their professional development and performance excellence. During the 2023 period, training reached a total of 156,458 hours. At the company level, the average number of training hours per employee reached 20 hours. The women in our company completed 25,618 hours of training, which represents 16.4% of the total training hours. The training was concentrated on Operators, who completed 56,738 hours of training, followed by Other Professionals, with 41,705 hours of training, and Other Technicians with 34,951 hours of training. On the other hand, in the Management category, 25.7 hours of training per employee were reached and in the Other Technicians category, 26.0 hours of training per employee. 6,746 workers were trained, which represents 88% of the Company's workforce as of December 31, 2023. ThUS$1,446 were invested in training, an amount that considers company and SENCE costs. Training represents 0.02% of the Company's annual income. Average Training Hours Total Company in 2023 Position Category Training Hours Average Hours of Training per Employee Senior Management Managers Division Head Operator Sales Force Administrator Auxiliary Other Professionals Other Technicians Total 99 3,219 18,699 56,738 133 914 0 41,705 34,951 156,458 5.5 16.4 25.7 19.1 1.5 7.4 0.0 18.9 26.0 20.4 5 OUR PEOPLE 73 Note: average training hours are calculated based on the number of employees as of December 31, 2023. Average Training Hours Women in 2023 Position Category Training Hours Average Hours of Training per Employee Senior Management Managers Division Head Operator Sales Force Administrator Auxiliary Other Professionals Other Technicians Total 56 720 4.020 3.753 114 490 0 14.558 1.097 25.618 28,0 21,2 27,7 15,0 2,4 6,0 0,0 17,1 13,3 16,4 Note: average training hours are calculated based on the number of employees as of December 31, 2023. Average Training Hours Men 2023 Position Category Training Hours Average Hours of Training per Employee Senior Management Managers Division Head Operator Sales Force Administrator Auxiliary Other Professionals Other Technicians 43 2.499 14.679 52.985 19 424 0 27.147 33.044 2,7 15,4 25,2 19,5 0,5 9,9 0,0 20,0 27,6 Total Note: average training hours are calculated based on the number of employees as of December 31, 2023 130.840 21,4 Principales Programa de Capacitación Name of the Programs Description of the Programs No. of Participants Legal Certification Accredit for 4 years the personnel that handles mobile equipment in all the company's tasks. Emergency Response Team Strengthen knowledge and techniques for the Emergency Response Teams from all localities Management Specialty Deliver the necessary knowledge to the workers and workers so that they can fulfill their tasks. Risk Prevention Topics associated with everything related to caring for people. 1.264 1.977 3.793 24.097 Development Skills Training programs in adaptive skills, strategic alignment or team strengthening. 1.837 Languages Strengthen the English language for those people whose position requires it. 49 5 OUR PEOPLE 74 It is worth mentioning that we have an internal learning platform called “SQM Learn” that is available Benefits We care about our workers, their welfare, and that of their families, so we have an area in the company exclusively dedicated to overseeing the benefits we provide to our workers. The area is responsible for their monitoring and coordination, so that they are available to every member of the organization in a timely and effective manner. The benefits provided are for those who have a permanent contract; some of them are provided for in the legislation in force, while others are company-specific or optional for employees. There are also benefits that are contained in each collective bargaining agreement, depending on the interests of the unions and their composition. Our benefits: • Life insurance for the worker in case of natural, accidental death or disability • Supplementary health insurance • Catastrophic health insurance • Dental insurance • Agreement with clinics to care for workers or their loads with receipt letters. • Scholarships for children of workers with outstanding performance for higher education studies. • Undergraduate and postgraduate study scholarships for workers with outstanding performance. • Celebration of commemorative dates in offices and worksites: Father's Day, Mother's Day, Women's Day, Secretary's Day, Mining Day, and Labor Day. • Christmas box for the worker and his family. • Agreements with gyms and telephone companies to have preferential plans. • Present for the birth of a child for workers with an indefinite contract. • Christmas gift for children and/or charges from 0 to 12 years old. • Birthday gift for all workers with a fixed-term or indefinite contract • Annual income review in the month of September, based on the comparative study of remunerations established by other companies in the comparable sector. • Group Voluntary Pension Savings Agreement (APVG) a monthly contribution is made by the company in the form of Agreed Deposit to encourage savings for workers' pensions. • Compensation for all events with different characteristics depending on the role. • Bonus for National Holidays and Christmas. • Special vouchers for schooling, mortuary assistance, marriage and birth • Death and marriage permits to carry out tests such as mammography, prostate and change of residence. 5.9 SUBCONTRACTING POLICY Through different internal policies and documents such as the Code of Ethics, the Code of Conduct for Business Partners, the Sustainability, Ethics and Human Rights Policy, the Responsible Sourcing Policy, the Purchasing Procedure, the Service Contracting Procedure, among others; SQM establishes the guidelines that are taken into consideration when selecting contractor and subcontractor companies and/or any other business partner such as: suppliers, distributors, agents, consultants, representatives, intermediaries, joint business partners and any other third party. 5 OUR PEOPLE 75 Additionally, we are committed to complying with all laws, rules and regulations of the countries where we operate, acting with the highest standards of integrity. Our objective is to build honest, clear, fair and lasting relationships with all our business partners associated with the company or any of its SQM subsidiaries around the world. Also, we seek to extend our commitments to sustainability, good labor practices and human rights to our supply chain with a view to promoting responsible and sustainable sourcing. Therefore, we commercially and contractually urge our suppliers to protect the health and safety of their workers, to respect their labor rights and human rights, and to protect the environment. To this end, we have progressively incorporated into our evaluations the criteria of sustainability and compliance with adequate working conditions, in the continuous monitoring and risk assessment of our suppliers, also incorporating into our purchasing decisions for inputs and services criteria associated with our regulatory documents. On the other hand, we have an Operational Risk Management System (SISGRO) that allows us to verify that service provider companies (contractors and subcontractors) comply with all legal provisions in force in our country for their good performance. The Contract Bases establish the accident rates that must be met by those companies that wish to provide services in SQM, which must be “in or under” the ranges established for economic activity. The obligation is also established for any company to establish a Risk Prevention Program aligned with SQM's Comprehensive Occupational Health and Safety Management System. Along these same lines, periodically, we carry out a control of labor variables, to measure compliance with labor and pension obligations of all contracting companies. External companies are controlled in terms of people's health and safety, basic sanitary and environmental conditions in the workplace, health and safety management system, constitution and operation of joint committees and compliance with labor legislation. In addition, coordination meetings are held between the principal's professional administrator, its prevention department and a representative of each contractor and subcontractor, the first of which is at the beginning of each contract. SQM's Controls for Contractors and Subcontractors • That they be advised by an Expert in Occupational Risk Prevention, according to the number of workers they have. • That they constitute their own Joint Committee. • That the Joint Committees operate as provided for by law. • That the Joint Committees send their committee meeting minutes to the Technical Administrator of the contract. • That worker's representatives be invited to participate in training activities and meetings of the Site Joint Committee. • That they have drawn up and delivered their internal regulations to their workers. • That they inform their workers of their occupational hazards. • That their employees have and effectively use Personal Protective Equipment. Responsible Sourcing Policy This Policy establishes criteria for responsible sourcing, which our suppliers shall progressively incorporate in their organizations in order to ensure a human rights-compliant supply chain. The Policy is structured based on the 5 pillars of the Sustainability, Ethics, and Human Rights Policy: (i) Ethics and 5 OUR PEOPLE 76 Corporate Governance; (ii) Employees; (iii) Value Chain; (iv) Environment and Sustainable Development; and (v) Communities. The criteria to be met by SQM's suppliers to ensure responsible sourcing throughout its supply chain are established for each pillar. Responsible Sourcing Policy Compliance Criteria Ethics and Corporate Governance • Expressly commit to the fundamental human rights and business pillars of "protect, respect, and remedy". • Fully comply with anti-corruption laws when working on behalf of SQM. • Ensure that processes and supply chains are free of minerals from conflict zones. • Ensure that no direct or indirect funding or benefits are provided to armed groups in countries at to in https://www.oecd.org/daf/inv/mne/OECD-Due-Diligence-Guidance-Minerals. guidelines, according published conflict OECD zones • Combat money laundering, terrorist financing, and non-state armed groups. The requirements of our SQM Code of Ethics must also be considered. Workers • Reject outright all forms of child labor. • Expressly commit to the eradication of forced labor or any other type of modern slavery. • Avoid wage discrimination by hiring, promoting, and making employment decisions based on objective criteria. • Conduct a blind recruitment process, evaluating applicants according to their competencies and requirements for the position, with no discrimination of any kind. • Have a retrenchment plan or policy in place. • Guarantee and promote the freedom and fundamental rights of workers. • Respect workers' right to privacy and personal information. • Have an anonymous, confidential, and non-retaliatory whistleblower channel, available to all workers and managed by an independent company specializing in this area. • Train managers and executives on the prevention of workplace harassment and harassment • culture. Implement an operational risk prevention and occupational health management system based on international standards, with a view to eliminating work-related deaths and injuries. • Continuously train personnel to ensure a safe working environment and safe working conditions. • Promote and exercise control in operations and facilities to ensure that they are alcohol- and drug-free workplaces. Value Chain • Disseminate this Policy to company managers. • Undergo evaluation by SQM. • Ensure the quality of processes and products/services through adequate risk management and analysis. • Maintain permanently updated information on the products used and/or produced and their potential effects on health and safety. Environment and Sustainable Development • Comply with environmental regulations. • Have an impact management system in place to minimize and mitigate potential environmental impacts in a timely manner. 5 OUR PEOPLE 77 • Ensure the responsible and efficient use of natural resources. Communities • Unrestricted respect for human dignity and the fundamental rights of individuals. • Identify social impacts and risks on communities that may be affected by the Company's operations. • Promote, as required by the regulations in force, citizen participation and provide transparent and timely information regarding our projects, as well as periodically reporting on environmental issues. • Promote citizen participation with indigenous relevance and prior, free, informed, and good faith consultation with the communities potentially affected by projects, as required by the legislation in force and when pertinent. • Comply with all such obligations it has undertaken with the communities. We encourage our suppliers to progressively comply with the responsible sourcing criteria set out in this Policy within their company and to implement it throughout their supply chains. 5 OUR PEOPLE 78 6. OUR BUSINESS 6.1 INDUSTRIAL SECTOR SQM is an integrated producer and marketer of specialty plant nutrients, iodine and derivatives, lithium and derivatives, potassium fertilizers and industrial chemicals. The Company's products are based on the development of high quality natural resources that allow SQM to be a cost leader, supported by a specialized international commercial network with sales in more than 100 countries. It should be noted that according to the Sustainable Industry Classification System (SICS), SQM belongs to the Chemical Substances industry. Nature of the Company’s products SQM estimates that it is the world's leading producer of lithium, iodine and potassium nitrate. The Company also produces specialty plant nutrients, lithium and iodine derivatives, potassium chloride, potassium sulfate and certain industrial chemicals (including solar salts and industrial nitrates). SQM's products are sold in more than 100 countries through its worldwide distribution network, with 98% of sales made abroad during the 2023 period. The Company's products are currently mainly derived from mineral deposits found in northern Chile. Thus, SQM develops mining and processes caliche and brine deposits. The caliche ore in northern Chile contains the only known deposits of nitrate and iodine in the world and is the world's largest commercially exploited source of natural nitrate. The brine deposits of the Salar de Atacama, a salt depression in the Atacama Desert in northern Chile, contain high concentrations of lithium and potassium, as well as significant concentrations of magnesium sulfate and boron. From the caliche ore deposits, SQM generates a wide range of nitrate-based products used for specialty plant nutrients and industrial applications, as well as iodine and iodine derivatives. In the Salar de Atacama, brines rich in potassium, lithium and sulfate are extracted to produce potassium chloride, potassium sulfate, lithium chloride solutions and bischofite (magnesium chloride). The Company produces lithium carbonate and lithium hydroxide at its plant near the city of Antofagasta, Chile, from solutions extracted from the Salar de Atacama. Also, starting in the second half of 2023, SQM began producing lithium hydroxide from its refining plant in China from lithium sulfate sourced from the Salar de Atacama. Towards the end of 2023, the Company commenced production of spodumene concentrate from the Mt. Holland project, located in Perth, Australia. Information on the Company's results is disclosed on the basis of six operating segments, as required by IFRS/IFRS: specialty plant nutrients, iodine and derivatives, lithium and derivatives, industrial chemicals, potassium and other products and services. Specialty plant nutrients are premium fertilizers that enable farmers to improve yields and the quality of certain crops. Iodine and its derivatives are used primarily in the X-ray contrast medium, biocide industries and in the production of polarizing film, which is an important component of liquid crystal display ("LCD/LED") screens. Lithium and its derivatives are mainly used in batteries, greases and frits for the production of ceramics. Potassium chloride is a commodity fertilizer that the Company produces 6 OUR BUSINESS 79 and sells worldwide. Industrial chemicals have a wide range of applications in certain chemical processes such as glass production, explosives, ceramics, solar thermal use and metal treatment. In addition, SQM complements its portfolio of plant nutrients through the purchase and sale of other commodity fertilizers. For the year ended December 31, 2023, we had revenues of $7,467.5 million, gross profit of $3,075.1 million and profit attributable to controlling interests of $2,012.7 million. Our market capitalization at December 31, 2023 was approximately US$16.9 billion. The following table presents the percentage breakdown of the Company's revenues for 2023, 2022 and 2021 according to its operating segments: Specialty Plant Nutrition Iodine and Derivatives Lithium and Derivatives Potassium Industrial chemicals Others Total Total (US$ millions) 2023 12% 12% 69% 4% 2% 0% 100% 2023 11% 7% 76% 4% 2% 0% 100% 2021 32% 15% 33% 15% 5% 1% 100% 7.467,5 10.710,6 2.862,3 Competition faced by the entity in the industrial sector Within the industrial sector to which SQM belongs, the Company faces competition from other manufacturers of chemical products similar to those produced and marketed by SQM. Details of the Company's main competitors are presented by their respective markets in Section 6.2 of this Report. REGULATORY OR LEGAL FRAMEWORK Standards in Chile at a general level SQM is subject to a wide range of laws, decrees, regulations, standards and governmental oversight that are generally applicable to companies engaged in business in Chile, including labor, social security, public health, consumer protection, tax, environmental, antitrust and securities laws. Such legislation also includes regulations to ensure sanitary and safety conditions in manufacturing plants. The Company conducts its mining operations pursuant to exploitation and exploration concessions granted under applicable Chilean legislation. The exploitation concessions essentially grant a perpetual right (with the exception of the rights related to SQM's operations in the Salar de Atacama that have been leased to the Company until 2030) to conduct mining operations in the areas covered by such concessions, provided that the annual mining patents associated with such concessions are paid. Exploration concessions allow exploration to verify the existence of mineral resources in the lands covered by them for a specific period and subsequently request the corresponding exploitation concession. Pursuant to Law No. 16,319, the Company has an obligation to the Chilean Nuclear Energy Commission ("CCHEN") in connection with the exploitation and sale of lithium from the Salar de Atacama, which prohibits it from being used for nuclear fusion purposes. In addition, CCHEN has imposed cumulative limits on the tonnage of lithium authorized to be sold, among other conditions. 6 OUR BUSINESS 80 SQM also has water rights conferred by the respective administrative authority that allow it to have a water supply from rivers and wells near its production facilities, which are sufficient to meet current operational requirements. See Section 3.6, Risk Management of this Annual Report. SQM operates the Tocopilla port facilities for the shipment of products and reception of raw materials in accordance with the maritime concessions granted by the respective administrative authority. Such concessions are normally renewable, provided that such facilities are used as authorized and the associated annual fees are paid. In 2005, Law No. 20,026 established a tax or royalty to be applied to mining activities carried out in Chile. In 2010, amendments were made to this Law and taxes were increased. On February 24, 2020, Law No. 21,210 was published, which "Modernizes Tax Legislation". As a result of these reforms, open corporations, such as SQM, are subject to the general regime. The corporate tax rate applicable to the Company was increased to 27% in 2018. In addition, SQM is subject to the Labor Code and also to the Subcontracting Law No. 20,123, which are supervised by the Labor Directorate, Sernageomin and the National Health Service. Furthermore, the Company is subject to Law No. 20,393 which establishes the criminal liability of legal entities for crimes such as (a) money laundering, (b) financing of terrorism, (c) bribery and (d) forcing employees to comply with sanitary restrictions ordered by local authorities, among others. Potential sanctions for violations of this law may include (i) fines, (ii) loss of certain tax benefits within a certain period, (iii) temporary or permanent prohibition against the organization from executing contracts with governmental entities and (iv) dissolution of the company. Other regulatory frameworks with which SQM must comply are the Securities Market Law and Law 18,046 on Corporations, which regulate corporate governance. Specifically, this law regulates, among other things, requirements for independent directors, disclosure of obligations to the public and the CMF, as well as regulations regarding the use of internal information, independence of external auditors and processes for analyzing transactions with related companies. On June 21, 2022, Law No. 21,455 was published in the Official Gazette, which establishes a legal framework to face the challenges derived from climate change and to comply with the international commitments of the State of Chile in this matter. Law No. 21,455 amends the Chilean Corporations Law by obliging open corporations registered in the Securities Registry to periodically provide information to the CMF regarding the impact of their activities on the environment and climate change. Law No. 21,521 was sanctioned by the President of the Republic on December 22, 2022 and published in the Official Gazette on January 4, 2023. The purpose of this Law is to promote competition and financial inclusion in the provision of financial services through innovation and technology. Law No. 21,521 regulates the following financial services: (i) crowdfunding platforms; (ii) alternative systems for the transaction of financial instruments or securities; (iii) credit advice; (iv) investment advice; (v) custody of financial instruments; (vi) routing of orders; and (vii) intermediation of financial instruments. The Law also amends the Chilean Corporations Law by increasing to 2,000 (or such greater number as determined by the Financial Market Commission) the number of shareholders that a closely-held corporation must have in order to acquire the obligation to register its shares in the Securities Registry and, therefore, become an open corporation. In addition, Law No. 21,521 amends the Securities Law by establishing a simplified regime for debt securities, which will be detailed by the CMF. 6 OUR BUSINESS 81 There are currently no significant legal or administrative proceedings pending against the Company, except for those indicated in Section 8.1 of this Report. Safety, Health and Environmental Standards in Chile SQM's operations in Chile are subject to both national and local regulations related to safety, health and environmental protection. In Chile, the main regulations applicable to the Company in these matters are the Mining Safety Regulation, the Sanitary Code, the Regulation on Basic Sanitary and Environmental Conditions in the Workplace, the Subcontracting Law, the Law on General Bases of the Environment and Law No. 16,744 of the Labor Code regarding work-related accidents and occupational diseases. The Norms on Occupational Accidents and Occupational Diseases and their complementary Regulations, together with the Mining Safety Regulations, protect workers and the surrounding communities from hazards to their health and safety. The Occupational Health and Safety Standards, together with SQM's Internal Mining Safety Regulations, establish guidelines for maintaining a workplace with adequately controlled health and safety risks. In November 2011, the Ministry of Mining enacted Decree No. 20,551 which "Regulates the Closure of Mining Sites and Facilities". This law came into effect in November 2012 and required all mining sites to submit or update their closure plans as of November 2014, which SQM complied with for all of its sites. The main requirements of the law are related to the execution of measures to obtain the physical and chemical stability of the mine site and its facilities, as well as the protection of life, health, safety of people and the environment, along with the estimated cost. to implement such plans. Site closure plans are approved by Sernageomin, and the corresponding financial guarantees are subject to approval by the CMF. In both cases, SQM received the necessary approvals and the respective guarantees are maintained and updated according to the useful life of each mining site. During 2020, updates to the closure plans were presented and submitted in accordance with the deadlines indicated by Sernageomin. In 2021, the updates of the Pedro de Valdivia and Tocopilla sites were approved. Likewise, the process continued in accordance with the comments received. During 2022, Sernageomin approved the updates of the closure plans for the Salar de Atacama Lithium Chemical Plant, Coya Sur, Nueva Victoria and Orcoma mines. Finally, during 2023, the closure plan updates for the Pampa Blanca and María Elena sites were approved. In addition, over time new environmental rules and regulations have been enacted that have required minor adjustments or modifications to operations for full compliance. SQM is equally committed to both complying with all applicable environmental regulations and to continuously improving its environmental performance through its Environmental Management System ("EMS"). It should be noted that SQM has voluntary qualifications such as Ecovadis; international certifications such as Responsible Care from the Chilean Chemical Industries Association; Protect & Sustain from the International Fertilizer Association; ISO 14001, ISO 45001 and ISO 50001; and the IRMA (Initiative for Responsible Mining Assurance) Audited Standard to promote responsible mining. In 2021 Puerto Tocopilla was certified in Responsible Care, obtaining on that occasion level 2. In addition, during 2022 the Nueva Victoria mine was recertified, obtaining as a result level 1. It should be noted that the Protect&Sustain certification applies to the operations of Coya Sur, Salar de Atacama, Antofagasta, Santiago and Puerto Tocopilla. In terms of ISO management systems, the Port of Tocopilla obtained ISO 14001 certification in January 2022. We completed the ISO 14001 and 45001 certification process at the Salar de Atacama and our Lithium Chemical Plant. During 2023, we completed the ISO 14001 and 45001 recertification of our 6 OUR BUSINESS 82 management systems at the Salar de Atacama and our Lithium Chemical Plant and the ISO 50001 implementation process at the Salar de Atacama, Nueva Victoria and Coya Sur operations to support the decarbonization goals associated with energy. management systems. In 2023, the Port of Tocopilla was certified by EcoPorts, a leading environmental initiative for the European port sector. In line with our sustainability objectives, during 2022-2023 we continued with the IRMA assessment process and completed the on-site certification audit (phase 2) at the Salar de Atacama operation. In September 2023, our Salar de Atacama lithium mining operations achieved IRMA 75, the highest score to date. As a result of our participation in the DJSI assessment during 2023, we were accepted into the DJSI World and Emerging Markets indices, two years ahead of our internal target, maintained our inclusion in the DJSI Mila and Chile indices, and were included in the Sustainability Yearbook 2024. We also completed the CDP assessment for water in which we achieved a B rating category, a level above the world average and the chemical industry average (category C). SQM has submitted and will continue to submit environmental impact studies and statements for its projects to governmental authorities whenever it is necessary to obtain environmental authorization to maintain and increase production capacity. Specific regulations for mining operations in Western Australia Our operations in Australia are subject to a wide range of laws and regulations imposed by local and federal governments and regulatory bodies applicable to companies doing business in Australia. Tax regulations in Australia are governed by federal laws, such as income tax and goods and services tax, and are administered by the Australian Taxation Office. In addition, there are also some state-specific regulations for projects located in Western Australia (WE), including labor laws, occupational health and safety laws, payroll taxes, state mining royalties (payable on product extracted and sold) and environmental laws administered by different government departments. For SQM's Australian projects, specific laws and regulations of both the Australian federal government and the Western Australian state government apply. In Australia, the government owns the land and the rights to extract minerals from the land and allows parties to apply for tenure to explore or mine the land. SQM (directly or through joint ventures) has obtained from the WA government the mineral tenure right to conduct its exploration and mining operations in Australia. The Mining Act 1978 (WA) ("WA Mining Act") and the associated Mining Regulations 1981 (WA) govern exploration and mining on Western Australian land. Mining tenements under the WA Mining Act include mining leases (which grant the right to conduct mining operations in the areas covered by such concessions, provided annual concession fees are paid and expenses are met), exploration licenses (which allow companies to explore for mineral resources on the land covered for a specified period, and to subsequently apply for a corresponding mining lease) and miscellaneous licenses and general purpose leases, (for ancillary mining activities such as overhead infrastructure and groundwater extraction, among others). The granting of a mining lease under the WA Mining Act and the conditions imposed are at the discretion of the Minister of Mines and Petroleum. The right to explore usually carries with it an obligation to spend a specified amount of money on exploration or to undertake certain exploration activities. SQM's operations are subject to both state and federal environmental laws and regulations, which may involve obtaining environmental approvals and licenses to conduct exploration and mining operations. The Environment Protection and Biodiversity Conservation Act 1999 (Cth) (the "EPBC Act") is the 6 OUR BUSINESS 83 centerpiece of the Australian Government's environmental legislation. It provides a legal framework to protect and manage flora, fauna, ecological communities and heritage sites of national and international significance. Under the EPBC Act, new projects may require federal government approval if they have, will have or are likely to have a significant impact on "matters of national environmental significance." The Australian Government Department of Climate Change, Energy, Environment and Water manages the referral and assessment process under the EPBC Act. At the state level, SQM is subject to the Environmental Protection Act of 1986 (WA) "(EPA Act"). Under the EP Act, SQM is required to prevent, control and mitigate pollution and environmental damage and ensure the conservation and protection (as appropriate) of land subject to SQM's tenure. If a proposal is likely to have a significant impact on the environment, it must be referred to the Western Australian Environmental Protection Authority to determine whether an environmental assessment is required. The Western Australian Department of Mines, Industry Regulation and Safety (DEMIRS) ensures the responsible development of Western Australia's mineral, petroleum and geothermal resources. This includes DEMIRS along with the Western Australian Department of Water and Environment Regulation (DWER), which regulates the mining industry to ensure environmental compliance and the implementation of environmental best management practices in accordance with obligations imposed by the EPA Act and the WA Mining Act. A recent update to Western Australia's health and safety requirements has resulted in the Work Health and Safety Act 2020 (WA), the Work Health and Safety (General) Regulations 2022 (WA) and the Work Health and Safety (Mines) Regulations 2022 (WA). ) (collectively, "WHS Act"). The WHS Act updates the former Mining Safety and Inspection Act 1994 (WA) and related regulations and now extends personal responsibilities to company directors or persons running a business or undertaking ("PCBU") to comply with occupational safety and health obligations. Under the WHS Act, PCBUs have a primary duty of care for the health and safety of workers while on the job (this also includes statutory positions such as senior site executives and exploration managers). The most significant change in the WHS legislation is the requirement for operating companies to have a Mine Safety Management System that includes requirements addressing health monitoring, construction work, emergency management, fitness for work, risk management, employee training and assurance activities. In Australia there have been a number of changes to federal labor laws and more are on the horizon. These include amendments to the Fair Work Act 2009 (Cth) and the Sex Discrimination Act (Cth) through the changes "Closing the loopholes" and "Respect at Work". Changes relevant to "Closing the Loopholes" include (i) prohibition of discrimination against employees who have suffered family and domestic violence, (ii) changes to "same work, same pay" changes that provide employees (or their representatives) the ability to apply for a " regulated labor hire agreement order" to require a labor hire provider to pay its employees no less than what they would be paid under the host employer's business agreement, (iii) criminal offenses for intentional wage theft (including steep fines and prison sentences), and (iv) enhanced rights of shop stewards in the workplace. The Respect@Work changes introduce an obligation on employers to eliminate (i) workplace sexual harassment, sex discrimination and harassment on the basis of sex; (ii) conduct that amounts to subjecting a person to a hostile work environment on the basis of sex; and (iii) certain acts of victimization. There is a particular focus on this issue in the Western Australian mining industry in light of the state government report "Enough is Enough: Sexual Harassment of Women in the FIFO Mining Industry" released in September 2022. Some of the changes have already come into effect, and others will commence throughout 2024 and early 2025. We also continue to monitor the progress of further changes 6 OUR BUSINESS 84 to "Close the Loopholes" and the introduction of the "right to disconnect" from work, which is expected later this year. The Aboriginal Heritage Act 1972 (WA) ("AH Act") and the Native Title Act 1993 (Cth) ("NTA Act") govern obligations relating to Aboriginal heritage and native title when undertaking activities on Australian land. The AH Act protects and manages Aboriginal heritage by requiring approval for activities that may affect or cause damage to Aboriginal heritage (such as archaeological and ethnographic sites that are important to Aboriginal people), even if native title has lapsed. The NTA provides a procedure under which native title claims can be brought in the Federal Court and regulates all actions, including the granting of mineral estates, that affect native title rights. Prior to undertaking activities on land in Western Australia, SQM must verify Aboriginal heritage. Under the AH Act, if an Aboriginal heritage site is identified, there is a permitting and approvals regime for disturbing or destroying Aboriginal heritage sites. Under Section 18 of the AH Act, the Minister may give consent for a tenured party (on land where Aboriginal heritage has been identified) to impact Aboriginal sites, i.e. by undertaking mining activities. The Australian Foreign Investment Review Board (FIRB), a non-statutory advisory body established in 1976, which reviews foreign investment proposals and advises the Treasurer and the Government on the national interest implications of a proposal in accordance with Australia's foreign investment policy (i.e., the Foreign Acquisitions and Takeovers Act 1975 (Cth)). The Australian Treasurer is responsible for making the decision whether or not to approve foreign investment proposals. Like many countries, Australia reviews foreign investment proposals on a case-by-case basis to ensure that they are not contrary to the national interest. The review framework is well established, practical and non- discriminatory. International Standards SQM is also subject to complex regulatory requirements in the various jurisdictions in which it operates, including the following implemented in 2023: Regulation (EC) 1907/2006 (REACH) is the main framework for the control of chemicals in the EU. SQM acts as lead registrant for four substances: iodine, sodium nitrate, potassium nitrate and urea phosphate. At the end of 2022, Commission Regulation (EU) 2020/878 replaced Annex II of REACH and introduces changes to the format of safety data sheets, a key hazard communication tool. Consequently, as of 2023, all documents issued by SQM's subsidiaries in Europe will have to comply with this new format. In October 2023, the Carbon Border Adjustment Mechanism (CBAM), which introduces the reporting of greenhouse gas (GHG) emissions embedded in direct and indirect imports into the EU, came into force in a transitional phase. In the final scheme, emissions must be reported together with the corresponding number of CBAM certificates priced according to the average weekly auction price of allowances in the EU Emissions Trading System. SQM's European legal entities reported in early 2024 the emissions associated with the production of imported products during the fourth quarter of 2023. We continue our active participation as a member of the European Commission's Standing Committee on Precursors, which monitors and assists in the implementation of Regulation (EU) 2019/1148 on the marketing and use of explosives precursors. Invoices and safety data sheets for our products covered by Regulation (EU) 2019/1148 inform of such status so that our European users are informed and can take appropriate action, as well as product safety data sheets, where applicable. During 2023, an e-learning 6 OUR BUSINESS 85 course was implemented to train our company's employees in Europe covering basic regulatory concepts on the marketing and use of explosives precursors. In May 2023, Ecuador published Ministerial Agreement No. 145, which establishes the requirements for authorizations and permits for the import, export and commercialization of controlled chemical substances, including ammonium, potassium, sodium, calcium and ammonium nitrate, among other substances. Currently, SQM Ecuador has authorizations for the import and distribution of controlled products included in its commercial portfolio in this country. In August 2023, the Regulations of Law No. 21,349 were published in Chile's Official Gazette, which established rules on the composition, labeling and marketing of fertilizers and biostimulants to be applied as of August 2026. In the area of international transportation, SQM actively participated through the Chilean Chemical Industry Association in the 38th and 39th meetings of the Editorial and Technical Group and in the 9th meeting of the Sub-Committee on Carriage of Cargoes and Containers of the International Maritime Organization (IMO). IMO Maritime Safety Committee Resolution MSC.539(107) amended the International Maritime Solid Bulk Cargoes Code (IMSBC Code) with the addition of new entries for potassium nitrate and sodium nitrate as Group C cargoes. Regulatory entities The Company is registered in the Securities Registry of the Financial Market Commission (CMF) under No. 184 of March 18, 1983, and is therefore subject to the supervision of this entity. In addition, as its shares are traded on the New York Stock Exchange through an ADR (American Depository Receipts) program, the Company is also subject to the regulations established by the U.S. Securities and Exchange Commission (SEC) applied to foreign issuers such as SQM. Stakeholders SQM's main stakeholders are detailed in section 6.3 Stakeholders. Union membership SQM is a member of the following associations: • Corporate Action • Chilean Association for Desalination and Reuse • Chilean Hydrogen Association (H2 Chile) • Concentrating Solar Power Association • Antofagasta Industrial Association (AIA) • Industrial Association of Iquique (AII) • Chilean Chemical Industrialists Trade Association (ASIQUIM) • Australian Chilean Chamber of Commerce (AUSCHAM) • Chilean-Belgian-Luxemburgian Chamber of Commerce A.G. • Chilean American Chamber of Commerce (AMCHAM) • Santiago Chamber of Commerce • Chinese-Chinese Chamber of Commerce, Industry and Tourism A.G. • Regional Mining Safety Council (CORESEMIN) Antofagasta • Regional Council for Mining Safety (CORESEMIN) Tarapacá 6 OUR BUSINESS 86 Institute of Engineers of Chile • Fundación Chile del Pacífico • Fundación Generación Empresarial - FGE • Chilean Institute of Rational Business Administration (ICARE) • • Global Compact Chile • Society for Industrial Development (SOFOFA) • National Mining Society (SONAMI) • Spanish Commercial Association of Fertilizers (ACEFER) • Spanish Association for the Valorization of Packaging (AEVAE) • • World Iodine Association (WIA) • Asociación Nacional de Comercializadores y Productores de Fertilizantes A.C.(ANACOFER) International Fertilizer Association (IFA) (National Association of Fertilizer Dealers and Producers). • Belgian Electrotechnical Committee npo (BEC) • Drug, Chemical & Associated Technologies Association, Inc. (DCAT) • European Association for Storage of Energy (EASE) • Far West Agribusiness Association (FWAA) • Georgia Citrus Association • • National Mastitis Council • Protermosolar • The Fertilizer Institute (TFI) • Clean Fuel Ammonia Association of Japan Independent Lubricant Manufacturers Association (ILMA) It is worth mentioning that in 7 of them SQM is a member of the board of directors. 6.2 BUSINESS SEGMENTS Specialty Plant Nutrition SQM produces and markets specialty plant nutrients (SPN) that offer nutritional solutions for applications mainly via fertigation in high value crops such as fruits, flowers and certain vegetables. These fertilizers must be highly soluble and free of impurities in order to be used through modern technical irrigation techniques, such as drip irrigation and micro-sprinkler irrigation. The latter are increasingly used in high value fruit plantations as well as in protected crops: tunnels for berries and greenhouses for tomatoes. In addition, SQM participates in the specialty nutrients market for foliar and granular applications to the soil, in certain high-value niches such as potato production. Among the specialty plant nutrients for use in fertigation, potassium nitrate is one of the most important fertilizers. Its advantage lies in being chlorine free, high solubility, adequate PH and free of impurities. These advantages allow SQM as a major producer of potassium nitrate to obtain a premium price compared to substitute commodity fertilizers such as potassium chloride and potassium sulfate. In 2023, revenues from sales of specialty plant nutrients declined to US$913.9 million, representing 12.2% of our total revenues for that year and a 22% drop in sales compared to the US$1,172.3 million 6 OUR BUSINESS 87 observed in 2022. In 2023, average prices in this business segment fell by approximately 21.3% compared to 2022. We believe we are the largest producer of potassium nitrate in the world. We estimate that our sales volume represented approximately 42% of the total potassium nitrate traded in the world for agricultural use during 2023. The following table shows total production and sales volumes and ordinary revenues for specialty plant nutrients for 2023, 2022 and 2021: Specialty Plant Nutrition (SPN) Production volumes (thousands of metric tons) Sodium nitrate Potassium nitrate and potassium sodium nitrate Specialty blends (1) Blended nutrients and other specialty plant nutrients (2) Sales volumes (thousands of metric tons) Sodium nitrate Potassium nitrate and potassium sodium nitrate Specialty blends (1) Blended nutrients and other specialty plant nutrients (2) Revenues (in millions of US$) (1) Includes products from third parties in accordance with our commercial agreement (2) Includes products from third parties in accordance with our commercial agreement (3) Includes trading of other specialty fertilizers 2023 861,3 17,1 464,3 243,4 136,5 840,2 16,7 443,5 243 136,5 913,9 2022 925,3 18,4 550,9 217,9 138,1 847,9 14,4 477,4 218 138,1 1.172,3 2021 1.208,2 50,2 679,1 304,0 174,9 1.154,6 32,1 643,6 304 174,9 908,8 6 OUR BUSINESS 88 Specialty Plant Nutrition: Market The target market for specialty plant nutrients is farmers producing high-value crops such as vegetables, fruits, industrial crops, flowers, cotton and others. Since 1990, the international market for specialty plant nutrients has grown at a faster rate than the international market for commodity fertilizers. This is mainly due to: (i) the application of new agricultural technologies such as fertigation, hydroponics and greenhouses; (ii) increasing land costs and water scarcity, which have forced farmers to improve yields and reduce water use; and (iii) increased demand for higher quality crops. As an exception, during 2022 and 2023 and due to the sharp increase in price, adverse weather events and high inflation, the agricultural soluble potassium nitrate market had a reduction in consumption of approximately 10% and 15%, respectively. These estimates do not consider potassium nitrate produced and sold locally in China, and only include net imports and exports. Specialty Plant Nutrition: Products We produce three main types of specialty plant nutrients that provide nutritional solutions for fertigation, direct soil applications and foliar fertilizers: potassium nitrate (KNO3 ), sodium nitrate (NaNO3 ) and specialty blends. We also sell other specialty fertilizers, including products produced by third parties. All of these products are used in solid or liquid form primarily on high-value crops such as fruits, flowers and some vegetables. These fertilizers are widely used in crops using modern agricultural techniques such as hydroponics, greenhouses and crops with foliar application and fertigation (in the latter case, the fertilizer is dissolved in water prior to irrigation). Specialty plant nutrients have certain advantages over commercial fertilizers, such as fast and effective absorption (without requiring nitrification), superior water solubility, and low chloride content. One of the most important products in this business line is potassium nitrate, which is marketed in crystalline or prilled form, allowing for different application methods. Crystalline potassium nitrate products are ideal for fertigation and foliar applications, and potassium nitrate beads are suitable for direct soil applications. Special blends are produced using our own special plant nutrients and other components in blending plants operated by us or our affiliates and related companies around the world. The advantages of our special "Ultrasol" vegetable blends include the following: • They are totally water soluble, which allows their more efficient use in hydroponics, fertigation, foliar applications and other advanced agricultural techniques, thus reducing water use. • They are chloride-free, which prevents toxicity in certain chloride-sensitive crops. • Provide nitrogen in nitric form, thus allowing crops to absorb nutrients faster than urea or ammonium based fertilizers; We have developed brands for their commercialization according to the different applications and uses of our products. Our main brands are: Ultrasol® (fertigation), Qrop® (soil application), Speedfol® (foliar application) and Allganic® (organic agriculture). During 2023, we continued to grow sales of differentiated fertilizers such as Ultrasoline® for improved root growth and optimal nitrogen metabolism, ProP® for more efficient phosphorus absorption, and Prohydric® for more efficient fertilization and water use. 6 OUR BUSINESS 89 Specialty Plant Nutrition: Marketing and Customers In 2023, the Company sold its specialty plant nutrients in approximately 93 countries and more than 1,100 customers. A single customer individually accounted for at least 10% of this segment's sales during 2023, representing approximately 12.6% of NVE's revenues. The 10 largest customers collectively accounted for approximately 39% of sales during that period. No single supplier accounted for more than 10% of this business line's cost of sales. The following table shows the geographic breakdown of sales in 2023, 2022 and 2021: Breakdown of EVN sales 2023 2022 2021 North America................ 45% 42% 35% Europe........................ Chile............................ 14% 16% 20% 12% 11% 15% Central and South America............. 8% 11% 10% Asia and Others................. 21% 20% 21% These products are sold through a worldwide network of sales offices and distributors. We maintain an inventory of our specialty plant nutrients in our commercial offices in our principal markets to facilitate prompt deliveries to customers. Sales are made pursuant to spot purchase orders or short-term contracts. As part of our marketing strategy, we provide technical and agronomic assistance to our customers. We have specific knowledge resulting from extensive research and numerous studies conducted by our agronomic teams in close contact with growers around the world. Strong agronomic knowledge is key to the development of specific formulas and hydroponic and fertigation nutritional plans, allowing us to provide expert advice. By working closely with our customers, we are able to identify their needs for new products and possible higher value-added markets. Our specialty plant nutrients are used in a wide variety of crops, particularly high-value crops, where the use of our products enables our customers to increase yields and quality to achieve a premium price for their products. Our customers are located in various latitudes. Consequently, we do not believe there are seasonal or cyclical factors that could materially affect sales of our specialty plant nutrients. Specialty Plant Nutrition: Competition The main competitive factors in potassium nitrate sales are product quality, customer service, location, logistics, agronomic support and price. We believe we are the largest producer of potassium nitrate for agricultural use in the world. Potassium nitrate products compete indirectly with specialty substitutes and other commodities, which may be used by some customers in place of potassium nitrate, depending on the type of soil and crop to which the product will be applied. Our sales represented approximately 42% of global agricultural potassium nitrate sales by volume during 2023. In the market for 100% soluble potassium nitrate, our main competitor is Haifa Chemicals Ltd. We estimate that Haifa's sales of agricultural potassium nitrate accounted for approximately 20% of total 6 OUR BUSINESS 90 worldwide sales during 2023 (excluding sales by Chinese producers to the Chinese domestic market). Kemapco, a Jordanian producer owned by Arab Potash, produces potassium nitrate at a plant located near the port of Aqaba, Jordan. We estimate that sales of agricultural potassium nitrate by Kemapco accounted for approximately 11% of total global sales during 2023. ACF, another Chilean producer, mainly oriented to iodine production, has been producing potassium nitrate from caliche ore and potassium chloride since 2005. In addition, there are several potassium nitrate producers in China. Iodine and derivatives We believe we are the largest producer of iodine in the world. In 2023, iodine and iodine derivatives revenues reached approximately US$892.2 million, representing 11.9% of total revenues in that year and an increase from the US$754.3 million observed in 2022. This increase was mainly attributable to slightly higher sales volumes and higher average prices during 2023. Average iodine prices were approximately 15.2% higher in 2023 than in 2022. Our sales volumes increased by approximately 2.7% in 2023. We estimate that our sales represented approximately 35% of worldwide iodine sales by volume in 2023. The following table presents total production and sales volumes and revenues for iodine and its derivatives for 2023, 2022 and 2021: Iodine and derivatives Production volume (thousands of metric tons) Sales volume (thousands of metric tons) 2023 2022 2021 13,9 13,1 12,4 12,7 10,3 12,3 Revenues (in millions of US$) 892,2 754,3 437,9 Iodine: Market Iodine and its derivatives are used in a wide range of medical, agricultural and industrial applications, as well as in human and animal nutrition products. Iodine and its derivatives are used as raw materials or catalysts in the formulation of products such as X-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds and pigments. Iodine in the form of potassium iodate or potassium iodide is also added to edible salt to prevent iodine deficiency disorders. In 2023, we believe the market experienced a decline of approximately 4% compared to the prior year. This decline can be attributed primarily to a number of key factors affecting various industries. Initially, the broader economic slowdown played a key role in shaping this trend, affected industrial production and led companies to adjust their storage policies to adapt to changing market conditions. Next, the introduction of new regulations emerged as another critical factor, which significantly influenced the reduction of iodine demand in the fluorochemical industry. Finally, the impact of high iodine prices marked a decisive factor, prompting two main responses: substitution, with customers migrating to alternative products, and reformulation, where product compositions were adjusted to minimize iodine content. Taken together, each of these elements has played a unique role in the observed decline in iodine demand throughout the year. In contrast, demand for X-ray contrast media emerged as the main driver of growth in the iodine market. This increase is largely due to rising healthcare expenditure and improved access to medical services in 6 OUR BUSINESS 91 emerging economies. The increasing use of diagnostic imaging, particularly in these regions, has significantly boosted demand for iodine-based contrast agents, offsetting some of the declines seen in other sectors. The following graph shows the distribution of iodine demand by various applications in 2023. Distribution of iodine demand in 2023 Otros 8% Nailon 3% Nutrición humana 3% Biocidas 5% Fluroderivados 7% Nutrición animal 7% Yodósforos y povidona yodada 7% Películas polarizantes (LCD y LED) 12% Medios de contraste Rayos-X 34% Farmacéuticos 14% 6 OUR BUSINESS 92 Iodine: Products We produce iodine at our Nueva Victoria plant near Iquique, Chile, at the Pedro de Valdivia plant and at our newest addition, the Pampa Blanca mine site, both located near Maria Elena, Chile. We have a total annual production capacity of approximately 14,300 metric tons of iodine. We also, through the Ajay-SQM Group ("ASG"), produce organic and inorganic iodine derivatives. ASG was founded in the mid-1990s and has production facilities in the United States, Chile and France. ASG is one of the world's leading producers of organic and inorganic iodine derivatives. In line with our iodine business strategy, we are constantly working on the development of new applications for our iodine-based products, aiming at a continuous expansion of our business and maintaining our market leadership. We manufacture our iodine and iodine derivatives in accordance with international quality standards and have qualified our iodine production facilities and processes under ISO 9001:2015, providing third-party certification of the quality management system and international quality control standards we have implemented. Iodine: Marketing and Customers In 2023, SQM sold its iodine products in approximately 30 countries to approximately 158 customers, and most of these sales were exports. A single customer individually accounted for more than 10% of sales in this segment, representing approximately 22.8% of iodine sales. The 10 largest customers together accounted for approximately 68% of sales during this period. On the other hand, no supplier had an individual concentration of at least 10% of the cost of sales of this line of business. The following table shows the geographic breakdown of our sales: Breakdown of sales of derivatives North America................... Europe........................... Chile............................ Central and South America...... iodine and 2023 2022 2021 14% 41% 0% 2% 19% 38% 0% 2% 23% 40% 0% 2% Asia and Others................. 42% 41% 34% The Company sells iodine through its own worldwide network of representative offices and through sales, support and distribution affiliates. The Company also maintains iodine inventories at its facilities throughout the world to facilitate prompt delivery to customers. Iodine sales are made pursuant to spot purchase orders or within the framework of supply contracts. The contracts generally specify minimum and maximum purchase commitments and prices are adjusted periodically in accordance with prevailing market prices. Iodine: Competition The largest iodine producers are located in Chile, Japan and the United States. There is also iodine production in Russia, Turkmenistan, Azerbaijan, Indonesia and China. In Chile, iodine is produced from a mineral that is unique in the world: caliche, while in Japan, the United States, Russia, Turkmenistan, Azerbaijan and Indonesia producers extract iodine from subway brines, which are obtained in conjunction with the extraction of natural gas and oil. In China, iodine is extracted from seaweed. Five Chilean companies accounted for approximately 57% of total global iodine sales in 2023, including SQM, with approximately 35%, and four other producers accounted for the remaining 22%. The other 6 OUR BUSINESS 93 Chilean producers are Atacama Chemical S.A.C. (Cosayach), controlled by the Chilean holding company Inverraz S.A.; ACF Minera S.A., owned by the Chilean Urruticoechea family; Algorta Norte S.A., a joint venture between ACF Minera S.A. and Toyota Tsusho; and Atacama Minerals, owned by the Chinese company Tewoo. We estimate that eight Japanese iodine producers accounted for approximately 27% of global iodine sales in 2023, including recycled iodine. We estimate that iodine producers in the United States accounted for nearly 5% of global iodine sales in 2023. Iodine recycling is a growing trend worldwide. Several producers have recycling facilities where they recover iodine and iodine derivatives from iodine waste streams. We estimate that 17% of our iodine supply comes from iodine recycling. Through ASG or alone, we also actively participate in the iodine recycling business using iodine by-product streams from a variety of chemical processes in Europe and the United States. Prices of iodine and iodine products are determined by market conditions. World iodine prices vary depending on, among other things, the relationship between supply and demand at any given time. The supply of iodine varies primarily as a result of the production levels of iodine producers (including us) and their respective commercial strategies. Our average annual selling prices for iodine increased to approximately US$68 per kilogram in 2023 from the average selling prices of approximately US$59 per kilogram observed in 2022. The demand for iodine varies according to the general levels of economic activity and the level of demand in the medical, pharmaceutical, industrial and other sectors that are the main users of iodine and iodine- derived products. Certain iodine substitutes are available for certain applications, such as antiseptics and disinfectants, which could represent a cost-effective alternative to iodine depending on prevailing prices. The principal competitive factors in the sale of iodine and iodine products are reliability, price, quality, customer service and price and availability of substitutes. We believe that we have competitive advantages over other producers due to the size and quality of our mining reserves and available production capacity. We believe that our iodine is competitive with that produced by other manufacturers in certain advanced industrial processes. We also believe that we benefit competitively from the long-term relationships we have established with our major customers s. Lithium and derivatives In 2023, our lithium sales revenues totaled US$5,180.1 million, representing 69.4% and a 36.5% decrease from the US$8,152.9 million observed in 2022 due to lower average realized prices, partially offset by higher sales volumes during the year. The average price for lithium and lithium derivatives for 2023 was 41.4% lower than the average price seen in 2022. Our total sales volumes grew by approximately 8.4% in 2023. We believe we are one of the world's largest producers of lithium carbonate and lithium hydroxide and estimate that our sales represented approximately 18% of worldwide lithium chemical sales in terms of volume. The following table shows total production and sales volumes and revenues for lithium and lithium derivatives for 2023, 2022 and 2021: 6 OUR BUSINESS 94 Lithium and Derivatives 2023 2022 Production volume (thousands of metric tons)1 165,5 152,9 Sales volume (thousands of metric tons) 170,0 156,8 2021 108,4 101,1 Revenues (in millions of US$) 5.180,1 8.152,9 936,1 1 Includes lithium carbonate production volumes in Chile and lithium hydroxide (from lithium sulfate) in China. Lithium: Market The lithium market can be divided into (i) direct use lithium minerals, in which SQM does not participate, (ii) basic lithium chemicals, which include lithium carbonate, lithium hydroxide and lithium chloride, and (iii) inorganic and organic lithium derivatives, which include numerous compounds produced from basic lithium chemicals, a market in which SQM also does not participate directly. Lithium carbonate and lithium hydroxide are used for the production of cathode material for secondary (rechargeable) batteries, due to the high electrochemical potential and low density of lithium. Batteries represent the main application for lithium, with approximately 90% of total demand, including batteries for electric vehicles, which represent approximately 70% of total demand. There are many other applications for both basic lithium chemicals and lithium derivatives, such as lubricating greases for heat-resistant glass (ceramic glass), chips for the ceramic and glazing industry, air- conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. The main properties of lithium, which facilitate its use in this range of applications, are that: • • • • • is the lightest solid metal and element at room temperature; is of low density; has a low coefficient of thermal expansion; has a high electrochemical potential; and It has a high specific heat capacity. During 2023, demand for lithium chemicals increased by approximately 18%, reaching approximately 920,000 metric tons. We expect energy storage-related applications to continue to drive demand in the coming years. Lithium: Products We produce lithium carbonate (Li2 CO3 ) and lithium hydroxide (LiOH) at our Lithium Chemical Plant near Antofagasta, Chile, from highly concentrated lithium chloride produced in the Salar de Atacama. The annual production capacity of our lithium carbonate plant is now 200,000 metric tons per year. We are in the process of increasing our production capacity to 210,000 metric tons per year by the end of 2024. We believe that the technologies we use, together with the high concentrations of lithium and the characteristics of the Salar de Atacama, such as the high evaporation rate and concentration of other minerals, allow us to be one of the lowest cost lithium producers worldwide. The lithium hydroxide facility has a production capacity of 30,000 metric tons per year and we are in the process of increasing this production capacity to 100,000 metric tons per year by 2025. Also, during 2023, we produced lithium hydroxide in China from lithium sulfate extracted from the Salar de Atacama salt flats and transported to our lithium refining plant located in Sichuan province, which has a capacity of 20,000 metric tons of lithium hydroxide per year. In addition, we are developing the Mt. Holland lithium project in Australia through our joint venture with Wesfarmers, which we expect to have a total production capacity of 50,000 metric tons of lithium hydroxide when completed. Lithium: Marketing and Customers In 2023, we sold our lithium products in approximately 39 countries to approximately 207 customers, with the majority of our sales to customers outside Chile. During 2023, 92% of our lithium sales were made in 6 OUR BUSINESS 95 Asia. Two customers accounted for at least 10% of lithium and lithium derivatives sales each, representing approximately 21.8% of our lithium revenues in 2023. Our ten largest customers together accounted for approximately 67% of revenues. One supplier, Corfo, accounted for approximately 62% of this business line's cost of sales, mainly related to lease payments payable to Corfo under the Corfo Agreements for lithium products produced in the Salar de Atacama. We make lease payments to Corfo which are associated with the sale of different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide and potassium chloride. See Note 22.2 to our consolidated financial statements for disclosure of lease payments made to Corfo for all periods presented. The following table shows the geographic breakdown of our sales for 2023, 2022 and 2021: Sales breakdown Lithium and lithium derivatives 2023 2022 2021 North America............. Europe..................... Chile...................... Central and South America............. 3% 5% 0% 0% 2% 5% 0% 0% 5% 8% 0% 1% Asia and Others.............. 92% 93% 86% We sell lithium carbonate and lithium hydroxide through our own worldwide network of representative offices and through our sales, support and distribution affiliates. We maintain stocks of these products in our facilities around the world to facilitate prompt delivery to customers. Sales of lithium carbonate and lithium hydroxide are made on the basis of spot purchase orders or under supply contracts. The contracts generally specify minimum and maximum annual purchase commitments, and prices are adjusted periodically, according to the variation of price indexes established in the market. Lithium: Competition Lithium is obtained mainly from two sources: (i) continental brines and (ii) ores. During 2023, the main lithium producing countries from brines were Chile, Argentina and China, while from ores were Australia and also China. Other relevant countries in lithium production are Brazil and Zimbabwe. With total sales of approximately 170,000 metric tons of lithium carbonate and lithium hydroxide, we believe our market share was 18% in 2023. The main competitors in the lithium market with their estimated market share percentage are: Albemarle (17%), Jiangxi Ganfeng Lithium Co (8%), Tianqi Lithium Corp (7%), Allkem (4%) and Arcadium Lithium Corp (4%). Tianqi is also a significant shareholder of SQM, holding approximately 22.16% of the shares as of December 31, 2023. We believe that lithium production will continue to increase this decade in response to an increase in demand growth. Several new projects to develop lithium deposits have recently been announced. Some of these projects are already in advanced stages of development and others could materialize in the medium term. Potassium In 2023, the Company's potassium chloride and potassium sulfate revenues totaled US$279.1 million, representing 3.7% of total revenues and a decrease of 36.2% compared to 2022 due to significantly lower prices, partially offset by higher sales volumes during the year. The average price for 2023 was approximately 43.5% lower than average prices in 2022. Our sales volumes in 2023 were approximately 13.0% higher than the sales volumes reported during 2022. We estimate that we will account for less than 1% of global potassium chloride sales in 2023. 6 OUR BUSINESS 96 The table below shows total production and sales volumes and revenues for potassium chloride and potassium sulfate for 2023, 2022 and 2021: Potassium chloride and potassium sulfate 2023 2022 2021 Production volume (in thousands of metric tons) 1.208,4 984,0 1.407,5 Sales volume (in thousands of metric tons) Revenues (in millions of US$) 543,1 480,5 279,1 437,2 893,2 416,6 Potassium: Market Over the past decade there has been low but steady growth in the potassium chloride market and fertilizer in general, primarily due to continued growth in food production. We estimate global demand in 2023 to reach approximately 66 million metric tons, an increase from the 60 million metric tons seen in 2022, primarily as a result of lower price and higher availability of potash supply, sourced mainly from Belarus. According to studies prepared by the International Fertilizer Industry Association, cereals account for approximately 45% of global potassium demand, including corn (14%), rice (12%), wheat (16%), soybeans (9%) and sugar (2). Other uses account for about 47%. The following graph represents the distribution of potassium demand by crop type in 2023: Potassium demand distribution in 2023 Trigo 16% Otros cultivos 47% Maiz 14% Arroz 12% Potassium: Product Azucar 2% Soya 9% We produce potassium chloride (KCl) and potassium sulfate (K2 SO4 ) from the extraction of brines from the Salar de Atacama rich in potassium and other salts. Potassium chloride is the most widely used and least expensive fertilizer for the application of potassium to different crops. We offer potassium chloride in two grades: standard and compacted. Potassium is one of the three macronutrients a plant needs to develop. It is used to fertilize crops that can tolerate relatively high levels of chloride and to fertilize crops grown under conditions with sufficient rainfall or irrigation practices that prevent chloride from accumulating to excessive levels in the plant's root systems. Some benefits that can be obtained through the use of potassium are: • • • • higher performance and quality; increased protein production; increased photosynthesis; improvement of water efficiency. 6 OUR BUSINESS 97 Potassium chloride is used as a raw material to produce potassium nitrate and other NPK granular fertilizer blends. Since 2009, our effective end-product capacity has increased to more than 2 million metric tons per year, giving us greater flexibility and market coverage. Potassium: Marketing and Customers In 2023, we sold our potassium products to nearly 519 customers in 36 countries. No single customer individually accounted for at least 10% of this segment's sales in 2023. We estimate that the 10 largest customers together accounted for approximately 43% of sales during this period . No single supplier has a concentration of at least 10% of the cost of sales of this line of business. We make lease payments to Corfo that are associated with the sale of different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide and potassium chloride. See Note 22.2 to our consolidated financial statements for disclosure of lease payments made to Corfo for all periods presented. The following table shows the geographic breakdown of sales for 2022, 2021 and 2020: Sales breakdown Potassium 2023 2022 2021 North America................ Europe........................ Chile............................ Central and South America............. Asia and Others................. 24% 11% 11% 34% 20% 16% 6% 15% 41% 22% 14% 8% 12% 51% 14% Potassium: Competition We estimate that we will account for approximately 1% of global potassium chloride sales in 2023. Our main competitors are Nutrien, Uralkali, Belaruskali and Mosaic. We estimate that in 2023 the competition reached (in approximate figures) the following market share: Nutrien 21% of global sales, Uralkali 15% of global sales, Mosaic 13% of global sales and Belaruskali 10% of global sales. Industrial Chemicals In 2023, revenues from industrial chemicals totaled US$175.2 million, representing 2.3% of our total revenues for that year, and an increase of 6.1% from the US$165.2 million observed in 2022 as a result of higher sales volumes in this business line, which offset lower sales prices. Sales volumes in 2023 increased 22.8% from the sales volumes reported in the previous year, while average prices in the business line decreased 13.6% during 2023 from the average prices reported during 2022. The following table presents total production and sales volumes and total revenues in 2023, 2022 and 2021: Industrial chemicals 2023 2022 Production volume (in thousands of metric tons) 160,4 156,0 Sales volume (in thousands of metric tons) Total revenues (US$ millions) 180,4 147,0 175,2 165,2 2021 97,9 174,5 132,0 Note: The level of activity of intermediate products is reported as production. Industrial Chemicals: Market Industrial sodium and potassium nitrates are used in a wide range of industrial applications, including glass, ceramics and explosives production, metal recycling, insulation materials, metal treatment, solar thermal energy and various chemical processes. 6 OUR BUSINESS 98 We are also experiencing growing interest in the use of solar salts in non-CSP (Concentrated Solar Power) thermal storage solutions. Due to their proven performance, solar salts are being tested in industrial process heat and waste heat solutions. These new applications may open up new opportunities for the use of solar salts in the near future, such as the retrofitting of coal-fired plants. Industrial Chemicals: Products In this business line we produce and market three industrial chemicals: sodium nitrate (NaNO3 ), potassium nitrate (KNO3 ) and potassium chloride (KCl) in industrial grades. Sodium nitrate is mainly used in the production of glass and explosives, metal processing, metal recycling and production of insulating materials, adhesives, among others. Potassium nitrate is used as a raw material for the production of frits for ceramic and metallic surfaces, in the production of special glass, in the enamel industry, metal treatment and pyrotechnics. Solar salts, which are a combination of potassium nitrate and sodium nitrate, are used as a thermal storage medium in solar power generation plants. Potassium chloride is used as an additive in oil drilling, as well as in food processing, among others. SQM enjoys certain operational flexibility in producing industrial nitrates, since they are produced from the same process as its equivalent grade for agricultural use, requiring only an additional purification step. It is feasible, with certain restrictions, to switch production from one grade to another depending on market conditions. This flexibility allows maximizing yields as well as reducing commercial risk. The Company also produces and markets potassium chloride for industrial applications. Industrial Chemicals: Marketing and Customers In 2023, we sold our industrial nitrates products to approximately 297 customers in 52 countries. One customer accounted for at least 10% of this segment's sales, representing 40.5% of sales, and the 10 largest customers together accounted for approximately 61% of this segment's revenues. On the other hand, no supplier has an individual concentration of less than 10% of the cost of sales of this line of business. We make lease payments to Corfo associated with the sale of different products produced in the Salar de Atacama, including lithium carbonate, lithium hydroxide and potassium chloride. See Note 22.2 to our consolidated financial statements for disclosure of lease payments made to Corfo for all periods presented. The following table shows the geographic breakdown of our sales for 2023, 2022 and 2021: Breakdown of sales 2023 2022 2021 North America................... Europe........................... Chile........................... Central and South America.......... 27% 36% 12% 17% 1% 6% 1% 7% 23% 14% 3% 6% Asia and Others.................... 54% 39% 55% SQM sells its industrial chemicals mainly through its own network of offices, logistics platforms, representatives and distributors. As with the other products in the portfolio, inventories of the different grades of sodium nitrate and potassium nitrate are maintained to facilitate prompt deliveries to customers. We also provide them with support and work with them to improve the service and quality of SQM products, developing new uses and applications for them. Industrial Chemicals: Competence We believe we are one of the world's largest producers of industrial sodium nitrate and potassium nitrate. In 2023, our estimated market share by volume for industrial potassium nitrate was 62% and for industrial sodium nitrate was 44% (excluding domestic demand in China and India). In the refined-grade sodium nitrate market, the main competitors are BASF AG, a German company, and several producers in China and Eastern Europe. All of them are highly competitive and produce synthetic 6 OUR BUSINESS 99 sodium nitrate as a by-product of other chemical production processes. SQM's industrial sodium nitrate products also compete indirectly with substitute chemicals, including sodium carbonate, sodium sulfate, calcium nitrate and ammonium nitrate, which can be used in certain applications in place of sodium nitrate and sold by a large number of producers worldwide. The main competitors in the industrial potassium nitrate business are Haifa Chemicals (with 8% market share in 2023), Kemapco (accounting for 4% of global sales) and some Chinese producers (with 7% market share in 2023). Producers compete in the sodium nitrate and industrial potassium nitrate market on the basis of reliability, product quality, price and customer service. SQM believes it is a low-cost producer of both products and has the ability to produce high quality products with local presence and expertise. Other Products and Services SQM receives revenues from the commercialization of third-party fertilizers (specialty and commodity). These fertilizers are marketed in large volumes around the world and are used as raw materials for specialty blends or to complement the product portfolio. We have developed trade administration, supply, flexibility and inventory management capabilities that have enabled us to adapt to the volatile fertilizer market and profit from these transactions. Revenues from sales of other commodity fertilizers and other income reached US$27.0 million for the twelve months ended December 31, 2023, lower than the US$28.6 million recorded during the same period of 2022. New Business We constantly evaluate opportunities that are consistent with our existing and new businesses. We seek to acquire interests in projects both inside and outside Chile where we believe we have sustainable competitive advantages, and we expect to continue to do so in the future. In Australia, in addition to Mt. Holland and our investment in Azure Minerals, we are conducting early- stage exploration activities on a number of different projects. Some of these activities are carried out directly by our in-house geological exploration team, based in our Perth, Western Australia office, and others are worked in conjunction with partners through participation agreements. Activities range from office-based target generation to in-situ mapping, rock/soil chip sampling and drilling. In Chile, we are actively exploring for metallic minerals on mineral properties we own. If such minerals are found, we may decide to mine them, sell them or form a joint venture to extract these resources. Our exploration efforts are currently focused on the bedrock layer that underlies the caliche ore that we use as a primary raw material in the production of iodine and nitrates. This bedrock has significant potential for metal mineralization, particularly copper, gold and silver. A significant portion of our mining properties are located in the Antofagasta region of Chile, where many large copper producers operate. We have an in-house geological exploration team that explores the area directly, identifying drill targets and evaluating new prospects. In 2021, the team confirmed the existence of high-grade copper and gold mineralization at the Búfalo project, located 120 kilometers east of the city of Antofagasta. The Búfalo project corresponds to a district that hosts several copper, copper-gold and copper-gold-silver mineralized bodies in which SQM has already drilled close to 156,000 meters, using our own diamond and Reverse Circulation drilling machines. We have also generated more than 45 projects with copper potential, in greenfield and intermediate exploration stages, which will be drilled starting in 2024. We also have a metals business development team working to engage partners interested in investing in metals exploration within our mining properties. As of December 2023, we had two option agreements in place with three mining companies and private equity firms. We participated in the formation of a joint venture as a result of the exercise of an option agreement with a junior mining company. 6 OUR BUSINESS 100 Research and Development, Patents and Licenses One of the main objectives of our team is innovation through research and development to develop new processes and products in order to maximize the yield obtained from the resources we exploit. Our research is carried out through three different units, whose research lines cover topics such as design, modeling and simulation of chemical processes for the optimization of existing products or development of new products. Our research and development policy emphasizes the following: (i) optimizing current processes to reduce costs and improve product quality by implementing new technology, (ii) developing higher margin products from current products through vertical integration or different product specifications, (iii) adding value to inventories, and (iv) using renewable energy in our processes. Our research and development activities have been instrumental in improving our production processes and developing new value-added products. As a result, new extraction, crystallization and product finishing methods have been developed. Technological advances in recent years have enabled us to improve process efficiency for nitrate, potassium and lithium operations, improve the physical quality of our prilled products and reduce dust emissions and caking through the application of specially designed additives to our bulk- handled products. Our research and development efforts have also resulted in new value-added markets for our products. One example is the use of potassium sulfate for the production of lithium hydroxide and the use of sodium nitrate and potassium nitrate as thermal storage in solar power plants. During 2023, innovation occurred in the context of conceptual and laboratory development of twenty new technologies for the Salar Futuro Project in the Salar de Atacama and the pilot-scale development of four Direct Lithium Extraction (DLE) technologies. For the year 2023, the Company executed a research and development budget of US$7.5 million for the nitrates and iodine business and US$33 million for the lithium business. The Company has patented several production processes for nitrate, iodine and lithium products. These patents have been registered mainly in the United States of America, Chile and other countries, when necessary. The patents used in SQM's production processes are Chilean Patent No. 47,080 for iodine (production of spherical shaped granules for subliming products) and Japanese Patent No. 4,889,848 for nitrates (granular fertilizers). All factors relevant to business development are described in Section 3.6 Risk Management. 6.3 STAKEHOLDERS The Company has identified its stakeholders based on four factors that affect its relationship with them: needs, impacts, interests and expectations. This process is validated by the Board of Directors, which considers the expectations of stakeholders through a permanent supervision of the commitments established with them, within the framework of the Corporate Governance Policy and the Sustainability, Ethics and Human Rights Policy. The main objective of this work is to create and strengthen long-term bonds of trust, since they are fundamental actors of the Company's activities. The stakeholders identified by SQM and the reasons for their importance are as follows: Employees: They are strategic allies of the Company's Mission and Purpose and, therefore, contribute directly to the fulfillment of the priority focuses of the business, through their talent, good performance and sense of belonging to the organization. Shareholders / Investors: Shareholders make SQM's business strategy a reality by providing capital and permanently monitoring the progress of the business. They are the ones who place their trust in the Company, supporting the creation of long-term value. 6 OUR BUSINESS 101 Employees and Suppliers: They contribute to maintaining high standards in the processes, goods and products manufactured by SQM, providing quality inputs and services in line with the company's requirements and the sustainability criteria of the business. Customers: They are SQM's raison d'être, to whom it owes in the fulfillment of its corporate purpose, providing them with innovative solutions and a broad portfolio of essential products with varied industrial applications. Community: The Company aspires to a constructive and transparent relationship with all individuals and groups of people who are part of its areas of influence, and society in general, because this allows it to prevent risks and detect opportunities for mutual benefit in the development of SQM's activities. Institutions and Organizations: Correspond to different entities with which collaboration initiatives, support and strengthening of technical competencies relevant to the business and to the institutions themselves are managed. Academy, Innovation, Research and Development Centers: These allow the development of key projects for the Company, through joint innovation and R&D work, studies and training that respond to current and future challenges, with the objective of permanently adding value to SQM products. Authorities: They establish the regulatory frameworks required in the development of the Company's activity and are also a key stakeholder to explore and shape public-private initiatives that contribute to development at local, regional and national levels. Media: They are the bridge that allows SQM's activities to be made known to society in general: its scope and impact on the development of the country, the generation of employment, the capture of opportunities for growth and innovation, and the efforts made by the Company to reconcile its economic, social and environmental performance. Within the framework of this stakeholder identification, SQM has also identified those issues that are a priority in the daily relationship with each of them, being aligned with the sustainable strategy of the business. These issues (some of which were mentioned in chapter 3-Corporate Governance) are as follows: • Fair Labor Practices • Community Relations • Transformation and Labor Challenges • Global Health and Food Challenges • Human Rights and Business • Responsible Water Management • Energy Management • Air Emissions • Biodiversity • Climate Change • Environmental Compliance • Responsible Business Management • Product Responsibility and Innovation The following table shows how SQM addresses the interests of its main stakeholders. 6 OUR BUSINESS 102 Stakeholders Interests How SQM addresses and deals with the interests Workers • Remunerations • Benefits • Quality of life • • Company information Professional development Shareholders / Investors • Capitalization of the investment and a financial performance that allows the company's sustainability over time. Collaborators and Suppliers Customers • • • • • • • • • Transparent bidding processes Payments within the established deadlines and according to the agreed conditions Establishment of a commercial relationship that lasts over time Supplier development Fulfillment of supply and product quality commitments within the agreed-upon deadlines Production processes that comply with standards and norms Sustainable operations Product safety That the products meet the required standards • Direct and indirect job creation • Support for the social and economic development of the community Community • Care and appreciation of the • • • environment and the community in general. Permanence over time Fluid and relevant communication Support for the creation of value for the community, region, country, etc. • Commitment to initiatives that are of interest to the organization. • Active participation of the company as a social actor in the organization. • Contribution of company resources for project materialization Support for research, studies and new developments • • Boosting innovation • Seminars, workshops and publications • Generations of entrepreneurship and new businesses • Creation of value to the community, region, country • Compliance with the law and the commitments contained in the Institutions and Organizations Academia, Innovation, Research and Development Centers Authorities Daily interaction in the workplace/ Direct communication between supervisor or area manager with the workers who report to him/ Periodic union meetings, meetings of workers with management, vice presidents and managers. Internal communication media, such as screens in common areas, newsletters, wall newspapers, intranet and mailings/ Delivery of relevant information for the company through digital platforms such as: website, e-mail, Facebook, Instagram, LinkedIn, Youtube channel and APP My SQM. Board meetings/ Sending information on an ongoing basis/ Direct communication with investor relations/financial report area, website, site visits, shareholder meetings, meetings such as SQM Day/ Delivery of relevant information for the company through digital platforms such as: Website, e-mail, Facebook, Instagram, LinkedIn, and YouTube channel. Meetings with the supply areas, contracts, managers and supervisors of the operations where they provide services/ Visits from the supply area to the suppliers' facilities or offices/ Induction courses, safety training/ Follow-up and permanent contact with the suppliers of the sales services of our products to ensure deliveries/ Special programs for the development of suppliers in which SQM participates in regions/ Meetings in trade associations in which the Company participates, such as fairs, seminars and exhibitions/ Delivery of relevant information through digital platforms such as: Website, e-mail, Facebook, Facebook, Instagram, LinkedIn, and Youtube channel. Regular and direct communication and meetings with customers/ Site visits and surveys related to products and operational standards/ Delivery of relevant information for the company through digital platforms such as: Website, e-mail, Facebook, Instagram, LinkedIn, and Youtube channel. Regular communication and meetings with company representatives, leaders and the community in general/ Visits to sites/ Participation in local working groups/ Participation in operational audits accompanying public services/ Community activities and festivities/ Daily interaction on the occasion of programs developed jointly with the community or organizations. Meetings with participation of our representatives/ Meetings for the support of initiatives/ Technical meetings/ Visits to operations or areas of interest/ Participation in seminars, trainings, among others/ Delivery of relevant information for the company through digital platforms such as: Website, e-mail, Facebook, Instagram, LinkedIn, and Youtube channel. Meetings with the participation of SQM representatives / Meetings to support initiatives / Technical meetings / Visits to operations or areas of interest / Participation in seminars, competitions on innovation issues / training / Implementation of joint projects, among others / Delivery of relevant information for the company through studies, publications, promoted or supported by SQM or digital platforms such as: Website, e- mail, Facebook, Instagram, LinkedIn, and Youtube channel. Protocol meetings / Technical meetings / Working meetings for public- private initiatives / Audits / Delivery of information using official platforms, documents, letters or e-mails. 6 OUR BUSINESS 103 RCAs (Environmental Qualification Resolution). • Compliance with laws and regulations in foreign countries • Obtain contingent and relevant information on the company's activities in its different areas of action as a social actor. Media and Communications Contact with media through the communications area/ Communiqués, interviews or meetings/ Delivery of relevant information for the company through digital platforms such as: Website, e-mail, Facebook, Instagram, LinkedIn and Youtube channel. As regards participation in guilds, this is mentioned in Section 6.1 of this chapter. 6 OUR BUSINESS 104 6.4 PROPERTIES, RESERVES AND FACILITIES The information about our mineral properties included in this report was prepared in accordance with the requirements of Subpart 1300 of Regulation S-K of the Securities and Exchange Commission (SEC), (the "Regulation SK-1300"), which first applied to us for the fiscal year ended December 31, 2021. These requirements differ significantly from the previously applicable disclosure requirements of SEC Industry Guide 7. Among other differences, Regulation SK-1300 requires disclosure of mineral resources, in addition to mineral reserves, as of December 31, 2023, both in the aggregate and for each of our individual material mineral properties. Our mineral reserves and mineral resources are estimated by individuals deemed to be Competent Persons (CPs) in accordance with the standards set forth in Regulation SK-1300. SQM believes it is a production-stage company based on the classification of its material properties. SQM reports mineral resource and reserve estimates for development and production stage projects based on SQM's classification of its material properties. See the individual property disclosures below for more details on mineral rights, titles, property size, permits and other information on our significant mineral properties. Mineral resources and reserves are defined in Regulation SK-1300 as follows: Mineral Resource: A concentration or occurrence of material of economic interest in or on the earth's crust in such form, grade or quality, and quantity, that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, probable dimensions of extraction, location or continuity that, under assumed and justifiable technical and economic conditions, is likely, in whole or in part, to become economically extractable. It is not simply an inventory of all mineralization drilled or sampled. Mineral Reserve: An estimate of tonnage and grade, or quality of indicated and measured mineral resources that, in the opinion of the Qualified Person, may form the basis of an economically viable project. More specifically, it is the economically mineable portion of a measured or indicated mineral resource, which includes dilution materials and allowances for losses that may occur when the material is mined. Under SK-1300, mineral resources cannot be classified as mineral reserves unless a qualified person has determined that such mineral resources can form the basis of an economically viable project. Conversion of reported mineral resources to mineral reserves should not be assumed. Mineral resource classifications are differentiated in Regulation SK-1300, in part, as follows: Measured Resource: That part of a Mineral Resource with the highest level of geological confidence; the quantity and grade, or quality, are estimated on the basis of geological testing and conclusive sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a qualified person to apply modification factors in sufficient detail to support detailed mine planning and final assessment of the economic viability of the deposit. Indicated Resource: That part of a mineral resource with a level of geological confidence between the measured and inferred resource level; the quantity and grade, or quality, are estimated on the basis of appropriate geological testing and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modification factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Inferred resource: That part of a mineral resource with the lowest level of geological confidence; the quantity and grade, or quality, are estimated on the basis of limited geological testing and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors that may influence the prospects for economic extraction in a manner useful for the assessment of economic viability. 6 OUR BUSINESS 105 Production Process Our integrated production process can be classified according to our natural resources: caliche deposits, which contain nitrates, iodine and potassium; • • brines from the Salar de Atacama, which contain potassium, lithium, sulfate, boron and magnesium; and spodumene deposits of the Mt. Holland project in Western Australia, which contain lithium. • Caliche Qualified geologists and mining engineers prepare our caliche resource and reserve estimates. The resource and reserve figures presented below are estimates and may be subject to change due to natural factors affecting the distribution of ore grades, which, in turn, would change nitrate and iodine recoveries. Therefore, there can be no guarantee that the indicated levels of nitrate and iodine recovery will be achieved. We estimate mineral resources and reserves based on evaluations by engineers and geologists of assay values derived from sampling of drill holes and other openings. Drilling has been carried out at different spacing intervals in order to recognize mineral resources. Typically, we start with 400x400 meters and then reduce the spacing to 200x200 meters, 100x100 meters, 100T(~100 x 50 meters), 50x50 meters. The geological occurrence of caliche ore is unique and different from other metallic and non-metallic minerals. Caliche occurs in large horizontal layers at depths ranging from one to four meters and has an overburden of between zero and two meters. This horizontal layering is a natural geological condition and allows us to estimate the continuity of the caliche bed based on surface geological reconnaissance and analysis of samples and trenches. Salar de Atacama Brines Qualified hydrogeologists and geologists prepare our resource estimates and reserve base of potassium, sulfate, lithium and boron dissolved in brines in the Salar de Atacama. We have exploitation concessions through leases with Corfo with an area of 81,920 hectares, in which we have carried out geological exploitation, brine sampling and geostatistical analysis. Mt. Holland spodumene Geologists and mining engineers who are qualified persons in accordance with SK-1300 regulations prepared the mineral resource and mineral reserve estimate for the lithium-rich minerals contained in pegmatites at the Mt. Holland deposit. The mineral reserve has been calculated from the mine plan, created from the mineral resource estimate. The three dimensional solids used to define the geological domains are constructed by style of mineralization and are based on a 0.5% lithium oxide cut-off grade. Mining rights The discussion of our mineral rights is organized below according to the geographic location of our mining operations. Our caliche mining interests are located along the valley in the Tarapacá and Antofagasta regions of northern Chile (in a part of the country known as "El Norte Grande"). From caliche ore, we produce nitrate and iodine-based products; in addition, caliche also contains concentrations of potassium. Our mining interests in the Salar de Atacama brine deposits are located within the Atacama Desert in the eastern region of the Norte Grande. From these brines, we produce primarily potassium, sulfate and lithium- based products. Our spodumene mining interests are located at the Earl Grey deposit of the Mt. Holland project in Western Australia. From spodumene, we produce spodumene concentrate and lithium hydroxide. The following map shows the location of our principal mining operations in Chile and the mining concessions for exploitation and exploration that have been granted to us, as well as the mining properties that we lease from Corfo: 6 OUR BUSINESS 106 Figure 1. Location of SQM's mining operations in Chile and mining concessions for exploitation and exploration. Location coordinates longitude and latitude, respectively: (i) Salar de Atacama (68°24'36.00" W), (23°33'3.60" S); (ii) Nueva Victoria: (69°39'48 W), (20°57'37 S); (iii) Pampa Orcoma: (69°57'22 W), (19°56'19 S); (iv) Pampa Blanca (69°38'11 W), (23°09'49 S). 6 OUR BUSINESS 107 The map below shows the location of our principal mining operations in Australia and the exploration and exploitation mining concessions that have been granted to the joint venture at Mt. Holland. Figure 2. Southwest Australia shows the location of the Mt Holland project mine, concentrator and refinery; Mt. Holland Tenements location; Kwinana Refinery site in Perth, Western Australia. Location coordinates of (i) Mt. Holland Tenements: latitude 32o5'24 S, longitude 119o45'0 E; (ii) Kwinana Refinery: -32o13'12 N, longitude 115o46'12 E. 6 OUR BUSINESS 108 Mining Concessions in Chile Our mining rights in Chile are pursuant to mining concessions for the exploration and exploitation of mineral resources, granted in accordance with applicable Chilean law. For a discussion of mining concessions, see "Individual Material Properties - El Norte Grande - Mining Concessions for the Exploration and Exploitation of Caliche" and "Mining Concessions for the Exploitation of Brines in the Salar de Atacama". As of December 31, 2023, approximately 99.56% of SQM's mineral interests in Chile were under Mining Exploitation Concessions and 0.46% were under Mining Exploration Concessions. Of the Mining Concessions, approximately 99% have already been granted in accordance with applicable Chilean legislation, and approximately 1% are in the process of being granted. Of the Mining Exploration Concessions, approximately 100% have already been granted in accordance with applicable Chilean legislation. In 2023, we made payments of $8.5 million to the Government of Chile for Exploration and Mining Concessions, including concessions we lease from Corfo. These payments do not include payments we make directly to Corfo under the Lease Agreement based on percentages of the sales price of products made from brines from the Salar de Atacama. The following table shows the Mining Exploration and Exploitation Concessions held by SQM, including the mining properties we lease from Corfo, as of December 31, 2023: Operating concessions Exploration concessions Total Region of Chile Total number Hectares Total number Hectares Total number Hectares Region I Region II 2.708 508.069 2 1.000 2.710 509.069 8.889 2.347.798 37 11.900 8.926 2.359.698 Region III and others 460 105.253 1 100 461 105.353 Total 12.057 2.961.120 40 13.000 12.097 2.974.120 Most of the Mining Concessions held by SQM were requested mainly for non-metallic mining purposes. However, a small percentage of our Mining Exploration Concessions were requested for metallic mining purposes. The annual payment to the Chilean government for this group of concessions is higher. The current amendments to the Mining Code under Chilean Law 21,420 and others, modified the amount of mining protection through the creation of Article 142 bis, determining that, in the new protection regime established, a reduced mining patent for the exploitation of mines is not contemplated. concessions whose economic interest is related to non-metallic substances, however, it allows the reduction of patent for exploitation concessions, upon verification of the works in the concession and/or accrediting the obtaining of an RCA (Resolución de Calificación Ambiental) with respect to its exploration project in the Environmental Impact Study System. 6 OUR BUSINESS 109 Mt. Holland's mining rights The Mt. Holland Lithium project development area for the mine and concentrator is distributed over three main mining properties (M77/1065, M77/1066 and M77/1080), as well as exploration licenses, general use licenses and miscellaneous licenses (project properties), with an approximate area of 4,606 hectares. A summary map showing the main properties is provided in Figure 2. The majority of the project properties are currently registered equally under MH Gold, an affiliate of Wesfarmers Limited, and SQM Australia, an affiliate of SQM. Other exploration tenements on the project are registered by MH Gold Pty Ltd or Montague Resources Australia Pty Ltd, both of which are ultimately controlled by Wesfarmers Chemicals, Energy and Fertilizers (WesCEF). The project is a joint venture, in which SQM owns 50% and Wesfarmers Limited owns the remaining 50% (the "Mt. Holland Joint Venture" or "Mt. Holland JV"), and is managed by Covalent Lithium Pty Ltd ("Covalent"), an entity owned 50% by SQM and 50% by Wesfarmers. Covalent is neither the registered holder nor the applicant for the Project Properties under the Mining Act 1978 (WA) (Mining Act). The Kwinana refinery development is located on a long-term lease covering 40.5 hectares on Lot 15, Mason Road in Kwinana. Covalent recorded the lease with Development WA in September 2021. Costs Caliche ore is the key raw material used in the production of iodine, specialty plant nutrition and industrial chemicals. The following gross margins for the specified business lines were calculated on the same basis as the cut-off grades used to estimate our reserves. 2023 2022 2021 Gross margin Price Gross margin Price Gross margin Price Iodine and derivatives Specialty plant nutrition Industrial chemicals 60% US$68/kg 63% US$59/kg 45% US$36/kg 43% US$1,088/ton 38% US$1,383/ton 29% US$787/ton 19% US$971/ton 32% US$1,124/ton 17% US$757/ton Brines from the Salar de Atacama are the key raw material used in the production of potassium chloride and sulfate, and lithium and its derivatives. The following gross margins for the specified business lines were calculated on the same basis as the cut-off grades used to estimate our reserves. 6 OUR BUSINESS 110 2023 2022 2021 Gross margin Price Gross margin Price Gross margin Price Potassium chloride and potassium sulfate Lithium and derivatives 21% US$514/ton 56% US$910/ton 39% US$466/ton 43% US$30,520/ton 55% US$52,000/ton 47% US$9,300/ton Summary of mineral reserves and resources The following tables summarize our estimated mineral reserves and resources as of December 31, 2023. The amount of mineral resources is estimated in situ as attributable to us. Mineral resources are reported excluding mineral reserves. The quantity of mineral reserves is estimated on the basis of saleable products attributable to us. Relevant technical information supporting mineral reserves and resources for each material property is included in the "Individual Material Properties" section below, as well as in the Technical Report Summaries ("TRS") filed as Exhibits to the Annual Report on Form 20-F. 6 OUR BUSINESS 111 Summary of mineral reserves as of the end of the fiscal year ended December 31, 2023(1),(2) : Proven mineral reserves Probable ore reserves Total mineral reserves Atacama Salt Flat, Chile Quantity (Vol Mm )3 Grade (% Li by weight) Quantity (Vol Mm )3 Grade (% Li by weight) Quantity (Vol Mm )3 Grade (% Li by weight) Lithium-Salts:(3), (4), (5), (6) 104 0,20 107 0,20 211 0,20 Mt. Holland, Australia Quantity (Mt) Law (Li2 O%) Quantity (Mt) Law (Li2 O%) Quantity (Mt) Law (Li2 O%) Lithium-Pegmatites:(7) 10,7 1,55 31,2 1,57 42 1,57 Atacama Salt Flat, Chile Quantity (Vol Mm )3 Grade (% K by weight) Quantity (Vol Mm )3 Grade (% K by weight) Quantity (Vol Mm )3 Grade (% K by weight) Potassium: (3), (4), (5), (6) 104 2,31 107 2,16 211 2,24 El Norte Grande Caliche, Chile Nitrate: (8), (9), (10) Pedro de Valdivia Maria Elena Pampa Blanca New Victory Pampa Orcoma Total Iodine: (8), (9), (10) Pedro del Valdivia Maria Elena Pampa Blanca Quantity (Mt) Law (% NOT3 by weight) Quantity (Mt) Law (%NO3 by weight) Quantity (Mt) Law (%NO3 by weight) 99 94 30 202 --- 425 9,1 8.1 6,1 5,6 --- 7,0 112 10 12 529 309 980 El Norte Grande Caliche, Chile 5,8 6,9 6,3 5,1 6,9 5,8 211 104 42 731 309 1.405 7,3 8,0 6,2 5,2 6,9 6,1 Quantity (Mt) Law (I2 parts per million) Quantity (Mt) Law (I2 parts per million) Quantity (Mt) Law (I2 parts per million) 99 94 30 522 491 460 112 10 12 366 374 455 211 104 42 439 480 459 6 OUR BUSINESS 112 New Victory Pampa Orcoma Total 202 --- 425 432 --- 468 529 309 972 415 413 409 731 309 1.397 420 413 427 ---------------------------------------- (1) Comparisons of values may not match due to rounding of numbers and differences caused by averaging. (2) The units "Mt", "kt", "ppm" and % refer to million metric tons, thousand metric tons, parts per million and percent by weight, respectively. (3) Salar de Atacama, Chile. The efficiency of the process is based on the type of brine extracted in each well during the course of the simulation; the average efficiency of the process over the life-of-mine (LoM) is approximately 52% for lithium and approximately 74% for potassium. (4) Salar de Atacama, Chile. The average lithium and potassium concentration is weighted by the simulated extraction rates in each well. (5) Salar de Atacama, Chile. The mineral resource and reserve estimate considers a cut-off grade of 0.05% w/w for lithium based on lithium product generation cost, lithium carbonate sales and the respective cost margin. Based on historical lithium prices since 2010 and forecast to 2040, a projected lithium carbonate price of US$11,000 per metric tonne is considered with the respective cost and profit margin, with a small increase to accommodate evaporation area and use of additives. A similar analysis was performed for potassium, where SQM established the 1% w/w cut-off grade based on the respective costs, sales and margin. (6) Salar de Atacama, Chile. This reserve estimate differs from the in-situ reserve base reported previously (SQM, 2020) and considers factors modifying the conversion of mineral resources to mineral reserves, including the design and efficiency of the production well field, as well as environmental and process recovery factors. The reserves estimate also considers the expiration of the Lease in 2030 (end of LoM). The Qualified Person for Mineral Reserves is Rodrigo Riquelme. (7) Mt. Holland, Australia. The tonnage and average grade of the ore reserve have been rounded to reflect the accuracy of the estimate and figures may not match, due to rounding. Metallurgical processes are designed for a nominal ore feed of 2Mpta. Concentrate process recovery is estimated at 75% for lithium oxide for predominantly spodumene mineralization and 0% for other types of mineralization. Refinery process recovery is estimated at 85%. Tantalum recovery is estimated at 0%. In the reserves evaluation, a total operating cost of US$4,979 per metric ton was considered for LiOH production. The price, cost and mass throughput parameters, together with the internal constraints of the current operations, result in an ore reserve cut-off grade of 0.5% Li2O based on a lithium hydroxide sales price of US$11,000 per tonne at FOB price. The Qualified Person for the Mineral Reserves is David Billington, with an effective date of December 15, 2021. No material changes are reported since the last update. (8) El Norte Grande Caliche, Chile. The cutoff grades of the Proven and Probable Reserves vary according to the targets required at the different mines. The assigned values correspond to the averages of the different sectors. The cut-off grade is by nitrate content, considering also the iodine grade. (9) El Norte Grande Caliche, Chile. The average overall metallurgical recovery of the nitrate and iodine processes contained in the recovered material varies between 50% and 70%. (10) The mineral resource and reserve estimate considers a cut-off grade of 300ppm for iodine (I2 ) based on the production costs of iodine and iodine by-products. Based on 2010 historical iodine prices and the 2040 forecast, a projected iodine price of US$42,000 per metric ton is determined, taking into account the corresponding planned operating, financial and investment costs, depreciation, profit margin and taxes. A similar analysis was performed for nitrates, where SQM established the 3.0% sodium nitrate cut-off grade based on the respective costs for the production of potassium-sodium nitrates (fertilizers). SQM considers a projected price of US$820 per metric ton of sodium and potassium nitrates in the economic analysis performed since 2010 and forecast to 2040. Historical operating use modifying factors at several of SQM's mining facilities are applied to the iodine and nitrate grades reported as probable resource estimates, the factors applied to the iodine and nitrate grades are 0.9 and 0.85 respectively. The Qualified Persons for the Nueva Victoria and Pampa Blanca ore reserves are Marco Fazzi, Marco Lema and Gino Slanzi. 6 OUR BUSINESS 113 Summary of mineral resources excluding reserves at the end of the fiscal year ended December 31, 2023(1),(2),(3) Mineral resources measured Mineral resources indicated Indicated and measured mineral resources Inferred mineral resources Atacama Salt Flat, Chile Quantity (Vol Mm )3 Grade (% Li by weight) Quantity (Vol Mm )3 Grade (% Li by weight) Quantity (Vol Mm )3 Grade (% Li by weight) Quantity (Vol Mm )3 Grade (% Li by weight) Lithium-Salts:(4), (5) 2.254 0,20 1.435 0,160 3.689 0,180 1.614 0,133 Mt. Holland, Australia Quantity (Mt) Law (Li2 O%) Quantity (Mt) Law (Li2 O%) Quantity (Mt) Law (Li2 O%) Quantity (Mt) Law (Li2 O%) Lithium- pegmatite: (6) 13,5 1,58 30,5 1,45 44,0 1,49 3,5 1,38 Atacama Salt Flat, Chile Quantity (Vol Mm3) Grade (% K by weight) Quantity (Vol Mm3) Grade (% K by weight) Quantity (Vol Mm3) Grade (% K by weight) Quantity (Vol Mm3) Grade (% K by weight) Potassium: (4), (5) 2.254 1,80 1.435 1,70 3.689 1,77 1.614 1,77 Nitrate: (7), (8) Pedro de Valdivia Maria Elena Pampa Blanca New Victory Pampa Orcoma Total El Norte Grande Caliche, Chile Quantity (Mt) Law (% NOT3 by weight) Quantity (Mt) Law (%NO3 by weight) Quantity (Mt) Law (%NO3 by weight) Quantity (Mt) Law (% NOT3 by weight) --- 21 17 --- --- 38 --- 138 7,6 138 7,6 11,1 119 10,0 5,3 534 --- --- 20 18 8,5 829 6,3 4,7 7,4 7,0 140 551 20 18 867 10,2 6,3 4,7 7,4 7,1 El Norte Grande Caliche, Chile 52 117 223 49 --- 441 6,1 7,2 5,4 5,3 --- 5,9 Iodine: (7), (8) Quantity (Mt) Law (I2 parts per million) Quantity (Mt) Law (I2 parts per million) Quantity (Mt) Law (I2 parts per million) Quantity (Mt) Law (I2 parts per million) 6 OUR BUSINESS 114 Pedro de Valdivia --- --- 138 Maria Elena Pampa Blanca New Victory Pampa Orcoma Total 21 17 --- --- 38 ________________ 489 119 563 534 --- --- 20 18 522 829 564 465 561 415 457 542 138 140 551 20 18 867 564 469 561 415 457 541 52 117 223 49 --- 441 409 362 511 372 --- 444 (1) Comparison of values may not match due to rounding of numbers and differences caused by averaging. (2) The units "Mm3 ", "Mt", "kt", "ppm" and % refer to million cubic meters, tons, kilotonnes, parts per million and percent by weight, respectively. (3) Mineral resources are not mineral reserves and have no demonstrated economic viability. There is no certainty that all or part of the mineral resource will be converted to mineral reserves after the application of modifying factors. (4) Salar de Atacama, Chile. Mineral Resources are reported as in-situ and exclude Mineral Reserves, where the estimated Mineral Reserve without processing losses during the reported LOM and the reported 2023 actual extraction were subtracted from the Mineral Resource, including Mineral Reserves. A direct correlation was assumed between Proven Reserves and Measured Resources, as well as Probable Reserves and Indicated Resources. The Qualified Person for Mineral Resources is Juan Becerra. (5) Salar de Atacama, Chile. The mineral resource and reserve estimate considers a cut-off grade of 0.05% w/w for lithium based on lithium product generation cost, lithium carbonate sales and the respective cost margin. Based on historical lithium prices since 2010 and forecast to 2040, a projected lithium carbonate price of US$11,000 per metric tonne is considered with the respective cost and profit margin, plus a small increase to adjust for evaporation area and use of additives. A similar analysis was performed for potassium, where SQM established the 1% w/w cut-off grade based on the respective costs, sales and margin. (6) Mt. Holland, Australia. Mineral resource tonnage and average contained grade were rounded to reflect the accuracy of the estimate and figures may not match, due to rounding. Mineral resources are reported as exclusive of mineral reserves. The disclosed resource corresponds to resources attributable to SQM. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The resources have been reported as in situ (hard rock within an optimized resource pit). Resource pit optimization and economic parameters for the derivation of the cut-off grade include a mine gate price of US$800 FOB per tonne of 6% Li2O concentrate, mining cost of AUS$19 per bcm (average LoM variable cost per depth), processing cost of AU$65 per tonne. Mining dilution set at 5% and recovery at 95%. Royalty rates of 5%. Optimization considered for the concentrator is 75%. Costs estimated in Australian dollars were converted to US dollars based on an AU$0.75:US$1.00 exchange rate. These economics define a 0.50% Li2O cut-off grade. Kerry Griffin is the Qualified Person responsible for the mineral resource estimate with an effective date of October 6, 2021. No material changes are reported since the last update. (7) El Norte Grande, Caliche, Chile. To calculate Measured Resources, SQM uses the results of the RGM100T and RGM50 data combined in a 3D block model built with Krigeage and applying some criteria: caliche thickness ≥ 2.0 m; overburden thickness ≤3.0 m; residue/mineral ratio ≤ 1.5; and NaNO3 (3%) and iodine (300 ppm) cut-off grades. For the calculation of Indicated Resources, SQM uses the results of the RGM100 and RGM200 data combined using a model obtained from Inverse distance estimation (IVOR). To evaluate Probable Reserves, a reduction in grades must be considered as a consequence of the geological variability of the deposit that determines a contrasting decrease in grades when going from 200x200m research grids to smaller 100T (~70x70m) or 50x50m grids. The Mineral Resource estimates were prepared by Marco Fazzi (who is the Qualified Person for these Mineral Resource estimates), and were reported using SK 1300 Definition Standards adopted in December 2018. The Qualified Persons for Mineral Reserves for Nueva Victoria and Pampa Blanca are Marco Fazzi, Marco Lema and Gino Slanzi. (8) El Norte Grande, Caliche, Chile. The estimate was completed using a SG of 2.1 ton/m³. The cut-off grade for iodine is 300 ppm. The cut-off grades of the mineral resources vary according to the targets required at the different mines. The values assigned correspond to the averages of the different sectors. For all our sites, the cut-off grade is by nitrate content considering iodine. The ore reserve estimate considers a cut-off grade of 300ppm for iodine (I2) based on the production costs of iodine and its by-products. Based on 2010 historical iodine prices and the forecast to 2040, a projected iodine price of US$42,000 per metric ton is determined, taking into account the corresponding planned operating, financial and 6 OUR BUSINESS 115 investment costs, depreciation, profit margin and taxes. A similar analysis was performed for nitrates, where SQM set the cut-off grade of 3.0% NaNO3 based on the respective costs for the production of potassium-sodium nitrates (fertilizers). SQM considers a projected price of US$820/metric ton for sodium and potassium nitrates in the economic analysis performed from 2010 and forecast to 2040. Individual materiality properties In determining our individually significant mining operations under SK-1300, management considered both quantitative and qualitative factors, evaluated in the context of our overall business and financial condition. Such evaluation included our aggregates mining operations at all of our mining properties, regardless of the stage of production or type of ore produced. Quantitative factors included, among others, the relative contributions of mining operations to our historical and estimated aggregate revenues, cash flows and EBITDA. Qualitative factors may include, as appropriate, capital expansion plans, long- term price outlook, the regulatory environment and various strategic priorities. We concluded that, as of December 31, 2023, our mines of individual materiality are the caliche mines at Nueva Victoria, Pampa Blanca and Pampa Orcoma in the Norte Grande region of Chile, the brines in the Salar de Atacama in Chile and the Mt. Holland lithium project in Western Australia. We will update our assessment of the materiality mines on an annual basis. The following information regarding such materiality properties, for the most part, is derived from and, in some cases, is an extract of TRS relating to such properties, prepared in accordance with Section 601(b)(96) and SK-1300. Portions of the following information are based on assumptions, qualifications and procedures that are not fully described in this document. Reference should be made to the full text of the TRS, incorporated herein by reference and made a part of this Annual Report on Form 20-F. Properties and Facilities in the Norte Grande Caliche, Chile Our mining operations are concentrated in the First Region of Chile, where we work mainly in the Tente en el Aire, Nueva Victoria Oeste, Hermosa and Torcaza mining areas, while in the Second Region we work in the Pampa Blanca mining area. The Norte Grande Caliche, which is located in Regions I and II of northern Chile, corresponds to flat areas or "pampas" that have been extensively explored. Results indicate that these prospects contain nitrate and iodine mineralization. The area is accessible from Santiago via Route 5. The mineralization is stratiform in style, with a wide areal distribution, forming "spots" of several kilometers in extension, where the thicknesses of mineralization are variable. As a result of geological activity over time (volcanism, weathering, faulting) the deposits can be found as continuous mantos. Environmental permits for mining operations and the corresponding Environmental Qualification Resolution grant access to the required water and electricity supply, as well as the necessary infrastructure for the mining operation. Facilities New Victory The Nueva Victoria mine and facilities are located 140 kilometers southeast of Iquique and are accessible by road. Since 2007, the Nueva Victoria mine has included the Soronal, Mapocho and Iris mining properties. At this site, we use caliche to produce nitrate and iodine-rich salts through heap leaching and the use of solar evaporation ponds. The main production facilities at this site include the heap leach operation centers, the iodide and iodine plants at Nueva Victoria and Iris, and the evaporation ponds in the Sur Viejo sector of the site. The areas currently in operation are located approximately 27 kilometers 6 OUR BUSINESS 116 northeast of Nueva Victoria. Solar energy and electricity are the main sources of power for this operation. Nitrate-rich salts are sent to Coya Sur, which is a processing plant located approximately 15 kilometers south of Maria Elena, and production activities there are associated with the production of potassium nitrate and finished products. The main production facilities at this site include four potassium nitrate plants with a total capacity of 1,300,000 metric tons per year. It also has four crystallized nitrate production lines, with a total capacity of 1,200,000 metric tons per year, and a pelletizing plant with a capacity of 360,000 metric tons per year. The potassium nitrate produced at Coya Sur is an intermediate product used as raw material for the production of finished products (crystallized nitrates and granulated nitrates). Therefore, the production capacities listed above are not independent of each other and cannot be added together to obtain an overall total capacity. Natural gas is the main source of energy for our operation at Coya Sur. Pampa Blanca The Pampa Blanca mine and project facilities are located in the Antofagasta Region of northern Chile. It is located 100 kilometers northeast of the city of Antofagasta, in the commune of Sierra Gorda. The property has an area of 51,201 hectares and consists of 152 mining concessions. The Pampa Blanca Project aims to produce salts rich in iodide, iodine and nitrate from the processing of caliche that will be extracted from deposits rich in this mineral. The Pampa Blanca Mining Plan considers an initial extraction of caliche at a rate of 5.0 million metric tons per year between 2024-2029, followed by an extraction rate of 12 million metric tons per year starting in 2030. For the 2024-2030 period, a total extraction of 42 million metric tons of caliche with an average grade of 444 ppm iodine and 6.1% nitrates is projected. The production process to obtain iodine as the main product, along with salts rich in sodium nitrate and potassium nitrate as by-products, consists of heap leaching with fresh water or recirculated solutions to obtain an iodate-rich solution, which will then be treated in a chemical plant to transform it into elemental iodine in prill format. Solar energy and electricity are the main energy sources for this operation. The project facilities also include heap leach operation centers, iodide plant and evaporation ponds. Pampa Orcoma The Pampa Orcoma Project is located in the Tarapacá Region, in northern Chile. It is located 99 kilometers northeast of the city of Iquique, in the community of Huara. The property has an area of 10,296 hectares and is composed of 45 mining concessions. The Pampa Orcoma Project aims to produce salts rich in iodide, iodine and nitrate by processing caliche that will be extracted from deposits rich in this mineral. The Pampa Orcoma Mining Plan considers an initial extraction of caliche at a rate of 8.4 million metric tons for the first year to the fourth year, followed by an extraction of 20 million metric tons from the fifth year onwards. For the 16-year mine life, a total extraction of 287.4 million metric tons of caliche with an average grade of 408 ppm iodine and 6.7% nitrates is projected. The production process to obtain iodine as the main product, in addition to salts rich in sodium nitrate and potassium nitrate as by-products, consists of leaching with seawater or recirculated solutions to obtain a solution rich in iodate, which will then be treated in chemical plants to transform it into elemental iodine in the form of granules. The Pampa Orcoma Project contemplates the construction of the following facilities: iodide and iodine production plants with a capacity of 2,500 metric tons per year (iodine equivalent), evaporation ponds to produce nitrate-rich salts at a rate of 320,325 metric tons per year, and a seawater adduction pipeline to meet water needs. Solar energy and electricity are the main energy sources for this future operation. Development of the Pampa Orcoma project was postponed to 2030, with no changes to the project information provided as of December 31, 2022. 6 OUR BUSINESS 117 The following table provides a summary of our El Norte Grande production facilities as of December 31, 2023: Installation Type of installation Approximat e size (hectares) (1) Nominal production capacity ( thousands of metric tons/year) Average age (2) Gross book value (US$ millions) (2) Nitrate production 1.518 Potassium nitrate: 1,300 Crystallized nitrates: 1,200 Prilled nitrates: 360 11,37 676,3 Concentrated nitrate salts and iodine production Concentrated nitrate salts and iodide production. Concentrated nitrate salts and iodine production 47.492 Iodine: 13.0 11,26 292,5 4,808 Iodide:1,3 16,73 8,1 7.387 Iodine: 2.5 - - South Coya(3),(4) New Victory (5),(7) Pampa Blanca(6) Pampa Orcoma(8) ________________ (1) The approximate size considers that both the production facilities and the mine for Nueva Victoria are those authorized for exploitation by the environmental authority and/or Sernageomin. (2) The weighted average age and gross book value correspond to the production facilities, excluding the Nueva Victoria mine and the Port of Tocopilla facilities. (3) Includes production facilities and solar evaporation ponds. (4) Potassium nitrate produced at Coya Sur is an intermediate product that is used as raw material for the production of finished products (crystallized nitrates and granulated nitrates). Therefore, the production capacities listed above are not independent of each other and cannot be added together to obtain an overall total capacity. (5) Includes production facilities, solar evaporation ponds and leaching heaps. Total iodine production capacity includes the capacities of our Nueva Victoria and Pedro de Valdivia plants. The effective iodine capacity is 14,300 metric tons per year. (6) Iodide production is sent to the Nueva Victoria and Pedro de Valdivia plants to produce iodine in prilled form. (7) Includes production facilities and nitrate solution ponds. (8) The development of the Pampa Orcoma project was postponed with no changes in the information reported as of December 31, 2022. Directly or indirectly, through subsidiaries, we own, lease or hold concessions over the facilities in which we conduct our operations. These facilities are free and clear of any material liens or encumbrances, and we believe that they are adequate and appropriate for the business we conduct there. Extraction yields The following table sets forth certain operating data related to each of our El Norte Grande mines for 2023, 2022 and 2021: 6 OUR BUSINESS 118 (in thousands, unless otherwise indicated) 2023 2022 2021 Coya Sur (1) Metric tons produced of crystallized nitrate 642 725 820 New Victory Metric tons of ore extracted 43.450 44.324 41.428 Iodine (ppm) Metric tons of iodine produced ________________ 398 13,9 430 12,4 441 10,2 (1) Includes production of finished products at Coya Sur from the treatment of nitrate solutions at María Elena and Pedro de Valdivia, nitrate salts from the treatment of piles at Nueva Victoria and net production of NPT or technical grade potassium nitrate plants. (2) Includes iodine production in prilled format from the Nueva Victoria and Pedro de Valdivia facilities. Reserves and resources According to our experience in caliche ore, grid pattern drilling with spacing between 50 and 100 meters produces caliche resource data sufficiently defined to consider them as measured resources and then, adjusting for technical, economic and legal aspects, as proven reserves. These reserves are obtained through the Kriging Method and the application of operating parameters to obtain economically profitable reserves. Similarly, information obtained from detailed geological work and samples taken from grid drilling at spacings between 100 and 200 meters can be used to determine indicated resources. By adjusting these indicated resources to account for technical, economic and legal factors, it is possible to calculate probable reserves. Probable reserves are calculated using the Inverse Distance Weighting (IDW) geostatistical technique and have a greater uncertainty or margin of error than proven reserves. However, the degree of certainty of probable reserves is high enough to assume continuity between observation points. The conversion of resources into reserves requires the consideration of modifying factors, the most relevant of which is the existence of a valid environmental license (RCA or Sectorial Authorization). The criteria for the conversion of resources into reserves, based on the criterion of the modifying factor of the environmental license, adopted for caliche mines, are as follows: 1. Criteria for conversion of unit tonnage into measured resources and indicated resources. 2. Grade conversion criteria: unit factor for measured resources and less than unity and variable according to the mine, for iodine and nitrate grades, for the indicated resources, due to the variability of the deposit. 3. Application of the factor associated with the corresponding environmental permit, not qualifying as reserves the resources defined in sectors without an environmental permit, and qualifying as proven/probable reserves those measured/indicated resources associated with sectors with an environmental permit in force or Sectorial Authorization in force. 6 OUR BUSINESS 119 New Victoria: Summary of mineral reserves at the close of the fiscal year ended December 31, 2023 1,2,3,4,5,6,7,8,9 Quantity (Mt) Nitrate grade ( % by weight) Iodine grade ( Parts per million (ppm)) Cutting laws1 Metallurgical recovery2 Proven mineral reserves 202 Probable ore reserves Total mineral reserves 529 731 5,6 5,1 5,2 432 415 420 Nitrate 3.0% Iodine 300 ppm 50%-70% ______________ (1) Mineral reserves are based on measured and indicated mineral resources at an operating limit of 3.0% nitrate and 300 ppm for iodine. Operating restrictions of caliche thickness ≥ 2.0 m; overburden thickness ≤3.0 m; and residue/caliche ratio ≤ 1.5 applies. (2) Proven Mineral Reserves are based on the Measured Mineral Resources according to the criteria described in (1) above. The average overall metallurgical recovery of the nitrate and iodine processes contained in the recovered material ranges from 50% to 70%. Based on SQM's operating experience and the laboratory and full-scale tests performed, a progressive increase in heap leach performance over time is expected as irrigation application rates increase. (3) Probable Mineral Reserves are based on the Indicated Mineral Resources according to the criteria described in (1) above, with a grade call factor of 0.9 for iodine and 0.85 for nitrates, confirmed by operating experience. (4) Mineral Reserves are expressed as in-situ ore (caliche) as a benchmark. (5) The units "Mt", "kt", "ppm" and % refer to million tons, kilotonnes, parts per million and percent by weight, respectively. (6) Mineral Reserves are based on an iodine price of US$42,000 per metric ton and a nitrate price of US$295 per metric ton. Mineral Reserves are also based on economic viability as demonstrated by a tax-discounted cash flow. (7) Marco Fazzi, Marco Lema and Gino Slanzi are the Qualified Persons responsible for the Ore Reserves. (8) The Qualified Person is not aware of any environmental, permitting, legal, title, tax, socio-economic, marketing, political or other relevant factors that could materially affect the Mineral Reserve estimate that are not discussed in this TRS. (9) Comparisons of values may not match, due to rounding of numbers and differences caused by the use of averaging methods. New Victoria: Summary of mineral resources excluding mineral reserves at the end of the fiscal year ended December 31, 2023 1,2,3,4,5,6 Quantity (Mt) Nitrate grade ( % by weight) Iodine grade ( Parts per million (ppm)) Cutting laws5 Nitrate 3.0% Iodine 300 ppm Measured mineral resources Indicated mineral resources Measured + indicated mineral resources Inferred mineral resources ________________ --- 20 20 49 --- 4,7 4,7 5,3 --- 415 415 372 6 OUR BUSINESS 120 (1) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or part of the Mineral Resources will become Mineral Reserves after the application of modifying factors. (2) Mineral Resources are reported as in situ and exclude Mineral Reserves, where the estimated Mineral Reserve without processing losses during the reported LOM was subtracted from the Mineral Resource, including Mineral Reserves. All Measured and Indicated Mineral Resources have been converted to Mineral Reserves; as a result, only Inferred Mineral Resources are reported in this TRS. (3) Comparisons of values may not match, due to rounding of numbers and differences caused by the use of averaging methods. (4) The units "Mt", "ppm" and % refer to million tons, parts per million and percent by weight, respectively. (5) The Mineral Resource estimate considers a nitrate cut-off grade of 3.0% and iodine of 300 ppm, based on cumulative cut-off grades and average operating grades, as well as a caliche thickness ≥ 2.0 m and an overburden thickness ≤ 3.0 m. The iodine cut-off grade considers medium and long-term costs and price forecasts for iodine generation, as discussed in Sections 11, 16 and 19 of the TRS. (6) Marco Fazzi, Marco Lema and Gino Slanzi are the Qualified Persons responsible for the Ore Reserves. Pampa Orcoma: Summary of mineral reserves at the end of the fiscal year ended December 31, 20231,2,3,4,5,6,7,8,9 Quantity (Mt) Nitrate grade ( % by weight) Iodine grade ( Parts per million (ppm)) Cutting laws1 Metallurgical recovery2 Proven mineral reserves Probable ore reserves Total mineral reserves --- 309 309 --- 6,9 6,9 --- 413 413 Nitrate 3.0% Iodine 300 ppm 50-70% _____________ (1) Comparisons of values may not match, due to rounding of numbers and differences caused by the use of averaging methods. (2) The units "Mt" and "ppm" refer to million tons and parts per million respectively. The average overall metallurgical recovery of the nitrate and iodine processes contained in the recovered material varies between 50% and 70%. Based on SQM's operating experience and the laboratory and full-scale tests performed, a progressive increase in heap leaching performance over time is expected as irrigation application rates increase. (3) The Mineral Reserve estimate considers a nitrate cut-off grade of 3.0% and iodine of 300 ppm, based on cumulative iodine cut-off grades and average operating grades, as well as the medium and long term cost and price projection of iodine generation. (4) Historical operating use modifying factors are applied to the iodine and nitrate grades at several of SQM's mining facilities, the factors applied to the iodine and nitrate grades are 0.9 and 0.85, respectively. (5) Mineral Resources in the area without an environmental permit are estimated at 18 Mt. (6) Mineral Reserves are reported as in-situ ore. (7) Marco Fazzi, Marco Lema and Gino Slanzi are the Qualified Persons responsible for the Ore Reserves. (8) The Qualified Person is not aware of any environmental, permitting, legal, title, tax, socio-economic, marketing, political or other relevant factors that would materially affect the Mineral Reserve estimate that are not discussed in this TRS. (9) The development of the Pampa Orcoma project was postponed with no changes in the information reported as of December 31, 2022. 6 OUR BUSINESS 121 Pampa Orcoma: Mineral resource summary excluding mineral reserves at the end of the fiscal year ended December 31, 20231,2,3,4,5,6,7 Quantity (Mt) Nitrate grade ( % by weight) Iodine grade ( Parts per million (ppm)) Cutting laws5 Nitrate 3.0% Iodine 300 ppm Measured mineral resources Indicated mineral resources Measured + indicated mineral resources Inferred mineral resources ________________ --- 18 18 --- --- 7,4 7,4 --- --- 457 457 --- (1) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or part of the Mineral Resources will become Mineral Reserves after the application of modifying factors. (2) Mineral resources are reported as in situ and exclude mineral reserves, where the estimated mineral reserve without processing losses during the reported LOM was subtracted from the mineral resource, including mineral reserves. (3) Comparisons of values may not match, due to rounding of numbers and differences caused by the use of averaging methods. (4) The units "Mt" and "ppm" refer to million tons and parts per million, respectively. (5) The Mineral Resource estimate considers a 3.0% nitrate cut-off grade and iodine of 300 ppm, based on cumulative iodine cut-off grades and average operating grades, as well as expected medium and long term cost and prices for granular iodine production. (6) Marco Fazzi, Marco Lema and Gino Slanzi are the qualified persons responsible for Mineral Resources. (7) The development of the Pampa Orcoma project was postponed with no changes in the information reported as of December 31, 2022. Pampa Blanca: Summary of mineral reserves at the end of the fiscal year ended December 31, 20231,2,3,4,5,6,7,8,9 Quantity (Mt) Nitrate grade ( % by weight) Iodine grade ( Parts per million (ppm)) Cutting laws1 Metallurgical recovery2 Proven mineral reserves Probable ore reserves Total mineral reserves 30 12 42 6,1 6,3 6,2 460 455 459 Nitrate 3.0% Iodine 300 ppm 50-70% ________________ (1) Mineral Reserves are based on Measured and Indicated Mineral Resources with an operating limit of 3% for nitrates and 300 ppm iodine. Operating restrictions of caliche thickness ≥ 2.0 m; overburden thickness ≤3.0 m; and waste/caliche ratio ≤1.5 applies. (2) Proven Mineral Reserves are based on Measured Mineral Resources according to the criteria described in (1) above. The average overall metallurgical recovery from the nitrate and iodine processes contained in the recovered material ranges from 50% to 70%. Based on SQM's operating experience and the laboratory and full-scale tests performed, a progressive increase, over time, in heap leach performance is expected as irrigation application rates increase. 6 OUR BUSINESS 122 (3) Probable Mineral Reserves are based on Indicated Mineral Resources according to the criteria described in (1) above with a grade call factor of 0.9 for iodine and 0.85 for nitrates confirmed by operating experience. (4) Mineral Reserves are expressed as in-situ ore (caliche) as a benchmark. (5) The units "Mt", "kt", "ppm" and % refer to million tons, kilotons, parts per million and percent by weight, respectively. (6) Mineral Reserves are based on an iodine price of US$42,000 per metric ton and a nitrate price of US$295 per metric ton. Mineral Reserves are also based on economic viability as demonstrated by a discounted after-tax cash flow. (7) Marco Fazzi, Marco Lema and Gino Slanzi are the QPs responsible for Mineral Reserves. (8) QP is not aware of any environmental, permitting, legal, title, tax, socio-economic, marketing, political or other relevant factors that may materially affect the Mineral Reserve estimate that are not discussed in this TRS. (9) Comparisons of values may not total due to rounding of numbers and differences caused by the use of averaging methods. Pampa Blanca: Summary of mineral resources excluding mineral reserves as of the end of the fiscal year ended December 31, 20231,2,3,4,5,6 Quantity (Mt) Nitrate grade ( % by weight) Iodine grade ( Parts per million (ppm)) Cutting laws1,2 Nitrate 3.0% Iodine 300 ppm Measured mineral resources 17 Indicated mineral resources 534 Measured + indicated mineral resources Inferred mineral resources 551 223 5,3 6,3 6,3 5,4 ________________ 563 561 561 511 (1) Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or part of the Mineral Resource will become Mineral Reserves after the application of modifying factors. (2) Mineral Resources are reported as in situ and excluding Mineral Reserves, where the estimated Mineral Reserve without processing losses during the reported LoM was subtracted from the Mineral Resource including Mineral Reserves. All Measured and Indicated Mineral Resources have been converted to Mineral Reserves; as a result, only Inferred Mineral Resources are reported in this DTS. (3) Comparisons of values may not add up due to rounding of numbers and differences caused by the use of averaging methods. (4) The units "Mt", "ppm" and % refer to million tons, parts per million and percent by weight, respectively. (5) The Mineral Resource estimate considers a cut-off grade of 3% for nitrates and 300 ppm for iodine, based on cumulative iodine cut-off grades and average operating grades, as well as caliche thickness ≥ 2.0 m and overburden thickness ≤ 3.0 m. The iodine cut-off grade considers medium and long-term cost and price forecasts for iodine generation as discussed in Sections 11, 16 and 19 of the DTS. (6) Marco Fazzi, Marco Lema and Gino Slanzi are the QPs responsible for Mineral Resources. New Victoria's proven mineral reserves of 201.8 million metric tons at December 31, 2023, decreased 8.7% from 220 million metric tons at December 31, 2022. New Victoria's probable ore reserves of 553 million metric tons at December 31, 2022, decreased 4.3% to 529 million metric tons at December 31, 2023. The decrease in mineral reserves was driven by mining and recategorization of probable reserves in the Tente sector at El Aire. Indicated mineral resources of 20 million metric tons at December 31, 2022 were unchanged at December 31, 2023. Inferred mineral resources at Nueva Victoria of 31 million metric tons at December 31, 2022, increased to 48.5 million metric tons at December 31, 2023. Pampa Orcoma's probable mineral reserves and indicated mineral resources of 309 million metric tons and 18 million metric tons at December 31, 2023, respectively, remained unchanged from the amounts 6 OUR BUSINESS 123 at December 31, 2022, because there were no material changes that would modify the estimated mineral reserves. Pampa Blanca's proven ore reserves of 30.2 million metric tons at December 31, 2023, decreased by 14.2% from 35.2 million metric tons at December 31, 2022. Pampa Blanca's probable ore reserves of 498 million metric tons at December 31, 2022, decreased by 97.6% to 12.0 million metric tons at December 31, 2023. The decrease in mineral reserves was driven by mining and the expiration of the RCA. The proven and probable reserves shown above are the result of evaluating approximately 18.7% of our Company's total caliche-related mineral property. However, we have explored most intensively those areas where we believe there is the greatest potential to encounter high grade caliche ores. The remaining 81.3% of this area has not been explored or has had limited reconnaissance, which is not sufficient to determine potential and hypothetical resources. In 2023, the basic reconnaissance of new mining properties was carried out in the Franca Oeste sector, equivalent to 433 hectares. Regarding detailed exploration, in 2023 recategorization campaigns were carried out for indicated resources equivalent to 8,730 hectares in the Hermosa Oeste, Pampa Engañadora, Franja Oeste and Tea Oeste sectors; Cocar and Sector IV of Pampa Blanca. An advanced exploration program is already designed for 2024, planned to cover an area of 5,390 hectares in the Tente en el Aire, Nueva Victoria and Franja Oeste sectors. The reserves shown in these tables are calculated based on properties that are not involved in legal disputes between SQM and other parties. We maintain an ongoing program of exploration and resource evaluation in the lands surrounding our producing mines and other sites for which we hold the appropriate concessions. The information presented in the table with respect to the Nueva Victoria, Pampa Orcoma and Pampa Blanca mines has been validated by the following Qualified Persons (QP): Mr. Marco Fazzi is a Geologist with more than 25 years of experience in subway and open pit mining operations in metallic and non-metallic deposits. He is currently working at SQM as Manager of Mineral Resources and Long Term Planning. He has extensive experience in exploration geology, ore control geology, geological modeling and resource and reserve estimation management. Mr. Fazzi is a QP as defined in Item 1300 of Regulation S-K and is registered under No. 287 in the Public Registry of QPs in Mineral Resources and Reserves, pursuant to Law No. 20,235 which regulates the role of QPs and creates the Qualifications. Commission on Competencies in Mineral Resources and Reserves ("QP Law") and its regulation in force in Chile. Mr. Marco Lema is a Civil Mining Engineer with more than 30 years of experience in the field. He currently works at SQM as Superintendent of Resources and Mine Planning. He has worked as a Mining Engineer in Metallic and Non-Metallic deposits, with extensive experience in the latter. Mr. Lema is a QP, as defined in Item 1300 of Regulation S-K and is registered under No. 375 in the QP in Mineral Resources and Reserves in accordance with the QP Law and its regulations in force in Chile. Mr. Gino Slanzi is a Civil Engineer. He is currently General Manager of Inprotec SPA and Senior Consultant of Pares & Alvarez. He has worked for over 35 years in the development of metallurgical mining projects, optimization of production plants and management models. He visited the site in 2022. Mr. Slanzi is a QP as defined in subpart 1300 of Regulation S-K and is registered under No.441 in the Public Registry of QPs in Mineral Resources and Reserves, in accordance with the QP Law and its current Regulation in Chile. 6 OUR BUSINESS 124 Mining concessions for the exploration and exploitation of the Caliche mineral We hold our caliche mining rights under mining concessions for the exploration and exploitation of mineral resources that have been granted in accordance with applicable Chilean law: (1) "Mining Exploitation Concessions": give us the right to use the land to exploit the mineral resources contained therein in perpetuity, subject to annual payments to the government of Chile; and (2) "Mineral Exploration Concessions": give us the right to use the land to explore and verify the existence of mineral resources for a period of two years, at the expiration of which the concession may be extended once for an additional two years, if the area covered by the concession is reduced by half. Alternatively, we may apply for an exploitation concession in respect of the area covered by the original exploration concession, which must be made within the term established by the original exploration concession. (3) In addition, the current amendments to the Mining Code under Law 21,420 and others, modified the term of exploration concessions, which will be four years, allowing the term to be extended for up to four more years on a one-time basis if geological information is available. delivered as a result of exploration or if an RCA has been obtained or an eligible project has been entered into the Environmental Impact Assessment System. A Mineral Exploration Concession is generally obtained for the purpose of evaluating mineral resources in a defined area. If the holder of the Mineral Exploration Concession determines that the area does not contain commercially exploitable mineral resources, the Mineral Exploration Concession is generally allowed to lapse. It is also possible to apply for a Mining Concession without having previously obtained a Mining Exploration Concession for the area in question. As of December 31, 2023, the area covered by Mining Concessions that have been granted in relation to the caliche resources of our mining sites is approximately 543,100 hectares. Likewise, as of December 31, 2023, the area covered by Mining Exploration Concessions in relation to the caliche resources of our mining sites is approximately 400 hectares. We have not applied for additional mining rights. Properties and Facilities in the Salar de Atacama, Chile SQM's operations in the Salar de Atacama are located in the Antofagasta Region of Chile, which includes the Province of El Loa and the commune of San Pedro de Atacama. The Salar de Atacama Project for the treatment of brine to obtain lithium and potassium salts is currently in operation and is in the production stage. The Salar de Atacama core is owned by Chile's Corporación de Fomento de la Producción (CORFO), which grants special operating contracts or administrative leases to private companies for brine extraction. SQM and Albemarle have a lease agreement with CORFO to extract and produce lithium from brine stored in the Salar de Atacama deposit. Consequently, SQM must comply with the terms of the contract and also with the conditions established in the current RCAs to maintain operations in the Salar de Atacama. Exploration is routinely carried out within the established areas. SQM leases an area of approximately 1,400 square kilometers with a permit to extract brines from an area of 820 square kilometers with two main operations. It currently produces lithium at its southwest operation. The lease was signed in 1993 and expires on December 31, 2030. 6 OUR BUSINESS 125 The nearest cities are Calama and Antofagasta, located 160 and 230 kilometers west of the site, respectively. From Calama, the road to the site is via Route R-23 and, from Antofagasta, it is via Route B-385. SQM's mineral resource in the Salar de Atacama consists of in-situ brine within a porous medium and the resource estimate depends on brine concentration, aquifer geometry and interconnected drainable pore volume. Within the SQM concessions, lithium and potassium resources were estimated based on extensive exploration and many depth-specific samples from each unit. The geology of the Salar de Atacama is characterized by Paleozoic to Holocene igneous and sedimentary rocks, as well as recent unconsolidated clastic deposits and evaporite sequences. The salar itself resides in a tectonic basin of recent compressional-transpressional behavior and is bounded by high-angle reverse and strike-slip faults. The surface of the Salar de Atacama is made up of recent evaporite deposits where, over time, the evaporation process has precipitated salts, and superficial clastic sediments are found mainly along the margins of the salar. The salt crust is composed mainly of halite, sulfates and occasionally organic matter, with alluvial facies in the peripheral areas. Evaporite and clastic deposits within the salar host brine at depth and are bounded and cut by local fault systems. Several structural blocks have been identified, due to recent fault displacement. The salar system of the Salar de Atacama basin is typical of a mature salar, with a core consisting of a thick section of halite (>90%) with sulfate and a smaller percentage of clastic sediments, as well as some intercalated clayey sediments and sulfates, over an area of 1,100 square kilometers and to a depth of 900 meters. Within SQM's concessions, mineralization includes lithium and potassium-rich brines in porous media in different zones and depths of the Salar de Atacama core. Facilities Our Salar de Atacama facilities are located 210 kilometers east of the city of Antofagasta and 190 kilometers southeast of the city of María Elena. At this site, we use brines extracted from the salar to produce potassium chloride, potassium sulfate and lithium chloride solutions, which are then sent to our Lithium Chemical Plant for processing. The main production plants at this site include the solar evaporation pond systems, the potassium chloride flotation plants (MOP-H I and II), the potassium carnallite plants (PC I and extension PC I), the potassium sulfate flotation plant (SOP-H), the potassium chloride drying plant (Dual Plant or MOP-S), the potassium chloride compaction plant (MOP-G3), the potassium sulfate drying plant (SOP-S) and the potassium sulfate compaction plant (SOP-G). The energy used consists mainly of solar energy, as well as electricity, fuel and gas sources. The site of the Lithium Chemical Plant facility is located approximately 20 kilometers east of Antofagasta. The production plants at this facility include the lithium carbonate plant, with a production capacity of 200,000 tons per year, and the lithium hydroxide plant, with a production capacity of 30,000 tons per year. Lithium chloride (LiCl) solution is concentrated and purified in the lithium chemical plants through contaminant removal stages (specifically boron, magnesium and calcium content) and conversion reaction to produce: technical grade lithium carbonate, battery grade lithium carbonate, technical grade lithium hydroxide and battery grade lithium hydroxide. Electricity and natural gas are the main sources of energy for our Lithium Chemical Plant operations. The following table provides a summary of our Salar de Atacama production facilities as of December 31, 2023: 6 OUR BUSINESS 126 Approximate size Installation Type of installation (hectares) (1) Atacama Salt Flat 35.911 Potassium chloride, potassium sulfate, lithium chloride and boric acid production Lithium Chemical Plant, Antofagasta Lithium carbonate and lithium hydroxide production 126 ________________ Weighted average age (years) (2) Gross book value (US$ millions) (2) 17,64 1.697,5 Nominal production capacity ( thousands of metric tons/year) Lithium sulfate: 90 Potassium chloride: 2,680 Potassium sulfate: 245 Boric acid: 15 Lithium carbonate: 200 Lithium hydroxide: 30 8,30 1.051,6 (1) For the Salar de Atacama, the approximate size considers both the production facilities and the mine. Mining areas are those authorized for exploitation by the environmental authority and/or Sernageomin. (2) The weighted average age and gross book value correspond to the production facilities, excluding the mine, of the Salar de Atacama. Directly or indirectly, through subsidiaries, we own, lease or hold concessions over the facilities in which we conduct our operations. These facilities are free and clear of any material liens or encumbrances, and we believe that they are adequate and appropriate for the business we conduct therein. Extraction yields The following table sets forth certain operating data related to each of our Salar de Atacama operations for 2023, 2022 and 2021: (in thousands, unless otherwise indicated) 2023 2022 2021 Atacama Salt Flat (1) Metric tons produced of potassium chloride, potassium sulfate and potassium salts Metric tons of dry lithium sulfate produced Lithium Chemical Plant (1) 1.208 51,1 984 18,9 1.407 - Metric tons produced of lithium carbonate 165,5 152,5 108,4 ________________ (1) Lithium carbonate is produced from a concentrated lithium chloride solution obtained from the Salar de Atacama and processed at our facilities at the Lithium Chemical Plant near Antofagasta. Potassium salts include synthetic sylvinite, produced at the plant, and other harvested potassium salts (natural sylvinite, carnallites and plant pond harvests) that are sent to Coya Sur for the production of crystallized nitrates. Reserves and resources The mineral reserve of potassium and lithium dissolved in the brines of the Salar de Atacama was estimated considering the modifying factors for the conversion of mineral resources to mineral reserves, including the design and efficiency of the production well field, pumping scheme and lithium and potassium recovery factors. Projected future brine extraction was simulated using a groundwater flow and solute transport model. The numerical modeling was supported by a detailed calibration process and hydrogeological, geological and hydrochemical data within the mining concessions. Based on the current 6 OUR BUSINESS 127 producing well field, which corresponds to the most representative mineral resource and reserve statement effective date of 2023, we estimate our proven and probable lithium and potassium reserves to be as follows: Salar de Atacama: Summary of mineral reserves, considering process recoveries (effective as of December 31, 2023)1,2,3,4,5,6 Brine volume (million cubic meters) Quantity (million metric tons) 104 107 211 104 107 211 0.13 0.14 0.27 2.20 2.12 4.32 Grade/Quality (% weight) Shear laws (% weight) Metallurgical recovery (%) 0.20 0.20 0.20 2.31 2.16 2.24 0.05 0.05 0.05 1.00 1.00 1.00 52 52 52 74 74 74 Lithium Proven mineral reserves (years 1- 3) Probable mineral reserves (years 4-7) Total mineral reserves Potassium Proven mineral reserves (years 1- 3) Probable mineral reserves (years 4-7) Total mineral reserves ___________ (1) Process efficiency is based on the type of brine extracted in each well during the course of the simulation, the average process efficiency across the LoM is approximately 52% for lithium and approximately 74% for potassium. (2) The values in the "Quantity" column correspond to the lithium metal (LME) and potassium content. (3) The average lithium and potassium concentration is weighted by the simulated extraction rates at each well. (4) Comparisons of values may not match, due to rounding of numbers and differences caused by averaging. (5) The mineral resource and reserve estimate considers a cut-off grade of 0.05% w/w for lithium, based on the cost of lithium product generation, lithium carbonate sales and the respective cost margin. Based on historical lithium prices since 2010 and forecast to 2040, a projected lithium carbonate price of US$11,000 per metric tonne is considered, with the respective cost and profit margin, plus a small increase to adjust for evaporation area and additive use. A similar analysis was performed for K, where SQM established the 1% w/w cut-off grade based on the respective costs, sales and margin. (6) This reserve estimate differs from the in-situ reserve base previously reported by SQM in 2020 (SQM, 2020) and considers factors modifying the conversion of mineral resources to mineral reserves, including the design and efficiency of the production well field, as well as environmental and process recovery factors. The reserves estimate also considers the expiry of the Lease in 2030 (end of LoM). The Qualified Person for the Mineral Reserves is Rodrigo Riquelme. Production well locations are based on measured and indicated resource zones. Due to brine mixing over time, hydrogeological processes and pumping effects, the mineral reserve was classified as a function of time: • The Proved Reserves were specified for the first 3 years of the simulation, since the model is adequately calibrated for the period 2015-2020, and the initial part of the projected simulation has higher confidence, due to expected short-term changes in pumping, conceptual hydraulic parameters and water balance, among other factors. • Probable Reserves were assigned conservatively for the last 4 years of the simulation, considering that the numerical model will be continuously improved and recalibrated in the 6 OUR BUSINESS 128 future, due to possible medium and long term changes in neighboring pumping, conceptual hydraulic parameters and water balance, among other factors. Probable reserves and inferred resources are continually being explored in order to reclassify them as proved reserves and indicated or measured resources, respectively. This exploration includes systematic packer testing, chemical brine sampling and long-term pilot production pumping tests. As a complement to the reserves information, SQM has an environmental impact study (RCA 226/06) that defines a maximum brine extraction until the end of the Lease Contract (December 31, 2030). Considering the maximum net brine production rates authorized by (RCA 226/06) and the voluntary reduction plan announced by SQM, which is characterized by a reduction in future pumping from 1,166 l/s to 822 l/s during the 7-year LoM, a total of approximately 211 million cubic meters of brine, corresponding to 0.27 million metric tons of lithium, will be extracted from the wells. The lithium and potassium resource was classified into 3 categories (measured, indicated, inferred) according to the amount of information from the hydrogeological units, as well as geostatistical criteria. Hydrogeological knowledge was prioritized as the first classification criterion based on exploration, monitoring and historical production data, while geostatistical variables were used as a secondary criterion. We estimate our lithium and potassium resources as of December 31, 2020, which we also consider to be an adequate proxy for December 31, 2023, as follows: Salar de Atacama: Summary of mineral resources, excluding mineral reserves (effective December 31, 2023)1,2,3,4,5,6,7 Lithium Measured mineral resources Indicated mineral resources Measured + indicated mineral resources Inferred mineral resources Potassium Measured mineral resources Indicated mineral resources Measured + indicated mineral resources Inferred mineral resources ______________ Brine volume (million cubic meters) 2,254 1,435 3,689 1,614 2,254 1,435 3,689 1,614 Quantity (million metric tons) 5.4 2.8 8.2 2.6 49.8 30.0 79.8 34.9 Grade/Quality (% weight) Shear laws (% weight) 0.20 0.16 0.18 0.13 1.80 1.70 1.77 1.77 0.05 0.05 0.05 0.05 1.00 1.00 1.00 1.00 (1) Mineral resources are not mineral reserves and have no demonstrated economic viability. There is no certainty that all or part of the mineral resource will be converted to mineral reserves after the application of modifying factors. (2) Mineral Resources are reported as in situ and exclude Mineral Reserves, where the estimated Mineral Reserve without processing losses during the reported LoM. A direct correlation was assumed between Proven Reserves and Measured Resources, as well as Probable Reserves and Indicated Resources. (3) Effective porosity was used to estimate drainable brine volume based on SQM porosity laboratory measurement techniques (Gas Displacement Pycnometer). The Qualified Person believes that the high frequency sampling of effective porosity, its large data set and the general lack of material where specific retention may be dominant allows effective porosity to be a reasonable parameter for resource estimation. (4) The values in the "Quantity" column correspond to the lithium metal (LME) and potassium contained. (5) Comparison of values may not match, due to rounding of numbers and differences caused by averaging. 6 OUR BUSINESS 129 (6) The mineral resource and reserve estimate considers a cut-off grade of 0.05% w/w for lithium, based on the cost of lithium product generation, lithium carbonate sales and the respective cost margin. Based on historical lithium prices since 2010 and forecast to 2040, a projected lithium carbonate price of US$11,000 per metric tonne is considered with the respective cost and profit margin, plus a small increase to adjust for evaporation area and use of additives. A similar analysis was performed for potassium, where SQM established the 1% w/w cut-off grade based on the respective costs, sales and margin. (7) Juan Becerra is the Qualified Person responsible for Mineral Resources. Because both lithium and potassium are extracted from the same brines in the Salar de Atacama, the following discussion of changes in mineral reserves and resources in the Salar de Atacama applies to both lithium and potassium. The Salar de Atacama brine proven mineral reserves of 104 million cubic meters at December 31, 2023 decreased by 27% from 143 million cubic meters at December 31, 2022. The Salar de Atacama brine probable ore reserves of 107 million cubic meters at December 31, 2023 remained unchanged from the amounts at December 31, 2022. The Salar de Atacama brine measured, indicated and inferred mineral resources, excluding reserves, of 2,254 million cubic meters, 1,435 million cubic meters and 1,614 million cubic meters at December 31, 2023. respectively, remained unchanged from the amounts at December 31, 2022 because the mineral resource excluding mineral reserve represents the existing resource after the LoM, and none of the mineral resources declared in 2022 have been converted to mineral reserves. The information presented in the tables above for the Salar de Atacama was validated by: Mr. Rodrigo Riquelme Tapia is a Mining Engineer. He is currently partner and General Manager of GeoInnova, located at Antonio Bellet 444, Of. 1301, Providencia, Metropolitan Region, Chile. He has worked as a mining engineer for more than 24 years after graduation, 17 of which have been focused on resource and reserve estimation. Mr. Riquelme has been an external consultant to SQM since 2018 and visited the site in 2019 and 2023. Mr. Riquelme is a Qualified Person registered at No. 50 in the Public Registry of Qualified Persons in Mineral Resources and Reserves, in accordance with Law No. 20,235 which regulates the role of Qualified Persons and creates the Qualifying Commission for Competencies in Mineral Resources and Reserves ("Qualified Persons Law") and its regulation in force in Chile. Dr. Juan Becerra is a geologist, with Master and PhD degrees in geology, with more than 14 years of experience in exploration, regional geology, structural geology, modeling and resource estimation of Li, K and REE. He is a Qualified Person (QP), as defined in Item 1300 of Regulation S-K, and is registered since 2023 under No. 0480 in the Public Registry of Qualified Persons in Mineral Resources and Reserves, in compliance with the QP Law and its regulations in force in Chile. He is also a member (No. 699) of the College of Geologists, and has participated in the evaluation of lithium projects and the preparation of technical reports following national (CH20235) and international (S-K1300, CRIRSCO) regulations, standards and codes. He has published and participated in multiple scientific contributions, and has also directed undergraduate and graduate theses. He currently serves as Geology Superintendent at SQM Salar S.A., where he leads a multidisciplinary team of technicians and professionals focused on the exploration and evaluation of lithium projects. Mining concessions for brine exploitation in the Atacama Salt Flat As of December 31, 2023, our subsidiary SQM Salar had exclusive rights to exploit mineral resources in an area covering approximately 140,000 hectares of land in the Salar de Atacama in northern Chile, of which SQM Salar only has the right to exploit mineral resources on 81,920 hectares. These rights are owned by Corfo and are leased to SQM Salar pursuant to the Lease Agreement. Corfo cannot unilaterally modify the Lease Agreement and the rights to exploit the resources cannot be transferred. The Lease Agreement provides for SQM Salar to (i) make quarterly lease payments to Corfo based on product sales 6 OUR BUSINESS 130 from leased mineral properties and annual research and development contributions to local communities, the Regional Government of Antofagasta and the municipalities of San Pedro de Atacama, Maria Elena and Antofagasta, (ii) maintain Corfo's rights to the Mining Concessions and (iii) make annual payments to the Government of Chile for such concession rights. The Lease Agreement was entered into in 1993 and expires on December 31, 2030. Under the terms of the Project Agreement, Corfo agreed that it will not allow any other person to explore, exploit or extract any mineral resource in the approximately 140,000 hectare area of the Salar de Atacama mentioned above. The Project Agreement expires on December 31, 2030. SQM Salar holds an additional 242,868 hectares of Mining Concessions in areas close to the Salar de Atacama, which correspond to mineral reserves that have not been exploited. SQM Salar also has Mining Exploitation Concessions that are in the process of being granted for 11,000 hectares in areas close to the Salar de Atacama. In addition, as of December 31, 2023, SQM Salar had Mining Exploration Concessions covering approximately 400 hectares and has applied for additional Mining Exploration Concessions covering approximately 2,900 hectares. The exploration rights are valid for two years, after which time we can (i) apply for a Mining Exploitation Concession for the land, (ii) apply for an extension of the Mining Exploration Concession for an additional two years (the extension only applies to a reduced surface equivalent to 50% of the initial area) or (iii) let the concession expire. Additionally, the current amendments to the Mining Code under Law 21,420 and others, modified the term of the exploration concessions, which will be four years, allowing to extend the term for up to four more years only once if geological information is submitted as a result of the exploration or if an RCA has been obtained or an admissible project has been submitted to the Environmental Impact Assessment System. Under the terms of the Lease Agreement, with respect to lithium production, the Chilean Nuclear Energy Commission (CCHEN) established a total cumulative extraction limit, set as amended by the Corfo Arbitration Agreement in January 2018, of up to 349,553 metric tons of lithium metal equivalent (1.860,670 tonnes of lithium carbonate equivalent), which is in addition to the remaining approximately 64,816 metric tonnes of lithium metal equivalent (345,015 tonnes of lithium carbonate equivalent) of the amount originally authorized in the aggregate for all periods while the Lease Agreement is in effect. As of December 31, 2023, only 7 years remain on the Lease. The Environmental Qualification Resolution, RCA No. 226/2006, issued on October 19, 2006 by COREMA (Regional Environmental Commission) authorizes SQM to extract brine through pumping wells from two areas in the west and parts in the southwest of the areas defined in the Lease Agreement. SQM refers to these brine extraction areas as AAE zones (Áreas Autorizadas para la Extracción or Authorized Extraction Areas), and they are divided based on the products historically generated in each sector: (i) The northern part is called AAE-SOP, where "SOP" stands for sulfate of potash (potassium sulfate product), and covers an area of 10.512 ha, equivalent to 29.27% of the total SSA area; (ii) the southern portion is called SSA-MOP, where "MOP" indicates muriate of potash (potassium chloride product), covering an area of 25,399 ha, equivalent to 70.73% of the total SSA area. SQM routinely carries out exploration activities within the areas involved in the Lease Agreement and authorized by the Environmental Permits. These are intended to maintain the number of wells necessary for production. The water that SQM uses for its mineral production in the Salar de Atacama is obtained from wells located in the alluvial aquifer on the eastern edge of the Salar, for which the Company has groundwater 6 OUR BUSINESS 131 use rights, as well as the corresponding environmental authorization (RCA 226/2006). As part of the voluntary sustainability commitment assumed by SQM in 2020, the Company will reduce its water consumption by up to 50% by 2030. SQM's operations are subject to certain risk factors that may affect SQM's business, financial conditions, cash flow or operating results, such as: the potential impossibility to extend or renew the mining rights in the Salar de Atacama beyond the expiration date defined (December 31, 2030) in the CORFO-SQM lease agreement, risks related to being a Chilean-based company, potential political risks, as well as changes in the Chilean Constitution and legislation, may affect development plans, production levels and costs, risks related to financial markets, among others. Mt. Holland lithium project, Australia The Mt. Holland Project is an integrated lithium project in Western Australia consisting of: (i) an open pit mine and lithium concentrator operation at Mt. Holland, 120 kilometers southeast of Southern Cross, and (ii) a lithium hydroxide (LiOH) refinery, located in the town of Kwinana, 26.5 kilometers from the port of Fremantle, from where the LiOH will be shipped. The project is an unincorporated joint venture in which SQM owns 50% and Wesfarmers Limited ("Wesfarmers"), through a wholly owned subsidiary, owns the remaining 50%, and is managed by Covalent Lithium Pty Ltd ("Covalent"), an entity 50% owned by SQM and 50% owned by Wesfarmers. The project is accessed overland via Parker Range Road and Marvel Loch-Forrestania road, which is currently a gravel road. Parker Range Road is connected to Great Eastern Highway, which is a paved road with connectivity to Southern Cross, Kalgoorlie and Perth. In addition, the project has air access, utilizing a dedicated airstrip on the southern side of the mine. The project includes: • An open pit mining operation focused on the Earl Grey hard rock lithium deposit at Mt. Holland, approximately 100 kilometers south of the town of Southern Cross in Western Australia and 500 kilometers east of the city of Perth. • A spodumene concentrator plant located at the Mt. Holland site with a nominal production capacity of 383,000 metric tons per year of dry spodumene concentrate grading 5.5% Li2O. • A refinery under development, located in the Kwinana industrial precinct, approximately 45 kilometers south of Perth, with the capacity to produce 50,000 metric tons per year of battery- grade lithium hydroxide (LiOH) product for export worldwide. • The non-process infrastructure (NPI) required to support the Mt. Holland and Kwinana sites, including roads, buildings, accommodation, and the provision of logistics and utilities. The rare element pegmatite potential of the Forrestania Greenstone Belt (FGB) was first recognized in the mid-1970s when a small, complex lepidolite-type pegmatite was discovered during nickel exploration. This pegmatite produced small amounts of gem-quality tantalum and elbaite (rubellite) and beryl (morganite). Narrow pegmatites with spodumene have been found several kilometers to the north. No systematic exploration for rare element pegmatites had been carried out in the district since the discovery of gemmy pegmatite containing rubellite and tantalum in the early 1970s. Following the acquisition of the Project from the administrators of Convergent Minerals, Kidman Resources Limited ("Kidman Resources") conducted a high level review of the region leading to the discovery of the Bounty and Earl Grey pegmatites. 6 OUR BUSINESS 132 Exploration by Kidman Resources beginning in 2016 defined numerous occurrences of rare element pegmatites throughout the FGB. By far the most significant of these corresponds to the Mt. Holland (Earl Grey) deposit. Albite-spodumene-type pegmatites have been found at Bounty and Blue Vein. Albite- type pegmatites have been tested at Prince of Wales. Spodumene and lepidolite-type complex pegmatites have been determined at Blue Vein, Mt Hope and South Holland (Kidman Resources, 2018). On September 11, 2017, Kidman Resources Limited (Kidman) and SQM entered into an asset sale agreement, whereby SQM acquired its interest in the holdings for a total investment of US$110 million, consisting of an initial payment of US$25 million and a deferred payment of US$85 million, both payments subject to certain conditions precedent. All payments were completed in December 2018. Under the asset sale agreement, the parties also agreed to form an unincorporated joint venture to extract and process the spodumene ore into spodumene concentrate or lithium hydroxide. The Mt. Holland joint venture was established by the December 21, 2017 unincorporated joint venture agreement between SQM Australia and MH Gold, a wholly owned subsidiary of Kidman. Wesfarmers acquired Kidman in 2019, resulting in Wesfarmers assuming Kidman's interest in the Mt. Holland joint venture on September 23, 2019. SQM and Wesfarmers announced an investment decision in February 2021, following the completion of a feasibility study by Covalent. The project commenced mining activities in the first quarter of 2022, with first ore mined in the fourth quarter of 2022, and the concentrator completed construction and began ramping up production in 2023. The refinery is under construction and the completion date is expected to be during the first half of 2025. The Mt. Holland project is focused on the exploitation of the spodumene hosted lithium resource in the Earl Grey pegmatite group. The Earl Grey pegmatite group consists of a main tabular pegmatite body flanked by numerous smaller dykes at both its roof and base. The pegmatite field covers an area of up to 1 x 2 square kilometers and a thickness of up to 100 meters. The pegmatites become progressively narrower and more branching to the south and east of the main pegmatite until even the main body splits into several narrower dikes. Within the pegmatite body, isolated box-rock enclaves are found sporadically. The pegmatites have an approximate strike of 210° to 220° and dip 5° to 15° to the northwest. At their western margin, the pegmatites appear to be affected by gentle folding. The dip of the pegmatites is variable, with the pegmatite increasing from subhorizontal in the south to 10° to 15° to the northwest north of the Earl Grey gold deposit. Lithium mineralization within fresh pegmatite is zoned and controlled mainly by dominant mineralogy; Spodumene and petalite dominated assemblages are enriched compared to altered (cookeite) and Li-free assemblages. The Li2O % mineralization is depleted in the weathered pegmatite. Extensive exploration supports the characterization of the Earl Grey pegmatite, as well as the estimation of resources and reserves. The exploration conducted is comprised of surface mapping and drilling campaigns conducted on the property, considering that the pegmatite does not outcrop in the area. Exploration was predominantly executed by Kidman since 2016, for discovery and resource definition. Since 2020, Covalent has conducted additional diamond drilling for metallurgical sampling, grade control drilling campaigns and definition of orebody geometry improvements in the proposed area of the initial drilling. Most of the exploration drill holes at Earl Grey have been drilled using standard reverse circulation ("RC") drilling techniques. Diamond drilling comprises 47.6 mm, 50.5 mm, 63.5 mm and 85 mm 6 OUR BUSINESS 133 diameter holes, which are drilled for geological, metallurgical and geotechnical purposes. Recoveries for reverse circulation drilling range from 70 to 90% in this geological/geomorphological environment. Recoveries for diamond drilling are on the order of 95-100%. Recoveries decrease where shear zones or other structural disturbances have been crossed. The orientation of the drill holes is at relatively acute angles (less than 90º) and, therefore, the intersected length is not considered as a representation of the actual thickness of the pegmatite; its actual thickness is determined through geological models. Resource drilling was initially carried out on wide exploration grids to determine the extent of mineralization. This was followed by a 50 by 50 metre grid drilling program to support the resource estimate. Through the development of the Project in 2020, the first stages of the open pit were defined and the drill program was designed for grade control based on higher density and geostatistical criteria. This information provides the mine design during the initial years of commissioning and supports the current resource and reserve definition. Facilities The Mt. Holland project is an integrated lithium project in Western Australia consisting of (i) an open pit mine at the Earl Grey hard rock lithium deposit and a spodumene concentrator comprised of a DMS and flotation circuits, 120 kilometers southeast of Southern Cross, and (ii) a lithium hydroxide (LiOH) refinery, located in the town of Kwinana, 26.5 kilometers from the Port of Fremantle, from where the battery grade LiOH product will be shipped. The concentrator at Mt. Holland has a nominal production capacity of 383,000 dry tonnes per year of concentrate with a grade of 5.5 percent lithium oxide which matches the refinery's feed requirements. The Kwinana refinery has the capacity to produce 50,000 tons per year of lithium hydroxide. The Mt. Holland project is focused on mining and beneficiation of spodumene reserves in the Earl Grey group of pegmatites. The deposit consists of a main body of thick tabular pegmatites, which become progressively narrower and branch south and east from the main pegmatite until the main body splits into several narrower dykes. Sporadically, isolated box rock enclaves are found within the pegmatite body. The first ore from the pit was mined in 2022 and the concentrator started commissioning in the third quarter of 2023. First concentrate production from both circuits was achieved in the last quarter of 2023 and the first shipment of spodumene concentrate is expected in the first half of 2024. As of December 2023, construction of the concentrator plant has been completed and the refinery is under construction. The following table provides a summary of our production facilities in Australia as of December 31, 2023: Type of installation Mine and concentrator producing 5.5% spodumene concentrate and production of lithium hydroxide. Mt. Holland Approximate size (hectares)(1) Nominal production capacity ( thousands of metric tons/year) Weighted average (years)(2) Gross book value (US$ millions)(2) 4.646 Spodumene concentrate: 383 Lithium hydroxide: 50 0 753,4 (1) The approximate size considers both production facilities and mining, exploration, miscellaneous and general purpose leases for Mt. Holland, where the mine, concentrator and NPI facilities reside. (2) The weighted average age and gross book value correspond to SQM's 50% interest in the production facilities of the Mt. Holland assets and the Kwinana refinery. 6 OUR BUSINESS 134 Extraction yields (in thousands, unless otherwise specified) Mt. Holland Spodumene concentrate produced (dry metric tons) 2023 15,0 2022 0,0 2021 0,0 Reserves and Resources Mt. Holland: Summary of ore reserves at the end of the fiscal year ended December 31, 2023(1),(2) Quantity Laws/qualities Cutting laws Metallurgical recovery Total Mt Mt attributable to SQM Li2O% Li2O Li2O% Li2O % Proven mineral reserves 21,3 10,7 Probable ore reserves 62,4 31,2 Tested in stock 0,2 0,1 Total mineral reserves 83,9 42,0 ________________ 1,55 1,57 1,45 1,57 0,5 0,5 0,5 0,5 75% Concentrator: 85% Refinery 75% Concentrator: 85% Refinery 75% Concentrator: 85% Refinery 75% Concentrator: 85% Refinery (1) Ore reserve tonnage and grade have been rounded to reflect the accuracy of the estimate, and figures may not match, due to rounding. Metallurgical processes are designed for a nominal ore feed of 2Mpta. Concentrate process recovery is estimated at 75% for lithium oxide for predominantly spodumene mineralization and 0% for other types of mineralization. Refinery process recovery is estimated at 85%. Tantalum recovery is estimated at 0%. In the reserves evaluation, a total operating cost of US$4,979 per metric ton was considered for LiOH production. The price, cost and mass throughput parameters, together with the internal constraints of current operations, result in an ore reserve cut-off grade of 0.5% lithium oxide based on a lithium hydroxide sales price of US$11,000 per tonne. David Billington is responsible for the mineral reserves with an effective date of December 15, 2021. The current reserve statement is a depletion of the previous reserve model compiled by QP David Billington. The depletion completed by Covalent interrogated the 2022 reserves model with surface topographical surveys completed on December 27, 2023 and subtracted the additional 5 days of production at December 31, 2023. Reported reserves include ore reserves as of December 31, 2023. No material change since last reserves update. (2) An error was identified in the 2022 calculations that resulted in a minor change in the% proven and probable Li2O grades reported for the 2023 disclosure. This did not affect the total reserves. Mt. Holland: Summary of mineral resources excluding mineral reserves as of the end of the fiscal year ended December 31, 2023(1),(2) Quantity Resources Laws/qualities Cutting laws Metallurgical recovery Total Mt Mt attributable to SQM Li2O % Li2O Li2O % Li2O Measured mineral resources 27,0 13,5 1,58 0,5 6 OUR BUSINESS % 75% 135 Indicated mineral resources 61,0 Measured + indicated mineral resources 88,0 Inferred mineral resources 7,0 ________________ 30,5 44,0 3,5 1,45 1,49 1,38 0,5 0,5 0,5 75% 75% 75% (1) Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and figures may not add up due to rounding. Mineral resources are reported excluding mineral reserves. Mineral resources are not mineral reserves and have no demonstrated economic viability. Resources have been reported as in situ (hard rock within an optimized borehole). Pit optimization and economics for cut-off grade derivation include a mine gate price of US$800 per metric tonne of 6% Li2O concentrate, AU$19 per bcm mining cost (LoM average variable cost per depth), AU$65 processing cost per tonne. Mining dilution set at 5% and recovery at 95%. Royalty rates of 5%. Optimization considered for the concentrator is 75%. Costs estimated in Australian dollars were converted to US dollars at the AU$0.75:US$1.00 exchange rate. These economics define a 0.50% lithium oxide cut-off grade. Kerry Griffin is the Qualified Person responsible for the mineral resource estimate effective October 6, 2021. No material changes since last update. (2) Please note that some rounding errors may occur. A mineral resource and mineral reserve depletion exercise was completed by Covalent and reviewed by SQM. Mineral resource depletion was completed by interrogating the 2022 mineral resource model with the final topographic surface of the mine surveyed on December 27, 2023, then 5 days of production to December 31, 2023 were subtracted from the remaining resource. It was found that there was no depletion of the previously reported mineral resources, excluding mineral reserves. Ore reserve depletion was completed by interrogating the 2022 reserve model with the year-end mine area and validating it with material movements. Ore stockpiles totaling 0.2 metric tons were accounted for as part of the ore reserve inventory, resulting in the depletion of 0.2 metric tons of reserves, of which 0.1 metric tons were attributable to SQM. Some additional material was processed that was outside of the 2022 reserve model. This was a combination of additional ore material identified during grade control modeling and mining processes and the use of some transition material for concentrator commissioning. As a result of a depletion exercise, the proven and probable mineral reserves of the Mt. Holland lithium project attributable to SQM totaled 10.7 million metric tons and 31.2 million metric tons at December 31, 2023, respectively. The Mt. Holland lithium project's measured, indicated and inferred mineral resources, excluding reserves, of 13.5 million metric tons, 30.5 million metric tons and 3.5 million tons at December 31, 2023, respectively, remained unchanged from the amounts at December 31, 2021. The information presented in the tables above (Mt. Holland project) has been validated by the following Qualified Persons (QPs): Mr. David Billington is a Mining Engineer with a B.Sc. in Mining, with over 35 years of experience in mine planning, mine management and operations and project evaluation and consulting, for different commodities (Li, Ta, Sn, Fe2O3, Au, Cu, REE). As a mining engineer, he has worked on pegmatite projects producing lithium for 10 years and has evaluated multiple lithium pegmatite projects. He is a member of the Australasian Institute of Mining and Metallurgy (AUSIMM), 109676. He meets the experience criteria as a Competent Person for Ore Reserves and style of mineralization as established by the AUSIMM Joint Ore Reserves Committee (JORC). Mr. Billington is a Qualified Person (QP) as defined by subpart 1300 of Regulation S-K. Mr. Billington is a former employee of Covalent Lithium, a joint venture between SQM and Wesfarmers Ltd, and a current employee of Mining Plus through which 6 OUR BUSINESS 136 he advises Covalent Lithium. He is responsible for the reserve estimation for the Mt. Holland lithium project. Mr. Kerry Griffin is a qualified Geologist and has over 28 years of extensive practical experience in mining geology, mine development and management, design and management of large scale resource exploration and drilling programs, resource modeling and estimation, management and training of geological studies/technical teams in Australia, Africa, Central and South America, Central Asia and South East Asia, including over 22 years in senior or senior management positions. His lithium pegmatite experience includes exploration, resource development and mining in Australia, South Africa and South America and as such Mr. Griffin meets the criteria for experience as a competent person for Ore Resources in this style of mineralization as set out by AUSIMM. Joint Ore Reserves Committee (JORC). Is a QP as defined by subpart 1300 of Regulation S-K. He is a current member of the Australian Institute of Geoscientists (3521) and the Society for Economic Geology. Mr. Griffin was employed by Mining Plus Ltd at the time the resource estimates were calculated. He is currently employed by Global Commodity Solutions. He is responsible for the resource estimate for the Mt. Holland Lithium Project. Mr. Andres Fock is a Geologist and Master in Geology, with 18 years of experience in project evaluation, resource estimation, exploration and geostatistics, for different commodities such as lithium, potassium, nitrates, iodine, copper and rare earth elements. Since 2019 he is a Qualified Person (QP) as defined in Item 1300 of Regulation S-K and is registered with No. 0388 in the Public Registry of QPs in Mineral Resources and Reserves, in accordance with the QP Law and its regulation in force in Chile. As a geologist, he has evaluated multiple lithium brine and lithium-bearing pegmatite projects. Mr. Fock acted as project manager during the preparation of the technical report summary for the Mt. Holland project. Mr. Fock is an employee of SQM. Mining rights The Mt. Holland lithium mine and concentrator operation is spread over three main mining properties (M77/1065, M77/1066 and M77/1080), as well as exploration licenses, general purpose licenses and miscellaneous licenses (project properties), covering an approximate area of 4,606 hectares. The majority of the project properties are currently registered in equal shares in the name of MH Gold, a subsidiary of Wesfarmers, and SQM Australia, a subsidiary of SQM. The project is a joint venture, in which SQM owns 50% and Wesfarmers owns the remaining 50% (the "Mt. Holland Joint Venture"), and is managed by Covalent, an entity owned 50% by SQM and 50% by Wesfarmers. Covalent is not the registered owner or applicant of the project properties under the Western Australian Mining Act (WA). Transportation and Storage Facilities Our products are transported by trucks that are operated by dedicated third parties under long-term contracts. Moreover, we have our own port and storage facilities for the transportation and handling of finished products and consumables. Our main raw material production and storage facilities are the Nueva Victoria, Coya Sur and Salar de Atacama facilities in Chile and Mt. Holland in Australia. Other facilities include our Lithium Chemical Plant located near the city of Antofagasta in Chile, the Mt. Holland lithium hydroxide plant, which is currently under construction in Kwinana, Western Australia, as well as the Tocopilla Port terminal, which is the main facility for the storage and dispatch of our bulk and packaged potassium chloride (MOP), nitrates and lithium carbonate products. 6 OUR BUSINESS 137 In Chile, finished nitrate products are produced at our Coya Sur facilities and then transported by truck to the Port of Tocopilla terminal where they are stored and shipped in bulk or packaged in polypropylene bags, polyethylene or polypropylene bags. The latter can also be transported and stored at an alternative port (Mejillones) for subsequent shipment. Potassium chloride is produced at our Salar de Atacama facilities and transported by truck to either the Tocopilla port terminal, the Coya Sur facilities or the alternative port of Mejillones for shipment. The product transported to Coya Sur is an intermediate product used as raw material for the production of potassium nitrate. The product transported to the Port of Tocopilla or Mejillones is a final product that will be shipped or transported to the client or affiliate. The saltpetre raw material for the production of potassium nitrate at Coya Sur is currently produced at Nueva Victoria. Lithium chloride solution, containing a high concentration of boron, produced at our Salar de Atacama facilities, is transported to the lithium carbonate plant at our Lithium chemical facilities area, where finished lithium carbonate is produced. Some of the lithium carbonate is supplied to the adjacent lithium hydroxide plant where finished lithium hydroxide is produced. These two products are packaged in containers of different characteristics such as polyethylene bags, multilayer FIBC big-bag or polypropylene, stored in the same facilities and protected in warehouses. Subsequently, they are consolidated in containers that are transported in trucks to a transit warehouse or directly to port terminals for subsequent shipment. The port terminals currently used are capable of receiving container ships and are located in Antofagasta, Mejillones and Iquique. Lithium carbonate can also be transported in packaged form either to the Port of Tocopilla or to an alternative port (Mejillones) to be shipped in fractionated form. Iodine obtained from the same caliche used for nitrate production is processed, packaged and stored exclusively at the Pedro de Valdivia and Nueva Victoria facilities. The containers used for iodine are polypropylene drums and FIBC big bags with an internal polyethylene bag and oxygen barrier, which are consolidated in containers and shipped by truck to port terminals suitable for handling, located mainly in Antofagasta, Mejillones and Iquique. They are then shipped to different markets in container ships or by truck to Santiago where iodine derivatives are produced at Ajay-SQM Chile's plants. Drums and maxibags can also be transported by flat ramps to an alternative port (Mejillones) to be shipped in break bulk format. In Australia, production of spodumene concentrate at the Mt. Holland mine commenced in 2023. Pending completion of the lithium hydroxide refinery at Kwinana, the concentrate will be trucked to a storage facility at Bunbury, approximately 500 kilometers west of the Mt. Holland mine. At Bunbury, the product is distributed to the SQM and Wesfarmers joint venture partners to follow their individual shipping and marketing plans. For overland logistics from the Mt. Holland mine to the port of Bunbury, bulk haulage operators are responsible for transporting the spodumene concentrate by road haulage trucks. The haulage operator is certified by Bureau Veritas for the provision of bulk transport and storage services, transport of controlled dangerous goods waste, operation and maintenance of heavy vehicles in accordance with the requirements of the ISO 9001:2015 and ISO. 45001:2018. In Chile, we own and operate the Tocopilla port terminal. Our subsidiary, Servicios Integrales de Tránsitos y Transferencias S.A. (SIT), operates facilities for the shipment of products and the delivery of certain raw materials based on renewable concessions granted by the Chilean regulatory authorities, provided that the facilities are used in accordance with the authorization granted and we pay an annual concession fee. The facilities include a truck weighing machine that confirms the entry of product into the port and transfers it to the various storage areas, a piezometer within the shipping system for bulk 6 OUR BUSINESS 138 product loading onto vessels, a 40-ton capacity crane for loading sealed product onto vessels and a nitrate blending facility. The storage facilities consist of a system of six silos, with a total storage capacity of 55,000 metric tons, and a mixed storage area of open and covered warehouses with a total storage capacity of approximately 250,000 metric tons. In addition, to meet future storage needs, we will continue to make investments in accordance with the investment plan defined by management. Products are also bagged at the Port of Tocopilla terminal facilities, where bagging capacity is established by two bagging machines, one for polypropylene FIBC sacks and big bags and the other for polyethylene FFS. Products packaged in Tocopilla can be shipped later at the same port or can also be consolidated in trucks or containers for subsequent shipment to customers by land or sea via containers from other ports, mainly located in Antofagasta, Mejillones, and Iquique. For the transport of bulk products, the conveyor belt system extends along the coast to deliver the products directly to the hatches of the bulk carriers. The rated loading capacity of this shipping system is 1,200 tons per hour. Packaged product is transported using the same bulk vessels using unpowered barges located on the dock and loaded by a 40-ton capacity crane from the terminal at the Port of Tocopilla. Subsequently, they are towed and unloaded by ship cranes to the respective warehouses. We normally contract bulk cargo vessels to transfer product from the terminal at the Port of Tocopilla to our facilities around the world or directly to customers, who, in certain cases, use their own contracted vessels for delivery. Tocopilla's processes related to the reception, handling, storage and shipment of bulk/packaged nitrates produced at Coya Sur are certified by the external organization TÜV-Rheinland under the ISO 9001:2015 quality standard. The Port of Tocopilla also holds Responsible Care, ISO 14000 and Ecoport certifications. 6.5 SUBSIDIARIES AND ASSOCIATES Information on SQM's main subsidiaries and associates is presented in detail in Appendix 3. 6 OUR BUSINESS 139 7. SUPPLIERS MANAGEMENT 7.1 PAYMENT TO SUPPLIERS There are corporate procedures that address the payment of suppliers, for example, with respect to the payment of purchase orders, it is mentioned that it must be made within 30 days, unless a different term is expressly established. In any case, our policy is to guarantee timely payment to our suppliers of goods and services. On average, payment is made 45 days after the supplier submits its invoice and it is received by SQM. Payment dates are calculated from the date the invoice arrives at SQM, duly drawn up and with the requested attachments. In the event that, due to omission or error of any information in the invoice, modifications will be required and the issuance of a credit note for the total amount of the invoice to be corrected, partial credit notes cannot be accepted. Due to this, the deadlines are interrupted until the presentation of the new invoice correctly prepared. This is counted from the date of receipt of the invoice or the date of receipt of the goods by SQM, whichever is later. Invoices indicate the payment conditions stipulated in the respective agreements and purchase orders, as well as discounts for prompt payment in effect at the date of issue. The Company has a list of strategic suppliers, under which an action plan is being developed to mitigate risks according to their critical variables, where it could be reviewed according to their criticality if it makes sense to set special deadlines for any of these suppliers. Given the above, we are working on an internal definition to segregate critical and non-critical suppliers. For foreign suppliers, a condition is generally used that establishes that payment will be made within the terms agreed with the supplier, which depending on the particular case may be more or less than the term established in the procedure. By process, import purchases are supported by an advance payment and then against the shipping document the payment of the outstanding balance is agreed, this on average is 15 days. For those national or international suppliers with whom SQM has a stronger commercial relationship, payments are allowed once the goods are received at our warehouses or points of destination. At the company level, we do not have a calendar days target, however, we promote good practices for timely payments respecting good faith negotiations between both parties and based on what is indicated in the corporate procedure. Therefore, in our operations in northern Chile we have set a medium-term goal that in general all payments should be made within a maximum of 30 days from the presentation of the invoice. As a good practice, in order to encourage the development of local suppliers (Tarapacá Region and Antofagasta Region) we have defined cash payment for them. This same criterion has been applied to those service providers that we have preliminarily categorized as critical, regardless of their place of residence. To achieve these objectives and in line with our Sustainability policy, we request and control that our service providers keep updated and certify compliance with their labor obligations through an external certifying company, validated for this purpose. 7 SUPPLIER MANAGEMENT 140 SQM has an ARTIKOS platform where contractors can monitor the payment of their invoices free of charge. (https://art-p-ptk.artikos.cl/SIAS/web_SQM/HomeProv.asp#) We have no amounts of interest in arrears nor do we have any agreements registered in the Registry of Agreements with Exceptional Payment Terms of the Ministry of Economy. Payment to Suppliers 2023 Type of Supplier Calendar Days Tranche Up to 30 days Between 31 and 60 days More than 60 days No. of Invoices Paid Total Amount in Ch$ million (millions of CLP) N° of Suppliers National Foreign Total National Foreign Total National Foreign Total 7.2 SUPPLIER EVALUATION 105.302 2.604 131.346 4.078.573 519.439 4.596.012 3.624 2.544 6.168 1.489 2.419 3.908 13.618 65.053 78.671 322 561 883 1.804 1.304 3.108 4.885 41.425 46.310 315 394 709 At SQM we are aware that, as a multinational company with operations around the world, we have the responsibility to respect human rights and our commitments established in the company's Sustainability, Ethics and Human Rights Policy, even beyond what the laws require us to do, which is a minimum standard for our actions. Throughout our history, we have worked to improve (i) our production quality, (ii) fair treatment, (iii) environmental protection, and (iv) unrestricted respect for human rights, subjecting ourselves to the highest international standards. We have formally adhered to the UN Guiding Principles on Business and Human Rights and the "protect, respect and remedy" framework they enshrine, adopting them as our own. We seek to extend this commitment to human rights throughout our supply chain to ensure responsible sourcing. SQM has developed a responsible sourcing program aligned with the five pillars that form the core of our corporate sustainability strategy: 1) ethics and corporate governance, 2) our workers, 3) value chain, 4) environment and sustainable development, and 5) communities. In line with these pillars, we aim to ensure that our suppliers understand and are able to meet our expectations in order to maintain our high standards. Accordingly, we have published our Responsible Sourcing Policy, which outlines our value chain requirements. We expect all suppliers with whom we engage to comply with applicable legislation and to share our sustainability commitments in their own businesses. We urge all of our suppliers, which include inputs, services, consultancies, intermediaries, among others, that provide services to SQM to: • Respect the human rights of their workers • Take care of the environment • Protect health and safety • Prioritize ethics and integrity in your business 7 SUPPLIER MANAGEMENT 141 • Promote fair treatment of their own employees To this end, in concrete terms we seek to ensure at least that: • Ensure compliance with our code of ethics. • Know and understand our policies • Conduct a sustainability self-assessment on an annual basis. • Commit to provide further information if requested and/or participate in additional validation. • Apply corrective actions if necessary. In our Responsible Sourcing Policy, we have defined that there are certain risks throughout the supply chain which, if they occur, imply a material breach of the Policy, but also of other SQM corporate policies. In this sense, substantial non-compliance is understood as incurring in a serious violation of human rights or engaging in intolerable conduct that represents a threat to the rule of law or human rights. In these situations, SQM may suspend or terminate the commercial relationship with the supplier that has engaged in such conduct. We are aware that throughout the supply chain of activities related to the extraction of minerals, as well as in their transportation or trade, there is a greater susceptibility to certain abuses that constitute serious human rights violations that companies must avoid and commit to eradicate. In this sense, it is considered a serious violation of human rights: • Incurring in any form of child labor in accordance with Convention No. 182 of the International Labor Organization (ILO), ratified by Chile in 2000. • Adopting or tolerating practices of forced labor or any other type of modern slavery, including work under threat and any work for which the individual has not volunteered. • Any form of torture or cruel, inhuman or degrading treatment. • Other abusive treatment, such as widespread sexual violence and other serious human rights violations. • Committing or participating in the commission of war crimes or other serious violations of international humanitarian law, crimes against humanity or genocide. Likewise, understanding that mineral extractive activities, such as those carried out by SQM, present risks regarding the possible involvement of non-state armed groups along the supply chain, which represent a threat to the rule of law and human rights, SQM will not tolerate any type of direct or indirect support to these non-state armed groups. Direct or indirect support may include, but is not limited to, obtaining minerals, making payments, providing logistical assistance or equipment, performing acts or contracts on their behalf, among others. In this sense, they are considered intolerable conduct: • Directly or indirectly support non-state armed groups that illegally control work sites and routes or mineral transportation operations, or otherwise exercise control over commercialization points. 7 SUPPLIER MANAGEMENT 142 • Directly or indirectly supporting non-state armed groups that illegally collect taxes or extort at access points to work sites or operations along transport routes or at points where minerals are commercialized. • Directly or indirectly supporting non-state armed groups that extort money from intermediaries, exporters or international traders. In turn, in order to verify what is established in our policies, we have developed a supplier evaluation mechanism that considers 6 categories: Derechos Humanos Responsabilidad Social Empresarial Ética del Negocio Gestión de Calidad Seguridad y Salud Ocupacional Medio Ambiente In the year 2023, the second Self-Assessment was carried out based on the Sustainability criteria, in which 71 suppliers participated. Of these, 7 were entered through the CAHRAS List procedure, which is requested by the Compliance area, to all suppliers that belonged to areas affected by conflicts and high risk. In addition, 52 suppliers were invited to participate by SQM, and 12 were identified as potential suppliers for SQM who also participated in the internal evaluation by SQM. Supplier Evaluation % of Suppliers Evaluated N° of Suppliers Evaluated N° of Suppliers Prospects to be Analyzed1 Type of Supplier National Foreign Total National Foreign Total National Foreign Total National Foreign Total National Foreign Total National Foreign Total 1 Number of suppliers that would have been analyzed during the period. Total Purchases from Suppliers Evaluated (in Ch$ million) % of Purchases from Evaluated Suppliers Total Supplier Purchases (in Ch$ million) 2023 58 13 71 58 13 71 100% 100% 100% 4.097.076 623.917 4.720.993 305.153 43.001 348.154 8% 6% 7% Within our evaluation methodology, we categorize our suppliers in 5 categories depending on the compliance with the criteria explained above. Thus, the "A" qualification corresponds to compliance over 80% of what is expected by SQM, "B" between 60-80%, "C" between 40-60%, "D" between 20- 40% and "E" between 0-20%. 7 SUPPLIER MANAGEMENT 143 The results of SQM's internal suppliers (52 suppliers) that completed the Self-Assessment correspond to an overall average score of 68.2% in which the highest categories correspond to business ethics and Respect for human rights, while the lowest categories correspond to environment and corporate social responsibility. Of the 52 suppliers evaluated, 17 obtained category "A", while 28 obtained category "B" and 7 obtained category "C". This provides us with a baseline to continue advancing in sustainability by working directly with our suppliers to further align our criteria established in the program. 7 SUPPLIER MANAGEMENT 144 8. INDICATORS 8.1 LEGAL AND REGULATORY COMPLIANCE In relation to customers Law 19,496 on Consumer Rights Protection does not apply to SQM's lines of business in Chile and subsidiaries, as long as the sale of products is not made to the final consumer. Notwithstanding the above, the Company has procedures in place to ensure that the products it manufactures and sells comply with current regulations in all countries where it operates and in each of the areas described in Section 6.1, Legal and Regulatory Framework. In this context, during 2023, the Company has not been subject to customer-related fines in any of its business lines. In relation to employees SQM has the following procedures in place to prevent and detect non-compliance with regulations regarding the rights of its workers: • • • • • • Internal Rules of Hygiene and Safety Order; Procedure "Identification, merger and verification of the SGIGC regulatory framework"; Procedure "Identification of legal requirements applicable to occupational safety and health"; Legal Alerts on regulatory changes reported by the Legal Vice-Presidency to the areas; Procedures for the prevention, detection, reporting and follow-up of labor and sexual harassment; Procedure for handling complaints regarding unfair or discriminatory situations. During 2023 the companies were subject to three administrative sanctions (fines) issued by the Labor Directorate, two of which have been executed and paid for a total amount of CLP$9,591,500 and one is pending. In addition, in 2023, the companies were 16 lawsuits for the Protection of Fundamental Rights, of which 10 belong to the Nitrates Iodine Division, where seven of them have been terminated through settlements or conciliations and three are pending; and 6 belong to the Potassium Lithium Division, where 2 have been terminated through settlements or conciliations and 4 are pending. In relation to the environment The protection of the environment, respect for human rights and, in general, the impact on sustainability are a permanent concern of the company, both in its production processes and throughout the supply chain. This commitment is supported by the principles stated in the Company's Sustainable Development, Ethics and Human Rights policy. Within each of the Company's operational areas there is an Environmental Management that is in charge of complying with environmental regulations. The Company carries out environmental follow-up and 8 INDICATORS 145 monitoring plans in all its operations based on specialized scientific studies. The monitoring of relevant variables defined for each project makes it possible to verify the status of, for example, vegetation, flora, fauna, and aquatic biota in the ecosystems to be protected. In turn, the monitoring plans are supported by a wide control network with monitoring points such as wells and weather stations, satellite images, plots for recording the state of vegetation and fauna, among others. The activities included in these plans are regularly reported to the authorities in accordance with the resolutions approving the different projects of the SQM Group. In the specific case of the Salar de Atacama, SQM has implemented an online platform (www.sqmsenlinea.com ), which allows anyone to access all the environmental information that the Company collects, according to its commitments. Likewise, in the case of Lithium and Potassium operations, there is an Environmental Compliance Strategy, which structures the process of identification, registration, promotion, assistance and verification of compliance, as well as monitoring and reporting of applicable environmental requirements. There is a matrix of applicable environmental requirements, which details all the requirements and commitments established in environmental qualification resolutions and applicable regulations, as well as annual operational compliance programs by site, which contain a schedule of activities for assistance and verification of applicable environmental requirements. During 2023, the first pilot program was implemented, while during 2024, performance and risk indicators associated with the results of its implementation will be generated. In this context, the Company's environmental monitoring of the systems where it operates is supported by numerous studies that have integrated various scientific efforts of prestigious national and international research centers, such as the Spanish National Research Council (CSIC) and the Universidad Católica del Norte. In addition, as part of the environmental studies carried out by the Company for its new projects, important work is being carried out to record pre-Hispanic and historical cultural heritage, as well as the protection of heritage sites, in accordance with current legislation. These actions have been carried out especially around María Elena (ME) and the Nueva Victoria (NV) site. This effort is being accompanied by actions to disseminate information to the community and to enhance the value of sites of interest. We are able to identify those aspects of environmental relevance in each project and evaluate their potential impacts, which requires a high level of knowledge of the functioning of the ecosystems in the area of influence in which our projects are developed, in order to be able to manage and respond in advance to any potential impact. Each of our projects is submitted to the Environmental Impact Assessment System. As of December 2023, we have environmental authorizations for 70 projects, of which 15 correspond to Environmental Impact Studies and 55 to Environmental Impact Statements. In 2023, the Superintendency of the Environment carried out a programmed inspection of the Tente en el Aire Project at Faena Nueva Victoria, with the participation of CONADI, SAG and SMA. Commitments with communities, biotic and paleontological heritage components were reviewed. During 2023, Salar de Atacama received a visit from the Directorate General of Water, which inspected the catchments in Salar de Atacama as part of its annual inspection program, not verifying extraction in excess of the rights granted, nor any violation of the Water Code. On November 10, 2023, the Directorate General of Water closed the associated inspection files. Also, an inspection was received from the National Geology and Mining Service, who reviewed various aspects related to mining safety, as well as the applicability of permits under the jurisdiction of that service with respect to a process associated with the production of lithium sulfate. 8 INDICATORS 146 The Lithium Chemical Plant was visited twice by the Antofagasta Health Seremi, the first time to verify the drinking water supply system, and the second time to verify the conditions of the boilers, in accordance with the provisions of D.S. N°10/2012, of the Ministry of Health. In addition, our Coya Sur and María Elena operations were audited by the Superintendency of the Environment, SERNAGEOMIN and the Antofagasta Health Seremi. The audited matters correspond to Environmental Classification Resolutions (RCA's), Declaration of Emissions by D.S. N° 138, monitoring stations by Supreme Decree (D.S.) N° 61, PTAS Plants, María Elena Decontamination Plan, and Closure Plans. In addition, the Pedro de Valdivia mine was also inspected by the Superintendencia del Medio Ambiente (SMA) for RCA. During 2023, Puerto Tocopilla was audited by the Environmental Superintendency under the Decontamination Plan. In relation to our operations in Nueva Victoria, in February 2019, the Environmental Superintendency approved a compliance program, which is currently being executed, suspending the sanctioning process initiated in 2016. This decision was confirmed by the Antofagasta Environmental Court in October 2020. In compliance with the commitment, in July 2020, we submitted the Environmental Impact Study for the project "Partial modification of the reinjection system in the Llamara puquios". The project was approved in October 2023, and concluded with an Indigenous Consultation process with agreement with Tamentica, Quillagua and Huatacondo communities (Final Agreement Protocol). In Salar de Atacama, the compliance program that had been approved by the Superintendency of the Environment was rendered ineffective by the Environmental Court in December 2019. SQM submitted in November 2020 a new version of the compliance program, addressing the observations made by the Superintendency. Finally, Compliance Program was approved by Res. Ex. N°38/F-041-2016 of August 29, 2022 leaving without effect the provisional measures imposed and the sanctioning one. As of December 31, 2023, 20% of the actions implemented and 80% of the actions in progress were achieved. Part of the commitments made in the Salar de Atacama Compliance Program are to implement participatory monitoring for the Hydrogeological Environmental Monitoring Plan, design and implement a community training program associated with environmental monitoring, gradually reduce the maximum brine extraction limit to 822 l/s as of 2027, a little less than 50% of the authorized extraction, and reduce the total industrial water flow to 120 l/s, equivalent to a reduction of 50% of the authorized flow. Finally, SQM has closure plans for all of its production sites approved by the corresponding authority, which include criteria and measures in accordance with current regulations. 8 INDICATORS 147 Environmental Penalties, Fines, Programs and Remediation Plans 2023 Sanctions Enforced Total Environmental Fines Approved Environmental Compliance Programs1 N° 0 0 2 Environmental Compliance Programs Satisfactorily Executed2 N/A Environmental Remediation Plans Submitted 0 Environmental Remediation Plans Satisfactorily Executed3 N/A N/A: not applicable 1. Environmental compliance programs approved in previous years and currently under implementation 2. The environmental compliance plans are still being executed; therefore, it is not yet possible to know if they have been satisfactorily implemented. Since we do not have environmental remediation plans, this question does not apply to us. 3. Free Competition The Company has a Free Competition Policy, as well as a Protocol on the delivery and use of sensitive information related to the Lithium business. Within the framework established by SQM's Code of Ethics, the company's commitment to respect free competition is established, therefore, the respective Policy aims to establish guidelines and expected behaviors from employees, in order to respect the laws of free competition worldwide. In this regard, all directors, officers and employees are expected to understand and respect antitrust laws and to be aware that failure to comply with them could result in substantial fines for SQM, litigation and, in some countries, fines or criminal penalties for directors, officers or employees involved in such conduct. Violation of antitrust laws may also result in unenforceable commercial agreements and significant damage to the reputation of individuals, as well as SQM. For each case, the Company's Antitrust Policy establishes rules of conduct that must never be executed, and other issues that must first be discussed with SQM's Ethics and Compliance Management. On the other hand, this Policy contains best practices in compliance matters, which, if properly applied, will substantially reduce the chances that antitrust laws will be violated. This Policy is based on two fundamental golden rules: i) never enter into anti-competitive agreements or contracts, and ii) never abuse a dominant market position. During 2023 SQM had no enforceable sanctions in this area. 8 INDICATORS 148 Others SQM has a Crime Prevention Model that is certified until September 2023, which establishes the mechanisms for prevention, detection and response to situations that may represent the company's criminal liability. In terms of prevention, the company has a Code of Ethics that establishes a standard of conduct expected for all employees. In order to create an environment of control, the Company has various corporate policies and procedures that reinforce its adherence to a culture of integrity. On the other hand, a solid training and communication program is carried out to publicize the compliance program, as well as to raise awareness of the need for its full follow-up and implementation. Regarding the detection of cases, among others, the company has a Whistleblower Channel that allows both employees and third parties to report possible non-compliance with the company's policies and guidelines. (Details of all these guidelines can be found in Section 3, Corporate Governance). During 2023, SQM did not record any enforceable sanctions in this area. 8.2 SUSTAINABILITY INDICATORS BY INDUSTRY TYPE According to the Sustainable Industry Classification System (SICS), SASB-VRF, which provides certain metrics to measure the performance of companies in different industries, SQM was classified as a chemical industry. Considering the scope and nature of SQM's business activities, this Report and section respond to the Chemicals Industry Standard indicators. The topics relevant to the chemical industry that are included in SASB-VRF and will be reported in this section are: greenhouse gas emissions; air quality; energy management; water management; hazardous waste management; community relations; workforce health and safety; product design for use-phase efficiency; chemicals management for safety and environmental protection; genetically modified organisms; management of the legal and regulatory environment; operational safety, emergency preparedness and response; and activity parameters. Greenhouse gas emissions Indicators RT-CH-110a.1. Scope 1 global gross emissions, percentage covered by emission limitation regulations. 2.- RT-CH-110a.2. Analysis of the long- and short-term strategy or plan to manage Scope 1 emissions, emission reduction targets and analysis of the results in relation to these targets. Our products are used in industries that are fundamental to human development and people's well-being. Therefore, we have defined very ambitious goals in terms of greenhouse gas (GHG) emissions reduction, considering scope 1 and 2 emissions and incorporating some of the categories for scope 3 emissions. These goals are reflected in our Sustainability Plan, where we have set ourselves greenhouse gas emissions reduction targets, such as, for example, aiming to be carbon neutral for lithium and potassium chloride by 2030, and for all our products by 2040, taking 2019 as the base year, which implies a 90% reduction and 10% offset of emissions by 2040. 8 INDICATORS 149 The main lines of work related to emissions are as follows: • Mitigation through the quantification of our GHG emissions according to international methodologies and periodically verified, in search of internal management in each of our production sites to meet the reduction goals committed in our sustainability strategy. Our management includes the identification, evaluation and implementation of opportunities to reduce energy consumption and GHG emissions, as well as their periodic follow-up. • Adaptation of our operations, production and logistics processes according to the specific needs and risks of each project, incorporating climate change within the factors of their periodic evaluation, in order to identify, evaluate and successfully manage possible impacts of the growing effects of climate change. • Generation management under the criteria of quantification, characterization, treatment and reduction of emissions, according to current environmental regulations. • Continuous search for alternatives to minimize the generation of emissions. We monitor emissions in all of our operations through a detailed prediction of the environmental effects identified, the installation and implementation of abatement equipment, and adequate monitoring of emissions. We have weather stations, which are essential for monitoring solar evaporation processes in operations. In addition, at SQM we manage environmental monitoring plans and as part of these, isokinetic measurements are taken at the chimney outlets of equipment that are part of the production process, such as dryers and boilers. Our work during the period has focused on reducing our emissions per product. SQM estimates the total Carbon Footprint associated with the sum of its production processes and also separately for several of its products. The estimation of emissions is carried out under the standards indicated by the IPCC Guidelines for National Greenhouse Gas Inventories (2006), the GHG Protocol, ISO 14064 on Greenhouse Gases and ISO 14040 on Life Cycle Analysis. The factors used for electrical energy correspond to those published on the National Energy Commission's website. Factors are used according to the Electric System with which the company has a contract. The GHG estimation considers from the mineral extraction processes to obtaining the finished product at the port. Regarding Scope 3, 4 of the 15 categories defined by the GHG Protocol are estimated: purchased goods and services, upstream cargo transportation, people movement and downstream cargo transportation. Emissions reported are under financial control, gases included are: CO2 , CH4 , N2 O. It is worth mentioning that our emissions are not covered by a tax or cap & trade, however, in Chile we have a tax of US$5/tCO2 and we are already seeing changes by modifying the tax threshold that currently affects facilities with equipment with more than 50 MW thermal as installed capacity. Under this criteria, in 2023, SQM paid approximately US$360 thousand, which corresponds to emissions from the Coya Sur boiler . A potential risk is that all of our emissions will pay this tax in the future. Emissions of the following gases are not included in the calculation: hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3). In 2023, total GHG emissions were 1,608,647 tCO2 eq. broken down into 315,260 tCO2 eq (Scope 1), 532,482 tCO2 eq (Scope 2) and 760,905 tCO2 eq (Scope 3). Currently, the 8.6% increase in emissions is due to capacity expansions carried out by the Company. 8 INDICATORS 150 Greenhouse Gas Emissions Type of Scope Metrics Direct GHG Emissions (Scope 1) tCO2 eq Indirect GHG Emissions (Scope 2) tCO2 eq Other Indirect GHG Emissions (Scope 3) tCO2 eq Total Emissions (1, 2 and 3) tCO2 eq Note: CO2 - carbon dioxide, CH4 - methane, N2O - nitrogen oxide. Carbon Price Gases Included CO2, CH4, N2O CO2, CH4, N2O CO2, CH4, N2O CO2, CH4, N2O 2023 2022 2021 315.260 300.298 286.562 532.482 508.076 509.108 760.905 673.113 521.065 1.608.647 1.481.487 1.316.735 How is it determined? How is it handled? The internal price on emissions is used as a criterion in the evaluation of the different types of projects to be executed in the calendar year, to promote and enhance those alternatives that are more sustainable, i.e. that have a lower impact on emissions, and that, eventually, are more costly without the inclusion of this internal tax. SQM has set an internal price for carbon dioxide emissions at US$15 for each ton of carbon dioxide emitted. The price was determined considering the analysis of emission reduction alternatives through a marginal abatement curve where the cost per unit abated for our operations was determined to be close to US$10-15 per ton. In addition, the current green tax system (SIV) and its future change of criteria from a technological one (boilers and turbines) to an emissions one (cut-off threshold of 25 kCO2e) were considered. international regulations have also been Other integrated into the price, such as the European Union's Carbon Border Adjustment Mechanism (CBAM), which will tax imports of various goods produced outside the EU, including fertilizers. Analyzing the potential affected emissions projected for each SQM operation plus sustainability objectives. the Company's During 2023, we carried out a number of initiatives that are in line with our greenhouse gas reduction targets, which are mentioned below: Given that we are a key player in the industry, leading the production and refinement of lithium to meet the growing global need, which allows us to contemplate challenges that are key to advancing towards the development of electromobility. In this sense, we are taking another very important step towards carbon neutrality and zero emissions. This time, we are walking the road together with our strategic 8 INDICATORS 151 partners Excon, incorporating the first electric front loader to our operations in Salar de Atacama. Thanks to the synergies contributed by Excon, Sany and SQM, we achieved this milestone, which is related to being the first of its kind in operation, both in SQM, Chile and Latin America. The electric machinery brings different benefits such as pollution reduction and maintenance time reduction, since it considerably reduces all the supplies that a diesel vehicle normally uses, such as the lubricants that are required for it. We are adding electric semi-trailers to our fleet. Randon's Hybrid R line of semi-trailers includes technology and innovation that allows recovering the energy generated during lowering and braking movements. This reduces fuel costs, causing less wear and tear on components and contributing to less waste generation. The semitrailers include a tank for transferring nitrate salts between the Coya Sur mine and the Port of Tocopilla, and a tank for transferring brine solutions at the SQM Salar mine. All these initiatives allow us to further deepen the company's sustainability program and, in particular, to come closer to meeting our aspiration to achieve carbon neutrality of our products by 2040. In 2023 we established a partnership with Volvo to acquire the Volvo FH Electric model, which has an output of 490 kW (660 hp). These trucks are typically equipped with three electric motors and up to six batteries (540 kWh). They can be charged from 1 hour and 30 minutes to 8 hours, depending on the number of batteries and type of charger. A fleet of 10 electric trucks from GrandLeasing was acquired by the Company under an operating lease, in addition to the 11 previously transferred. The vans are Maxus model T90 EV, which have an electric motor that generates 130 kW of power, i.e. 174 hp. In addition, they come with an 88.5 kWh battery pack that allows them to travel up to 400 km according to the NEDC standard. The trucks are in operation at the Nueva Victoria site in the Tarapacá Region. It is worth noting that at the same site, an electro-lane with charging capacity for two electric vehicles was installed at the Iris Camp, allowing a quick charge in two hours at full capacity. As part of our sustainability commitments, SQM reports in various instances to CDP, Dow Jones Sustainability Index, SASB, Huella Chile. We report our emissions inventory, product carbon footprint, corporate carbon footprint, consumption and energy, among other indicators. In an exercise of transparency, during 2024 SQM is in the process of verifying its 2023 product carbon footprint with an independent accounting firm. Air quality Indicator 1.- RT-CH-120a.1. Emissions to the atmosphere of the following pollutants: (1) NOX (except N2O), (2) SOX, (3) volatile organic compounds (VOC) and (4) hazardous air pollutants (HAP). We work hard to manage and monitor emissions of particulate matter PM10, we have an extensive air quality monitoring network in the town of María Elena, and we are part of the air quality monitoring network in Tocopilla. With respect to the Atmospheric Decontamination Plans for PM10 at these locations, the company has implemented a wide range of measures to comply with emission control and reduction commitments: In Maria Elena, since 2007 to date, we have achieved a significant reduction of PM10 emissions at the Maria Elena Production Plant. The reduction is the result of operational changes implemented, which have allowed us to significantly improve air quality in the locality, complying with the daily and annual standard for PM10. The stations that include the Air Quality Monitoring Network associated with the 8 INDICATORS 152 Maria Elena Decontamination Plan comply with the Annual Air Quality Standard for PM10 (50µg/m3N) from the 2010-2012 period at the Hospital Station and at the Church Station from the 2012-2014 period. For the city of Tocopilla, PM10 emissions generated by SQM's port operations are lower than other sources in the area. Within the framework of the Tocopilla Atmospheric Decontamination Plan, commitments have been fulfilled and all necessary measures to mitigate emissions have been implemented. During 2023, the emission of PM10 from SQM's port operations was 3.33 tons, achieving a significant reduction in the amount of PM10 emitted compared to 2007. When comparing these results with those obtained in 2022, the reduction is still below what was committed in the Decontamination Plan. Other Air Emissions Other Emissions Metrics 2023 2022 2021 Volatile Organic Compounds (VOC) Ton 4.675,8 4.913,8 5.753,1 Hazardous Air Pollutants (HAPs) Ton 478,7 442,3 403,7 MP MP10 MP2.5 NOx SOx Ton 2.651,8 2.334,4 2.122,9 Ton 108,9 102,1 Ton 108,3 96,8 88,2 83,5 Ton 1.377,6 1.273,2 1.072,6 Ton 1.450,5 1.448,8 1.390,1 Note: PM - particulate matter, NOx - nitrogen oxides, SOx - sulfur oxides. During 2023 there was an increase in the emission of all pollutants, mainly NOx and Hazardous Air Pollutants (HAPs). This is due to the increase in diesel oil during the period. This fuel is used in the Mine, Leaching, Water Resources, which are the main points where this consumption increases. Energy management Indicator 1.- RT-CH-130a.1. (1) Total energy consumed, (2) percentage of grid electricity, (3) percentage of renewables, (4) total self-generated energy, (5) percentage of renewable energy, and (6) total self- generated energy. We use a high percentage of solar energy in our processes, which is fundamental in the productive operations of the solar evaporation ponds at the Salar de Atacama, Nueva Victoria and Coya Sur mines. This way of operating implies an advantage over other processes and is only possible because in the Atacama Desert, where our operations are located, there are the highest levels of solar radiation causing high evaporation rates, facilitating the salt concentration processes in the ponds, during all seasons of the year and continuously. Approximately 3,000 hectares correspond to solar pools that allow us to capture solar energy. 8 INDICATORS 153 SQM's operations obtain their electricity from a specific contract, connected to the National Electric System and fuels, prioritizing the use of cleaner alternatives. It is worth mentioning that we do not have self-generation. Energy Consumption Energy Type Unit 2023 2022 2021 Consumption within the organization 6.888.827 6.627.375 6.490.535 Consumption Fuels from non-renewable sources GJ 4.624.034 4.503.011 4.334.316 Consumption Fuels from renewable sources GJ 0 0 0 Electric Power Consumption GJ 2.264.793 2.124.364 2.156.219 Energy consumption outside the organization Diesel Gasoline 818.888 855.491 770.715 GJ GJ 818.888 855.491 770.715 0,07 0,04 0,03 Total energy consumed (inside and outside) GJ 7.707.715 7.482.866 7.261.250 % Energy coming from the power grid % of energy coming from Renewable Sources % % 29,4% 28,4% 29,7% 0% 0% 0% The difference in fuel consumption outside and inside the organization between periods is not material. During 202 3, began the official operation of the new photovoltaic parking lot at the Campamento Andino facilities in Salar de Atacama. The project was conceived in mid 2022, which is related to the installation of 180 solar panels in the 30 parking lots for vans located at Campamento Andino, which will reduce 3,050 tons of CO2 per year. Each one of these photovoltaic panels generates 540 watts of energy, that is, around 20.5 megawatts per month or 245 megawatts per year; and the most relevant in terms of sustainability is its great reduction in the CO footprint2 , since for every 1 kilowatt hour generated, we stop producing 63 grams of carbon dioxide. This makes it possible to generate clean energy for 10 Andino pavilions, that is, 100 rooms in these facilities are powered by the power of the "Astro King". Regarding its operation, the energy produced by the solar panels reaches a board located next to the parking lots, which then travels to a power plant called Solar Power Bank, a high-tech storage system that stores and distributes the energy obtained directly from the sun and captured through the solar panels installed in the parking lots of Campamento Andino. It should be noted that these facilities house 36 lithium batteries of 5,000 watts, with an energy storage capacity of 180 kilovolts, energy that allows powering the 10 aforementioned pavilions, in addition to the camp administration offices. 8 INDICATORS 154 Water management Indicators 1.- RT-CH-140a.1. (1) Total water withdrawn, (2) total water consumed, percentage of each in regions with high or extremely high initial water stress. 2.- RT-CH-140a.2. Number of non-compliance incidents related to water quality permits, standards and regulations. 3.- RT-CH-140a.3. Description of water management risks and analysis of strategies and practices to mitigate them. For SQM, the responsible use of water is a relevant aspect of its production processes, given the scarcity of this resource in some places where its operations are located. We have duly authorized water use rights for our operations, so we comply with all associated requirements and commitments. Likewise, we permanently watch over the efficient management of the water we use, and the correct water management of the ecosystems of origin, always favoring recirculation and optimization in the processes. In the same line, we implement environmental monitoring and early warning plans to ensure the care of these ecosystems, and in our Sustainability Plan we acquired specific commitments to reduce water consumption and extraction. In order to comply with our water management, we have developed the following lines of work: Quantification and reporting of fresh water consumption by operation and by product. Care and optimization of water resource use, implementing the best practices in the industry. Identification of possible effects on surrounding ecosystems due to the use of continental water. Monitoring and implementation of measures so that the use of water in our operations does not generate adverse effects on ecosystems and surrounding communities. Important sources of water for our nitrate and iodine facilities at Pedro de Valdivia, Maria Elena and Coya Sur are the Loa and San Salvador rivers that run near our facilities, which have environmental authorization for the extraction of surface water according to the following flow rates: Maria Elena = 62.1 l/s; Coya Sur = 90.0 l/s and Pedro de Valdivia = 94.4 l/s. Water for our Nueva Victoria and Salar de Atacama facilities is obtained from wells near the production facilities. In Salar de Atacama, we have environmental authorization for the extraction of groundwater for a flow of 240 l/s. As part of the Sustainability Plan and other commitments, this extraction has been limited to a maximum of 120 l/s. This reduction of water to 120 l/s is part of the Company's sustainability plan. This reduction of water to 120 l/s was incorporated in the EIA "Plan de Reducción de Extracciones en el Salar de Atacama" which was submitted in January 2022 and is currently being processed. 8 INDICATORS 155 https://seia.sea.gob.cl/expediente/ficha/fichaPrincipal.php?modo=normal&id_expediente=2154490427 At the Lithium Chemical Plant, water comes from third parties, whose main source is the treatment of sewage water from Antofagasta, as well as from the recovery of waste solutions through the Solutions Recovery Plant (PRS), which began operating in 2023. We have not experienced significant difficulties in obtaining the water necessary to carry out our operations. We permanently report to the authorities the water consumption of our production processes. We have no incidents of non-compliance related to permits, standards and regulations regarding water quality. In addition, studies are conducted to identify opportunities for efficient use of the resource and management indicators are evaluated annually in each operational unit. Some of our measures for the efficient use of water are: Recirculation of treated water from our wastewater treatment plants to the production process. These are recirculated to the process at the María Elena, Pedro de Valdivia, Coya Sur, Nueva Victoria and Salar de Atacama sites. At the Lithium Chemical Plant, we purchase recirculated or circular water that corresponds to 44% of the plant's total water consumption, the rest corresponds to 28% of first-use water and 28% of water obtained from the recovery of waste solutions through the Solutions Recovery Plant (PRS), which came into operation in 2023. The extraction of fresh water for production purposes is subject to strict environmental evaluations, which prevents effects on relevant environmental receptors such as vegetation, flora and fauna associated with aquifers and surface water sources where the company has water extraction rights. In conjunction with these studies, extensive hydrogeological modeling is designed and validated under the supervision of national and international experts, from which the expected behavior of the systems is permanently monitored. Of the total subway resources extracted for Nueva Victoria during 2023, 1,071,084 m3 were reinjected, as part of the mitigation measure contemplated by the Pampa Hermosa project in the Salar de Llamara, Tarapacá Region. Water Resources and Sustainability Plan We are committed to reducing our inland water consumption, aiming for a 40% reduction by 2030 and a 65% reduction by 2040. At Salar de Atacama, water consumption has been reduced by 50% from 2021 and we estimate that it will remain at half of the environmentally approved level until 2030. As of November 2020, we reduced our brine extraction by 25% and will progress to reduce brine extraction by 50% by 2028, as committed in the Environmental Impact Study "Plan to Reduce Extraction in the Salar de Atacama", presented at the beginning of 2022. Water consumption intensity reduction of 2.9% for potassium chloride We have the portal https://www.sqmsenlinea.com/ or Online Monitoring in the Salar de Atacama, which communicates the environmental information of our operation in the Salar de Atacama to communities and stakeholders. We have designed and implemented a system that provides information on our water extraction, net brine extraction, and functions as a means of verification for authorities and stakeholders regarding compliance with extraction obligations, based on established operational rules. It also provides data from the historical records of the environmental monitoring we carry out in the area, to evaluate and 8 INDICATORS 156 avoid potential effects of our operation, other actors and natural phenomena such as climate change in the protection zones. We expect to soon enable a similar platform that will allow us to report on these variables associated with our Nueva Victoria operation. Water Extraction and Consumption Ranking Type Metrics Average TDS quality (mg/l) Surface Water Salt Water m3 >1000 Location Extraction River, Loa Salvador River Groundwater Salt Water m3 >1000 del de Pampa Tamarugal/ Salar Atacama Aquifer 2023 2022 2021 6.151.672 6.311.835 6.525.669 22.029.049 21.961.378 23.749.455 m3 <1000 Produced by Tercero 1.897.646 2.000.340 1.610.488 Third Party Water Fresh Water Total water withdrawn Total water consumed Water Extracted from High or Extremely High Water Stress Zones Water Consumed from High or Extremely High Water Stress Areas m3 m3 % % 30.078.367 30.273.553 31.885.612 29.007.283 29.377.645 31.007.776 100% 100% 100% 96% 97% 99% To optimize water consumption, we take waste and treated water from our sewage treatment plants and recirculate it in the production process. Water reused during 2023 is approximately 1,110,319 m3 , corresponding to an operational estimate. The Salar de Atacama operation has been implementing the "Industrial Water Optimization" initiative, which shows the actions we are carrying out in our operations in favor of sustainable and environmentally friendly development. The third Fundamental Sustainability Standard addresses the efficient use of water, which is why it is necessary to guarantee processes that allow it to be used efficiently. Based on this, since 2020 a system has been implemented which seeks to generate an improvement regarding industrial water consumption and those imbalances produced in such records, promoting a more sustainable water extraction and consumption. As a result, it has been possible to reduce an important volume of extraction and optimize the use of industrial water, with actions such as: • Analysis of water consumption in the different production areas. • The creation of the "Industrial Water Supply Report" for each area of Salar de Atacama, in order to monitor and control the processes and operations that use this resource. 8 INDICATORS 157 • The "Static Supply" was changed to a "Daily Industrial Water Supply" for the day and night shifts, as a way of adapting to the variations of the operation. • A "Plant Detention Standard" was created, in which the detention time and release of cubic meters of water must be reported, in order to use it and make an industrial water supply for critical areas, such as Wells and Services. Implementation of the "Daily Industrial Water Consumption Report", which -through an automated dashboard- allows tracking of daily extraction, industrial water pool levels, daily consumption compared to water offers, a daily and weekly detail of consumption by area; compare water extraction versus actual consumption per day. • Regarding risks related to our water resources, we have identified the following: Changes in laws and other water rights regulations could affect our business, financial position and results of operations. We maintain water rights that are key to our operations. We obtained such rights from the Chilean Water Authority for the supply of water from rivers and wells near our production facilities, and we believe that they are sufficient to meet our current operational requirements. In January 2022, the Chilean National Congress approved a bill that modifies the Water Code. This amendment introduces several changes to the Water Code. One very relevant modification is the change in the term in which water rights are granted. According to this new legislation, water rights: (i) will have a temporary nature being granted for a maximum of 30 years (the specific term will depend on the characteristics of the watercourse and its water availability); (ii) will be subject - totally or partially - to expiration for non-use; (iii) must comply with human consumption and sanitation as a priority in the use of water; and (iv) will be subject to a minimum ecological flow to ensure nature conservation and environmental protection, as determined by the General Water Directorate. Our water supply could be affected by geological changes or climate change. Our access to water can be affected by changes in geology, climate change or other natural factors, such as the drying up of wells or reductions in the amount of water available in the wells or rivers from which we obtain water, which we cannot control. The use of seawater for future or current operations could increase our operating costs. Any such change could have a material adverse effect on our business, financial condition and results of operations. To mitigate our water-related risks, we have rigorous environmental monitoring plans that allow us to identify any possible deviations from what has been assessed, including the extraction of water from pumping wells to ensure operational continuity. In addition, risks are reviewed and evaluated from time to time in order to define strategies to mitigate risks. We also have a Sustainability Management, who are in charge of defining the company's goals in terms of reducing water consumption, and Environmental Management, who are in charge of verifying compliance with the established limits. 8 INDICATORS 158 Hazardous waste management Indicator 1.- RT-CH-150a.1. Quantity of hazardous waste generated, percentage recycled At SQM we are aware that one way to mitigate impacts on our environment is the efficient management of our waste. We manage our waste in accordance with national legislation, our environmental commitments, and in line with industry best practices. We aim at an adequate management, minimizing their generation, valuing them and looking for a new use or an adequate final disposal, thus reducing the risk to human health, the environment and the communities. In this way, the work axes correspond to: Continuous search for alternatives to minimize waste generation. Generation management under the criteria of quantification, characterization, treatment and reduction of emissions and waste, according to current environmental regulations. Quantification, segregation, reuse and recycling of solid waste, with the aim of minimizing its impact and promoting a circular economy. We generate different types of waste, such as: • Domestic or similar waste: from the use of offices, dining rooms, bathrooms, among others. • Non-hazardous industrial waste: wood, HDPE, scrap metal, debris, plastics, among others. • Hazardous industrial waste: from inputs that are hazardous in nature, and their residues or elements contaminated with them have characteristics in accordance with the provisions of Article 11 of S.D. 148/04. Waste management is a fundamental task for our company, and we take the necessary measures to ensure that it is carried out safely. Waste declarations are made in the Single Window system, which correspond to: • Non-hazardous waste is declared monthly in SINADER to report to the environmental authority • the amount of waste leaving the industrial site, which is validated by the recipient. In SIDREP, hazardous waste is declared each time it is required, that is, each time a truck leaves, this document is generated through the one-stop portal to be delivered to the transporter. In this case, it is the transporter and the final disposal that validate the information we generate. All companies that transport and dispose of waste have the corresponding authorizations. We have developed hazardous and non-hazardous waste management plans and procedures. We have 8 warehouses for the temporary storage of hazardous waste authorized by the Secretaría Regional Ministerial de Salud, 6 authorized warehouses for the temporary storage of non-hazardous industrial waste, and a place for the disposal of domestic waste generated by our operations. Internal control is carried out by the operational area that manages waste collection and by the environmental compliance area. We verify that the waste arrives at its final destination by requesting reception tickets, and the one-stop system is used to follow up until the process is closed. Internal audits are also carried out to verify compliance with our projects and associated environmental regulations. 8 INDICATORS 159 98.5% of the hazardous and non-hazardous industrial waste, including domestic and/or similar to domestic waste and other waste, generated by operations in 2023 was sent for final disposal in authorized transports. The difference equivalent to 1.5% is recycled or used for energy recovery. Hazardous waste is transported in accordance with current Chilean regulations. Solid domestic waste is managed at all operations and camps, and is disposed of in authorized landfills. During 2023 there was no generation of hazardous waste that was disposed of and/or treated outside Chile. As a Company we seek to give priority to recycling or reuse, being our last option the disposal of waste, using authorized companies for this management. Waste Generation Types of Waste Unit Destination (on or off site) 2023 2022 2021 Mining Waste Batteries Sold Out Discard salts Industrial Waste Dangerous Non-hazardous Ton Ton Ton Ton Inside Inside Outside Outside 27.119.868 28.203.001 33.170.650 10.714.001 11.621.008 8.106.420 2.875 2.387 2.565 3.856 1.702 3.718 Domestic and/or Domestic- like Ton Outside 6.995 5.254 6.560 Others Ton Outside 212 8.502 118 Note: Other corresponds to mixtures of construction waste and rubble declared by Planta Química Litio. The downward trend between 2021 and 2023 in spent batteries is mainly due to the fact that various batteries have been closed in previous years. It is worth mentioning that we have carried out several initiatives focused on improving our waste management. SQM Nitrates Iodine and Lithium Potassium Divisions worked together on the new roadmap that will allow the company to achieve circularity. Through workshops, the members of the different divisions met to begin to draw the first lines that will lay the foundations for the road to circularity. In different activities, the members of the sustainability, environment, supply, camps and M1 teams participated by presenting the most successful initiatives of each site, and the plan for each area regarding compliance with the sustainability goals. During the activities, a summary was made of the road we have traveled in terms of sustainability since it became a corporate value. During the meetings, the strategic plan to increase the degree of circularity in the company was presented, whose main objectives are to minimize waste during the manufacture of our products and reduce the volumes of non-hazardous solid waste destined for disposal in landfills. 8 INDICATORS 160 This roadmap will have two basic axes: the drivers, focused on the principles of circularity, and the enablers, which focus on the capacity to develop circularity, and the basis for a sustainable organization, whose goal for 2025 is to reduce by 50% the generation of industrial waste in all its operations. Regarding the treatment of our waste in the corporate offices in Santiago, in 2023, we continued with the initiative that allows us to recycle paper, cans, tetrapack, plastic and glass, with the operation of dispensers arranged on all floors. In this way, we incorporate into our daily work the best practices aligned with the aspiration of Sustainability, seeking to reduce waste generation, both in operations and in the daily workplaces. All of SQM's recyclable waste is taken to the Kyklos Inclusive Recycling Center, where it undergoes pretreatment, which consists of segregating, compacting and preparing the waste for later transfer to final disposal at recovery plants, which transform the waste into new products or materials. During 2023, 13 removals were made from the building's collection center, which allowed us to recover 3,803.4 kg of waste: Cardboard 2,601.5 kg Plastics 516.9 kg Glass 612.5 kg Metals 11.5 kg Tetrapak 61 kg With this we have saved the following resources: Energy (kWh) 13.837 Trees (#) 44 CO2 eq (kg) 3.404 Water (l) 68.946 Equivalent to: 80 months of consumption of an average house in Chile 737 reams of paper 267 average car days without leaving 345 average showers At Nueva Victoria, in addition to the process of managing and recycling domestic waste at the six green points that Recipampa has, awareness-raising activities have been carried out for workers at the site through the delivery of information booklets. The Environmental Projects submanagement, together with the company Recynor, held informative talks on the field with the site's personnel to inform them about the proper use of the facilities and the correct segregation of waste. The objective was to generate awareness and optimal use of the six green points located in different areas of the operation and Camp Iris, which allow the collection of Pet plastics, cardboard and paper, glass and aluminum cans, converting these materials into reusable materials through recycling. During 2023, Nueva Victoria managed 1,708 kilograms of obsolete electronic waste, including computers, screens and unused telephones. This initiative was promoted by the Information Technology (IT) area and highlights the importance of sustainability as a corporate value. In addition, a cardboard recycling campaign was implemented in the warehouse processes and in finished products, which resulted in the recycling of 17,132 kilograms of cardboard, thus avoiding the emission of 59,962 kilograms of CO2 e into the atmosphere. This cardboard recycling is in addition to recycling at clean points. 8 INDICATORS 161 SQM's ReciPampa program recycled the following waste during 2023: • Cardboard and paper: 19,502 kg • Pet 1: 4,809 kg • Glass: 28 kg • Metals/Aluminum: 399 kg • Waste Electrical and Electronic Equipment (WEEE): 1,708 kg In the port of Tocopilla, a drinking fountain and filtered water filling station for reusable bottles was installed, eliminating single-use plastic bottles (REDUCE) and replacing them with refillable bottles or containers (REUSE), putting into practice 2 of the 5Rs: reduce, reuse, recycle, repair and recover. This same initiative was replicated in the Land Transportation area of Coya Sur, who, in the first half of 2023, conducted a water quality study, which included the Coya Sur, Pedro de Valdivia and the Guggenheim and Pampino camps in María Elena, and certified that the quality of the water provided by the drinking fountain is safe for consumption. This type of initiative contributes to the reduction of plastic generated annually, mitigating the pollution generated by the decomposition of plastic bottles, which, as they degrade, generate greenhouse gases (methane and ethylene), in addition to the inherent risk that plastic waste presents to the local ecosystem. Community relations Indicator 1.- RT-CH-210a.1. Analysis of participatory processes to manage risks and opportunities associated with community interests. The towns near SQM's operations are small communities, which in general have an agricultural and tourist vocation; port in the case of Tocopilla, or mining, such as María Elena, which is a saltpeter office dating back to 1927, which over the years has become a service provider to the mining industry, and is now working to become a tourist enclave. In 2023, SQM continued working in the Tarapacá Region locations associated with our iodine plant and nitrate-rich salts projects. As a Company, we believe that working together is an ideal form of relationship, as it has allowed us to communicate and project together with the communities prior to the presence of SQM's operation in the area. Likewise, on the occasion of our Tente en el Aire (TEA) project, associated with our Nueva Victoria operations, we have worked in advance with the coastal coves of Iquique Chanavayita, Caramucho and Cáñamo, where artisanal fishing, huiros harvesting and some tourism projects are developed. We should point out that in the Tarapacá Region, communities and associations of the Aymara and Quechua ethnic groups predominate in areas close to our operations. In the Antofagasta Region, we have been operating for several months at Pampa Blanca, a former SQM iodine and nitrate mine located in the Sierra Gorda district. In this context, we initiated a relationship with the communities of the towns of Baquedano and Sierra Gorda, both enclaves are characterized by 8 INDICATORS 162 providing services to mining, and are working to generate a pole of development of astronomical tourism and saltpeter heritage. SQM's operation located in Salar de Atacama, in the commune of San Pedro de Atacama, coexists territorially with indigenous communities, the closest being 5 that are located south of San Pedro de Atacama, where the Atacameño ethnic group predominates. We currently have programs of shared social value, reaching 21 communities, highlighting the Alianza Mujer Atacameña program, Atacama Tierra Fértil, dental care with a communal territorial scope and particular projects developed for and in conjunction with local organizations and communities. Local organization in governmental political terms is led by the Municipality of San Pedro de Atacama, which was created in 1980. In terms of organization based on ethnic and territorial relevance, it is led by the Council of Atacameño Peoples, made up of 18 communities of the Indigenous Development Area. Characterization of the Communities Characterization Population Education Tarapaca Region Operation Communes/ Localities Iquique Chanavayita Caramucho Hemp New Victory Pozo Almonte La Tirana Painted Victoria Huatacondo Tamentica Regional Capital, Capital of the Province of Iquique, Commune: Population: 191,468 Dwellings: 66,986 Men: 94,897 Women: 96,571 Capital of the Province of Tamarugal, Commune: Population: 15,711 Housing: 8,926 Men: 8,987 Women: 6,724 Population density 83.70 Masculinity index 98.3 Average age 34.3 Indigenous peoples 18% Population density 1.14 Masculinity index 133.7 Average age 32.2 Indigenous peoples 43%. Alto Hospicio Commune: Population: 108,375 Dwellings: 33,178 Men: 54,206 Women: 54,169 Population density 188.86 Masculinity index 100.1 Average age 28.8 Indigenous peoples 31%. Schooling of head of household 12.3 School attendance 95% Attendance at preschool 53%. Attendance at middle school 75% Admission to higher education 38 Completed higher education 74%. Schooling p. originating 10.3 Schooling of head of household 10.0 School attendance 86%. Preschool attendance 55 Attendance in middle school 56 Admission to higher ed. 20%. Completed higher education 78%. Schooling p. originating 8.6 Schooling of head of household 10.4 School attendance 95% Preschool attendance 56 Attendance in middle school 71 Admission to higher education 16 Completed higher education 65% 65 Schooling p. originating 8.6 8 INDICATORS 163 Orcoma Project Huara Under Soga Rural settlers Pisagua Commune: Population: 2,730 Dwellings: 2,871 Men: 1,501 Women: 1,229 Population density 0.26 Masculinity index 122.1 Average age 36.7 Indigenous peoples 63%. Schooling of head of household 8.5 School attendance 94 Pre-school attendance 48%. Middle school attendance 65 Admission to higher education 13%. Completed higher education 84%. Schooling p. originating 7.5 Note: Note: Demographic data in this table obtained from results of the 2017 CENSUS, conducted by the National Institute of Statistics of Chile, www.censo2017.cl Antofagasta Region Commune/ Localities Antofagasta Operation Port of Tocopilla/ María Elena/ Coya South/ Atacama Salt Flat/ Lithium Chemical Plant Port Tocopilla Tocopilla Urco Characterization Population Education Regional Capital, Capital Province of Antofagasta, Commune: Population: 361,873 Dwellings: 112,451 Men: 181,846 Women: 180,027 Population density 11.79 Masculinity index 101.0 Average age 33.3 Indigenous people 8% Capital of the Province of Tocopilla, Municipality: Population: 25,186 Housing: 10,670 Men: 12,481 Women: 12,705 Population density 6.25 Masculinity index 98.2 Average age 34.5 Indigenous people 8% María Elena/ Coya Sur Maria Elena Quillagua Atacama Salt Flat San Pedro de Atacama Rio Grande Solor Toconao Talabre Camar Socaire Commune: Population: 6,457 Dwellings: 1,959 Men: 4,092 Women: 2,365 Commune: Population:10,996 Dwellings: 4,144 Men: 6,161 Women: 4,835 Population density 0.52 Masculinity index 173.0 Average age 35.4 Indigenous peoples 13%. Population density 0.47 Masculinity index 127.4 Average age 34.3 Indigenous peoples 52%. Schooling of head of household 12.1 School attendance 96%. Preschool attendance 49 High school attendance 74 Admission to higher education 36 Completed higher education 73%. Schooling p. originating 10.6 Schooling of head of household 11.2 School attendance 95% Attendance at preschool 46%. High school attendance 79 Admission to higher education 27 Higher education completed 81 Schooling p. originating 10.5 Schooling of head of household 11.2 School attendance 95% Attendance at preschool 46%. High school attendance 79 Admission to higher education 27 Higher education completed 81 Schooling p. originating 10.5 Schooling of head of household 11.1 School attendance 93%. Attendance at preschool 53%. High school attendance 73 Admission to higher education 35 Completed higher education 82%. Schooling p. originating 9.1 8 INDICATORS 164 Comb Machuca Catarpe Quitor Larache Yaye Sequitor Cucuter Coyo Guatin Tulor Beter Vilama River Solcor Tocol Puna Alis Celeste Puques Note: Demographic data in this table obtained from results of the 2017 CENSUS, conducted by the National Institute of Statistics of Chile, www.censo2017.cl We carry out our work in accordance with the commitments to communities, neighbors and the environment established in SQM's Sustainability, Ethics and Human Rights Policy, which establishes a commitment to the sustainable development of our business, and where we state that: • We maintain a close relationship with the communities neighboring our production facilities, actively participating in their development. • We relate in an open, permanent and transparent manner with all our neighbors, based on programs and initiatives developed in a participatory manner, by mutual agreement, where we are all part of a common goal. Understanding the dynamics of social relations and the continuous changes we are living today, we are available as a company to review our policy of relationship and coexistence with indigenous and non- indigenous communities, considering fundamental aspects such as: • Incorporation of the human rights approach, particularly those that respond to the ethnic relevance of the communities. • Permanent dialogue, closeness, transparency, good faith and compliance with commitments. • Respect for the organization and decision of the assemblies and their representatives. • Creation of shared value. • Generation of joint work for the development of projects and formal agreements. • Keep in mind and assume that developing community relations is a process with different stages. • Consider the specific cultural, social and territorial characteristics of indigenous communities. • Willingness to review issues that are of interest to the communities, despite being complex and necessary, since they are part of their worldview. An example of this is environmental issues and the impact on their people. • Strengthening the area of liaison and relations with the communities, having local professionals, offices in the territory and multiple communication channels. 8 INDICATORS 165 • Establishment of formal relationship agreements whose components incorporate human rights approaches, sustainability as a value, good faith and clear conflict resolution mechanisms, establishment of permanent working groups. Teamwork In order to dialogue and relate directly with the communities, we have decided to work with our own professionals, without resorting to external advisors when talking, establishing working groups, agreements or defining Shared Social Value Programs. The relationship work is promoted from offices in the territory, for direct contact with neighbors, in addition telephone, emails, portaldecomunidades.sqm.com on the SQM website, applications such as WhatsApp; complaint mailbox installed directly in the communities to raise potential risks. to other direct communication channels such as: meetings, We have formed a strong community management team to establish this direct relationship with the communities, which is organized in two divisions: Corporate Affairs Management of Nitratos Yodo in the case of the Nitratos Yodo Division; and the Sustainability and Community Relationship Management of Salar in the case of the Lithium Potassium Division. As of December 31, 2023, the team is comprised of 38 employees, of which 21 are women and 17 are men. A total of 91.9% live and work in the Tarapacá and Antofagasta Regions. We also have 15 workers who belong to native ethnic groups/peoples, which are: Aymara, Atacameño, Quechua and Diaguita. It should be noted that the team is made up of professionals with training in the area of social sciences such as sociology, social worker, political scientist, lawyer, administration technician, public relations, among others. Community Management Strategy Our projects seek to generate shared social value with the communities in the areas where they are developed. Based on the United Nations Guiding Principles on Business and Human Rights, the United Nations Sustainable Development Goals, and Convention No. 169 on Indigenous and Tribal Peoples of the International Labor Organization, SQM promotes sustainable local development and respect for the autonomy of communities through a permanent process of participation and dialogue aimed at achieving mutually beneficial agreements and the generation of plans and programs of community benefit in priority areas such as education, health, social inclusion, entrepreneurship, rescue of historical heritage and sustainable development. Likewise, with a view to the joint generation of informed diagnoses regarding the possible impacts of our projects, we provide information in a continuous and transparent manner, and promote participation and consultation in all cases required by current legislation, especially with respect to indigenous communities, guiding our actions in accordance with the principles of Convention No. 169 of the International Labor Organization and the United Nations Declaration on Indigenous Peoples. Consequently, we commit ourselves to: • Promote, in accordance with current regulations, citizen participation and provide transparent and timely information regarding our projects, as well as periodically report on environmental issues. 8 INDICATORS 166 • Promote citizen participation with indigenous relevance and prior, free, informed and good faith consultation with respect to the communities potentially affected by our projects, in accordance with current legislation. • Respect the autonomy and traditional values of the communities where we operate. • Promote and support the sustainable economic development of communities, and the generation • of shared value projects between our operations and neighboring communities. Implement communication channels that allow for a permanent dialogue with the community, as well as develop effective human rights due diligence mechanisms. Our management is based on two main approaches: indigenous communities and citizenship, and local development. Indigenous Communities SQM develops some of its projects in areas with a significant presence of indigenous communities, taking into consideration the standards of the International Labor Organization Convention N°169, the Sustainable Development Goals and the United Nations Declaration on Indigenous Peoples. However, these instruments may incorporate standards to which our Company does not adhere or that are not currently applicable in Chile, for example, FPIC (Free, Prior and Informed Consent) for all decisions concerning indigenous peoples. Even so, and in accordance with best practices regarding indigenous peoples and the mining industry, SQM guides its relations with communities and human groups belonging to indigenous peoples potentially affected by its projects within the framework of good faith, participation, respect for their culture and autonomy, and the search for shared value. In this sense, at SQM we aspire that our projects not only achieve environmental and social sustainability, but also and especially that they promote the development of the communities and human groups belonging to indigenous peoples present in their area of influence, with full respect for their rights, culture and territories, making the definition of indigenous peoples in the aforementioned Convention N°169 our own. Thus, SQM's focus on Indigenous Communities has as its central work axes: Informed participation, with transparency and cultural relevance. • • Promoting the development of indigenous communities. Citizenship and Local Development At SQM we understand the relevance that our presence can have for the communities in the territories near our production operations and facilities, so a fundamental pillar of our management is good community relations tailored to the needs and specificities of each territory, in order to generate positive substantive changes in the lives of the people around us. Thus, at SQM, community relations are accompanied by a robust program of shared social value and best practices in human rights, environmental, labor and productive chaining, among others. We also understand the strategic role we play in some of the territories where we operate in terms of structural support, and we assume this responsibility as a daily challenge for the inhabitants of these locations. 8 INDICATORS 167 Community Action Axes In view of the needs of the territories in which we are present, and with the experience we have in working with communities, we have established four pillars of work for the Shared Social Value Programs we promote, these have evolved over time, considering that human relations and environmental needs are changing, in addition to the natural progress of the programs and the fulfillment of the objectives set together with the stakeholders: The Axes: Social Development Education and Culture Communities wellbeing, health and safety Historical and Cultural Legacy Focusing on these axes has allowed us to strengthen our work over time and to gain experience, which we apply to long-term initiatives, in which we provide tools to the communities so that they can promote their own development; we collaboratively co-construct our social development programs. This way of working has also made sense for our communities: Social Development: Outstanding work with farmers in the development of agricultural projects that consider technology and innovation for production or safeguarding their legacy, depending on the locality. In addition, we have developed projects to support entrepreneurship and business in towns with more urban characteristics, providing training alternatives or access to funds. This last aspect has been strengthened in the last two years with interesting results. Education and Culture: It has complemented and developed programs in areas that are not being addressed by the public education system, especially in schools that are far from large urban centers or that are multi-teacher, contributing to the quality of education. The integration of programs that use technology, robotics and experiential learning techniques have been crucial in recent years. Community Welfare, Health and Safety: This line of work was born at the request of communities that needed support to promote sports or wellness projects in their communities, according to the requirements they themselves detected. The company complemented this work with support for institutions that promoted inclusive sports, including the promotion of women's soccer and initiatives for the inclusion of people with disabilities. Also, within this pillar we find support for health programs, such as dental care in a mobile car, and operations; and support with professionals and supplies, which have been in great demand, especially during the pandemic, and which we have maintained in view of the need we have detected to bring health care closer to remote places. Cultural and Historical Heritage: Heritage rescue and enhancement projects, based on Pampan roots or indigenous cultural legacy, depending on the locality, with presence in territories where these issues are not supported by other companies or the State, and the conservation of a site or cultural aspects or traditions is endangered. 8 INDICATORS 168 Working and Liaison Tables with Communities and Multisectoral Coordination Bodies Over the years, we have confirmed that the best instance for dialogue are the working tables, which have their own dynamics, depending on the territory and the subject that convenes them. However, all of them agree that their formation must be approved by the communities. The roundtables are attended by representatives of the different entities, unions, associations, among others, validated by their bases; some groups include expert community advisors as counterparts to the company. All the roundtables meet periodically and have signed memorandums of understanding, work agreements or operating statutes, depending on each situation. All this in order to guide joint actions between communities and the company. An outstanding example of this way of working is the work tables that we have established in the coastal area of Iquique in the coves of Chanavayita, Caramucho and Cáñamo, in advance, within the framework of the Tente en el Aire project, associated with our Nueva Victoria mine. In the localities of Salar de Atacama, the formal instances of working groups have made possible the review of projects developed by the Company and community issues that are of high interest to the communities. Tables in effect in 2023 Presented by Commune from North to South Table/ Instance/ Task City/ Commune Faena Orcoma Orcoma Orcoma Orcoma New Victory New Victory New Victory New Victory New Victory New Victory Huara Working Table Under Rope Work Table Pisagua Working Table Huara, Huara Bajo Soga, Huara Pisagua, Huara Rural Colonos Working Group Colonos Rurales Sector, Huara Working Group of Coastal Trade Unions Caramucho and hemp, Iquique Work Table STI N°1 Chanavayita Work Table STI N°2 Y N°4 Chanavayita Work Table STI N°3 Chanavayita Working Table STI N°3 Caramucho Chanavayita JJVV Working Table Multicultural Indigenous Multicultural Working Group Tierras de Jehová Indigenous Association Working Group Asociación Indígena Aymara Juventud del Desierto (Desert Youth Aymara Indigenous Aymara Association) Aymara Campesino Indigenous Association of the Pampa del Tamarugal Working Group Victoria Working Table Huatacondo Working Table Tamentica Working Table Bellavista Sector Working Group Chanavayita, Iquique Chanavayita, Iquique Chanavayita, Iquique Caramucho, Iquique Chanavayita, Iquique Colonia Pintados, Pozo Almonte New Victory Colonia Pintados, Pozo Amonte New Victory Pampa del Tamarugal, Pozo Almonte New Victory Victoria, Pozo Almonte Huatacondo, Pozo Almonte Tamentica, Pozo Almonte Bellavista sector, Pampa del Tamarugal, Pozo Almonte New Victory New Victory New Victory New Victory 8 INDICATORS 169 Working Table with the Tocopilla Fishermen's Union Tocopilla Port Tocopilla Surface Transportation Safety Advisory Council Tocopilla Board of Directors El Puerto Cowork Tocopilla Port Tocopilla Port Tocopilla Surface Transportation Safety Advisory Council Maria Elena/Maria Elena South Coya Community Security Council Tourism Working Group Working Group with the Indigenous Community Aymara Community of Quillagua Maria Elena/Maria Elena Maria Elena/Maria Elena Quillagua/María Elena Quillagua Rural Drinking Water Working Group Quillagua/María Elena Quillagua Hydroponic Cooperative Work Table Quillagua/María Elena South Coya South Coya South Coya South Coya South Coya Technical Round Table with the Atacameño Indigenous Community of Camar Camar Atacama Salt Flat Working group with the Atacameño Community of Toconao Toconao Working table with the Atacameño Indigenous Community of Talabre Working Group with the Atacameño Indigenous Community of Socaire Rio Grande Working Table Wine working table Mesa Mujer y Minería (with the Ministry of Mining, Ministry of Women and Gender Equity and Mining Companies) Talabre Socaire Rio Grande Toconao Atacama Salt Flat Atacama Salt Flat Atacama Salt Flat SQM Salar SQM Salar Antofagasta Corporate Offices Mesa Mujer y Minería (with the Ministry of Mining, Ministry of Women and Gender Equity and Mining Companies) Santiago Corporate Offices Management Evaluation As part of the controls and commitments we have at SQM, all operations and expansion projects are environmentally evaluated according to the requirements of current regulations, which has considered measuring the impact of operations in neighboring localities; carrying out citizen participation and consultations, indigenous consultation or other approaches to the community, with our own personnel, giving a differentiating seal to our Social Responsibility Programs, without resorting to external companies and generating permanent ties. We continue to work with the M-Risk software for recording the management of the community relations area, to systematize the evidence and control of the company's management with neighbors, leaving uniform records of each interaction. Every year we carry out actions to measure our programs and impacts, before generating new commitments, we evaluate current initiatives, their performance and acceptance, through direct conversation with the communities, in addition to the application of perception and valuation studies of 8 INDICATORS 170 SQM in the territories, such as the SQM Perception and Image Survey Tarapacá Region and Antofagasta Region carried out between September and October 2023, respectively, by the company Feedback and which we have applied consecutively. In relation to our certification process under the IRMA responsible mining standard, indigenous communities were interviewed and asked to comment on their perception of SQM's management. Shared Social Value Programs Below are some of our programs developed in 2023: Social Development Under this axis, programs are developed with a focus on agricultural development, where we have the Atacama Tierra Fértil Program, and different initiatives and/or programs with a focus on social development. Under the Atacama Tierra Fértil Program, the following initiatives were developed: Name of Program and/or Initiative Place of Impact Working Table with Farmers from Bajo Soga Huara Development of the Pampa del Tamarugal Livestock Farmers' Production Unit Pozo Almonte Center for Agricultural Research and Development Pozo Almonte Promoting Agriculture in Colonia de Pintados Pozo Almonte Managing Water Use Hydroponics in Quillagua Hydroponics in Caleta Urco Water Management Soil-less Cultivation Program Quillagua Quillagua Tocopilla San Pedro de Atacama San Pedro de Atacama Support for Soncor Irrigators and Farmers Association San Pedro de Atacama Ayllu Wine Production Program, Wine at High Altitudes San Pedro de Atacama Garlic Reclamation Crop Program San Pedro de Atacama Forage Harvesting in San Pedro de Atacama San Pedro de Atacama Ayllu Catarpe Demonstration Plots San Pedro de Atacama Alto Jama Neighborhood Orchard Club San Pedro de Atacama Family Garden Program San Pedro de Atacama 8 INDICATORS 171 Rural Cooperativism/ Agricultural Cooperation San Pedro de Atacama List of the main programs with a focus on Social Development: Name of Program and/or Initiative Place of Impact Active Program for Artisanal Fishermen of Pisagua Activa Pisagua Program Activa Fest 2023 Agronomic Congress 2023 2nd Innovation and Agricultural Meeting Huara Huara Iquique Iquique Iquique Hydroponic Production Center for the Penitentiary Compliance Center, CCP, of Iquique Iquique Tarapacá Inclusive Fair Iquique Academy "Women with Inclusive Sense". New Photovoltaic System - Pintados Farmers Women's Fair in Pozo Almonte Tocopilla Festival in Green El Puerto Cowork, Promoting Local Development Puerto Cowork's Embarcate Program Saberes y Sabores in Quillagua Sustainable Maria Elena Program Pioneer Training 2 Iquique, Alto Hospicio, Huara and Pozo Almonte Pozo Almonte Pozo Almonte Tocopilla Tocopilla Tocopilla, Quillagua and María Elena Quillagua Maria Elena Maria Elena Construction of a raw water well for the San Pedro de Atacama Rural Drinking Water Committee, CAPRA. San Pedro de Atacama Livestock Production Tomato Festival San Pedro de Atacama San Pedro de Atacama Seminar "Sustainable Agriculture in the Salar de Atacama". San Pedro de Atacama Support for Neighborhood Initiatives San Pedro de Atacama 8 INDICATORS 172 Alianza Mujer Atacameña, AMA (Atacama Women's Alliance Program) San Pedro de Atacama Individual Support Fund, Alianza Mujer Atacameña San Pedro de Atacama Casa Telar Program Energy House Suppliers + Sustainability Seminar Entrepreneurial Activity in the Antofagasta Region San Pedro de Atacama Antofagasta Antofagasta Antofagasta Women's Job Placement Program Antofagasta and Santiago More Suppliers +Women" Program Tarapacá Region Nothing Stops Us Championship Sustainable DNA Program Business Rounds Tarapacá Region and Antofagasta Region Tarapacá Region and Antofagasta Region Tarapacá Region and Antofagasta Region Empowered Women "En Las Calles Se Ven Los Gallos" (In the Streets You Can See the Roosters) Tarapacá Region, Antofagasta Region and Metropolitan Region Education and Culture SQM supports programs that provide tools to develop skills in students and teachers, bridging the gap between schools located far from large urban centers. We support initiatives in the area of education that focus on bridging the training gaps that exist in educational establishments close to operations. These proposals aim to complement teachers' knowledge, provide pedagogical resources and generate a bridge between the schools and the company, involving SQM's volunteer workers in some of the training processes, especially in technical and professional training. This support responds to the needs of the regions where we are present, understanding that the students are the ones who in the future will be part of the workforce of the region and of the company. Some of our programs developed during 2023 are: Name of Program and/or Initiative Place of Impact Student Scholarships in Bajo Soga Educational Agreement between UNAP and SQM Huara Iquique 8 INDICATORS 173 Seminar "Challenges and Advances in Scholarships in Under Rope Sustainability". Iquique Environmental Education Centers in the Tamarugal Pozo Almonte Environmental Education Program Recycling Program Propaedeutic My Great Little Radish" Challenge Crazy about Recycling Tocopilla Maria Elena Tocopilla and María Elena Tocopilla, Quillagua and María Elena Tocopilla, María Elena and Quillagua Fundación Enseña Chile "Unlimited" Program San Pedro de Atacama Elaboration and edition of the Ckunza Guide for students in 5th and 6th grade. San Pedro de Atacama Study Leveling Program Salar Classroom Program San Pedro de Atacama San Pedro de Atacama Alabalti, Alabalti, A Jugar y Cantar con la Cultura Lickan Antay (Let's Play and Sing with the Lickan Antay Culture) San Pedro de Atacama Positive Leadership Program Scientific Coversatory San Pedro de Atacama San Pedro de Atacama Be Green 2023 Festival for Native Fauna and Biodiversity Antofagasta AntofaEduca XII International Conference TEA 2023 Antofagasta Antofagasta Alternation Program Antofagasta and Calama Conversation "Impact Measurement and ESG Criteria". New Journalism" Grants Santiago Santiago Project Educational Challenge 2023 Antofagasta Region Technical Training Program for Communities Aprendo Contigo Program Tarapacá Region and Antofagasta Region Tarapacá Region and Antofagasta Region 8 INDICATORS 174 ViLTI SeMANN Program Empowering Education in Northern Chile Apprentice Program Community Wellness, Health and Safety Tarapacá Region and Antofagasta Region Tarapacá Region and Antofagasta Region Tarapacá Region and Antofagasta Region During 2023, we will continue to support sports in the communities near our operations. Every year we receive requests from institutions and associations that ask us to be present with contributions or by generating activities that promote and finance the realization of sporting events. We understand that sport is a contribution to people's health and that it helps the integral formation of young people by providing them with tools that are valued, such as teamwork, perseverance, healthy competition, respect, among other skills. In turn, health and the provision of quality care in places far from urban centers has become an issue required by the communities and relevant for the company given its impact. Some of our programs developed during the period are: Name of Program and/or Initiative Place of Impact Expansion of Rural Health Care Center in La Tirana Pozo Almonte Program "Together for More Security in the Historic Center of Iquique" (Juntos por Más Seguridad en el Casco Histórico de Iquique). Iquique Smile Route Project Huara, Iquique and Pozo Almonte Mobile Clinic in Tamarugal Support to Club Deportes Tocopilla Minimundial in Tocopilla Tocopilla Bodyboard Festival Sowing Health Summer Entertainment in Quillagua Therapeutic Greenhouse Pisagua, Bajo Soga, Huara, Pozo Almonte, La Tirana and La Huayca Tocopilla Tocopilla Tocopilla Tocopilla Quillagua Maria Elena Medical Specialties Operation, Alianza Mujer Atacameña San Pedro de Atacama Preventive Cancer Operation, Alianza Mujer Atacameña San Pedro de Atacama 8 INDICATORS 175 Mobile Dental Care Program Community Pharmacy Toconao Soccer School San Pedro de Atacama San Pedro de Atacama San Pedro de Atacama Alto Jama Family Union Baby Soccer Championship San Pedro de Atacama Senior Citizen Activities Program San Pedro de Atacama Support for the Budeo Bodyboard Club in Antofagasta Antofagasta Christmas with the Communities Tarapacá Region and Antofagasta Region Support to Different Sports Organizations Tarapacá Region and Antofagasta Region E-Kart Racing SQM bets on Women's Soccer Tarapacá Region and Antofagasta Region Tarapacá Region, Antofagasta Region and Metropolitan Region Somos Futuro" Championship National Cultural and Historical Heritage For years we have worked with the Humberstone and Santa Laura Saltpeter Museum Corporations, Chacabuco Saltpeter Museum Corporation, Pedro de Valdivia Saltpeter Museum Corporation and Huanchaca Ruins Foundation, we support them with resources and our experience, and we are also an active part of their boards of directors. We are natural heirs of what was the saltpeter industry and for more than a decade, we have been part of initiatives that seek to give value to the history of the saltpeter activity in the regions of Tarapacá and Antofagasta. This commitment is materialized in the contributions made for the operation of the Santiago Humberstone and Santa Laura saltpeter mines; Corporación Museo de Salitre de Chacabuco, Fundación Ruinas de Huanchaca in Antofagasta, and Fundación María Elena, as well as complementary works, which help to keep these sites and museums in force, in addition to new projects that these institutions undertake and that make sense to us. Some of our initiatives developed in this area include: Name of Program and/or Initiative Place of Impact Celebration of Fiestas Patrias in Humberstone Pozo Almonte Workshop "Florista de la Pampa". Chanavayita, Pisagua, Mamiña, Huara and La Tirana Farolito Costero Intercultural Carnival Tocopilla Soccer Film Festival in the Province of Tocopilla Tocopilla, Quillagua and María Elena Quillagua Trades Productive Program Quillagua 8 INDICATORS 176 Maria Elena Foundation Pedro de Valdivia Saltpeter Office Museum of Religious Dances Heritage Day Artistic Workshops Maria Elena Maria Elena Maria Elena Pozo Almonte, Tocopilla and María Elena San Pedro de Atacama Book, Arts and Heritage Fair "Lickan Ckausama". San Pedro de Atacama Lalantur Tatai Short Story Contest (Dream Amigo) San Pedro de Atacama International Book Fair Zicosur San Pedro de Atacama San Pedro de Atacama Recovery of the Atacameño Indigenous Museum of Alto El Loa San Pedro de Atacama Hotel Tockolen San Pedro de Atacama Support to the Third Toconao Fire Company San Pedro de Atacama Commitment to Electromobility Santiago Local Workers Percentage of Local Employees 2023 52,2% 2022 53,6% At SQM, as of December 31, 2023, 52.2% of our own employees work and reside in the regions of Tarapacá and Antofagasta, which are considered local regions for us. Workforce health and safety Indicator 1.- RT-CH-320a.1. (1) Total recordable incident rate (TRIR) and (2) mortality rate for a) directly employed and b) contract employees. 2.- RT-CH-320a.2. Description of initiatives undertaken to assess, monitor and reduce exposure of employees and contracted workers to long-term (chronic) health risks. During 2023, part of our health and safety indicators are as follows: Total Recordable Incident (or Accident) Frequency Rate (TRIF) Type of Employees Own Employees Contractors 2023 0,29 0,07 8 INDICATORS 177 SQM Total 0,15 Note: Calculation factor per 200 thousand hours. Our mortality rate for direct and indirect employees in the reported period is zero. The main related hazards that have caused injuries due to accidents are: equipment and vehicle operations, operations with explosives, handling of hazardous substances, high temperature processes, intervention of energized equipment, operation of mobile equipment and machines, work at heights, lifting and hoisting operations, work in confined spaces, hot work, cross work, among others. The most frequent injuries related to work-related incidents and/or accidents are: contusion, burn, fracture, cut, sprain, irritation, among others. The main measures adopted to minimize risks and hazards, occupational safety incidents and accidents and processes are associated with: • Eliminate exposure to fire line, improve the quality of hazard identification and risk assessment, instructions and established standards; reevaluating them every time work conditions change. • Unions of pressurized transfer systems must have safety devices to prevent accidental disconnection. • Strengthen controls that never render a security mechanism inoperable. • Before driving, verify that there are no pedestrians or obstacles, drive only checked and authorized vehicles, know and respect the Traffic and Transportation Regulations, carry out the pre-use inspection (Checklist) of the vehicles or equipment. • Operate equipment respecting maximum load limits. • Respect the established maximum speeds, always driving at a reasonable and prudent speed according to the surrounding conditions. • Verify that lifting equipment and accessories are certified and inspected. • Have all the appropriate personal protective equipment for working in areas and tasks involving • high temperature. Isolate all energies identified at their source, check that the correct equipment and/or circuit is blocked, check that the energy of the circuit to be intervened is at zero and that there is no residual energy. • To know the risks and conditions for handling and storage of hazardous substances. • Isolate the work area and its projection to lower levels, use tool holders to prevent them from falling, carry out a pre-use inspection (checklist) of systems and equipment for working at heights, use certified work platforms (scaffolding, ladders, ramps, etc.). • Transit through authorized places. More than 80% of the measures defined and implemented to manage hazards and minimize their risks are associated with administration, redesign and elimination controls, while the remaining percentage is associated with personal protection elements, segregation and substitution. Those who work in the industry may be exposed to possible contaminating agents and potential health risks, elements that we seek to address in order to protect all SQM workers. We have a permanent risk assessment, which allows us to design measures to ensure that our workers are in good physical and mental health. We have plans for monitoring, controlling and reducing exposure to all agents that our workers are exposed to. 8 INDICATORS 178 With respect to occupational diseases in workers of contractor companies, these are managed in the Risk Prevention Program of our Operations (established by contract), which is aligned with SQM's Integrated Occupational Health and Safety Management System. In addition, we make sure that these companies inform their workers of their occupational risks and that they have and use personal protective equipment, among other things. Regarding the exposure of our own workers and contractors to occupational diseases and pollutants (the latter under OSHA) in our operations -Salar de Atacama and Lithium Chemical Plant-, the following have been identified: corrosives, hepatoxins, nephrotoxins, neurotoxins, sensitizers, carcinogens, mutagens and reprotoxins. The control measures implemented to prevent exposure to the different contaminating agents are carried out in conjunction with the Administrative Body of the Law, in our case the Chilean Safety Association, ACHS. Through this institution, the environmental evaluations to which workers may be exposed are coordinated, thus defining the groups of similar exposure, qualitative evaluations, quantitative evaluations if required, surveillance programs if applicable according to the exposure levels obtained in the reports made by ACHS. Also, the implementation of engineering measures, such as, for example, forced extraction campaigns in laboratories, has always been favored. In the case of plants, handling is carried out in open and ventilated places and always using the appropriate personal protection elements according to the agent. In the case of respiratory protection, the technical guides of the Chilean Institute of Public Health and the recommendations generated in the ACHS reports mentioned above are used as a reference. Product design for use-phase efficiency Indicator 1.- RT-CH-410a.1. Revenues from products designed for resource efficiency in the use phase. At SQM we have five business lines and in all four we have a world leadership position: Specialty Plant Nutrition Iodine & Derivatives Lithium & Derivatives Potassium Industrial Chemicals We are a relevant player in the markets where we are present with our products: lithium and derivatives, specialty plant nutrients, iodine and derivatives, and industrial chemicals. For more details, please refer to Section 6.2. Managing chemicals to protect safety and the environment Indicators 1.- RT-CH-410b.1. 1) Percentage of products containing chemicals hazardous to health and the environment belonging to categories 1 and 2 of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), 2) percentage of those products that have been subject to a risk assessment. 2.- RT-CH-410b.2. Analysis of the strategy for 1) management of chemicals of concern and 2) development of alternatives that have a reduced impact on humans or the environment. 8 INDICATORS 179 We do not have a hazardous substances management procedure focused on generating alternatives that have less impact on humans or the environment, given the nature and use of the products we market. However, we take care to keep information on hazards and risks of the products up to date and to have an updated communication of hazards through safety data sheets and labeling. The Company presents hazard communication information in accordance with international standards commonly based on the Globally Harmonized System of Classification and Labeling of Chemicals. All our products have their respective safety data sheet, which includes the content of the ingredients that could have an impact on health or the environment. This document also presents the conditions for safe use and disposal of the product. Also, regulatory and technical developments are monitored for the identification of substances of very high concern according to the criteria of Regulation (EC) 1907/2006. Each raw material used is evaluated in terms of its hazard classification to assess the impact on the final product classification. Safety data sheets are the communication tool for hazard assessment. Our internal customers request the generation of safety data sheets for new products in an exclusive platform for this purpose in order to leave evidence and support of the process. Lithium The Company has a graphic design and labeling update flow that establishes the inclusion of labeling information in accordance with the regulatory requirements of the destination markets: I. II. III. IV. Product origin, which is indicated on all labeling. The content is indicated on a voluntary basis or when explicitly required by regulation. Safe use must be indicated in accordance with the relevant regulations according to the destination market. Disposal of the product is indicated only when required by the relevant regulations. 100% of lithium products (lithium hydroxide and lithium carbonate) have undergone hazard assessment based on the criteria of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS), as well as the REACH regulation on the Registration, Evaluation, Authorization and Restriction of Chemicals of the European Union, which include the Chemical Safety Assessment (CSA) and the Chemical Safety Report (CSR). 100% of lithium-derived products have their respective safety data sheets, which are updated periodically. Hazards are identified based on available scientific information obtained from the chemical safety report (CSR) and are communicated through labeling and safety data sheets. There is a permanent concern to keep the communication of hazards up to date, so in 2023, 58% of the lithium safety sheets were updated. 100% of lithium products are considered as hazardous chemicals for health and the environment belonging to categories 1 and 2 of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). In terms of chemical analysis, the finished lithium products do not contain SVHC - substances of very high concern - according to REACH; nor chemicals classified as extremely hazardous or highly hazardous by the WHO. Lithium carbonate is listed in California's Proposition 65, with no particular analysis related to this regulation in 2023. 8 INDICATORS 180 There is no management system for substances of concern focused on generating product alternatives that have less impact on humans or the environment, nor is there a hazardous substances policy per se, because none of the lithium products manufactured by SQM Salar S.A. contain chemical substances of concern that require the development of alternative products. However, the company is concerned about keeping updated information on hazards and risks of the products. In this context, in view of the proposal of the European authority to classify lithium compounds as of concern, SQM has promoted the initiative, together with other lithium producing companies in the world, to carry out a more exhaustive risk assessment (Risk Management Option Assessment "RMOA") of the entire life cycle of 4 lithium compounds and thus provide the necessary information for the safe handling of our products, minimizing the impact on health and the environment. Our lithium products contain the following health and environmental hazards according to the Globally Harmonized System of Classification and Labeling of Chemicals (GHS): corrosive to skin and eyes category 1b or eye irritation category 2 and harmful to aquatic organisms (short-term hazard category 3). It is worth mentioning that, during 2023, no cases of non-compliance with regulations or voluntary codes related to the health and safety impacts of lithium products were identified, nor cases of non-compliance with regulations or voluntary codes related to the information and labeling of lithium products. Specialty Plant Nutrition, Iodine, Potassium and Industrial Chemicals Specialty plant nutrition and iodine products play an essential nutritional role in agriculture and human health, so we do not have a hazardous substance management procedure focused on generating alternatives that have less impact on humans or the environment, given the nature and use of the products we market. However, we take care to keep the information on hazards and risks of the products up to date and to have an updated communication of hazards through safety data sheets and labeling. Each raw material used is evaluated in terms of its hazard classification to assess the impact on the final product classification. Safety data sheets and labeling are the elements of communication of these hazards. Our customer service and/or product development team request the generation of safety data sheets for new products in a platform exclusively for this purpose in order to leave evidence and support of the process. Currently, our safety data sheet library has more than 4,500 documents. The line of specialty plant nutrition products is subject to the general controls of chemicals, as well as to the sectoral regulations applicable to fertilizers. In Europe, fertilizers are regulated by Regulation (EU) 2019/1009. Generally speaking, chemicals marketed in Europe are subject to Regulation (EC) 1907/2006 on the registration, evaluation, authorization and restriction of chemical substances and mixtures and Regulation (EC) 1272/2008 on the classification, labeling and packaging of substances and mixtures. Additionally, in Europe, potassium nitrate and sodium nitrate, as well as other nitrogen compounds, and fertilizers based on them fall under the scope of Regulation (EU) 2019/1148 on the marketing and use of explosives precursors. In the United States, fertilizers are regulated according to the provisions of each state. At the federal level, they are regulated by OSHA's Hazard Communication Standard, HCS, and the Toxic Substances Control Act, TSCA, and in particular potassium nitrate and sodium nitrate are under the scope of the Chemical Facility Anti-Terrorism Standards, CFATS. The transport of these products by sea is regulated by the IMDG Code and the IMSBC Code. 8 INDICATORS 181 100% of the products are covered and evaluated in relation to the identification of hazards to human health and safety. The identification of these hazards is based on the criteria defined under the United Nations Globally Harmonized System of Classification and Labeling of Chemicals. It is possible that some of our plant nutrition products may contain boron, in the form of boric acid, as an impurity or as a desired element. Boron levels are monitored during production. When their impurity or intended ingredient levels exceed the limits based on the Globally Harmonized System, the products are classified as reproductive toxicants category 1B and labeled as such to communicate the hazard associated with these products. With regard to the analysis of the strategy and methods for developing alternative processes and chemicals that reduce or avoid the use of substances that may be of concern to consumers, customers, regulators or others concerned about human health or the environment, potential contaminants are monitored during production and, in addition, systematic external studies are carried out for the evaluation of heavy metals. The company has developed products in prill form that allow reducing their hazard due to the oxidizing characteristics of nitrate-based products, which is in line with the principles of green chemistry, designing safer chemicals. Our iodine product contains the following health and environmental hazards according to the Globally Harmonized System of Classification and Labeling of Chemicals (GHS): acute toxicity category 4, eye irritation category 2, skin irritation category 2, STOT SE category 3, STOT RE 1, aquatic toxicity category 1. On the other hand, it is worth mentioning that products classified as hazardous are subject to a chemical safety assessment and, in some cases, depending on the product, a chemical safety assessment is performed on their components. Products classified as non-hazardous are not subject to a chemical safety assessment. No non-compliances with regulations or voluntary codes relating to health and safety impacts of products and services have been identified for specialty plant nutrition products, iodine, potassium and industrial chemicals. In the case of non-compliance with regulations related to product information and labeling, the following non-compliances were identified during 2023: • Product Ultrasol 15-5-15, California, United States, the declared nutritional content did not match what was indicated on the labeling. This was identified as a typographical error that did not result in a sanction. • Product Allganic 15-0-2, California, United States, the declared nutritional content did not match what was indicated on the label. The label identification has been modified and did not result in a sanction. Genetically modified organisms Indicator 1.- RT-CH-410c.1. Percentage of products, by revenue, containing genetically modified organisms (GMO) It does not apply to SQM, as we do not produce products containing genetically modified organisms. 8 INDICATORS 182 Management of the legal and regulatory environment Indicator RT-CH-530a.1. Analysis of corporate positioning related to government regulations or policy proposals that address environmental and social factors affecting the sector. The following are some of our risks and opportunities related to legislation, regulations or regulatory processes (hereinafter collectively referred to as the "legal and regulatory environment") relating to environmental and social factors that may have a significant financial impact. For further details, please refer to Appendix 1. - Environmental laws and regulations could expose us to increased costs, liabilities, claims and non-compliance with current and future production targets. - New and future labor laws and regulations in Chile and we may be exposed to potential liabilities and costs for non-compliance. - Outbreaks of communicable infections or diseases, or other public health pandemics, such as the outbreak of the new coronavirus (COVID-19) currently being experienced around the world, have impacted and may further affect the markets in which we, our customers and our suppliers operate or market and sell products, and could have a material adverse effect on our business of operations, financial condition and results of operations - If our stakeholders and other interested parties believe that we do not adequately address sustainability and other environmental, social and governance (ESG) concerns, this may adversely affect our business. - The new National Lithium Strategy announced by the Chilean government in April 2023 has created and may continue to create uncertainty in the Chilean lithium industry, which could have a material adverse effect on the performance of our business or the value of our shares and ADSs. - Changes in laws and other water rights regulations could affect our business, financial position and results of operations. - Our water supply could be affected by geological changes or climate change - Ratification of International Labor Organization Convention No. 169 concerning Indigenous and Tribal Peoples could affect our development plans. - Quality standards in the markets in which we sell our products may become stricter over time. 8 INDICATORS 183 Operational safety, emergency preparedness and response Indicator 1.- RT-CH-540a.1. Process Safety Incident Count (PSIC), Process Safety Incident Total Incident Rate (PSTIR) and Process Safety Incident Severity Rate (PSISR). 2.- RT-CH-540a.2. Number of transport incidents. SQM conducts investigations and establishes control measures for incidents occurring at its facilities and informs the respective authorities, as indicated in its specific regulations. In order to comply with the aforementioned and with respect to the investigation of accidents, SQM has an accident investigation procedure, which is recorded in this document: • Responsibility for the investigation process. • Communication of the accident internally and externally, notice to authorities. • Description of the process, steps for the investigation. • Establishment of corrective actions using the control hierarchy. • Definition of investigation teams according to accident potential. Each incident - Lost Time, No Lost Time, Material Damage and Operational Failures - is recorded, investigated in accordance with the investigation procedure, and presented and discussed at the meetings of the Board of Directors and the Operational Executive Committees, in order to establish lessons learned and process improvements. We have a tool called Zyght to record incidents of all kinds: findings, hazardous situations and other issues related to Occupational Health and Safety. Process Security Incidents in 2023 No. of Incidents Total severity score Total Process Safety Incident Rate (PSTIR) Process Safety Incident Severity Rate (PSISR) Note: Calculation factor per 200 thousand hours. Transportation Incidents Lithium Potassium Division 26 12 0,24 0,11 Nitrates Division Iodine 5 7 0,07 0,09 In 2023, 18 transportation incidents were recorded, mainly related to the land transportation of our products between operations and to the port of Mejillones. .The transportation incidents are as follows: Description Causes Results / consequences 8 INDICATORS 184 Nazar company worker, moving with loaded equipment from Nueva Victoria to Coya Sur, at km 1,719, loses control of the equipment and goes off to the right side of the runway. 1.- Circulation by new wey shaft with overpressure. 2.- It does not regulate air PSI of adequate system to circulate in route. 1.-Material damage to the structure of the equipment. Worker of Semde company, during transport with a loaded tanker truck from Salar de Atacama along route B-385, when arriving at km 115, collides with the rear of a stopped tanker truck that was watering the route. Worker of Nazar company, in transferring equipment from Coya to Sur towards Nueva Victoria on route 5, when arriving at km 1,998, loses control of the equipment and goes off to the right side of the road. Worker of the company Transportes Astudillo, in transit with empty equipment to Salar de Atacama, is left in a scissors position when the pan is braked by polyethylene on the track, which becomes entangled in the cardan shaft. Nazar company worker in transit with loaded equipment on route B-385 from Salar de Atacama to Nueva Victoria, suffers tire projection when bolts are cut, hitting RMI company truck coming in the opposite direction. 1.- Substandard actions, not respecting the distance with the team in front of him. 1. Material damage to equipment structure. 1.- Loss of control of the equipment, due to inverted hoses of the new wey shaft. 1.-No injuries or structural damage. 1.- Equipment travels over a foreign element (plastic) and does not stop for verification. 1.- Material damage to the structure of the equipment. 1.- Cutting of tire bolts of the 4th axle of the pilot side assembly. 1.- Structural damage to the Minor vehicle (pickup truck). Agretoc company worker, in transit with loaded equipment on route 5 from Nueva Victoria to Coya Sur, overturns when he loses control of the equipment. 1.- Substandard action of driving equipment with mechanical problems. 2.- Failure in the first drive shaft. 1.- Injury to driver (right shoulder dislocation), material damage to equipment structure. MSD company driver, in transit with loaded equipment from Salar de Atacama to Coya Sur, at km 1,450, private vehicle does not respect the stop disk, colliding with the front right side of the truck. Coseducam company driver, in transit with equipment loaded with Silvinite from Salar de Atacama to Coya Sur, at km 1,480, loses control of the vehicle and overturns. Driver of Mining Services and Derivates SpA, in transit with equipment from Coya Sur to Nueva Victoria, at km 1,659, loses control of the vehicle, leaving it off the road in a scissor position. Driver of Mining and Quarrying SpA, in transit with an empty truck from Puerto Angamos to Coya Sur, is collided by external equipment. Coseducam company driver, in transit with a loaded truck from Salar de Atacama to Coya Sur, while traveling along route B-385, suffers a fire threat in the last axle on the right side. 1.- Driver of a minor vehicle does not respect the stop sign. 1.- Material damage to the structure of the equipment. 1.- Loss of control of the equipment due to driver's distraction, because he was eating while driving. 1.- Material damage to the structure of the equipment. 1.- Distraction while driving, use of cell phones. 1. Material damage to equipment structure. 1.- Unknown, due to an event caused by a third party. 1.- Material damage to the equipment structure. 1.- High temperature due to permanent friction of the brake pads and the inner track of the drum due to activation of the 1.- Material damage to the equipment structure. 8 INDICATORS 185 Nazar company worker, in transit with a loaded truck from Coya Sur to Nueva Victoria, is hit by a heavy vehicle due to poor visibility on the stretch of road. MSD worker collides with Excon equipment during the transfer of material to the Salar de Atacama mine site, which does not respect the stop disk. parking braking of the wheel of the 3rd right axle. 1.- External truck crosses the central axis due to overtaking on the road and fog in the sector. 1.- Material damage to the structure of the equipment. 1.- Excon's external machinery does not respect yield signs. 1.- Material damage to the structure of the equipment. Worker of Coseducam company, while moving a truck along route B-385, performs a maneuver to avoid a pothole, getting buried on the side of the road. 1.- Road in bad condition B-385. 2.- Dodged Bache that diverts you from your route. 1.- No damage, no injuries. Worker of Coseducam company, during the transfer of the truck to Coya Sur, the driver notices that the truck was braked and with smoke and fire coming out of the left side of the last axle. MSD company worker notices an oil leak in the engine during the transport of a truck to Tocopilla. Worker of Coseducam company, while transferring a truck along route B-385, is collided by a third party's truck. MQ company worker, while driving a truck on route B-168, loses control of the vehicle, sliding to the right side and getting into a scissors position. 1.- Glare in the driver's view that causes the driver to leave the road. 1.- No injuries. 1.- The equipment's motor breaks down. 2.- Motor melts while driving. 1.- Road in bad condition B-385. 2.- Considerable pollution, low visibility. 3.- Transfer of central axis. 1.- Distracted driving. 2.- Abrupt application of the braking system, stopping the equipment in the scissor position. 1.- Considerable material damage to the equipment. 1.- Structural damage to the Minor vehicle (pickup truck). 1.- Material damage to the structure of the truck. The following corrective actions were taken for all traffic accidents involving the transportation of products: 1. Standardize the completion of a check list after each mechanical intervention, validated by the mechanic who intervenes on the equipment, double check by the driver. 2. Training to technicians and drivers on adequate PSI pressures for transit with loaded equipment. 3. Standardization of tract - pan air couplings. 4. Analysis of the causes and control measures, reinforcement and dissemination to the entire fleet of the events that occurred, in order to obtain lessons learned. 5. Re-instruction on basic safety rule "2", equipment and transport vehicles, reinforcing defensive driving (following distance, speeds, route variable, etc.). 6. Completion of the Explor-k platform defensive driving course. 7. Performance of intervention in simulator according to EPR-42. 8. Some drivers will be monitored by the automobile club for 6 months. 9. Delivery and dissemination of training video capsule, referring to following or driving distance with preceding vehicle. 8 INDICATORS 186 10. Delivery and diffusion of informative mailing of works to be carried out on the road by road crews and sectors where wetting of the road surface is being carried out. 11. Preparation of instructions for the correct use of the new way en route. 12. Establish check list of tractor-trailer and semi-trailer for revision and testing of the new way axle of the equipment and train on it (to be performed by the driver after each mechanical intervention and at the beginning of each shift). 13. Training and evaluation of instructions for the correct use of new way based on the instructions. 14. Campaign for the standardization of couplings in accordance with the instructions for the correct use of new way. 15. Re-instruction on being attentive to road conditions, check and check vehicle. 16. Reinforcement of every time you drive over a loose element on the road, you must stop in a nearby parking lot to check the equipment. 17. Generate reflection of the events occurred in the corresponding shifts. 18. Periodic review of certifications of tools to be implemented in procedures. 19. Include in the procedure the torque specified by the manufacturer. 20. Disseminate prohibition of entry to external workshop. 21. Implement tire bolt inspection form. 22. Establish according to equipment mileage, tire bolt changes. 23. Establish within each operational procedure of the contractor Agretoc the scope of the process managers and incorporate the mandatory attendance of Agretoc's mechanic and RPA on duty; disseminate and evaluate modifications made to the work procedures to all drivers; disseminate modifications to the Trade Association. 24. Establish and disseminate that every time the PC Maintenance program is not complied with, the access of the equipment to the operation will be restricted. 25. Carry out a campaign to raise awareness of the right to work under safe working conditions "Raise hand". 26. Training on occupational risk analysis at work. 27. Disassociation of the operation to equipment owner or drivers as the case may be. 28. Conduct a pre-trip fatigue and sleepiness survey. 29. Awareness campaign on "Distracted Driving". 30. Equipment expertise. 31. Certification of the semi-trailers by Tremac mechanical technicians. 32. A survey of the state of route B-385 is being carried out to identify the most critical places on the route so that defensive management and environmental precautions can be taken. 33. Follow-up during the shift on the correct use of lens covers. 34. Awareness and analysis of the excessive use of portable radios while driving. 35. Re-instruction and evaluation of PTS transport of salts route B-168. 36. Letter of reprimand to drivers involved in traffic accidents, as the case may be. Through the implementation and certification of ISO 39001:2012, which is the international standard for the Road Safety Management System, we seek to ensure that our overland product transportation processes are safe and to minimize the risk of injuries or deaths caused by traffic accidents, both for our workers and for the community. 8 INDICATORS 187 Production by Reportable Segment Indicator 1.- RT-CH-000.A Details of our production during 2023 can be found in Section 6.2. 8 INDICATORS 188 9. RELEVANT OR ESSENTIAL FACTS The following is a summary of the essential or relevant facts reported by the company to the regulatory bodies, the respective stock exchanges and on the corporate website, during 2023: On March 22, 2023, the Company reported that the Board of Directors agreed to recommend to the ordinary shareholders' meeting of the Company held on April 26, 2023 (the "Meeting"), to distribute and pay an amount of US$ 3.22373 per share to complete the amount of US$ 10.94060 as a final dividend. On April 3, 2023, the Company reported the resignation of director Ashley Luke Ozols, effective April 21, 2023. On April 4, 2023, the Company informed that the Board of Directors agreed to include among the matters to be discussed at the Meeting the total renewal of the Board of Directors. Likewise, it was informed that in order to allow the participation of ADR holders, the Board agreed that those persons wishing to appear as candidates on the proxy card must register no later than 6:00 p.m. on Thursday, April 6, 2023. On April 12, 2023, the Company informed, in response to press inquiries, about the Company's contributions to the State of Chile in its business management for the year 2022. On April 21, 2023, the Company reported on the Chilean Government's announcement of the National Lithium Strategy. On April 25, 2023, the Company announced the filing with the Securities and Exchange Commission ("SEC") of the 20-F Annual Report for the fiscal year ended December 31, 2022. On the same date, the Company issued the summary technical reports for the following properties: Salar de Atacama, the Mt. Holland Lithium Project, Pampa Orcoma and Nueva Victoria and Pampa Blanca (the "Reports"). These reports were accompanied by the respective consents from the qualified persons responsible for their validations. On April 26, 2023, the Company announced the celebration of the 47th ordinary general shareholders' meeting of the Company. In addition, it announced the election of the Chairman and Vice-Chairman of the Board of Directors and the composition of the various Board committees. On May 17, 2023, the Company informed that the Board of Directors agreed to pay an interim dividend equivalent to US$0.78760 per share, to be charged against fiscal 2023 earnings. This amount will be paid in its equivalent in Chilean pesos, in accordance with the value of the Observed Dollar published in the Official Gazette on July 17, 2023. On May 22, 2023, the Company reported a long-term lithium supply agreement with Ford Motor Company. On May 26, 2023, the Company announced the commencement of negotiations with Codelco within the framework of the National Lithium Strategy announced by the President of the Republic on April 26, 2023. On July 5, 2023, the Company announced a new long-term lithium supply agreement with LG Energy Solution. On July 28, 2023, the Company filed with the SEC amendment No. 1 to its annual report, Form 20-F, which introduces the changes detailed in the explanatory note to such amendment. 9 RELEVANT OR ESSENTIAL FACTS 189 On August 15, 2023, the Company reported having held negotiations related to a possible change of control transaction of Azure Minerals Limited. On August 16, 2023, the Company informed that the Board of Directors agreed to pay an interim dividend equivalent to US$0.60940 per share out of the Company's fiscal 2023 earnings. This amount will be paid in its equivalent in Chilean pesos, according to the value of the Observed Dollar published in the Official Gazette on November 6, 2023. On September 6, 2023, the Company announced that SQM's Salar de Atacama mine will become the first lithium mining operation in the world to reach IRMA 75. On October 25, 2023, the Company announced an offer to acquire 80% of the shares of Azure Minerals Limited, for an equivalent of approximately US$900 million. On November 7, 2023, the Company reported the placement of a US$ 750 million senior unsecured bond at an annual interest rate of 6.500%, maturing in 2033, pursuant to Rule 144-A and SEC Regulation S under the Securities Act of 1933. On November 15, 2023, the Company informed that the Board of Directors agreed to pay an interim dividend equivalent to US$0.50347 per share out of the Company's fiscal 2023 earnings. This amount will be paid in its equivalent in Chilean pesos, according to the value of the Observed Dollar published in the Official Gazette on December 11, 2023. On December 18, 2023, the Company reported on the agreement with Prospecting Pty Ltd (Hancock) for the implementation of a transaction with Azure Minerals Limited for the acquisition of all the shares of Azure and a simultaneous conditional off-exchange tender offer. On December 27, 2023, the Company and Codelco signed a non-binding Memorandum of Understanding4 that establishes the basic agreements for the negotiation of the terms and conditions of their association to explore, exploit and commercialize lithium and other mineral substances present in the Salar de Atacama. Except for the essential or relevant events detailed above, and the risk factors described in Section 3.6, Risk Management, which are detailed in Appendix 1, Risk Factors, SQM has not identified other events that could have an effect on the business, value or supply of its shares. Likewise, the Company has not identified any material or relevant events that occurred prior to the period reported in this Report that have had a significant influence or effect during the year on the development of the entity's business, its financial statements, its securities or the offering of its shares. 4 https://s25.q4cdn.com/757756353/files/doc_news/2023/12/Codelco-MOU_27Dec2023_esp.pdf 9 RELEVANT OR ESSENTIAL FACTS 190 10. SHAREHOLDER AND DIRECTORS' COMMITTEE COMMENTS Pursuant to the provisions of Article 74, paragraph 3 of Law No. 18,046, there have been no comments or proposals related to the conduct of SQM's business made by shareholders or by SQM's Board of Directors. 11. FINANCIAL REPORTING The Company's audited consolidated financial statements as of December 31, 2023 do not form part of this Report, but are available on the website of the Financial Market Commission (CMF), as well as on our website at the following links: SQM: https://s25.q4cdn.com/757756353/files/doc_financials/2023/q4/Financial-Statements-Q4- 2023_ENG.pdf CMF: https://www.cmfchile.cl/institucional/mercados/entidad.php?mercado=V&rut=93007000&grupo=&tip oentidad=RVEMI&row=AAAwy2ACTAAAAWdAAg&vig=VI&control=svs&pestania=3 11 FINANCIAL REPORTS 191 ANNEXES ANNEX 1. RISK FACTORS Risk Factors SQM's operations are subject to certain risk factors that may affect the Company's business, financial condition, cash flows or results of operations. In addition to the other information contained in this Report, you should carefully consider the risks described below. These risks are not the only risks we face. Additional risks that we are not currently aware of or that we are aware of but currently believe are not significant may also affect our business operations. Our business, financial condition, cash flows or results of operations could be materially affected by any of these risks. Business-Related Risks The inability to extend or renew the mineral exploitation rights related to the Salar de Atacama concession, on which SQM's business is substantially dependent, beyond its current expiration date in December 2030, could have a material adverse effect on SQM's business, financial condition and results of operations. Our subsidiary SQM Salar S.A. ("SQM Salar"), as lessee, holds exclusive and temporary rights to exploit mineral resources in the Salar de Atacama in northern Chile. These rights are owned by Corfo, a Chilean government entity, and leased to SQM Salar pursuant to (i) a mining concession lease agreement with Corfo, as amended from time to time, and (ii) the Salar de Atacama project lease with Corfo, as amended from time to time (collectively, "Corfo Contracts"). The Corfo Contracts provide for SQM Salar to (i) make quarterly lease payments to Corfo based on product sales from the leased mining properties and annual contributions to research and development, local businesses, communities, the Regional Government of Antofagasta and the municipalities of San Pedro de Atacama, Maria Elena and Antofagasta, (ii) maintain Corfo's rights to the mining concessions and (iii) make annual payments to the Chilean government for such concession rights. The Corfo Contracts expire on December 31, 2030. On December 27, 2023, SQM and Codelco, the Chilean state-owned copper mining company that had been mandated by the Chilean government to negotiate its participation in the lithium operations in the Salar de Atacama, signed a non-binding memorandum of understanding (MoU), which, among other matters, established the framework for the terms and conditions of the definitive agreements for a joint venture whereby SQM Salar may continue to exploit mineral resources in the Salar de Atacama until 2060. See also "-Risks related to Chile-The new National Lithium Strategy announced by the Chilean government in April 2023 has created and may continue to create uncertainty in the Chilean economy in the lithium industry, which could have a material adverse effect on our business performance or the value of our shares and ADSs." Definitive agreements are subject to negotiation and we cannot guarantee that such agreements will be implemented. Our business is substantially dependent on exploitation rights under the Corfo Contracts, as all of our products originating from the Salar de Atacama are derived from our mining operations under the Corfo Contracts. For the year ended December 31, 2023, revenues related to products originating from the Salar de Atacama represented 73% of our consolidated revenues, consisting of revenues from our potassium business line and our lithium and period derivatives business. As of December 31, 2023, there are only seven years remaining on the Corfo Contracts and we have extracted 43% of the total permitted cumulative extraction and lithium sales extraction limit. ANNEXES 192 If we are unable to reach definitive agreements with Codelco or to extend or renew the Corfo Contracts beyond the current expiration date in 2030, we may not be able to continue mining lithium and potassium under the Corfo Contracts, which could have a material adverse effect on our business, financial condition and results of operations. Volatility in world lithium, fertilizer and other chemical prices and changes in production capacities could affect the business, financial position and results of operations. The prices of the Company's products are determined principally by world prices and have, in some cases, been subject to substantial volatility in recent years. World prices for lithium, fertilizers and other chemical products vary depending on the relationship between supply and demand at any given time. The supply and demand dynamics for SQM's products are also linked to global economic cycles and have been impacted by circumstances linked to such cycles. In addition, the supply of lithium, certain fertilizers or chemical products, including certain products sold by the Company, varies primarily depending on the production of major producers (including SQM) and their respective business strategies. As a result, the prices of the company's products may be subject to substantial volatility. For example, lithium prices decreased from an average price of US$52,000 per metric ton in 2022 to an average price of US$30,500 per metric ton by 2023. High volatility or a substantial decline in the prices or sales volumes of one or more of our products could have a material adverse effect on our business, financial position and results of operations. Sales could be affected by global transportation restrictions. We sell our products in more than 100 countries around the world. Products are shipped in containers or in bulk format from the port terminals of Antofagasta, Tocopilla, Mejillones and Iquique in Chile. Current challenges in the global shipping industry have led to port congestion, container shortages and lack of space on ships. Due to this situation, we face a risk of potential supply chain disruptions that may negatively affect operations and the ability to deliver products to customers. Depending on the terms of shipments to customers, the risk of loss related to these shipping problems could fall on the Company. In addition, revenues and collections may also be adversely affected by significant increases in the cost of transportation as a result of increases in fuel or labor costs, increased demand for logistics services, or other, and transportation delays that could have a negative impact on sales contracts and customer relationships. SQM's sales to emerging markets and expansion strategy expose it to risks related to economic conditions and trends in those countries. We sell our products in more than 100 countries around the world. In 2023, approximately 58% of sales were to emerging market countries: 44% to Asia and Oceania (excluding Australia, Japan, New Zealand, South Korea and Singapore), 7% to Latin America (excluding Chile); 3% to Africa and the Middle East (excluding Israel), and 3% to Chile. Note 21.1 to the consolidated financial statements reports revenues from Chile, Latin America and the Caribbean, Asia and others of more than US$5.9 billion. The company expects to expand its sales in these and other emerging markets in the future. In addition, acquisitions or joint ventures may be undertaken in jurisdictions in which the company does not currently operate and which are related to any of the businesses or new businesses in which SQM believes it may have sustainable and competitive advantages. The results of our operations and our prospects in other countries in which we establish operations will depend, in part, on the general level ANNEXES 193 of political stability, economic activity and policies in those countries, as well as the duration of the COVID-19 pandemic or other pandemics. Future developments in the political systems or economies of these countries or the implementation of future governmental policies in those countries, including the imposition of withholding and other taxes, restrictions on the payment of dividends or repatriation of capital, the imposition of import duties or other restrictions. In addition, the imposition of new environmental regulations or price controls or changes in relevant laws or regulations could have a material adverse effect on our business, financial condition and results of operations in those countries. Inventory levels may vary for economic or operational reasons. In general, economic conditions or operational factors may affect the Company's inventory levels. Higher inventories represent a financial risk due to the increased need for liquidity to finance working capital and may also imply a higher risk of product loss. At the same time, lower inventory levels may hinder the network and distribution process, affecting sales volumes. There can be no assurance that inventory levels will remain stable in the future. These factors could have a material adverse effect on our business, financial position and results of operations. New iodine, potassium nitrate or lithium production by existing or new competitors in the markets in which the company operates could have a negative effect on prices. In recent years, new and existing competitors have increased the supply of lithium, iodine and potassium nitrate and this has had an impact on the prices of these products. Additional production increases could have a negative effect on prices. There is limited information about the status of new lithium, iodine and potassium nitrate production capacity expansion projects being developed by current and potential competitors and, as such, we are unable to make accurate projections about the capacities of potential new market entrants and the dates on which they may come on stream. If these potential projects are completed in the near term, they could adversely affect market prices and our market share, which, in turn, could have a material adverse effect on our business, financial condition and results of operations. We have an investment plan that is subject to significant risks and uncertainties. Our business is capital intensive. Specifically, exploration and exploitation of mineral reserves, mining and processing costs, machinery and equipment maintenance, and compliance with applicable laws and regulations require substantial capital expenditures. Continued capital investment is necessary to maintain or increase mining levels and the amount of final products the company produces. For example, there is a US$2.4 billion investment plan for the years 2024-2025. The plan will expand lithium, iodine and nitrate operations by accessing natural resources in both the Salar de Atacama and caliche deposits in Chile, as well as through the 50,000 metric tons of the Mt. Holland lithium hydroxide project in Western Australia (a joint venture we are developing with our partner Wesfarmers) and in the development of a 20,000 metric ton lithium hydroxide production facility in China, which is fed with lithium sulfate from the Salar de Atacama. The plan also aims to increase mining capacity while protecting the environment, reducing operating costs and increasing annual nitrate and iodine production capacity to meet expected growth in these markets. Development projects in the mining industry generally require several years and significant investments before production can begin. Such projects may experience unexpected problems and delays during development, construction and start-up. ANNEXES 194 Our decision to develop a project is generally based on the results of feasibility studies, which estimate the anticipated economic returns of a project. Actual project profitability or economic viability may differ from such estimates as a result of any of the following factors, among others: • • • • • • • • • • changes in tonnage; grades and metallurgical characteristics of the ore or other raw materials to be mined and processed; estimated future prices of the relevant products; changes in customer demand; higher construction and infrastructure costs; the quality of the data on which engineering assumptions were made; higher production costs; adverse geotechnical conditions; availability of adequate manpower; availability and cost of water and energy; availability and cost of transportation; fluctuations in inflation and foreign exchange rates; availability and terms of financing; and possible delays related to social and community problems. In addition, we require environmental permits for our new projects. In certain cases, obtaining permits may cause significant delays in the execution and implementation of new projects and, consequently, may require us to reassess the related risks and economic incentives. This may require us to modify our operations to incorporate the use of seawater and upgrade our mining equipment and operating centers. We cannot assure you that we will be able to maintain our production levels or generate sufficient cash flow or that we will have access to sufficient investments, loans or other financing alternatives to continue our activities at or above current levels, or that we will be able to implement our projects or receive the necessary permits required on a timely basis. Any or all of these factors could have a material adverse effect on our business, financial condition and results of operations. High raw material and energy prices could increase our production costs and cost of sales, and energy availability may not be available regardless of price. The Company depends on certain raw materials and various energy sources (diesel, electricity, liquefied natural gas, gasoline and others) to manufacture its products. Purchases of energy and raw materials not produced by SQM constitute a significant portion of cost of sales (excluding payments to Corfo), which were approximately 27% in 2023. In addition, the Company may not be able to obtain energy at any price if supplies are reduced or unavailable. To the extent that increases in energy and raw material prices cannot be passed through to customers, or it is not feasible to obtain energy, the Company's business, financial condition and results of operations could be materially adversely affected. Reserve estimates may be subject to significant changes that could have a material adverse effect on the Company's business, financial condition and results of operations. Estimates of caliche ore mining reserves and brine mining reserves for the Salar de Atacama are prepared by qualified professionals and this information is presented in summaries of technical reports prepared and filed as required by subpart 1300 of Regulation S-K. Estimation methods involve numerous uncertainties as to the quantity and quality of reserves, and reserve estimates may change upward or downward. A downward shift in reserve estimates and/or reserve quality could affect future production volumes and costs and, therefore, have a material adverse effect on the Company's business, financial condition and results of operations. ANNEXES 195 The chemical and physical properties of the company's products could adversely affect their marketability. Because SQM's products are derived from natural resources, they contain inorganic impurities that may not comply with certain governmental or customer standards. As a result, it may not be feasible to sell the products if it is not possible to comply with such requirements. In addition, the cost of production may increase to meet such standards. Failure to meet such standards could adversely affect the Company's business, financial condition and results of operations if the Company is unable to sell its products in one or more markets, or to sell to major customers in such markets. Changes in technology or other developments could result in a preference for substitute products. Iodine, lithium and their derivatives are preferred raw materials for certain industrial applications, such as rechargeable batteries and liquid crystal displays (LCD). Changes in technology, the development of substitute products or other developments could negatively affect the demand for these and other products sold by SQM. In addition, other alternatives to the Company's products may become more economically attractive as world commodity prices change. Any of these events could have a material adverse effect on SQM's business, financial condition and results of operations. We are exposed to strikes and labor obligations that could affect production levels and costs. We are exposed to labor strikes and labor liabilities that could impact our production levels and costs. More than 92% of our workers are employed in Chile, of which approximately 78% were represented by 22 unions as of December 31, 2023. A new renegotiation cycle began in November 2023 and as of December 31, 2023, 3 collective bargaining agreements had been renegotiated. We are exposed to strikes and illegal work stoppages by our own workers and employees of independent contractors, which could affect production levels, both in our own plants and in the plants of independent contractors. If an illegal strike or work stoppage occurs and continues for an extended period of time, we could face increased costs and even an interruption in the flow of products, which could have a material adverse effect on our business, financial condition and results of operations. We are exposed to new and future labor laws and regulations in Chile, which could expose us to potential liabilities and costs for non-compliance. We are subject to recently enacted local labor laws and regulations and may be subject to new ones governing, among other things, the relationship between us and our employees and will be subject to new labor bills currently under discussion in the Chilean Congress, primarily as a result of the economic and political volatility and civil unrest in Chile beginning in October and November 2019. There have been changes and proposals to various labor laws including, among others, modifications related to telework, inclusion of workers with disabilities, minimum wage, unemployment insurance benefits, employee-employer relations, pensions, profit sharing, regular working hours and other matters. Lawsuits and arbitrations could adversely affect the Company. We are a party to a variety of lawsuits and arbitrations involving different matters, as described in Note 21 to our Consolidated Financial Statements. Although we intend to vigorously defend our position, our defense against these actions may not be successful and responding to such lawsuits and arbitrations diverts our management's attention from day-to-day operations. Negative rulings or settlements in these lawsuits may have a material adverse effect on our business, financial condition and results of ANNEXES 196 operations. In addition, our strategy to be a world leader includes entering into commercial and production alliances, joint ventures and acquisitions to enhance our global competitive position. As these transactions increase in complexity and are carried out in different jurisdictions, we may be subject to legal proceedings that, if resolved against us, could have a material adverse effect on our business, financial condition and results of operations. We operate in multiple jurisdictions with different regulatory, tax and other regimes. We operate in several jurisdictions with complex regulatory environments that are subject to different interpretations by companies and the respective governmental authorities. These jurisdictions may have different tax codes, environmental regulations, labor codes and legal frameworks, which add complexity to our compliance with these regulations. Any failure to comply with such regulations could have a material adverse effect on our business, financial condition and results of operations. Environmental laws and regulations could expose the company to increased costs, liabilities, claims and non-compliance with current and future production targets. Our operations in Chile are subject to national and local regulations relating to environmental protection. Under such regulations, we are required to conduct environmental impact studies or environmental impact statements before undertaking new projects, activities or significant modifications to existing projects that could affect the environment or the health of people in the surrounding areas. We are also required to obtain an environmental license for these projects and activities. The Chilean Environmental Evaluation Service, or "SEA," evaluates environmental impact studies submitted for approval. The public, governmental agencies or local authorities may review and challenge projects that may adversely affect the environment, either before these projects are implemented or once they are in operation, if they do not comply with applicable regulations. To ensure compliance with environmental regulations, Chilean authorities may impose fines of up to approximately US$9 million per violation, revoke environmental permits or close facilities temporarily or permanently, among other enforcement measures. Chilean environmental regulations have become increasingly stringent in recent years, both in the approval of new projects and in connection with the implementation and development of already approved projects, and we believe that this trend is likely to continue. Given the public interest in environmental compliance matters, these regulations or their enforcement may also be subject to political considerations that are beyond our control. We regularly monitor the impact of our operations on the environment and the health of people in the surrounding areas and, from time to time, have made modifications to our facilities to minimize any negative impact. Future developments in the creation or implementation of environmental requirements, or their interpretation, could result in substantially higher capital, operating or compliance costs, or adversely affect our business, financial condition and results of operations. The success of our current investments in the Company's operations depends on the behavior of ecosystem variables that are monitored over time. If, in future years, the behavior of these variables does not comply with environmental requirements, our operation may be subject to significant restrictions by the authorities regarding maximum allowable amounts of brine and/or water extraction. For example, on December 13, 2017, the Antofagasta Environmental Court ordered the temporary and partial closure of certain water extraction wells, located in the Salar de Llamara. In October 2018, the Antofagasta Environmental Court accepted our claim and dismissed the restrictions without prejudice. It is possible ANNEXES 197 that third parties may seek to reinstate these restrictions in the future. On December 26, 2019, the same Court ruled that the environmental compliance plan submitted by SQM Salar S.A. with respect to the Salar de Atacama, which was approved by the Superintendencia del Medio Ambiente (or SMA) in January 2019, did not comply with certain completeness and efficiency requirements of Chilean environmental legislation. In September 2021, SQM Salar S.A. proposed a new environmental compliance plan to the SMA which was approved by the SMA and is currently under review by the Environmental Court of Antofagasta after an indigenous association filed a complaint. We believe that the proposed new environmental compliance plan safeguards the protection of the environment and evaluates all courses of action available under current law with respect to this resolution. Our future development depends on our ability to sustain future production levels, which requires additional investments and the submission of the relevant environmental impact studies or statements. If we fail to obtain the required environmental approvals or licenses, our ability to maintain production at specified levels will be seriously affected, which will have a material adverse effect on our business, financial condition and results of operations. In addition, our operations around the world are subject to local and international environmental regulations. Because environmental laws and regulations in the different jurisdictions in which we operate may change, we cannot assure you that future environmental laws, or changes to existing environmental laws, will not have a material adverse impact on our business, financial condition and results of operations. A significant percentage of our shares are held by two groups of major shareholders that may have interests that differ from those of other shareholders and from each other. Any change in such major shareholder groups may result in a change of control of the Company, its board of directors or its management, which may have a material adverse effect on our business, financial condition and results of operations. As of December 31, 2023, two major shareholder groups collectively hold 47.92% of SQM's total outstanding shares, including 94.19% of the Series A shares, and have the power to elect six of our eight directors. In some cases, the interests of the two principal shareholder groups may differ from those of other shareholders and from each other. As of December 31, 2023, our principal shareholder is Sociedad de Inversiones Pampa Calichera S.A. and its related companies Inversiones Global Mining Chile Limitada and Potasios de Chile S.A. (together, the "Pampa Group"), which owned 25.76% of SQM's total outstanding shares, as explained in Section 2.3 Ownership and Shares. Another significant shareholder is Tianqi Lithium Corporation ("Tianqi"), which as of December 31, 2023 owned, directly and indirectly, 22.16% of SQM's total outstanding shares. The divestiture by Pampa Group or Tianqi, or possible changes in circumstances that have led to the CMF's determination regarding the controlling status of the Company's shareholders, or a combination of these factors, may have a material adverse effect on our business, financial condition and results of operations. ANNEXES 198 Tianqi is a significant shareholder and a competitor of the Company, which could create risks for free competition. Tianqi is a competitor in the lithium business and, as a result of the amount of SQM shares it owns, is entitled to elect up to three members of the board of directors. Under Chilean law, we are restricted in our ability to refuse to provide information about us to a director of our company, which may include competitively sensitive information. On August 27, 2018, Tianqi and the Chilean antitrust regulator, the Fiscalía Nacional Económica (FNE), entered into an out-of-court settlement, pursuant to which certain restrictive measures were implemented to (i) maintain competitive conditions in the lithium market, (ii) mitigate the risks described in the settlement and (iii) limit Tianqi's access to certain information of the Company and its subsidiaries, which is defined as "sensitive information" in the settlement. During the process of approval of the settlement agreement before the FNE, we expressed our concerns regarding the measures contained in the settlement agreement since, in the Company's opinion, the measures (i) could not effectively address the risks that Tianqi and the FNE sought to mitigate, (ii) are not sufficient to prevent access to our "sensitive information" which, in the possession of a competitor, could harm us and damage the proper functioning of the market and (iii) could contradict the Chilean Corporations Law. The presence of a shareholder that is also a competitor of ours and the right of this competitor to elect members of the Board of Directors could create antitrust risks and increase the risks of an antitrust investigation against us, either in Chile or in other countries, which could have a material adverse effect on our business, financial condition and results of operations. Our information technology systems may be vulnerable to disruptions that carry risks of data loss, operational failures or the compromise of confidential information. We have various IT and IT tools and systems, which are analyzed prior to implementation and can add efficiency to business processes. The technological infrastructure is composed of the IT network and the OT network. These environments are separated and segmented in order to preventively contain any cyber-attack or incident. In addition, both networks are protected by several layers of security and these controls help prevent the spread of cyber threats and minimize the impact in the event of an information security breach. However, we cannot guarantee that, due to the increasing sophistication of cyber attacks, our systems will not be compromised and because we do not maintain specialized cybersecurity insurance, our insurance coverage for protection against cybersecurity risk may not be sufficient. Cyber security breaches could result in asset or production losses, operational delays, equipment failures, inaccurate record keeping or disclosure of confidential information, any of which could result in business interruption, reputational damage, loss of revenue, litigation, fines or additional expense and could have a material adverse effect on our business, financial condition and results of operations International trade tensions could have a negative effect on the Company's financial performance. Economic conditions in China, an important market for the Company, are sensitive to global economic conditions. Global financial markets have experienced significant disruptions in the past, including recent international trade disputes and tariff actions announced by the United States, China and certain other countries. The U.S. government has imposed significant tariffs on Chinese products and, in turn, the Chinese government has imposed tariffs on certain U.S.-made products. There is no assurance that the list of goods affected by additional tariffs will not be expanded or that tariffs will not increase substantially. We cannot predict how the policies of the Chinese or U.S. governments, in particular, the ANNEXES 199 outbreak of a trade war between China and the United States and additional tariffs on bilateral imports, may continue to affect global economic conditions. If the list of goods is further expanded or the tariff is increased, global economic conditions in both countries could be affected and growth in demand for lithium or other commodities could decline, which could have a material adverse effect on our business, financial condition and results of operations. Increased tensions in international relations with China could result in political and economic measures against Chinese-owned companies, which could have an adverse impact on business, financial condition and results of operations. As of December 31, 2023, one of our largest shareholders is a Chinese company, with a 22.16% interest and representation on the Board of Directors. Tensions in international relations between the United States and Europe, on the one hand, and China, on the other, have recently intensified. International trade disputes and tariff actions announced by the United States, China and some other countries and other trade restrictions have affected diplomatic and economic ties between the countries. This environment could lead to political and economic measures against Chinese-owned companies. Any further deterioration in the relationship between China, the United States and certain other countries may limit our ability to invest and develop projects in certain countries and adversely affect our business, financial condition and results of operations. Outbreaks of infections or communicable diseases, or other public health pandemics, such as COVID-19 experienced worldwide, have impacted and may further affect the markets in which SQM operates, and could have a material adverse effect on SQM's business operations, financial condition and results of operations. Disease outbreaks and other public health conditions, such as the global outbreak of COVID-19 experienced in the markets in which we, our customers and our suppliers operate, could have a material adverse impact on our revenues, profitability and business. During 2020 and 2021, the Chilean government imposed several measures affecting our operations, including mandatory quarantines for people who came in contact with infected persons, gauging restrictions, blockades in specific communities that may suffer higher rates of infection or death, among others. As a precaution, our management voluntarily implemented several additional measures to help reduce the rate of spread of COVID-19 in our company, including measures to mitigate workplace transmission, significant reductions in employee travel and a mandatory quarantine for individuals who have arrived from high-risk destinations. These measures were taken based on governmental and international health guidelines, in accordance with the guidelines of governmental and international health organizations. It becomes difficult to predict the potential impact that another disease outbreak or public health condition would bring on international financial markets and the potential impact on businesses, workers, customers and others. If stakeholders and other interested parties believe that the company does not adequately address environmental, social and corporate governance (ESG) concerns, this may negatively affect SQM's business. In October 2020, we announced our sustainable development plan, which includes voluntarily expanding our monitoring systems, promoting better and deeper conversations with neighboring communities and becoming carbon neutral by 2040, and reducing water by 65% and brine extraction by 50% of our ANNEXES 200 authorized limits. We also announced the goal of obtaining international certifications and participating in international sustainability indices that we consider essential for a sustainable future. Since our sustainable development plan was announced, we have participated in voluntary assessments, such as Ecovadis, CDP Certifications, Drive Sustainability, which support our sustainable development plan, such as Responsible Care from the Chilean Chemical Industries Association, Protect&Sustain from the International Fertilizer Association, Ecoports, ISO 14001, ISO 45001 and ISO 50001, and we have achieved the IRMA 75 level of the same standard for our operations in the Salar de Atacama, which seeks to promote responsible mining. In 2021, the Port of Tocopilla achieved Responsible Care certification, obtaining level 2 certification and in June 2023, the ECOSLC Foundation approved for the first time the ECOPORTS PERS Certification following validation by the independent auditor LRQA, The Netherlands. Also, during 2022, Responsible Care certification of the rectified New Victoria site was achieved. The Protect & Sustain certification applies to the operations of Coya Sur, Salar de Atacama, Antofagasta, Santiago and the Port of Tocopilla. In terms of ISO management systems, the Port of Tocopilla obtained certification in January 2022 in the ISO 14001 standard. We completed the ISO 14001 and 45001 recertification of our management systems at the Salar de Atacama and our Lithium Chemical Plant, together with the implementation of the ISO 50001 standard, as recommended by the certification body to certify our energy management system. We also obtained ISO 50001 certification for our Nueva Victoria, Coya Sur facilities. In 2023, the Port of Tocopilla was certified by EcoPorts, a leading environmental initiative for the European port sector. During 2023 we participated in the Dow Jones Sustainability Indexes (DJSI) assessment and were accepted in the World, Emerging Markets, Mila and Chile indexes, and were included in the Sustainability Yearbook 2024. We were assessed in the Carbon Disclosure Project (CDP) where we received a B category climate change rating, which is above the global average (C category) and in line with the global chemical industry average (B- category). We also completed the CDP assessment for water in which we achieved a B- category, which is higher than the global average and the chemical industry average (category C). While we are dedicated to our sustainability-related efforts, if we do not adequately address all relevant stakeholder concerns regarding ESG criteria, we may face opposition, which could adversely affect our reputation, delay operations or result in threats or litigation actions. Failure to maintain our reputation with key stakeholders and interest groups and effectively manage these sensitive issues could adversely affect our business, results of operations and financial condition. Climate change and a global transition to a low-carbon economy may create physical and other risks that could adversely affect our business and operations; and adverse weather conditions or significant changes in weather patterns could have a material adverse impact on our results of operations. The impact of climate change and climate change-driven responses, such as a global transition to a low- carbon economy, on our operations and our customers' operations remains uncertain, but the regulatory and market risks associated with climate change, as well as the physical risks The effects of climate change could have an adverse effect on our operations, employees, communities, supply chain and our customers. ANNEXES 201 Threats derived from climate include, among others, changes in regional weather patterns, including changes in precipitation and evaporation parameters that, on the one hand, could intensify some phenomena, bringing heavy rains in short periods of time that generate other undesirable events that affect our operation and also our surrounding communities, such as road closures, infrastructure, landslides, among others. In addition, rising sea levels and storm surges increase the number of days of port closures that could impact the supply chain, affecting our customers and suppliers. Other events such as storm patterns and intensities, increased wind speed, heat waves, cold waves, among other events considered as acute physical risks of climate change. Other effects are related to temperature levels, including increased volatility of seasonal temperatures due to excessively high or low temperatures. These extreme weather conditions can vary by geography and location. Historically, weather conditions have caused volatility in the agricultural industry (and indirectly on our results of operations) by causing crop failures or significantly reduced yields, which can negatively affect application rates, demand for our plant nutrition products and the credit worthiness of our customers. Weather conditions may also result in reduced acreage, flooding, drought or wildfires, which could also negatively affect farmers' crop yields and plant nutrient uptake, reducing the need for application of plant nutrient products for the next planting season, which could result in lower demand for our plant nutrition products and negatively impact the prices of our products. Any prolonged change in weather patterns in our markets, as a result of climate change or otherwise, could have a material adverse impact on our results of operations. Risks Related to the Financial Market: Fluctuations in exchange rates may have a negative effect on the Company's financial performance. We transact a significant portion of our business in U.S. dollars and the U.S. dollar is the currency of the primary economic environment in which we operate and is also our functional currency for financial statement reporting purposes. However, a significant portion of our costs are related to the Chilean peso. Accordingly, an increase or decrease in the exchange rate between the Chilean peso and the U.S. dollar will affect our production costs. The Chilean peso has been subject to large devaluations and revaluations in the past and may be subject to significant fluctuations in the future. At December 31, 2023, the exchange rate of the Chilean peso to the U.S. dollar was Ch$877.12 to the U.S. dollar while at December 31, 2022, the exchange rate was Ch$855.86 to the U.S. dollar. Thus, the Chilean peso depreciated by 2.5% against the US dollar in 2023. Because we are an international company operating in several other countries, we also transact business and hold assets and liabilities in currencies other than the U.S. dollar. These include the euro, the South African rand, the Mexican peso, the Chinese yuan, the Thai baht and the Brazilian real. Consequently, fluctuations in the exchange rates of these currencies against the U.S. dollar may have a material adverse effect on our business, financial position and results of operations. We may be subject to risks associated with the discontinuation, reformation or replacement of benchmarks. Interest rate, exchange rate and other types of indices that are considered "benchmarks" are subject to increased regulatory scrutiny and may be discontinued, reformed or replaced. For example, in 2017, the U.K. Financial Conduct Authority announced that it would no longer persuade or compel banks to submit rates for the calculation of the London Interbank Offered Rate ("LIBOR") benchmark after 2021 and LIBOR ultimately ceased publication on June 30, 2023. As was the case with LIBOR, other future reforms may cause benchmark rates to be different from what they have been in the past, or disappear altogether, or have other consequences that cannot be fully anticipated, which introduces a number of risks to our business. These risks include (i) legal risks arising from possible changes required to ANNEXES 202 document new and existing transactions; (ii) financial risks arising from any changes in the valuation of financial instruments linked to benchmark rates; (iii) pricing risks arising from how changes in benchmark indices could affect the pricing mechanisms in some instruments; (iv) operational risks arising from the potential need to adapt IT systems, trade reporting infrastructure and operational processes; and (v) conduct risks arising from the potential impact of client communication and engagement during the transition period. Various replacement benchmarks are being considered, as well as the timing and mechanisms for their implementation. The transition from LIBOR to risk-free reference rates (RFRs) requires financial firms to make a variety of internal changes, e.g., upgrading customer service and back-office systems, retraining staff and redesigning processes, as well as modifying or renegotiating potentially thousands of LIBOR-linked contracts. However, discontinuing or reforming existing reference rates or implementing alternative reference rates may have a material adverse effect on our business, financial condition and results of operations. In addition to financial benchmarks, there are also market benchmarks used to price our long-term supply contracts, which may also be subject to regulatory scrutiny, or which may be discontinued, reformed or replaced. For example, for some of our long-term supply contracts, prices reference indices prepared by commodity reporting agencies such as the Shanghai Metal Market (SMM) and Fastmarkets. Risks Related to Chile: The new National Lithium Strategy announced by the Chilean government in April 2023 has created and may continue to create uncertainty in the Chilean lithium industry, which could have a material adverse effect on the performance of our business or the value of our shares and ADSs. On April 20, 2023, President Boric announced a new National Lithium Strategy that, among other things, would create a National Lithium Company (subject to the approval of the Chilean Congress), one of its objectives being to provide for the participation of the Chilean State in lithium-related activities in the Salar de Atacama. In connection with the announcement, President Boric provided statements regarding the following matters: • According to the National Lithium Strategy, Corfo would charge Codelco with leading the formation of the new National Lithium Company and would become its majority shareholder. Codelco would also be designated to lead negotiations with SQM to seek participation in SQM's operations in the Salar de Atacama prior to its expiration in 2030, as well as similar negotiations with other mining companies operating in the Salar de Atacama. President Boric and Corfo have stated that the terms of the existing mining leases in the Salar de Atacama would be respected and that any participation of the Chilean State in its operations would be with the agreement of the corresponding counterparty. • For areas already being developed by Codelco and Enami (the Chilean state-owned mineral company) for lithium, new lithium exploration and exploitation contracts would only be awarded by the Chilean State to Codelco and Enami subsidiaries, who would decide whether or not to partner with private parties for development projects. There would be a public bidding process for exploration rights over unexplored areas. Any private entity seeking exploitation rights would have to partner with a state-owned company that would control the project if it is declared strategic for the country. There can be no assurance that the necessary elements of the National Lithium Strategy that require Congressional action will be approved by the Chilean Congress will be fulfilled. The new National Lithium Strategy has created and may create uncertainty in the Chilean Lithium Industry, which could impact whether SQM will be able to participate in mineral exploitation in the Salar de Atacama beyond the expiration of the Corfo Contracts in December 2030 or to what extent the Chilean State will ANNEXES 203 participate in SQM's participation in its current mineral exploitation operations in the Salar de Atacama prior to the expiration of the Corfo Agreements in December 2030. Codelco is a new entrant in the Chilean lithium industry and SQM has no prior experience in negotiating with Codelco. On December 27, 2023, SQM and Codelco signed a non-binding Memorandum of Understanding (MoU), which, among other matters, established a framework for the terms and conditions of the definitive agreements of a joint venture through which SQM's companies. Its subsidiary SQM Salar will be able to continue exploiting mineral resources in the Salar de Atacama until 2060. Corfo granted Minera Tarar, a subsidiary of Codelco, the exploitation rights of the Salar de Atacama from 2031 to 2060, which will be contributed to the joint venture. If the parties fail to reach definitive agreements for the proposed joint venture, the Chilean government or SQM could allow the lease to expire in 2030 in accordance with its terms. For the year ended December 31, 2023, revenues related to products from the Salar de Atacama represented 73% of our total consolidated revenues. Approximately 69% of our total consolidated revenues were represented by lithium products. See "-Risks related to our business-Our inability to extend or renew on favorable terms the mineral exploitation rights related to the Salar de Atacama concession, on which our business is substantially dependent, beyond its current expiration date in December 2030 could have a material impact. adverse effect on our business, financial condition and results of operations." Because we are a Chilean-based company, we are exposed to political risks and civil unrest in Chile. Our business, financial conditions and results of operations could be affected by changes in the policies of the Chilean government, by other political developments in Chile or affecting Chile and by legal changes in regulations or administrative practices of Chilean authorities or in the interpretation of such regulations and practices over which we have no control. The Chilean government has changed and has the ability to change monetary, fiscal, social and other policies to influence the Chilean economy or social conditions. We have no control over governmental policies and cannot predict how those policies or governmental intervention will affect the Chilean economy or social conditions, or, directly and indirectly, our business, financial conditions and results of operations. Changes in policies involving the exploitation of natural resources, taxation and other matters related to our industry may adversely affect our business, financial condition and results of operations. We are exposed to economic and political volatility and civil unrest in Chile. Changes in social, political, regulatory and economic conditions or in laws and policies governing foreign trade, manufacturing, development and investment in Chile, as well as political crises and uncertainties in Chile, could adversely affect domestic economic growth. In October and November 2019, Chile experienced widespread riots and mass demonstrations in Santiago and other major cities throughout the country. In December 2021, Chile elected Gabriel Boric as its new president. President Boric took office on March 11, 2022 and his agenda focuses primarily on the elimination of private pension funds, social security programs, minimum wage and pension increases, and corporate tax increases. There is uncertainty as to how President Boric's reforms may affect the political and business climate in Chile in the future; it is possible that these reforms could lead to higher than expected levels of inflation, unemployment, higher corporate taxes and financial constraints for small and medium-sized companies, any of which could have an adverse effect on our business, results of operations and financial condition. Future adverse developments in Chile, including political events, financial or other crises, changes in policies relating to foreign exchange controls, regulations and taxes, may affect our ability to execute our business plan and could adversely affect our growth, results of operations and financial condition. Inflation, devaluation, social instability and other political, economic or diplomatic developments may ANNEXES 204 also reduce our profitability. Economic and market conditions in the Chilean financial and capital markets may be affected by international events, which could adversely affect the price of our securities. Changes to the Chilean Constitution could affect a wide range of rights, including mining rights, water rights, and property rights in general, which could affect the Company's business, financial condition and results of operations. Following widespread protests and social unrest throughout Chile in October 2019, the Chilean government introduced several social reforms and implemented a constitutional convention process to draft a new Chilean Constitution to replace the current 1980 Constitution. A national plebiscite held in September 2022 rejected the proposed new constitution, leaving the current 1980 Constitution in place. However, broad political support for a second constitutional process prevailed, and during 2023 a second constitutional convention process was implemented to draft a new Chilean Constitution. The final draft of the new Chilean Constitution approved by the Constitutional Council was submitted to a mandatory national referendum with an approval threshold of 50% plus one vote. This referendum took place on December 17, 2023 and rejected the proposed new Chilean Constitution by a vote of 56%. As a result, the 1980 Constitution, which has been in effect since 1980, remains in force. Following the referendum result, President Boric announced that there would be no further attempts to draft a new Chilean Constitution for the remainder of his term, which ends in March 2026. We can give no assurance that a new constitutional reform process will not take place in the future or that the social and economic concerns that led to the political and civil unrest that arose in 2019 and prompted the initiation of the constitutional reform process will be resolved or that mass protests and civil unrest will not resume. The long-term effects of this social unrest are difficult to predict, but could include slower economic growth, which could adversely affect our business, results of operations and financial condition. Changes in regulations relating to, or any revocation or suspension of, the Company's mining, port or other concessions could have an adverse effect on the Company's business, financial condition and results of operations. Our mining operations, including brine extraction, are conducted pursuant to exploration and exploitation concessions granted in accordance with the provisions of the Political Constitution of the Republic of Chile and the corresponding laws and statutes. Our exploitation concessions essentially grant us a perpetual right (with the exception of the rights related to our operations in the Salar de Atacama under the Corfo Contracts, described above, which expire in 2030) to conduct mining operations in the areas covered by such concessions to the extent that we pay the respective annual patents related to such mining concessions. Our exploration concessions allow us to explore for mineral resources in the lands covered by such concessions for a specified period and subsequently apply for the corresponding exploitation concession. Any changes to the Chilean Constitution with respect to the exploitation and exploration of natural resources and concessions granted as a result of the constitutional convention could materially adversely affect our existing exploitation and exploration concessions or our ability to obtain future concessions and could have a material adverse effect on our business, financial condition and results of operations. We also operate port facilities in Tocopilla, Chile, for the shipment of products and the receipt of raw materials pursuant to maritime concessions granted by Chilean regulatory authorities. These concessions are normally renewable provided that such facilities are used as authorized and we pay the annual fees associated with them. ANNEXES 205 Any material adverse change to any of these awards, any change to the regulations to which we are subject or adverse changes to our other grant rights, or a revocation or suspension of any of our awards, could have a material adverse effect on our business, financial condition and results of operations. Changes in laws and other water rights regulations could affect the Company's business, financial position and results of operations. We maintain water rights that are key to our operations. We obtained such rights from the Chilean Water Authority for the supply of water from rivers and wells near our production facilities, and we believe that they are sufficient to meet our current operational requirements. In January 2022, the Chilean National Congress approved a bill amending the Water Code, which was published on April 6, 2022 and enacted into law. This modification introduces several changes to the Water Code. One very relevant modification is the change in the term in which water rights are granted. According to this new legislation water rights: (i) will be of a temporary nature being granted for a maximum of 30 years (the specific term will depend on the characteristics of the watercourse and its water availability); (ii) will be subject - totally or partially - to expiration for non-use; (iii) must abide by human consumption and sanitation as a priority in the use of water (establishing orders of priority and possible limitations in the concession and use of water depending on its destination); (iv) be subject to a minimum ecological flow to ensure the conservation of nature and the protection of the environment, as determined by the General Water Directorate; and (v) be subject to the obligation of registration in the respective Real Estate Property Registry and in the Public Water Cadastre of the Chilean Water Authority and to penalties of expiration and fines in case of noncompliance. It should be noted that the regulation of water and its distribution will be one of the most important axes of the new constitutional process, so new changes may come into force. Chile's National Congress is considering a bill declaring lithium mining to be of national interest, which, if passed in its current form, could allow for the expropriation of the Company's lithium assets. The Chilean National Congress is currently discussing a Bill, bulletin 10.638-08, which "declares the exploitation and commercialization of lithium and Sociedad Química y Minera de Chile S.A. to be of national interest." The purpose of this bill is to allow for the possible expropriation of our assets or our lithium operations in general. The bill is subject to further discussion in the Chilean National Congress, which includes several possible changes to its current wording. We cannot assure you that the bill will not ultimately be approved by the Chilean National Congress, nor that its final wording will not refer to us or our lithium operations. If the bill is passed as currently drafted, it could have a material adverse effect on our business, financial condition and results of operations. The Chilean government may impose additional taxes on mining companies, which could include lithium mining companies operating in Chile. The Chilean Internal Revenue Service ("SII") has sought to extend the application of the specific tax on mining activity in Chile to the exploitation of lithium, a substance that is not concessionable under the legal system, and has assessed taxes as of December 31, 2023 in the amount of US$986.3 million from SQM Salar for fiscal years 2012 to 2023 (business years 2011 to 2022). SQM Salar paid the assessed taxes and filed three tax claims against the SII challenging these taxes and in two of the cases, corresponding to fiscal years 2012-2014 and 2015-2016, the Santiago Court of Appeals declared null and void the first instance judgment issued by the Tax Court, in each case, ordering the reopening of the case. In the third case, corresponding to the 2017-2018 tax years, the Tax Court upheld SQM Salar's claim and decreed the nullity of such assessments. This ruling was appealed by the SII and the case is ANNEXES 206 currently in the Court of Appeals of Santiago, awaiting resolution. In 2023, the SII assessed differences for the year 2022 with respect to the specific tax on mining activity and other adjustments for a total amount of US$785 million, which SQM Salar intends to appeal within the one-year appeal period. Although the SII has not issued an assessment for the specific mining tax for fiscal year 2024 (business year 2023), if the SII uses similar criteria to those used in previous years, it may issue an assessment in the future for these tax periods, which we estimate could result in a potential assessment by the SII of approximately US$162.7 million (after deduction of corporate income tax), excluding interest and penalties. To date, we have not recorded any effects corresponding to the aforementioned tax assessments. If the SII ultimately prevails in the pending legal proceedings or continues to levy additional taxes based on its interpretation of the application of the mining tax specific to lithium mining, it could have a material adverse effect on our business, financial condition and results of operations. New legislation affecting mining licenses could adversely affect the Company's mining licenses and concessions. On February 4, 2022, Law No. 21,420 was published in the Official Gazette, which reduces or eliminates certain tax exemptions to finance a new social security support called "Guaranteed Universal Pension". Among other changes, this law contemplates amendments to the Chilean Mining Code, such as (i) the increase in the value of mining licenses related to mining concessions (an increase of at least 4 times the previous value); (ii) the modification of the term in which mining exploration concessions are granted and the prohibition for the holder to constitute a new mining exploration concession in the same area once the previous one has expired; and (iii) modifications to the process of awarding mining concessions. Ratification of the International Labor Organization's Convention 169 concerning Indigenous and Tribal Peoples could affect our development plans. Chile, a member of the International Labor Organization ("ILO"), has ratified ILO Convention 169 concerning Indigenous and Tribal Peoples. This Convention establishes several rights for indigenous individuals and communities. Among other rights, the Convention states (i) that indigenous groups shall be notified and consulted before any project is carried out on lands defined as indigenous - the right to veto is not mentioned - and (ii) that indigenous groups shall, to the extent possible, have a share in the benefits resulting from the exploitation of natural resources on indigenous lands. The State of Chile has not defined the scope of such benefits. The State has regulated item (i) above by means of Supreme Decree No. 66 of the Ministry of Social Development that "Approves the Regulation that Regulates the Indigenous Consultation Procedure" establishing the exercise of the right of consultation to the indigenous peoples that may be directly affected by the adoption of legislative or administrative measures and that must be carried out by the State Bodies. This regulation establishes the criteria for projects or activities that enter the Environmental Evaluation System and require a process of indigenous consultation. To the extent that these new rights outlined in the Convention are translated into laws and regulations of the State of Chile, judicial interpretations of the Convention or of such laws and regulations, it could affect the development of our investment projects on lands defined as indigenous and such circumstance could have a material adverse effect on our business, financial position and results of operations. The Chilean Supreme Court has consistently held that consultation processes must be carried out in the manner prescribed by the Indigenous Rights Convention. The consultation process can cause delays in obtaining regulatory approvals, including environmental permits, as well as public opposition from local and/or international political, environmental and ethnic groups, particularly in environmentally sensitive areas or in areas inhabited by indigenous populations. ANNEXES 207 In addition, the omission of the consultation process when required by law may result in the revocation or cancellation of regulatory approvals, including environmental permits already granted. Consequently, operational projects may be affected, as the omission of the consultation process, when required by law, could lead to public law nullification actions for the annulment of the environmental permits granted. However, this risk often arises during the environmental assessment phase when environmental permits must be obtained. In such a scenario, affected parties may take various legal actions to declare null and void or annul environmental permits that omitted the consultation process, and in some cases courts have revoked environmental approvals where consultation was not carried out as prescribed in Convention n°169. If Agreement No. 169 affects our development plans, it could have a material adverse effect on our business, financial condition and results of operations. Our operations and projects are subject to risks related to our relationships and/or agreements with local communities and indigenous peoples' rights laws. Our operations and projects are subject to risks related to our relationships and/or agreements with local communities and indigenous peoples' rights laws. Our relationships with communities located near our operations are essential to the success of our existing operations, exploration activities and the development of our production facilities. Failure to manage relationships with such local communities can lead to local dissatisfaction which, in turn, can lead to disruptions in our operations, exploration activities and development activities. The Council of Atacameño Peoples, representing 18 Atacameño indigenous communities, advocates for the rights, traditions and interests of the Atacameño people, including land use, environmental protection and economic development in the Atacama region of Chile. On December 15, 2023, we signed an agreement with Codelco and the Organización Indígena Atacameños to include the Organización Indígena Atacameños in discussions regarding the extension of lithium mining in the Salar de Atacama beyond 2030 through a joint venture to be formed with Codelco. However, in January 2024, a disagreement within the Council of Atacameño Peoples led to the blockade of the main roads to our Salar de Atacama facilities for four days by a dissident group to express their disagreement with the non- binding Memorandum of Understanding we signed with Codelco. for the operation and development of lithium extraction in the Salar de Atacama from 2025 to 2060. The blockade resulted in the closure of operations at our Salar de Atacama facilities for one day and was quickly resolved. However, we cannot assure you that other disruptions of our operations in the Salar de Atacama or elsewhere by members of the local communities near our operations will not recur in the future. Our lease agreement with Corfo, which grants us exclusive rights to exploit mineral resources in the Salar de Atacama until 2030, includes a commitment to invest between US$10 million and US$15 million annually in sustainable development projects for the indigenous communities of Atacama La Grande through organizations promoting local development. We are dedicated to maintaining open and constructive dialogues with local communities, mainly through roundtables. Disputes with local communities living near the Salar de Atacama may in the future interfere with our operations and/or result in additional operating costs or restrictions and negatively impact the use and enjoyment of mining rights with respect to our assets. Specific community relations challenges include community concerns regarding the management of increased traffic, environmental impacts and resource depletion, social, environmental and cultural heritage impacts, increased expectations regarding the level ANNEXES 208 of benefits received by communities, benefit sharing with indigenous peoples' governments, concerns focused on the level of transparency regarding the payment of compensation and the provision of other benefits to affected landowners and the community at large. In particular, opposition by indigenous communities to our activities may require modifications to, disrupt or impede our operations, our exploration activities or the development of our production facilities or may require entering into additional agreements with local communities, which may result in additional costs. Our current and future operations are subject to the risk that one or more indigenous communities in the locations in which we operate may oppose the continued operation, additional development or redevelopment of our operations and facilities. Claims and protests motivated by such opposition may disrupt or delay activities, including permitting, at our operations and facilities. The negotiation and review of agreements, including components such as business development, participation, co- management and compensation and other benefits, involve complicated and sensitive issues, associated expectations and often competing interests. The nature and subject matter of these negotiations may result in community unrest which, in some cases, may lead to disruptions in our exploration programs, operational activities or delays in the development of our production facilities. Chile has different corporate disclosure and accounting standards than those with which investors and the market in the United States may be familiar. The accounting, financial reporting and securities disclosure requirements in Chile differ in certain significant respects from those required in the United States. Accordingly, the information available to you about us will not be the same as the information available to holders of securities issued by a U.S. company. In addition, although Chilean law imposes restrictions on insider trading and price manipulation, the applicable Chilean laws are different from those in the United States, and the Chilean securities markets are not as regulated and supervised as the U.S. securities markets. Chile is located in a seismically active region. Chile is prone to earthquakes given that it is located along major maritime-earthquake fault lines. During 2017-2023, Chile has experienced several earthquakes that had a magnitude greater than 6.0 on the Richter scale. There were also earthquakes in recent years that caused substantial damage in several regions of the country. Chile has also experienced volcanic activity. A major earthquake or volcanic eruption could have significant negative consequences for our operations and general infrastructure in Chile, such as roads, railways, ports and product access roads. Although we maintain industry-standard insurance policies, which include earthquake coverage, we cannot be certain that a future seismic or volcanic event will not have a material adverse effect on our business, financial position and results of operations. Risks Related to the Company's Shares and ADSs: The price of the ADSs and the U.S. dollar value of any dividend will be affected by fluctuations in the exchange rate between the U.S. dollar and the Chilean peso. Trading in Chile in the shares underlying our ADSs is conducted in Chilean pesos. The depositary for our ADSs will receive cash distributions from us in respect of the shares in such Chilean pesos. The depositary will convert such pesos into U.S. dollars using the prevailing exchange rate to make dividend payments and other distributions with respect to the ADSs. If the value of the peso declines relative to the U.S. dollar, the value of the ADSs and any distributions to be received from the depositary will also decline. ANNEXES 209 Developments in other emerging markets may materially affect the value of the ADSs and the Company's shares. The Chilean securities and financial markets are, to varying degrees, influenced by economic and market conditions in other countries or emerging market regions of the world. Although economic conditions are different in each country or region, the reaction of investors to developments in one country or region may have significant effects on the securities of issuers in other countries and regions, including Chile and Latin America. Developments in other parts of the world may have a material effect on the Chilean securities and financial markets and on the value of our ADSs and our shares. The prices of securities issued by Chilean companies, including banks, are influenced to varying degrees by economic and market considerations in other countries. We cannot assure you that future developments in or affecting the Chilean economy, including the consequences of economic difficulties in other markets, will not materially and adversely affect our business, financial condition or results of operations. We are exposed to risks related to weak and volatile economic and political conditions in Asia, the United States, Europe, other parts of Latin America and other nations. Although economic conditions in Europe and the United States may differ significantly from economic conditions in Chile, investors' reactions to developments in these other countries may have an adverse effect on the market value of the securities of Chilean issuers. If these or other nations' economic conditions deteriorate, Chile's economy, as a neighboring country and trading partner, could also be affected and could experience slower growth than in recent years, with a possible adverse impact on our borrowers and counterparties. The volatility and low liquidity of the Chilean equity markets may affect the ability of shareholders to sell SQM's ADSs. The Chilean securities markets are substantially smaller, less liquid and more volatile than the principal securities markets in the United States. The volatility and low liquidity of the Chilean markets may increase the volatility of the price of our ADSs and may impair a holder's ability to sell our ADSs or sell the shares underlying our ADSs in the Chilean market in the amount, at the price and at the time he wishes to do so. The share price and ADS price may react negatively to future acquisitions and investments. As part of our strategy as a global leader in our core businesses, we are constantly seeking opportunities that will enable us to consolidate and strengthen our competitive position in jurisdictions in which we do not currently operate. In accordance with this strategy, we may pursue acquisitions or joint ventures related to any of our businesses or new businesses in which we believe we can have sustainable competitive advantages. Depending on our capital structure at the time of such acquisitions or joint ventures, we may be required to significantly increase our debt and/or equity, which will affect our future financial condition and cash flows. We may also undertake capital raises, such as the one in 2021, in order to raise capital for our capital plan. In addition, any divestitures we make may not result in the strengthening of our position in our core businesses as anticipated. Any change in our financial condition could affect our results of operations by negatively impacting the price of our shares or ADSs. ANNEXES 210 Holders of ADSs may not be able to exercise rights under U.S. securities laws. Because we are a Chilean company subject to Chilean law, the rights of our shareholders may differ from the rights of shareholders of companies formed in the United States and they may not be able to enforce or may have difficulty enforcing rights currently in effect under U.S. federal or state securities laws. We are an open stock corporation organized under the laws of the Republic of Chile. Most of our directors and executive officers reside outside the United States, principally in Chile. All or substantially all of the assets of these persons are located outside the United States. As a result, if any of our shareholders, including holders of the Company's ADSs, wish to bring a claim against our officers or directors in the United States, they may face difficulties in initiating legal proceedings and in enforcing a judgment against our officers or directors in U.S. courts based on provisions of the U.S. federal securities laws. In addition, there is no treaty between Chile and the United States of America providing for reciprocal obligations in connection with lawsuits filed in their territories. However, Chilean courts have enforced judgments issued by U.S. courts when the Chilean court has verified that the U.S. court has respected basic principles of due process and that the judgment does not contain anything contrary to the laws of Chile. However, there is doubt as to whether an action can be successfully brought in Chile in the first instance on the basis of an obligation under the provisions of the U.S. federal securities laws. As preemptive rights may not be available to ADS holders, they run the risk of having their holdings diluted if new shares are issued. Chilean law requires companies to offer their shareholders preemptive rights whenever they issue new shares of capital stock so that shareholders may maintain their current percentage of ownership in a company. If we increase our capital by issuing new shares, a holder may subscribe for up to the number of shares that would prevent the dilution of its interest. If we issue preemptive rights, U.S. holders of ADSs would not be able to exercise their rights unless a registration statement under the Securities Act would be effective with respect to such rights and the shares issuable upon exercise of such rights, or if a registration exemption were available. We cannot assure ADS holders that we will file a registration statement or that a registration exemption will be available. Although in connection with the 2021 capital increase, we filed a registration statement that would allow ADS holders to exercise preemptive rights, we may, in our absolute discretion, decide not to prepare and file such a registration statement in a future capital increase. If our ADS holders were unable to exercise their preemptive rights in a future capital increase because we failed to file the registration statement, the ADS depositary would attempt to sell their rights and distribute the net proceeds from the sale, after deducting the ADS depositary's fees and expenses. If the ADS depositary is unable to sell the rights, they would expire and have no further value, and ADS holders would not receive any value from them. In any event, the ADS holders' equity interest with us would be diluted in proportion to the increase in our capital stock. If the Company were to be classified by the U.S. tax authorities as a Passive Foreign Investment Company there could be adverse consequences for U.S. investors. We believe that we were not classified as a passive foreign investment company ("PFIC" or "PFIC") by 2022. Characterization as a PFIC may have adverse tax consequences to a U.S. investor holding shares or ADSs. For example, if we (or any of our affiliates) are a PFIC, our U.S. investors may be subject to ANNEXES 211 additional tax liabilities under U.S. tax laws and regulations and may be subject to additional reporting requirements. The determination of whether we (or any of our subsidiaries) are a PFIC is made annually and will depend on the composition of our (or any of our subsidiaries') results and assets from time to time. The receipt of dividends and distributions by ADS holders may be limited by practical considerations and legal constraints, which may delay the payment and receipt of dividends and distributions by ADS holders. ADS holders generally are entitled to receive dividends and other distributions from us on the Series B ordinary shares held by the ADS custodian under the terms of the deposit agreement in proportion to the number of ADSs held as of the specified record date, after deduction of applicable fees, taxes and expenses. The receipt of these dividends and distributions may be limited by practical considerations and legal limitations, which may delay the payment and receipt of dividends and distributions by ADS holders. Changes in Chilean tax rules could have adverse consequences for U.S. investors. Cash dividends paid by the Company with respect to shares, including shares represented by ADSs, will be subject to a Chilean withholding tax of 35% withheld and paid by the Company (the "Withholding Tax"). The effective rate of Withholding Tax imposed on dividends attributed to earnings in 2023 of the Company and distributed during the same period was 23.90411%. Changes in Chilean tax regulations could have adverse consequences for U.S. investors. For example, the changes introduced by Law 21,420, published in the Official Gazette on February 4, 2022 and effective as of September 1, 2022, whereby the greater value or gain obtained in the sale on the stock exchange or in the process of public offering of shares of corporations with stock exchange presence will be considered to be affected by a single tax at a rate of 10%, except for some institutional investors, could produce consequences in the taxation of U.S. resident investors. General Risk Factors: Measures to minimize bad debt exposure may not be effective and a significant increase in accounts receivable, together with the financial condition of customers, may result in losses that could have a material adverse effect on the business, financial condition and results of operations. The potentially negative effects of global economic conditions on the financial condition of our customers may include the extension of payment terms of our accounts receivable and may increase our exposure to bad debts. While we have implemented certain safeguards to minimize risk, such as the use of credit insurance, letters of credit and prepayment for a portion of sales, we cannot assure you that such safeguards will be effective and a significant increase in our accounts receivable, together with the financial condition of customers, may result in losses that could have a material adverse effect on our business, financial condition and results of operations. Quality standards in the markets in which the Company sells its products could become stricter over time. In the markets in which we operate, customers may impose quality standards on our products and/or governments may enact stricter regulations for the distribution and use of our products. As a result, if we are unable to comply with these new standards or regulations, we may not be able to sell our products. ANNEXES 212 In addition, our cost of production may increase to comply with newly imposed or enacted standards or regulations. Failure to sell our products in one or more markets, or to major customers, could adversely affect our business, financial condition and results of operations. Our business is subject to various operational and other risks, for which we may not be fully covered by our insurance policies. Our facilities and business operations in Chile and abroad are insured against loss, damage or other risks by insurance policies that are standard for the industry and would reasonably be expected to be sufficient for prudent and experienced persons engaged in business similar to ours. We may be subject to certain events that may not be covered by our insurance policies, which could have a material adverse effect on our business, financial condition and results of operations. In addition, as a result of major earthquakes and unexpected rainfall and flooding in Chile, as well as other natural disasters around the world, conditions in the insurance market have changed and may continue to change in the future and, as a result, we may face higher premiums and reduced coverage, which could have a material adverse effect on our business, financial condition and results of operations. Water supply could be affected by geological changes or climate change. Our access to water may be affected by changes in geology, climate change or other natural factors, such as the drying up of wells or reductions in the amount of water available in the wells or rivers from which we obtain water, which we cannot control. The use of seawater for future or current operations could increase our operating costs. In addition, seawater projects could face timing issues and permitting uncertainties that make development and construction difficult. Any such changes could have a material adverse effect on our business, financial condition and results of operations. The loss of key personnel may materially and adversely affect our business. Our success depends in large part on the skills, experience and efforts of our senior management team and other key personnel. The loss of the services of key members of our senior management or employees with critical skills could have an adverse effect on our business, financial condition and results of operations. If we are unable to attract or retain highly trained, talented and qualified senior managers or other key personnel, our ability to fully implement our business objectives may be materially and adversely affected. Subject to Chilean and international laws against corruption, bribery, money laundering and international trade. Failure to comply with these laws could have an adverse impact on our business, financial condition and results of operations. We are required to comply with all applicable laws and regulations in Chile and internationally with respect to anti-corruption, anti-money laundering and other regulatory matters, including the FCPA. Although we and our subsidiaries maintain policies and processes intended to comply with these laws, we cannot guarantee that these compliance policies and processes will prevent intentional, reckless or negligent acts committed by our officers or employees. If we or our subsidiaries fail to comply with any anti-corruption, anti-bribery, anti-money laundering or similar laws, we and our officers and employees may be subject to criminal, administrative or civil penalties and other remedial measures, which could have a material adverse effect on our and our subsidiaries' business, financial condition and results of operations. Any investigation of possible ANNEXES 213 violations of anti-corruption, anti-bribery or anti-money laundering laws by governmental authorities in Chile or other jurisdictions could result in the inability to prepare our consolidated financial statements in a timely manner. This could have an adverse impact on our reputation, our ability to access financial markets and our ability to obtain contracts, allocations, permits and other governmental authorizations necessary to participate in the industry and that of our subsidiaries, which, in turn, could have an adverse effect on our business, financial condition and results of operations of subsidiaries. We are subject to risks related to the ongoing military conflict between Ukraine and Russia may have a material adverse effect on our business, financial condition and results of operations. On February 24, 2022, Russia conducted a military invasion of Ukraine. The ongoing military conflict between Russia and Ukraine has provoked strong reactions from the United States, the United Kingdom, the European Union and several other countries around the world, including the imposition of broad financial and economic sanctions against Russia. While the precise effects of the ongoing military conflict and these sanctions on the Russian and global economies remain uncertain, they have already resulted in significant volatility in financial markets, as well as an increase in global energy and commodity prices. If the conflict continues or escalates, markets may face various economic and security consequences including, among others, supply shortages of different types, additional increases in commodity prices, including natural gas, oil, fertilizers and agricultural products, significant disruptions in logistics infrastructure, telecommunication services, the risk of unavailability of information technology systems and infrastructure, among others, given that Russia and Ukraine are major exporters of raw materials. The resulting impacts on financial markets, inflation, interest rates, unemployment and other issues could disrupt the global economy. Other potential consequences include, but are not limited to, growth in the number of popular uprisings in the region, increased political unrest, especially in regions most affected by conflict or economic sanctions, increased cyber-terrorist activities and attacks, displacement of people to regions near conflict areas, and an increase in the number of refugees fleeing through Europe, among other unforeseen social and humanitarian effects. ANNEXES 214 ANNEX 2. STAKEHOLDER IMPACTS AND MATERIALITY Impacts Group affected Type of impact Real Potential Positive Negative Employment Employment Yes No Yes No Yes Yes No No Training Yes No Yes No Employment Yes No Yes No Occupational health and safety Yes No Yes No Occupational health and safety Yes No Yes No Workers Workers Material Topic: Fair Labor Practices Employment generation Increase in female labor participation Generation of knowledge and labor competencies in women and men Generating and promoting labor diversity and gender equity Workers Workers Workers/ Contractors/ Communities Workers/ Contractors Workers/ Contractors Reduction of traffic accidents Improved occupational health and safety for workers and contractors Injury to persons due to occupational accidents and/or diseases Non-compliance with working conditions Discrimination and harassment in the workplace Failure to respect the health and safety of workers Occupational health and safety Yes No Workers Employment No Yes No No Yes Yes Workers Employment Yes No No Yes Workers Human right No Yes No Yes Employment Workers / community Material Topic: Transformation and Labor Challenges Increase in female labor participation Generation of knowledge and labor competencies in women and men Generating and promoting labor diversity and gender equity Workers Training Employment Workers Workers/ contractors/ communities Yes No Yes No Yes No Yes No Yes No Yes No Reduction of traffic accidents Generating and promoting inclusion in the mining industry Discrimination and harassment in the workplace ANNEXES Occupational health and safety Yes No Yes No Workers / community Inclusion Yes No Yes No Workers Employment Yes No No Yes 215 No respect for the right to join political parties, freedom of expression and thought, and freedom of religion. Workers Human right No Yes No Yes Community Community Community Community/ Contractors Community/ Shareholders and Investors Material Topic: Relationship with the Community Economic contribution to the communities Generation of knowledge and labor competencies in students Generation and promotion of economic and productive development in the communities. Generation of knowledge and labor competencies in the communities. Generation and promotion of social development in the communities. Generation and promotion of environmental knowledge and skills in communities Conservation of natural and cultural heritage Generation and promotion of inclusion in communities Improving community health Improving the quality of life in communities Generation and promotion of sports in the communities Noise abatement in communities Improved planning of the territory impacted by operations Improvement of education in the communities Community Community/ Shareholders and Investors/ Authorities Community Community Community Community Community Community Community Financial contribution Training Economic and productive development Training Social development Training Conservation Inclusion Health Quality of life Quality of life/sports Quality of life Economic and productive development Education Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes Yes No No Yes No Yes No Yes No Yes No Yes Yes No No Yes No Yes No Yes No Yes No ANNEXES 216 Decrease in the quality of life in communities Low economic contribution to the communities Ignoring the concerns and consultations made by the communities. Deprivation or non- recognition of ancestral land and water rights of communities Failure to respect free, prior, informed and good faith consultation with indigenous communities. Damage to the infrastructure of communities due to traffic accidents Damage to natural, economic and cultural heritage Community Quality of Life No Yes No Yes Community Financial contribution No Yes No Yes Community Relationship No Yes No Yes Community Human right No Yes No Yes Community Human right No Yes No Yes Community Quality of life No Yes No Yes Community Conservation No Yes No Yes Customers Global Health and Food Challenges Generation and promotion of innovation Positive contributions of products to society Generation and promotion of scientific research Customers/ Community Customers Innovation Yes No Yes No Products Yes No Yes No Scientific research Yes No Yes No Community Community Material Subject: Human Rights and Business Improving community health Improving the quality of life in communities Improvement of education in the communities Generating and promoting labor diversity and gender equity Improvement of occupational health and safety for workers and contractors Workers/ Contractors Community Workers Health Quality of Life Education Employment Occupational health and safety Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No ANNEXES 217 Community Community Workers/ Community Generating and promoting inclusion in the mining industry Decrease in the quality of life in communities Ignoring the concerns and consultations made by the communities. Deprivation or non- recognition of ancestral land and water rights of communities Failure to respect free, prior, informed and good faith consultation with indigenous communities. No respect for the right to join political parties, freedom of expression and thought, and freedom of religion. Failure to respect the health and safety of workers Material Topic: Responsible Water Management Community Community Workers Workers Inclusion Quality of Life Relationship Human right Human right Human right Human right Yes No Yes No No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes Community Community Decrease in water withdrawal Water supply in the communities Decrease in the availability of natural resources, such as water Deprivation or non- recognition of ancestral land and water rights of communities Water and/or groundwater Community contamination Material Topic: Energy Management Community Community Energy efficiency development Material Topic: Air Emissions Employees/ Contractors/ Suppliers Community / Workers / Contractors Air pollution ANNEXES Extraction Provision Yes No Yes No Yes Yes No No Availability No Yes No Yes Human right No Yes No Yes Contamination No Yes No Yes Energy Efficiency Yes No Yes No Contamination No Yes No Yes 218 Community Community Material Topic: Biodiversity Conservation of natural and cultural heritage Damage to natural, economic and cultural heritage Impact on the use, management and conservation of natural resources in the communities. Impact on the biodiversity of the territory (flora and fauna). Soil contamination Material Topic: Climate Change Community Community Community Conservation Yes No Yes No Conservation No Yes No Yes Affectation No Yes No Yes Affectation Contamination No No Yes Yes No No Yes Yes Community / Workers / Contractors Community / Workers / Contractors Generation of GHG Emissions Yes No Yes No Waste Generation Yes No Yes No Reduction of greenhouse gas emissions Decrease in waste generation Encouraging recycling, development and promotion of the circular economy Community / Workers / Contractors Community / Workers / Contractors Recycling and Circular Economy Yes No Yes No Air pollution Material Subject: Environmental Compliance Contamination No Yes No Yes Community/ Workers/ Contractors Waste Generation Yes No Community Contamination No Yes Yes No No Yes Community Availability No Yes No Yes Community Environmental Protection No Yes No Yes Community Conservation No Yes No Yes Community Affectation No Yes No Yes Community Contamination No Yes No Yes Decrease in waste generation Environmental pollution Decrease in the availability of natural resources, such as water Low interest in environmental protection Damage to natural, economic and cultural heritage Impact on the use, management and conservation of natural resources in the communities. Water and/or groundwater contamination ANNEXES 219 Impact on the biodiversity of the territory (flora and fauna). Air pollution Soil contamination Community Community/ Workers/ Contractors Community Affectation No Yes No Yes Contamination Contamination No No Yes Yes No No Yes Yes Economic Contribution Community/ Shareholders and Investors Material Topic: Responsible Business Management Economic contribution to the communities Generation and promotion of innovation Positive contributions of products to society Generation and promotion of scientific research Customers/ Community Customers Innovation Products Scientific research Customers Community/ Shareholders and Investors/ Authorities Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Contribution to the country's economic development Generation and promotion of economic and productive development in the communities. Conservation of natural and cultural heritage Improved planning of the territory impacted by operations Improving the distribution of mining resources Development and promotion of local suppliers Low economic contribution to the communities Retaliation for reporting to the whistleblower channel Economic and Productive Development Yes No Yes No Community/ Contractors Economic and Productive Development Yes No Yes No Community Community/ Shareholders and Investors/ Authorities Conservation Yes No Yes No Economic and Productive Development Yes No Yes No Community Economic and Productive Development Suppliers Economic and Productive Development Yes No Yes No Yes No Yes No Community Economic Contribution No Yes No Yes Workers Employment No Yes No Yes Material Topic: Product Responsibility and Innovation Generation and promotion of innovation Positive contributions of products to society Customers/ Community Customers Products Innovation ANNEXES Yes No Yes No Yes No Yes No 220 ANNEX 3. SUBSIDIARIES, ASSOCIATES AND INVESTMENTS IN OTHER COMPANIES National Subsidiaries Individualization and legal nature Address Agrorama S.A. Ajay-SQM Chile S.A. El Trovador 4285, Las Condes Pdte. Eduardo Frei 4900, Santiago Almacenes y Depositos Ltda. (Adepo) El Trovador 4285, Las Condes Subscribed and paid-in capital US$114,000 US$5,313,794 Corporate purpose and activities Directory General Manager / Legal Representative Marketing and distribution of fertilizers, pesticides and agricultural inputs. Production and marketing of iodine derivatives Rodrigo Millán Riffo Rodrigo Real Ibaceta Enrique Olivares Carlini Bernard Descazeaux Aribit Alec Poitevint Matt Webb Trinidad Reyes Daniel Pizarro Diego Andres San Martín Bombal US$885,614 General deposits It does not have Pablo Altimiras Percentage represented by the investment in each subsidiary of the total individual assets of the parent company -0,0445% Relationship / Contracts with parent company Distribution 0,2050% Production and distribution / Commercial agreement 0,0028% Support Current percentage of parent company's ownership interest 99.999% SQMC S.A. 0.001% SQM Industrial S.A. 51% SQM S.A. 49% Other unrelated 99% SQM Potassium S.A. 1% SQM S.A. Comercial Agrorama LTDA. El Trovador 4285, Las Condes US$912,000 Marketing and distribution of fertilizers, pesticides and agricultural inputs. It does not have Bernard Descazeaux Aribit 100% SQMC S.A. -0,0007% Distribution Comercial Hydro S.A. Exploraciones Mineras S.A. Institución de Salud Previsional Norte Grande Ltda. (is the same as Isapre Norte Grande Ltda.) El Trovador 4285, Las Condes El Trovador 4285, Las Condes Aníbal Pinto 3228, Antofagasta US$4,818,186 Fertilizer import and marketing Carlos Ríos Malebran Roberto Campusano Rodrigo Real Ibaceta Bernard Descazeaux Aribit US$30,100,000 Other mining and quarrying José Miguel Berguño*. Ricardo Ramos Gerardo Illanes Pablo Altimiras US$57,000 Manage health matters for SQM S.A. Not applicable Humberto Riquelme 99.9999% SQMC S.A. 0.0001% Agrorama S.A. 0.269103% SQM S.A. 99.730897% SQM Potasio S.A. 99.999% SQM Industrial S.A. 0.001% SQM S.A. 0,0486% Support 0,3149% Support 0,0079% Support * Director, Chief Executive Officer or Principal Executive Officer of SQM S.A ANNEXES 221 Individualización y naturaleza jurídica Domicilio Capital suscrito y pagado Objeto social y actividades que desarrolla Directorio Gerente General / Representante legal Porcentaje actual de participación de la matriz Agrorama S.A. Ajay-SQM Chile S.A. El Trovador 4285, Las Condes Av. Pdte. Eduardo Frei 4900, Santiago US$114.000 US$5.313.794 Comercialización y distribución de fertilizantes, pesticidas e insumos agrícolas Producción y comercialización de derivados de yodo Rodrigo Millán Riffo Rodrigo Real Ibaceta Enrique Olivares Carlini Bernard Descazeaux Aribit Alec Poitevint Matt Webb Trinidad Reyes Daniel Pizarro Diego Andres San Martín Bombal US$885.614 Depósitos generales No tiene Pablo Altimiras* Porcentaje que representa la inversión en cada subsidiaria sobre el total de activos individuales de la sociedad matriz -0,0445% Relación / Contratos con la matriz Distribución 0,2050% Producción y distribución / Acuerdo comercial 0,0028% Soporte 99,999% SQMC S.A. 0,001% SQM Industrial S.A. 51% SQM S.A. 49% Otros no relacionados 99% SQM Potasio S.A. 1% SQM S.A. Almacenes y Depositos Ltda. (Adepo) El Trovador 4285, Las Condes Comercial Agrorama LTDA. El Trovador 4285, Las Condes Comercial Hydro S.A. Exploraciones Mineras S.A. Institución de Salud Previsional Norte Grande Ltda. (es lo mismo que Isapre Norte Grande Ltda.) El Trovador 4285, Las Condes El Trovador 4285, Las Condes Aníbal Pinto 3228, Antofagasta US$912.000 Comercialización y distribución de fertilizantes, pesticidas e insumos agrícolas No tiene Bernard Descazeaux Aribit 100% SQMC S.A. -0,0007% Distribución US$4.818.186 Importación y comercialización de fertilizantes Carlos Ríos Malebran Roberto Campusano Rodrigo Real Ibaceta Bernard Descazeaux Aribit US$30.100.000 Explotación de otras minas y canteras José Miguel Berguño* Ricardo Ramos* Gerardo Illanes* Pablo Altimiras* US$57.000 Administrar materias de salud para SQM S.A No aplica Humberto Riquelme 99,9999% SQMC S.A. 0,0001% Agrorama S.A. 0,269103% SQM S.A. 99,730897% SQM Potasio S.A. 99,999% SQM Industrial S.A. 0,001% SQM S.A. 0,0486% Soporte 0,3149% Soporte 0,0079% Soporte * Director, Chief Executive Officer or Principal Executive Officer of SQM S.A. ANNEXES 222 Individualization and legal nature Address Orcoma Estudios SpA Apoquindo 3721 Of 131, Las Condes Subscribed and paid-in capital US$4,631,507 Orcoma SpA Los Militares 4290, Las Condes US$2,357,731 Integral Transit and Transfer Services S.A. (SIT S.A.) Arturo Prat 1060, Tocopilla US$9,873,573 Exploration, reconnaissance, prospecting and investigation of mineral deposits for the extraction, production and processing of minerals. To explore, recognize, prospect, investigate, develop and exploit mineral deposits in order to extract, produce and process minerals. Movement and storage of goods Corporate purpose and activities Directory General Manager / Legal Representative It does not have Rodrigo Vera Diaz Current percentage of parent company's ownership interest 100% SQM S.A. Percentage represented by the investment in each subsidiary of the total individual assets of the parent company 0,0476% Relationship / Contracts with parent company Not applicable / None to date It does not have Rodrigo Vera Diaz 100% SQM S.A. 0,0234% Not applicable / None to date Sociedad Prestadora de Servicios de Salud Cruz del Norte S.A. Aníbal Pinto 3228, Antofagasta US$57,000 Provision of health services Christian Gaviño Parra Sergio Figueroa Rodriguez Raquel Ahumada Cabrera Mauricio Guerra Oliveros Soquimich Comercial S.A. (SCMC S.A.) El Trovador 4285, Las Condes US$61,745,898 Fertilizer production and marketing Bernard Descazeaux Aribit Bogdan Borkowski S. Pablo Altimiras C.* Macarena Briseño Francisco Javier Fontaine S. Gerardo Illanes G.* Christian Lüders M. Eugenio Ponce L. *Director, Chief Executive Officer or Principal Executive Officer of SQM S.A Pablo Altimiras C.* José Miguel Berguño B.* Ricardo Ramos R.*. Pablo Altimiras C.* Gerardo Illanes G.* Carlos Diaz O. * 0,1473% Distribution 0,0019% Support 0,6887% Distribution / Supply 0.00034% SQM S.A. 99.99966% SQM Industrial S.A. 1% SQM Potasio S.A. 99% SQM Industrial S.A. 0.0000004% SQM S.A. 60.6383212% SQM Industrial S.A. 39,3616784% Minority interest ANNEXES 223 Individualization and legal nature Address SQM Industrial S.A. SQM MAG spa SQM Nitrates S.A. SQM Potasio S.A. SQM Salar S.A. El Trovador 4285, Las Condes Los Militares 4290, Las Condes El Trovador 4285, Las Condes El Trovador 4285, Las Condes El Trovador 4285, Las Condes Subscribed and paid-in capital US$715,066,287 Corporate purpose and activities Directory General Manager / Legal Representative Operation of plants for the extraction, processing and transfer of mining substances and raw materials José Miguel Berguño C. Carlos Diaz O.* Ricardo Ramos R.*. Pablo Altimiras C.* US$10,000 Exploration and mining US$30,349,981 Production and sale of fertilizers US$257,010,492 US$38,000,000 Extraction of minerals for the manufacture of fertilizers and chemical products Exploitation and commercialization of potassium, lithium and other products It does not have Claudia Diaz A. Pablo Altimiras C.* José Miguel Berguño C. Carlos Diaz O.* Gerardo Illanes G.* Ricardo Ramos R.*. Pablo Altimiras C.* José Miguel Berguño C.* Carlos Diaz O.* Gerardo Illanes G.* Ricardo Ramos R.*. Gina Ocqueteau T. Constanza Valbuena F. Patricio Contesse F.* Gonzalo Guerrero Y.* Ricardo Ramos R.*. Pablo Altimiras C.* Carlos Diaz O.* Ricardo Ramos R.*. It does not have Ricardo Ramos R.*. Current percentage of parent company's ownership interest 99.047043% SQM S.A. 0.952957% SQM Potasio S.A. 100% SQM Potassium S.A. 99.99999782% SQM S.A. 0.00000218% SQM Potasio S.A. 99.999999% SQM S.A. 0.000001% Minority interest 81.82% SQM Potasio S.A. 18.18% SQM S.A. 99.9% SQM S.A. 0.1% SQM Potasio S.A. Percentage represented by the investment in each subsidiary of the total individual assets of the parent company 20,5737% Relationship / Contracts with parent company Production 0,0192% 1,9312% Production Production 27,4095% Production 28,1328% Production -0,0049% Production Sociedad Contractual Minera Búfalo (Mining Contractual Partnership) Los Militares 4290, Las Condes US$22,949 Export, recognize, prosper, research, explore and explore deposits *Director, Chief Executive Officer or Principal Executive Officer of SQM S.A ANNEXES 224 International Subsidiaries Individualization and legal nature Address Subscribed and paid-in capital Corporate purpose and activities Directory General Manager / Legal Representative SQM North America Corp. 2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, GA, U.S.A. US$79,576,550 Commercialization of nitrates, fertilizers, iodine and lithium in North America Gonzalo Aguirre T.* Pablo Altimiras C. * Beatriz Oelckers Gerardo Illanes G.* Ricardo Ramos R.* Matías Prieto Rs Agro Chemical Trading Corporation A.V.V. Caya Ernesto O. Petronia 17, Orangestad, Aruba US$6,000 Investment and marketing of real estate and personal property IMC International Management & Trust Company N.V. Nitratos Naturais do Chile Ltda. SQM Corporation N.V. SQM Ecuador S.A. SQM Brasil Ltda. Al. Tocantis 75, 6° Andar, Conunto 608 Edif. West Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo, Brazil Pietermaai 123, P.O. Box 897, Willemstad, Curacao José Orrantia Av. and Juan Tanca Marengo Av. Executive Center Building Floor 2 Office 211, Ecuador Al. Tocantis 75, 6° Andar, Conunto 608 Edif. West Gate, Alphaville Barureri, CEP 06455-020, Sao Paulo, Brazil US$774,294 It does not have Commercial advisory services, representation of other domestic and foreign companies, administrative support US$12,939,718 Investment in real estate and personal property TMF Group US$416,900 Fertilizer wholesale It does not have US$3,415,000 Commission agent and marketing of chemical products It does not have * Director, Chief Executive Officer or Principal Executive Officer of SQM S.A IMC International Management & Trust Company N.V. Domingo Aguirre (Chief Financial Officer) Martim de Almeida Sampaio Gonzalo Villagrán (Chief Financial Officer) TMF Group Ignacio Fernandez (Chief Financial Officer) Diego Monteros Arregui Gonzalo Villagrán (Chief Financial Officer) Martim de Almeida Sampaio Gonzalo Villagrán (Chief Financial Officer) Current percentage of parent company's ownership interest 51% SQM Industrial S.A. 40% SQM S.A. 9% Soquimich European Holdings B.V. 98.3333% SQM S.A. 1.6667% SQM Potasio S.A. 29.18% SQM Industrial S.A. 70.82% SQM Brasil Ltda. 99.9998% SQM Industrial S.A. 0.0002% SQM S.A. 99.996% SQM Industrial S.A. 0.004% SQM S.A. 99.47% SQM Industrial S.A. 0.53% SQM S.A. Percentage represented by the investment in each subsidiary of the total individual assets of the parent company 0,2423% Relationship / Contracts with parent company Distribution -0,0016% Support -0,0338% Support 1,2419% Support 0,0966% Distribution -0,0243% Support ANNEXES 225 Individualization and legal nature Address Subscribed and paid-in capital Corporate purpose and activities Directory General Manager / Legal Representative US$3,000,000 Investment company Carlos Diaz O.* SQMC Holding Corporation L.L.P. US$87,413 Product commercialization in Asia/Oceania and marketing assistance Pablo Altimiras C.* Gerardo Illanes G.* Andrés Stocker Andres Stocker Mario Micolta (Chief Financial Officer) US$21,736,572 US$26,490 Distribution and marketing of specialty plant nutrients and industrial products in Europe, North Africa and the Middle and Far East Import trading and distribution services Ricardo Ramos R.* Gonzalo Aguirre T.* Gerardo Illanes G.* Erik Borghijs Kris Van den Bruel Kris Van den Bruel (Chief Financial Officer) Frank Biot Patrick Vanbeneden Rudy Ismanto Kris Van den Bruel (Chief Financial Officer) Percentage represented by the investment in each subsidiary of the total individual assets of the parent company US$3,000,000 Relationship / Contracts with parent company Investment company 0,0285% 3,8141% Distribution and marketing / Commercial agency agreement Support and distribution 0,0000% Not applicable Current percentage of parent company's ownership interest 2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, U.S.A. 15.8147% SQM Potasio S.A. 84.0256% Soquimich European Holdings B.V. 0.1597% SQM S.A. 99.42% Soquimich European Holdings B.V. 0.58% SQM S.A. 80% Soquimich European Holding B.V. 20% Minority Interest SQMC Holding Corporation L.L.P. SQM Japan Co. Ltd. SQM Europe N.V. SQM Indonesia S.A. SQM Comercial de México S.A. de C.V. 2727 Paces Ferry Road, Building Two, Suite 1425, Atlanta, U.S.A. From 1st Bldg 207, 5-3-10 Minami- Aoyama, Minato-ku, Tokyo, Japan Houtdok- Noordkaai 25a B-2030 Antwerp, Belgium Perumahan Bumi Dirgantara Permai, Jl Suryadarma Blok Aw No 15 Rt 01/09 17436 Jatisari Pondok Gede, Indonesia Moctezuma Av. 144-4 Ciudad del Sol. CP 45050, Zapopan, Jalisco, Mexico US$22,044,533 Import, export and marketing of fertilizers Mario Berrios U. Ignacio Fernández G. Ricardo Ramos R.* Gonzalo Aguirre T.* Gerardo Illanes G.* Christian Lüders M. Pablo Altimiras C.* Ignacio Majluf C. Mario Berrios U. Ignacio Fernández G. José León (Chief Financial Officer) 99.94% SQM Industrial S.A. 0.05% SQM Potasio S.A. 0.01% SQM S.A. 1,1620% Distribution * Director, Chief Executive Officer or Principal Executive Officer of SQM S.A. ANNEXES 226 Corporate purpose and activities Directory General Manager / Legal Representative Individualization and legal nature Address SQM Investment Corporation N.V. Royal Seed Trading Corporation A.V.V. SQM France S.A. Administration and Services Santiago S.A. de C.V. SQM Nitratos Mexico S.A. de C.V. Soquimich European Holding B.V. Pietermaai 123, P.O. Box 897, Willemstad, Curacao Caya Ernesto O. Petronia 17, Orangestad, Aruba ZAC des Pommiers 27930 Fauville, France Av. Moctezuma 144-4 Ciudad del Sol, CP 45050, Zapopan, Jalisco, Mexico Moctezuma Av. 144-4 Ciudad del Sol, CP 45050, Zapopan, Jalisco Mexico Luna Arena, Herikerbergweg 238 1101 CM Amsterdam, the Netherlands Subscribed and paid-in capital US$50,000 US$6,000 Investment and marketing of real estate and personal property Investment and marketing of real estate and personal property TMF Group IMC International Management & Trust Company N.V. US$204,061 Distribution It does not have US$6,612 Provision of services US$5,636 Provision of services US$49,265,296 Investment company Mario Berrios U. Ignacio Fernández G. Ricardo Ramos R.* Gonzalo Aguirre T.* Gerardo Illanes G.* Christian Lüders M. Pablo Altimiras C.* Ignacio Majluf C. Mario Berrios U. Ignacio Fernández G. Ricardo Ramos R.* Gonzalo Aguirre T.* Gerardo Illanes G.* Christian Lüders M. Pablo Altimiras C.* Ignacio Majluf C. Kris Van den Bruel Patrick Vanbeneden Paul van Duuren Paul Zwagerman TMF Group Ignacio Fernandez (Chief Financial Officer) IMC International Management & Trust Company N.V. Domingo Aguirre (Chief Financial Officer) Oliver Lecaplain (also liquidator) Kris Van den Bruel (Chief Financial Officer) Mario Berrios U. Ignacio Fernández G. José León (Chief Financial Officer) Christian Lüders M. José León (Chief Financial Officer) Kris Van den Bruel (Chief Financial Officer) Percentage represented by the investment in each subsidiary of the total individual assets of the parent company 3,8655% Relationship / Contracts with parent company Support -0,1418% Support 0,0024% Support -0,0029% Support 0,0011% Not applicable 5,0588% Investment Current percentage of parent company's ownership interest 99.00% SQM Potasio S.A. 1.00% SQM S.A. 1.67% SQM S.A. 98.33% SQM Potasio S.A. 100% Soquimich European Holdings NV 99.998% SQM Industrial S.A. 0.002% SQM North America Corporation 99.998% SQM Industrial S.A. 0.002% SQM North America Corporation 25,23% SQM Corporation N.V. 74.77% SQM Investment Corporation N.V. ANNEXES 227 Individualization and legal nature Address SQM Iberian S.A. SQM Africa Pty Ltd SQM Oceania Pty Ltd SQM Beijing Commercial Co. Ltd. SQM Thailand LTD. Provenza 251 Principal 1a CP 08008, Barcelona, Spain Tramore House, 3 Waterford Office Park, Waterford Drive, 2191 Fourways, Johannesburg, South Africa Level 9, 50 Park Street, Sydney NSW 2000, Sydney, Australia Room 1001C, CBD International Mansion N 16 Yong An Dong Li, Jian Wai Ave Beijing 100022, P.R. China Unit 2962, Level 29, No. 388, Exchange Tower Sukhumvit Road, Klongtoey Bangkok, Thailand Subscribed and paid-in capital US$9,933,128 US$70,699 Corporate purpose and activities Directory General Manager / Legal Representative Distribution and marketing of specialty plant nutrients and technical products in Spain Marketing of specialty plant nutrients and industrial products Gerardo Illanes G.* Erik Borghys Christian Lüders M. Christian Luders M. Patrick Vanbeneden Emmanuel de Marez José Andrés Cayuela Enrique Torras Erik Lütken (Chief Financial Officer) Ettienne Strydom Steven Van Baalen (Chief Financial Officer) Current percentage of parent company's ownership interest 100% Soquimich European Holdings NV 100% Soquimich European Holdings B.V. Percentage represented by the investment in each subsidiary of the total individual assets of the parent company 0,3522% Relationship / Contracts with parent company Distribution 0,1749% Distribution US$1 US$1,600,000 Import, export and distribution of fertilizers and industrial products Commission agent and marketing of chemical products Gerardo Illanes G.* Andres Stocker Pablo Altimiras C.* Philip Smith David Masters Patricio de Solminihac T. Frank Biot Ricardo Ramos R.*. Andres Stocker (Chief Financial Officer) 100% SQM Soquimich European Holdings B.V. Victor Larrondo G. Andres Stocker (Chief Financial Officer) 100% SQM Industrial S.A. 0,0276% Distribution 0,0190% Not applicable US$3,364,341 Marketing of fertilizers and industrial chemicals Patrick Vanbeneden Andres Stocker Pattamakan Suparp Andres Stocker (Chief Financial Officer) 99.998% SQM European Holdings NV 0.002% Minority interest 0,0308% Not applicable * Director, Gerente General o Ejecutivo Principal de SQM S.A. ANNEXES 228 Individualization and legal nature Address Corporate purpose and activities Directory General Manager / Legal Representative Manufacture, import, commercialization and export of fertilizers. Diego Monteros Arregui Gonzalo Villagrán (Chief Financial Officer) Current percentage of parent company's ownership interest 100% SQM Industrial S.A. Percentage represented by the investment in each subsidiary of the total individual assets of the parent company 0,0406% Relationship / Contracts with parent company Support Subscribed and paid-in capital US$1,291,915 Diego Monteros Ignacio Fernández G. Ignacio Majluf Ricardo Ramos R.*. Gerardo Illanes G.* Christian Lüders M. Milton René Galan Rodolfo Hernandez G. Gonzalo Aguirre T.*. Gonzalo Aguirre T.*. Gerardo Illanes G.* Pablo Altimiras C.* Jay Leary Carlos Diaz O.* Gonzalo Aguirre T.*. Gerardo Illanes Mark Fones Pablo Altimiras C.* Gerardo Illanes US$2,499,995 Sale, import and export, marketing of chemical products US$459,866,483 Mining - Specifically lithium US$700,000 Sale, import and export, Marketing of chemical products SQM Colombia SAS SQM Shanghai Chemicals Co. Ltd. SQM Australia Pty Ltd SQM Korea LLC SQM Holland B.V. Soquimich Comercial Brasil Ltda Cra 7 No 32 - 33 29th floor Pbx: (571) 3384904 Fax: (571) 3384905 Bogotá D.C. - Colombia Room 4703-33, 47F, No.300 Middle Huaihai Road, Huangpu district, Shanghai, China Level 16, 201 Elizabeth Street Sydney, Australia Suite 22, Kyobo Building, 15th Floor, 1 Jongno Jongno-gu, Seoul, 03154, South Korea Herikerbergweg 238, 1101 CM Amsterdam Zuidoost, Netherlands Avenida Bento Rocha, N° 821, Vila Alboitt, CEP 83221- 565. Paranaguá, Brazil US$22,783,305 US$300,000 (subscribed but unpaid capital as of December 31, 2023) Plant for the production and distribution of water- soluble specialty plant nutrients. Import, export, distribution, purchase and sale of fertilizers and chemical products. Erik Borghijs Patrick Vanbeneden Kris Van den Bruel Marc Goetschalckx It does not have Kris Van den Bruel (Chief Financial Officer) 100% Soquimich European Holdings NV 0,2372% Distribution Graciele Lima Domingos Gonzalo Villagrán (Chief Financial Officer) 100% SQM Industrial S.A. Not applicable Distribution * Director, Gerente General o Ejecutivo Principal de SQM S.A. ANNEXES 229 Philip Smith Andrés Stocker-Finance Director 100% SQM Industrial S.A. 6,4454% Distribution Jay Leary (HSF legal firm) General Secretary: Jairo Bernal 100% SQM Potassium S.A. 5,6775% Investment and exploration activities Pablo Altimiras C.* Mario Micolta (Chief Financial Officer) 100% SQM Industrial S.A. 0,4473% Distribution Associated Individualization and legal nature Address Subscribed and paid-in capital Corporate purpose and activities Directory General Manager / Legal Representative Current percentage of parent company's ownership interest Percentage of the company's individual total assets represented by the investment Relationship / Contracts with parent company Abu Dhabi Fertilizer Industries, WWL PO Box 71871, Abu Dhabi, United Arab Emirates. Not applicable Ajay North America, LLC Ajay Europe, SARL Adionics, SAS Electric Era Technologies, Inc. Altilium Metals, Ltd. US$10,383,786 US$3,843,822 US$2,849,558 Not applicable Not applicable 1400 Industry RD Power Springs GA 30129, United States Z.I. du Grand Verger BP 227 53602 Evron Cedex, France 17 bis Avenue des Andes Les Ulis, 91940, France 3257 17th Ave W Suite 101 Seattle, Washington 98119, United States Phase 2 Room 205 Davy Road, Derrifod, Plymouth, United Kingdom Distribution and commercialization of nutrients specialty vegetables in the Middle East. Production and distribution of iodine and iodine derivatives iodine Production and distribution of iodine and iodine derivatives iodine Lithium extraction, separation of salts, treatment of lithium production and cleaning waters. Electric vehicle charging infrastructure, smart grid, renewable technology, energy management and demand, battery storage. Production of ready cathode active materials for batteries from used batteries from electric vehicles. Not applicable Not applicable 37% Not applicable Not applicable Daniel Pizarro Ignacio Majluf Alec Pointweb Matt Webb Daniel Pizarro Ignacio Majluf Alec Pointweb Matt Webb Andres Fontannaz Mark Fones (observer director, non-voting) Matt Webb 49% 0,2203% Michel Pichon 50% 0,1373% Not applicable 20% 0,2654% Production and distribution / Commercial agreement Production and distribution / Commercial agreement Research and development Not applicable 6,82% 0,0531% Not applicable David Rousselle Not applicable 3,92% Not applicable Not applicable ANNEXES 230  Joint Ventures Individualization and legal nature Percentage of participation Description of main activities Percentage of total individual assets that these entities represent at SQM Covalent Lithium Pty Ltd. 50% (Through SQM Australia Pty Ltd) Development and operation of the Mt Holland project, which will include the construction of a lithium extraction and refining mine. -0,0157% Pavoni & C. Spa. 50% (Through Soquimich European Holdings B.V.) Production of specialty and other fertilizers for distribution in Italy and other countries. 0,0960% SQM Vitas Fzco. (Free Trade Zone Company) 48.0769231% SQM Industrial S.A. 1.92307692% SQM S.A. (Total 50%) Production and marketing of specialty plant and animal nutrition and industrial hygiene. 0,4735% Pirra Lithium Pty Ltd. 37.5%* (Through SQM Australia Pty) Exploration and development of lithium assets 0,0363% * As of December 31, 2023 ANNEXES 231 ANNEXES 232 

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