Company: SQM
Filing Date: 2025-04-03
Form Type: 6-K
Source: 0000909037-25-000010
Chunk: 55

Company: CHEMICAL & MINING CO OF CHILE INC
Filing Date: 2025-04-03
Form: 6-K
Chunk 55
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 F1+ 319,128 Bank of Nova Scotia Time deposits P-1 - - 353,592 Sumitomo Mitsui Banking Time deposits P-1 - F1 91,884 Total 1,316,797 (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.

Notes to the Consolidated Financial Statement December 31, 2024 43 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 quarter of 2024, approximately US$831 million accumulated in expenses are associated with the Peso. As of December 31, 2024, 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$25.83 million. This air is explained primarily by the USD/CLP exchange rate observed at the end of the period. As of December 31, 2023, this value corresponds to a net asset amounting US$ 2.52 million. Furthermore, as of December 31, 2024, the Company held derivative instruments classified as hedges of foreign exchange risks associated with 100% of all nominative time deposits in UF and in pesos, at a net asset fair value of US 15.40 million. As of December 31, 2023, a net liability fair value was recognized for an amount of US$18.30 million of net liabilities. To ensure the difference between its assets and liabilities, the Company held the following derivative contracts as of December