Webinar Presentation on Latin America Water Segment

Vince Lencioni LGA Consulting January 26, 2011

Webinar Outline
110 minutes followed by Questions & Answers Agenda: 5 parts A. Greater Commitment to Región – 15 minutes  Latin America comparisons with Asian Economies B. Intermediary Options and Channel Analysis – 20 minutes  Traditional Approaches to Market  Channel mix options: pros and cons C. Local Presence and Legal Analysis – 25 minutes  Pros and Cons of different Latam locations  Mexico, Brazil, Chile presence and legal comparisons D. Market Analysis – 40 minutes  Brazil, ROSA, Mexico – General and Water Analysis  Need for Right People and Right Information E. LGA Consulting, TVZ International, Trade Chile – 10 minutes • Service and Assistance – Channel Support Program Contact and Descriptive Information about companies

I. Latin America vs Asia Republics: Stats and Comparisons that Stick

Arguments for why Latin America should be just as dynamic, important as Asian Republics (minus China and Japan)
– –

Why companies should be emphasizing region more in general and vs Asian “investment” Red Headed Step Child (Latam) vs the Favorite Child (Asia)

Indicators Analyzed: GDP (overall, increase, per capita, PPP), Inflation, Imports, US Exports, Population, Corruption, Ease of Doing Business

Asia vs Latin America: GDP 2012
Top 10 Latam Economies = Japan, 75% of China, 3x India, > Rest of Asia (minus China and Japan) Brazil = 1/3 of China India or Russia = ¾ Brazil Brazil = South Korea, Thailand, Taiwan, Malaysia, Vietnam Mexico = Taiwan, Thailand, Malaysia and Vietnam Mexico = 2/3 of India or Russia South Korea = 90% Mexico Argentina = ½ of Indonesia Argentina = 85% of Taiwan Malaysia = Chile Thailand = Colombia or Venezuela Vietnam = 2/3 of Peru or Central America

Source: International Monetary Fund, World Economic Outlook , September 2011 http://www.imf.org/external/data.htm (see annexes)

Asia vs Latin America: GDP % 2012
China 9.5% India 7.8% Indonesia* 6.5% Vietnam* 5.7% SoKorea,Taiwan,Thailand 4.2% Malaysia 4.0% Japan 2.1% --------------------------------------* = Small or significantly underdeveloped economies

Latin America > 4.2%
Panama* 6.9% Dom Republic*6.4% Peru 4.9% Chile 4.8% Colombia & Ecuador 4.5% Brazil 4.2% Uruguay* 4.2% Argentina 4.1% Mexico 3.5% Venezuela 2.3%

Source: International Monetary Fund, World Economic Outlook , September 2011 http://www.imf.org/external/data.htm (see annexes)

Asia vs Latin America: Population
India + China = 4x Latam India = ½ of Latin America Japan = 2/3 of Brazil Brazil = Japan, South Korea and Taiwan Mexico = ½ of Indonesia Mexico = Malaysia + Vietnam or Japan Argentina = 2/3 of South Korea or 2/3 of Thailand Malaysia = 2/3 Argentina Vietnam = Argentina+Colombia Colombia = ¾ of Thailand or 90% of South Korea Malaysia = Venezuela or Peru Chile = 2/3 of Malaysia

Source: Business Monitor, Latin America Monitor, Vol. 28 Issue11 November 2011

Asia vs LatAm: GDP Per Capita 2012
South Korea Taiwan Malaysia Thailand China Indonesia India Vietnam $23,749 $23,379 $ 9,146 $ 5,865 $ 5,715 $ 3,469 $ 1,645 $ 1,521 Uruguay Chile Brazil Argentina Mexico Venezuela Colombia Peru $15,714 $13,998 $13,316 $11,358 $11,210 $10,265 $ 7,294 $ 5,880

Source: International Monetary Fund, World Economic Outlook , September 2011 http://www.imf.org/external/data.htm (See Annexes)

Latin America vs BRIC: GDP PPP
GDP PPP
25,000.00 20,000.00
US dollars

Brazil China India Mexico Russia

15,000.00 10,000.00 5,000.00 0.00 2008 2009 2010 Year 2011 2012 2015

Source: Elaborated with data of International Monetary Fund & WEO September (2011)

Mexico vs BRIC: Working Age

Source: www.ajr.com.mx, 6th congress with data of WORLD FACT BOOK, 2011

Asia vs LatAm: Imports 2010
Latam top 9 plus Central America* = 75% China Mexico = 30% of China Brazil = 16.5% of China India = 35% of Latam* India = 93% of Mexico Brazil = 60% of India Mexico = 60% of Japan Chile = ½ of Malaysia or ½ of Thailand Taiwan = ¼ of Latam* Russia = ¼ of Latam* Argentina + Colombia = ½ of Russia or Taiwan Vietnam= Central America or Peru + Venezuela

Source: Central Intelligence Agency, The World Factbook, December 2011https://www.cia.gov/library/publications/the-world-factbook/ (see annexes)

Asia vs LatAm: US Exports 2011
Mexico = 2x China, 3x Japan, 4.5x South Korea, 9x India, more than top 10 Asian countries after China Brazil = South Korea, 2x India, almost half China Chile = ¾ of India Thailand = 2/3 of Chile Colombia = Malaysia, 2/3 of India Argentina = ½ of India Panama or Peru = Russia or Indonesia Venezuela > Thailand Costa Rica = ½ Thailand Paraguay = ½ Vietnam

Source: US Census Bureau, Foreign Trade, September (2011) http://www.census.gov/foreign-trade (see annexes)

LatAm vs BRIC Inflation 2010

Source: www.ajr.com.mx, 6th congress with data of WORLD FACT BOOK, 2011

Asia vs LatAm: Corruption 2011

Source: Corruption Perceptions 2011, November www.transparency.org,

Asia vs LatAm: Corruption

Source: Corruption Perceptions 2011, November www.transparency.org

Asia vs Latin America: Ease of Doing Business Report, World Bank 2009-12
South Korea: 8, up 15 Thailand: 17, down 5 Malaysia: 18, up 3 China: 91, down 5 Vietnam: 98, down 8 Indonesia: 129, same India: 132, same (Venezuela: 177) Chile: 39, same Peru: 41, up 24 Colombia: 42, up 7 Mexico: 53, up 2 Panama: 61, up 22 Uruguay 91, up 19 Argentina: 113, same Brazil: 125, same

Source: The World Bank Group, International Finance Corporation, Doing Business, June 2011 http://www.doingbusiness.org/rankings

II. Traditional Latin America Approach and New Channel Outlook

Strategy: Create market presence not market share
– –


Focus: Mexico > South America Little or no regional research or business development, rely on channels for information Stay away from local presence if possible; locate intermediaries, leave alone to do their job Supervise all activities from US maybe with bilingual staff, probably without Latam person

Regional Channel Analysis (Part 1)

Options – Distributor vs Rep vs Integrator Challenges
– –

Intermediary Tendency


Credit & Terms Price/Discounts

Mexico Brazil Chile/ROSA From US From Miami From Brazil From Mexico From ROSA

Base for Coverage
– – – – –

Price vs Credit


– – –

Margins & Commissions Technical Service Visits – Client/Intermed Exclusivity – both ways

Regional Channel Analysis (Part 2)

Industry vs Govt Sales
– –

“Double Coverage”

Brazil vs Mexico Commercial vs Strategic Alliance

Pros & Cons: Rep driving Intermediaries: adding layers vs coverage Better supervise, motivate channels – more visits

Reps - Challenges
– – –

Direct Sales Office

Identification – How/Where Unprofessional Business Dev. Commitment Viability: Logistics & cashflow for importing, stocking Margins “Order-Takers” Bad Market Information Broader focus in Latam

Joint Calls, Support

Distributors-Challenges
– – – – –

– – –

Not rely on others for market info or business development Need to pull clients through intermediaries Better than US based staff

Travel, Expertise, Living in Region, Visits (both)

Results = 3x Sales Potential

III. Presence and Analysis of Options

Local Presence and Base of Operations
– – –

Strategic, Tactical, Business Rationale Territorial Challenges: Brazil, Southern Cone, Andean, Central America, Mexico US vs Brazil and/or Mexico and ROSA options

Legal, Fiscal and Incorporation Analysis: Mexico and Brazil

Comparative Costs, liabilities; water issues

A. Mexico Presence / Legal Issues

Strategic Presence Issues
– – –

Rationale for assembly: Price > Tropicalization (2) or Latam export base

Exception: Sales to Government although integrated 40% allows viable access

Pros & Cons: Mexico Base for Central America, Andean, LatAm Sales: Distributors & Integrators vs Reps vs Direct Presence
Costs, Time Frames, Strategies

    

Options: Incorporation, Acquisition, Strategic Alliance
– –

Banking, Accounting, Fiscal Realities – almost all Federal
Costs, RFC, Taxes (VAT, ISR, IETU), Remittances, Transfer Pricing/Audits

Employees vs Reps – Costs, Severance Liabilities Credit, Payments, Terms, and Guarantees Water Segment Legal & Regulatory Concerns

Restrictions on selling to govt: Mexican company, Mexican content Others: NOMs, Getting paid, PPP/BOT, Intellectual Property

Mexico Investment “Syndromes”

Entrada Group Syndrome

Current Investors growing, new staying away

Volkswagon Syndrome

Obligation to vendors to relocate to Mexico

Return from China JIT & Logistics Syndrome

Many companies returning to Mexico

B. Brazil Presence

Strategic Presence Issues
– –

Rationale for assembly: Nationalism, Price and Rosa export base Pros & Cons: Brazil Base for Mercosur, Chile, Andean Sales: Distributors & Integrators vs Reps vs Direct Presence

     

Issues Similar to Mexico Options: Incorporation, Acquisition, Strategic Alliance

Costs including state environmental license, Time Frames, Strategies

Accounting and Fiscal Realities – Federal & State

Costs, RFC number (CNPJ), Taxes (VAT 2, Income 2), Remittances,

Employees vs Reps – Costs, Severance Liabilities Credit, Payments, Terms, and Guarantees Water Segment Legal & Regulatory Concerns

Subsidies and Informal restrictions on selling to govt Others: Standards, Getting paid, PPP/BOT, Intellectual Property

C. Chile Presence

Strategic Presence Issues
– –

Rationale for assembly: Price, better serve Rosa, easier to do business Pros & Cons: Chile Base for Mercosur and Andean regions Sales: Distributors & Integrators vs Reps vs Direct Presence

     

Issues Similar to Mexico Options: Incorporation, Acquisition, Strategic Alliance

Costs including state environmental license, Time Frames, Strategies

Accounting and Fiscal Realities – Federal & State

Costs, Taxes (VAT 2, Income), Remittances,

Employees vs Reps – Costs, Severance Liabilities Credit, Payments, Terms, and Guarantees Water Segment Legal & Regulatory Concerns

Transparency and lack of restrictions on selling to govt Others: Getting paid, PPP/BOT, concession dynamic strong

IV. Latin America Market Analysis
 

Brief review of regional market size Brazil vs ROSA vs Mexico
– – – – –

General Issues Imports by Category Water Issues ROSA Market Rankings If Time: Mexico Misconceptions

Latin America Economic Importance
Latin American Indicators GDP (US$ bn) Real GDP growth Imports (US$ Trilllon)
GDP current prices US
Country USA Brazil Mexico Argentina Colombia Venezuela Chile Central America Peru 2010 14,526.6 2,090.3 1,034.3 370.0 289.4 293.3 203.3 152 153.8 2011* 15,064.8 2,517.9 1,185.2 435.2 321.5 309.8 243.0 167 168.5 2012* 15,495.4 2,617.0 1,242.2 468.9 339.9 311.7 246.5 184 179.2 2009 -3.486 -0.645 -6.161 0.835 1.452 -3.202 -1.676 -0.5 0.862

2009 4,106 -1.7 0.724

2010 4,820 6.1 0.91

2011 2012 5,526 6,166 4.4 4 0.995 1.09

Growth %
2010 3.03 7.49 5.416 9.161 4.289 -1.489 5.193 3.9 8.794 2011* 1.527 3.769 3.79 7.987 4.87 2.832 6.545 3.9 6.245 2012* 1.782 4.125 3.605 4.121 4.463 3.594 4.745 3.9 5.571

Source: International Monetary Fund, Data Base September 2011 * forecast (Argentina growth rate adjusted down)

A. Brazil Market Analysis
   

Regional Analysis Population: Size, per capita GDP, Mentality Dos and Donts “No presence” Options Imports: Dynamic, Costs, Financing

Brazil Imports, % Increases
Brazil Imports by Sector
Consumer goods 2005 2006 2007 2008 2009 2010
2010(January-March)
2011(January-March)

Intermediary goods 45,386

Capital Goods 15,379

8,477 11,986 16,058 22,519 21,500 31,405 6,544 8,711 41.4% 34.0% 40.2% -4.5% 46.1% NA 33.1%

54,228 70,413 99,883 71,642 100,731 21,793 26,652

19.5% 29.8% 41.9% -28.3% 40.6% NA 22.3%

18,891 25,113 35,910 29,675 40,981 8,273 10,704

22.8% 32.9% 43.0% -17.4% 38.1% NA 29.4%

Source: CEI 2011Centro de Economia Internacional, Comercio Exterior Por Sectores, Trim(1993-2011), http://www.cei.gov.ar/node/26

Mexico vs Brazil Groups
SOCIO ECONOMIC GROUPS GROUPS BRAZIL % of Population A/B C+ C 14% 15% 21% Population 28,480,168 30,514,466 42,720,252 MEXICO % of Population 6.8% 14.2% 17.0% Population 7,733,247 16,148,840 19,333,118

D+
D/E

22%
28%

44,754,550
56,960,336

35.6%
26.4%

40,485,824
30,023,196

Note: Brazil data = 2007 (pre-crisis); Mexico data = 2010 (post-crisis) Class designations between Brazil and Mexico are not completely consistent; Example: Brazil B salary levels above $2,764; Mexico C+ salaries above $ 3,267 Source: Lopez, Heriberto, AMAI Congress (2011); ICEX 2010

Mexico Water Challenges = Brazil too?
1. Geographical Issues: North (30/87/75) vs South (70/13/25)
Altitude, precipitation, population, urban growth issues

2. Per Capita Water: 4,400 m3 (2010): 15,000 South vs 500 North
3. Overexploited aquifers: 15%; will reach 25% soon 4. Water Use: 80% Agri (US: 40%) vs 8% Industrial (US: 46%) 5. Delivery Systems: 50% losses: Potable (43%), Agri (55%) 6. Wastewater Treatment: < 40% Municipal; < 20% Industrial
Potable (91%), Sewerage (87%) Coverage Up, Treatment next

7. System efficiency = Medium to lower half of Latin America

Brazil: Water Focus

Industrial

Government


– – – –

Regulatory Environment Industrial Sectors Residential Water Import Activity Examples (2) Shows: Fimai, Fitabes


– – – –

Corruption, Slowness Potable, Sewerage and Treatment Coverage Wastewater vs Potable Commitments PPP/BOT growth Integrator dynamic Barriers: Formal/Informal

B. ROSA Market Analysis
    

Regional Analysis Population: Size, per capita GDP, Mentality Dos and Donts Imports: Dynamic, Costs Presence and Coverage Issues

Countries:


– –

Chile – Great but small Argentina – Large and complex, Brazil shadow Colombia – New target, good size & potential Venezuela – problematic, small, Industry (oil) only Peru – Growing, small, still unclear potential

ROSA Market Rankings
MARKET RANKING
Chile
GDP 4

Colombia
2

Argentina
1

Peru
5

Venezuela
3

GDP % Increase
Per Capita GDP

2
1

3
4

4
2

1
5

5
3

Population
Imports

5
1

1
3

2
2

3
5

3
4

US Exports
Corruption Ease Business TOTAL

1
1 1 16

2
2 3 20

4
4 4 23

5
3 2 29

3
5 5 31

Source: Elaborated with data from Rosa Market Rankings

ROSA: Water Focus

ROSA Región and Country Analysis
– – – – – –

Corruption, Barriers, Slowness Regulatory Environment & Industrial treatment Potable, Sewerage and Treatment Coverage Potable Commitment and Residential Water PPP/BOT growth Integrator/Intermediary dynamic

C. Mexico Market Analysis
   

Regional Analysis Population: Size, per capita GDP, Mentality Dos and Donts Imports: Dynamic, Costs Misconceptions and Insecurity

Mexico Imports, % Increases
Mexico Imports by Sector
Consumer goods 2005 2006 2007 2008 2009 2010 2010 (Jan-Nov) 2011 (Jan-Nov) 31,513 36,901 43,055 47,941 32,828 41,423 37,215 47,567 17.1% 16.7% 11.3% -31.5% 26.2% NA 27.8% Intermediary goods 164,091 188,633 205,296 221,565 170,912 229,812 209,909 242,562 15.0% 8.8% 7.9% -22.9% 34.5% NA 15.5% Capital Goods 26,216 30,525 33,599 39,097 30,645 30,247 27,239 31,579 16.4% 10.1% 16.4% -21.6% -1.3% NA 15.9%

Source: INEGI. (2011):
www.inegi.gob.mx/prod_serv/contenidos/espanol/bvinegi/productos/continuas/economicas/exterior/mensual/ ece/ecem.pdf

Mexico: Water Focus

Industrial

Government


– – – – –

Regulatory Environment Industrial Sectors Sub Segment Estimates Residential Water Import Activity Examples: (2) Shows: ANEAS, Expo Green, Conagua Show


– – – –

Corruption, Slowness Potable, Sewerage and Treatment Coverage Wastewater vs Potable Commitments PPP/BOT growth? Integrator dynamic Barriers: Formal/Informal

Four Mexico Misconceptions
1. Latin America/Mexico is insignificant vs. major markets
– –

US Market: Latam = 36%; Mexico/Brazil > 25%; Mexico = 10% Mexico: 2/3 India or Russia; 30% imports, 2x US exports: China GDP Growth, Brazil vs Mexico

2. Brazil is much more dynamic/important than Mexico
– –

2010: 7.5% vs 5.5%; 2011: 3.8% vs 3.8%; 2012: 3.6% vs 4% US Exports (2010) to Brazil = $35 B; Mexico = $165 B > 4.5x

Brazil GDP = 2x Mexico BUT Brazil Imports = 2/3 of Mexico

3. Mexico is a less important market than BRIC markets

2011 US Exports as % of total: BRIC 14.9% Mexico 13.1% 2011 US Exports % Increase: BRIC 18.6%; Mexico 22.6%

4. Mexico too insecure for business or for business travel
Source: 1) International Monetary Fund & WEO September (2011) 2)US Census Bureau, Foreign Trade, September (2011) http://www.census.gov/foreign-trade

Mexico Insecurity Issues
   

2006-2011: 36,000 Murders, only 3% not police, military or cartel/crime members Mexico Country Risk: JPMorgan Rate 190

Brazil Rate: 232; Argentina 920 (November 2011)

7 States most affected by insecurity getting more FDI than prior to 2006 AmCham: “FDI in Mexico: Is your Investment Safe?
Source: (1) Notimex, México risk grows 12 points, November 2011 (2) Cattan, N. A new report finds violence in Mexico Foreign Investment, August 2011 (3) American Chamber Mexico, Foreign Direct Investment in Mexico, June 2010.

Mexico in Context: Murders per Capita
WORST LATIN AMERICA COUNTRIES, MEXICAN AND US STATES
HONDURAS 77 Chihuahua* 74 SALVADOR 70 Durango* 60 VENEZUELA 48 Sinaloa* 47 Guerrero 46 T&TOBAGO 37 COLOMBIA 32 BRAZIL 25 Wash D.C. 24 Baja Calif* 24 Puerto Rico 22.6 Oaxaca 21 Sonora* 20 Morelos 19 MEXICO 18 Michoacan 18 Nayarit 15 Quintana Roo 13 Louisiana 11.8 Chiapas 10 Coahuila# 9 Mexico(State) 9 Tamaulipas# 9 Colima 9 New Mexico Mexico City Guanajuato Jalisco Maryland Tennessee Puebla Alabama Mississippi Missouri Michigan So Carolina Arkansas 8.7 8 8 8 7.7 7.3 7 6.9 6.4 6.4 6.3 6.3 6.2 Oklahoma Nuevo Leon# Tabasco Illinois Georgia Florida Arziona Texas California Pennsylv. Queretaro 6.2 6 6 6 5.8 5.5 5.4 5.4 5.3 5.2 5

Source: United Nations Office on Drugs and Crime Homicide Statics, Criminal Justice, List of countries by intentional homicide rate, 2010

Right Information, Right People

Right Information
– – – – –

Right People
– – – – – – – –


– –

Lots of Talk, Interest Market Info Availability Limited Info requests Complexity = more study Need more market and competition analysis Need to over-analyze margins & landed prices Too much from channels Need to create buy-in

Bilingual or Trilingual Technically & regionally qualified staff Resourceful & Analytical Accountable with empathy Channels, marketing over direct sales Latam person at home Local GMs: good in market & in home office Presence or Frequent Visits

V. Assistance and Services

Hands On Water Sector-Focused Experience and Services: Channel, Sales/Client, Market, Legal

NEW: Channel Support Program in Mexico
Mexico – LGA Consulting

Latin America Region-Wide Assistance

Legal: SDL Consulting
Legal: Furriela Advogados

Brazil – TVZ International

Chile/ROSA - Trade Chile

Legal: Sateler Cia & Abogados

LGA Consulting Background
  

Staff (4 + Administrative) Wisconsin Trade Office (Since 1994) General Business Consulting – Hands on
– –

B2B/Industrial and Retail/Catalog Business & Channel Development Legal, Accounting, Regulatory

SDL Consulting – Sister Company

Water Focus (see next slide)

LGA Consulting Water Focus

15+ Years working with Wisconsin companies with products for Mexico public and private water sector

Market Analysis, Intermediary and Client Searches

 


 

3+ years of formal & extensive regional water focus Mexico Water Report now with Latin America content Development of Mexican Water Intermediary contacts – Distributors, Reps, Integrators, Contractors, EPCs (600+) – Custom Analysis of Projects, Bid Winners & Bid Participants Public & Private Sector Water Project/Client Identification services WWEMA, WEF, WI, MN presentations on Mexico water segment Development of CAP (Channel Assistance Program) for segment Work with WEF & AWWA on Manufacturers Committee, Mexico City

LGA Latin America Collaborators

TVZ International
– – – –

Trade Chile


Brazil Coverage (1997) Based in Sao Paolo Long time collaboration with LGA Council of Great Lakes Office in Brazil; Representation: Wisconsin Associates with Brazilian Law Firm: Furriela Advogados Report: Brazil Article

– – – –

Chile Coverage (1995) with Argentina, Peru, Colombia as well Based in Santiago Council of Great Lakes Office in Chile Representation: New York In-house legal council with water focus: Sateler & Cia Abogados Report Chile Article

Collaborator Contact Information
BRAZIL TVZ International
Contact: Claudia Tomaselli ctomaselli@tvzinternational.co m.br Tel: 5511-3010-8489 or 55113384-9051 www.tvzinternational.com.br

Chile, Argentina, Peru & Colombia Trade Chile
Contact. Veronica Medina vmedian@tradechile.cl Tel: 5698 -2244-2435 www.tradechile.cl

Law Firm Contact Information
BRAZIL Furriela Advogados
Contact: Fernando Furriela ffurriel@furriela.adv.br

CHILE Sateler Cia y Abogados
Contact: Ricardo Sateler sateler@sateler.cl Tel: 5698-2714-9900 www.sateler.cl

Tel: 5511-3040-4900
www.furriela.adv.br/English/

Contact Information
LGA Consulting Vince Lencioni
General Manager

Email: vlencioni@lgaconsulting.com Website: www.lgaconsulting.com Mexico Water Report Electronic Access: http://www.lgaconsulting.com/water/report.html Mexico City Toll Free Number in the US: 1-888-750-0988; or 011-52-555-378-3840 or 90

Annexes

Asia vs Latin America: GDP
GDP US$ bn current prices [2] GDP US$ bn current prices [2] 2011f Brazil Mexico Argentina Colombia 2,517.9 1,185.2 435.2 321.5 2012f 2,617.0 1,242.2 468.9 339.9

2011f
China Japan Russia India Korea (South) Indonesia Taiwan Thailand Malaysia Vietnam 6,988.5 5,855.4 1,884.9 1,843.4 1,163.8 834.3 504.6 339.4 247.6 121.6

2012f
7,744.1 6,125.8 2,117.2 2,012.8 1,275.0 936.5 551.3 379.2 267.3 137.5

Venezuela
Chile Peru Costa Rica

309.8
243.0 168.5 40.0

311.7
246.5 179.2 43.8

Paraguay
El Salvador

22.3
22.6

26.9
24.3

Source: [2] International Monetary Fund, World Economic Outlook , September 2011 http://www.imf.org/external/data.htm (see annexes)

Asia vs Latin America: GDP %
GDP % real Growth [2] 2011f China 9.6% 2012f 9.5% Brazil Mexico Argentina GDP % real Growth [2] 2011f 3.8% 3.8% 8.0% 2012f 3.6% 3.6% 4.6%

Japan
Russia India Korea (South)

1.4%
4.8% 8.2% 4.5%

2.1%
4.5% 7.8% 4.2%

Colombia
Venezuela Chile Peru

4.9%
2.8% 6.5% 6.2%

4.5%
3.6% 4.7% 5.6%

Indonesia
Taiwan Thailand Malaysia Vietnam

6.2%
4.5% 4.0% 4.7% 6.3%

6.5%
4.2% 4.2% 4.0% 5.7%

Costa Rica
Paraguay El Salvador

4.0%
6.4% 2.0%

4.1%
5.0% 2.5%

Source: [2] International Monetary Fund, World Economic Outlook , September 2011 http://www.imf.org/external/data.htm (see annexes)

Asia vs Latin America: GDP Per Capita
GDP Per Capita $US[2] 2011f China India Indonesia 5,183.9 1,527.3 3,469.3 2012f 5,715.8 1,645.5 3,847.9 Brazil Mexico Argentina GDP Per Capita $US[2] 2011f 12,916.90 10,802.85 10,639.95 2012f 13,316.21 11,210.29 11,358.32

Japan
Korea (South) Malaysia Russia

45,773.8
23,749.2 8,616.7 13,235.6

47,960.1
25,948.8 9,146.9 14,918.1

Colombia
Venezuela Chile Peru

6,980.43
10,408.78 13,969.51 5,613.55

7,294.35
10,265.60 13,998.72 5,880.29

Taiwan
Thailand Vietnam

21,591.8
5,281.5 1,361.6

23,379.8
5,865.0 1,521.2

Costa Rica
Paraguay El Salvador

8,488.64
3,421.12 3,830.53

9,167.36
4,032.59 4,094.50

Source: [2] International Monetary Fund, World Economic Outlook , September 2011 http://www.imf.org/external/data.htm

Latin America vs BRIC: GDP PPP

GDP PPP usd

Country Brazil China India Mexico

2008
10,526 6,188 2,868 14,546

2009
10,499 6,778 3,015 13,609

2010
11,289 7,518 3,291 14,266

2011
11,805 8,304 3,563 14,856

2012
12,355 9,171 3,847 15,649

2015
14,429 12,449 4,914 18,106

Russia

16,034

14,913

15,807

16,750

17,788

21,337

Source: Elaborated with data of International Monetary Fund & WEO September (2011)

Asia vs Latin America: Imports
Imports, US$bn 2010 [4] China India Indonesia 1327.0 357.7 127.4 Brazil Mexico Argentina Colombia Venezuela Chile Peru Costa Rica Paraguay El Salvador

Imports, US$bn
2010 [4] 181.7 301.5 53.9 38.6 38.6 55.2 28.8 13.0 9.8 8.2

Japan
Korea (South) Malaysia Russia

639.1
422.4 152.6 248.7

Taiwan
Thailand Vietnam

247.3
161.3 80.0

Source: [4] Central Intelligence Agency, The World Factbook, December 2011https://www.cia.gov/library/publications/the-world-factbook/ (see annexes)

Asia vs Latin America: US exports
Imports from USmn till november [3] 2011f China India Indonesia Japan Korea (South) 94,172.0 19,658.5 6,700.4 60,777.5 39,537.4 Brazil Mexico Argentina Colombia Venezuela Chile Peru Costa Rica Paraguay El Salvador Imports from USmn till november [3] 2011f 39,554.6 181,231.6 8,958.8 13,101.7 11,241.2 14,323.1 7,610.1 5,517.7 1,821.8 3,119.4

Malaysia
Russia Taiwan Thailand

13,115.5
7,498.7 23,617.7 10,165.3

Vietnam

3,971.2

Source: [3] US Census Bureau, Foreign Trade, September (2011) http://www.census.gov/foreign-trade (see annexes)

Mexico Socio-Economic Groups %

Note: A/B salaries above $7,936; C+ salaries above $3,267; C salaries above $1,083; D/E salaries above $ 634
Source: Lopez, Heriberto, AMAI Congress (2011)
http://www.amai.org/NSE/PRESENTACION_REGLA_8X7.pdf

Brazil Socio-Economic Groups
BRAZIL SOCIO ECONOMIC GROUPS Group/Level* % Population Population Salary in Real Salary in USD

A1
A2 B1 B2 C1 C2 D E

1%
4% 9% 15% 21% 22% 25% 3%

2,034,298
8,137,191 18,308,679 30,514,466 42,720,252 44,754,550 50,857,443 6,102,893

10,200
10,200 5,100 5,100 2,040 2,040 1,020 1,020

5529
5529 2764 2764 1105 1105 552 552

Source: ICEX / Comercio Importação (2010) & thebrazilbusiness.com