Presentacin Colombia Investment Environment and Ingls Business - PowerPoint PPT Presentation

Colombia Presentación Colombia – Investment Environment and Inglés Business Opportunities in Colombia March – 2015

About us PROCOLOMBIA We promote exports, tourism, investment and industrial expansion for internationalization. We integrate the work of the Country Brand within the strategic planning of Colombia’s promotion worldwide.

Presence in Colombia 25 Information centers Valledupar. Pasto. Palmira. Armenia = Universidad Gran Colombia – Cámara de Comercio. Villavicencio. Boyacá = Tunja - Duitama - Sogamoso. Ibagué. Santa Marta. San Andrés. Aburrá Sur. Neiva. Barranquilla = Cámara comercio – Universidad del Norte. Cartagena. Medellín. Bucaramanga. Cali = Cámara de Comercio. Pereira. Bogotá. Manizales. Cúcuta. 8 Regional Offices Barranquilla, Bogotá. Bucaramanga. Cali. Cartagena. Cúcuta. Medellín. Pereira

PROCOLOMBIA around the world 26 commercial offices Presence in 30 countries United States. Canada. Mexico. Guatemala. Costa Rica. Caribbean. Venezuela. Brazil. Ecuador. Chile. Peru. Argentina. Spain. Germany. Portugal. United Kingdom. France. Turkey. United Arab Emirates. India. China. South Korea. Russia. Japan. Singapore. Indonesia.

PROCOLOMBIA Services

PROCOLOMBIA Services

PROCOLOMBIA Services

General Facts     With an extension of 55% 1,141,000 km2 almost 3 times the size of California and twice the size of of the population is less than 30 Texas . years old. There are nine cities with over 500 thousand people. only Colombia is the country in South America Colombia is the country with with access to both, the the highest biodiversity per Atlantic and the Pacific km2 ocean. It is among the 17most megadiverse countries of the planet.

Times of great economic achievements GDP Jan - Sep 2014 : +5.0% GDP Jan – Sep 2013: + 4.4% Higher than the Latin American average growth (1.3%). Controlled FDI up to Q3 2014: US$11,840 Inflation 2014: 3.66% FDI up to Q3: US$ 12,431 Below target inflation Figures in US Millions 1.02 million barrels per Unemployment rate 2014 : 9.1% day of oil production Unemployment rate 2013: 9.6%. Third largest producer in South America

A competitive location with easy access to markets around the globe Frankfurt 11H15M Canada Toronto Paris 6H05M 10H40M Germany United States Los Angeles New York France 8H20M 5H35M Madrid Spain 9H40M México  Over 935 weekly direct international flights. Mexico City 4H45M Caracas 1H20M  More than 6,197 weekly domestic flights. Ecuador Quito Brazil  Less than 6 hours to the main capital cities 1H30M Peru Sao Paulo Lima 5H45M in Latin America. 3H00M  More than 20 different airlines Chile Argentina Santiago operating in Colombia. Buenos Aires Chile 6H15M 5H00M

Colombia is within the 30th largest economy in the world and one of the largest non-OECD economies Germany 2,324 Brazil 1,790 1,176 Mexico Australia 1,089 Malaysia 600 Colombia 595 415 Vietnam Switzerland 401 Singapore 387 448 Belgium 432 Sweden Chile 373 Hong Kong 425 GDP at PPP – 2015 en US$ Billion 397 Peru 300 Norway Note: GDP adapted to Purchasing Israel 302 Power Parity PPP. Projected data. Denmark 226 150 New Zealand Source: FMI . 2014

The highest expected growth in 2014 among Latam’s major economies Expected growth of Gross Domestic Product, 2014e 4.8% Latin America and Caribbean 2.5% 2.1% (Average 1.7% growth) 1.2% 0.1% -0.4% -4.0% Colombian growth High investment in housing and infrastructure (12% growth) Growth in private consumption (4.6%) drivers according to Solid labor market OECD Public expenditure Source: IMF (World Economic Outlook Update – January 2015) e = estimated

Peru and Colombia, the top growing economies in the coming years Gross Domestic Product, average growth 2015e 4.00% 3.80% 3.20% 2.80% 1.30% 0.30% -1.30% -7.00% Source: IMF (World Economic Outlook – January 2015) e = estimated

Low inflation Inflation, percent variation 2014e 69.8% Average Latin America and Caribbean* 3.98% 6.2% 4.2% 4.0% 3.7% 2.9% Peru Colombia Mexico Chile Brasil Venezuela Source: IMF (World Economic Outlook – October 2014) * The average doesn’t include Venezuela and Argentina

Macroeconomic stability and strong economic performance in the long term GDP Growth, Inflation and unemployment Rate 2002 – 2018p (%) Unemployment rate 15.6 GDP 14.1 13.7 Inflation 11.8 12.0 11.2 11.3 12.0 11.8 10.8 10.4 9.6 9.1 9.0 8.9 8.9 8.6 7.7 6.9 6.7 6.6 5.3 5.0 5.0 7.0 4.7 4.7 4.7 4.6 4.6 6.5 4.0 4.0 3.5 5.7 5.5 4.9 2.0 2.5 4.5 3.9 3.7 3.6 3.7 3.5 3.4 3.3 2.4 1.9 1.7 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014p 2015p 2016p 2017p 2018p P: Projected Source: DANE; Banco de la República; Fedesarrrollo July 2014, EIU - Economist Intelligence Unit . 2014 * 2014 inflation and unemployment rate given by DANE

Colombia has continuously decreased its poverty levels Percentage of people in poverty 2002 – 2014 49.7% Poverty 30.6% Middle class 29.3% 29.6% 17.7% Extreme poverty 16.3% 9.1% 8.4% 2002 2003 2004 2005 2008 2009 2010 2011 2012 2013 Jun 2014 Source: Poverty: National Administrative Department of Statistics – DANE Middle class: The gained decade: the evolution of the middle class in Colombia between 2002 and 2011. Documento CEDE # 50. Universidad de los Andes. And RADDAR for 2013 data.

A rapidly expanding middle class Middle class* in Colombia as a Average real growth of consumer expenditure, 2014 – 2018 percentage of total population 46% 5.5% Million 37% inhabitants 4.7% 25% 24.7 4.2% 16% 19.0 11.6 4.1% 6.7 2.9% 2002 2012 2020 2025 * Calculus based on a 4.6% GDP growth Middle class: Monthly household income between 3.2MW and 13MW (MW) Minimum wage in Colombia 2014: USD 320. Source: Fedesarrollo (2013) and Euromonitor

Significant progress in terms of purchasing power Index of GDP per capita at current prices, 1999 – 2019e 1999=100 445.9 345.5 301.9 237.4 264.2 218.9 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e2015e2016e2017e2018e2019e Colombia Latinamerica World Source: IMF – World Economic Outlook, October 2014 e = estimated

Source: National Business Association of Colombia - ANDI. Balance of Payments – Banco de Industrial Survey -ANDI. ** Perception of insecurity as a key issue affecting industrial growth in the country. Monthly MM). * Figures do not include FDI registered for SabMiller adquisition of Bavaria in 2005 (USD 4,800 1,000 2,000 3,000 4,000 5,000 6,000 0 Economic growth, Investor Confidence and Security 2000 - I 2000 - II 2000 - III 2000 - IV 2001 - I 2001 - II 2001 - III 2001 - IV 2002 - I 2002 - II 2002 - III 2002 - IV 2003 - I 2003 - II 2003 - III 2003 - IV 2004 - I 2004 - II IED - US$ million* 2004 - III 2004 - IV 2005 - I 2005 - II 2005 - III 2005 - IV 2006 - I 2006 - II 2006 - III 2006 - IV 2007 - I 2007 - II 2007 - III 2007 - IV Insecurity perception** 2008 - I 2008 - II 2008 - III 2008 - IV 2009 - I 2009 - II 2009 - III 2009 - IV 2010 - I 2010 - II 2010 - III 2010 - IV 2011 - I 2011 - II 2011 - III 2011 - IV 2012 - I 2012 - II 2012 - III 2012 - IV 2013 - I 2013 - II 2013 - III 2013 - IV 2014 - I 2014 - II 2014 - III 2014 - IV 00 05 10 15 20 25 30

Colombia, an investment-grade country with positive outlook Rating Perspective Term Long Term – BBB Stable Foreign currency Long Term – Stable BBB Foreign currency Long Term – Positive Baa2 Foreign currency In July 2014 , Moody ´ s was the last rating agency in improving Colombia ´ s rating due to two key drivers: 1. Positive growth forecast thanks to 4G infrastructure 2. A sound fiscal management that will continue in the future Source: S&P Ratings; Revista Dinero, Colombian Treasury.

Colombia tops the region as the best country for doing business in 2015 Colombia, 34 * Peru, 35 * 19 Mexico, 39 * -1 Chile, 41 * +4 Panama, 52 * -2 +3 Ecuador, 115 * Position out of 189 economies Change in rank 2014 – 2015** Brasil, 120 * 0 +3 Source: Doing Business Report 2015. World Bank * Position between 189 economies. ** Positive numbers indicate an improvement in the business environment

Colombia is the leader in terms of Investor Protection in the region and 10th worldwide. Investment Protection Index Ranking Country Doing Business - 2015 7.2 10 Colombia 6.3 6.2 5.8 5.8 5.8 5.6 35 Brazil 4.8 4.7 40 Peru 4.2 56 Chile 62 Mexico 62 Argentina 76 Panama Colombia Chile Argentina Uruguay Ecuador El Salvador Brazil Peru Mexico Panama 110 Uruguay 117 Ecuador 154 El Salvador Source: Doing Business 2015 – World Bank * Índex: 0-10 and 10 = the best score

Two years in a row as one of the top 20 destinations for FDI Top 20 host economies in 2012 Top 20 host economies in 2013 USD billion USD billion 1 1 8 9 Source: UNCTAD – World Investment Report 2013 and 2014