Company: SQM
Filing Date: 2025-06-12
Form Type: 6-K
Source: 0000909037-25-000030
Chunk: 45

Company: CHEMICAL & MINING CO OF CHILE INC
Filing Date: 2025-06-12
Form: 6-K
Chunk 45
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 |   415,851 |
| Banco Itaú CorpBanca        |     | Time deposits    |     | P-1    |     | A-2   |     | -   |     |              |    66,166 |
| Scotiabank Chile            |     | Time deposits    |     | -      |     | -     |     | F1+ |     |              |   240,164 |
| Bank of Nova Scotia         |     | Time deposits    |     | P-1    |     | A-1   |     | F1+ |     |              |    51,025 |
| KBC Bank                    |     | Time deposits    |     | -      |     | A-2   |     | F1  |     |              |    22,397 |
| Total                       |     |                  |     |        |     |       |     |     |     |              | 1,061,262 |

(b) Exchange risk

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

A significant portion of the Company’s costs, especially salary payments, are associated with the Peso. Therefore, an increase or decrease in its exchange rate with the US dollar will provoke a respective decrease or increase in these accounting costs, which would be reflected in the Company’s statement income. By the first quarter of 2025, approximately US$218 million accumulated in expenses are associated with the Peso.

As of March 31, 2025, the Company held derivative instruments classified as hedges of foreign exchange risks associated with 100% of all the bond obligations denominated in UF, for a net liability fair value of US$9.21 million. This air is explained primarily by the USD/CLP exchange