Presentation material from Finpro Growth Market seminar in Helsinki October 23 2012.

1. Finpro Growth Market
Program Latin America

2. Myths and Facts about Latin America
Only two main
languages, Spanish
Difficult to find
In Mexico and Portuguese,
a partner… English widely
Finnish companies
have a used as a business
1,100 Billion€ language
turnover
Networking… ASIA is the 6th (Mexico)
I don’t have time center and 11th
for that. of the global (Brazil)
business economies in
now. the world
Today the In Brazil
Finnish
reality is companies
different for have a 3 billion
Too difficult market € turnover and
the Finnish 20000
- too much bureaucracy..
companies employees
Chilean import
from Finland
220 M€
Mañana … Poor countries Culture
things will be never done. similar to
Europe
24.10.2012 © Finpro 2

3. Target countries – Basic economic information
Population* Million GDP (PPP)* USD GDP /inhabitant* USD /
inhabitants person
Brazil 205 Brazil 2.282 bilj. Argentina 17,400
Mexico 112 Mexico 1.657 bilj. Chile 16,100
Colombia 45 Argentina 709 miljardia Uruguay 15,400
Argentina 42 Colombia 470 miljardia Mexico 15,100
Peru 29 Peru 299 miljardia Brazil 11,600
Chile 17 Chile 281 miljardia Colombia 10,100
Uruguay 3 Uruguay 52 miljardia Peru 10,000
GDP growth* % in 2011 Inflation 2011* % Ease of doing Ranking
business**
Argentina 8,0 Argentina 22 (2010) Chile 39 / 183
Chile 6,5 Uruguay 7,8 Peru 41 / 183
Peru 6,2 Brazil 6,5 Colombia 42 / 183
Uruguay 6,0 Colombia 3,7 Mexico 53 / 183
Colombia 5,7 Mexico 3,5 Uruguay 90 / 183
Mexico 3,5 Chile 3,3 Argentina 113 / 183
Brazil 2,7 Peru 3,0 Brazil 126 / 183
© Finpro 3
Source: *CIA World Factbook** World Bank Doing Business survey 2011

4. Finnish Business in Latin America 2011
• Economical growth considerably higher than in the USA or EU.
• Very important market of Finnish technology for Forest Industry, Mining,
Telecom and Energy sectors.
• Market Potential for competitive niche suppliers of almost any sector and any
size
• Over 100 subsidiaries of Finnish companies established in LA, employing
approximately 30 000 persons and invoicing more than 5 Billion EUR per year
• Some 500 Finnish companies are exporting to LA countries
• Improving but partly still challenging business environment
• Mexico and Chile have Free Trade Agreements with the EU (no import
Duties). Colombia and Peru already finalized negotiations. Central America is
negotiating.
24.10.2012 © Finpro 4

5. Target Countries - Free Trade Countries
Where Doing Business is Easy
Mexico and Chile are strong industrialized export economies open to trade
THE
BAHAMAS
MEXICO DOMINICAN
CUBA REPUBLIC
HAITI PUERTO
MEXICO
BELIZE JAMAICA RICO MARTINIQUE
HONDURAS
ST. LUCIA • Little known market in Finland; world´s 11th largest
GRENADA
GUATEMALA NICARAGUA economy (PPP)
TRINIDAD AND TOBAGO
CHILE EL SALVADOR PANAMA • 15th largest exporting nation (11 FTAs that cover in
VENEZUELA GUYANA
•Open and liberal trade policy with COSTA RICA FRENCH GUIANA
total 43 countries)
59 foreign trade agreements e.g. COLOMBIA • FDI in 2011 was 19,4 Billion USD (2nd in Latin America)
European Union. • 112 million consumers, 60% form part of the growing middle
SURINAME
•Politically and economically stable ECUADOR and upper class with significant purchasing power,
democratic country with very low attractive luxury items market
corruption index. PERU
• Mexico has a growing offshore sector and Pemex,
•Member of the OECD since 2010 BRAZIL state-owned oil & gas company, is investing $ 30 billion / yr
• FDI 2010: 15 billion USD. • The automotive industry is ranked 9th worldwide by volume,
•Traditionally good market for
BOLIVIA and 6th by value.
Finnish mining and forest
• Mexico is currently the 2nd largest supplier of electronics
technology companies.
PARAGUAY to the US
•Domestic and foreign companies
invest 50 billion USD in the Chilean
• Mexico is also investing in infrastructure building, renewable
CHILE
mining industry during the next 4-5 energies and environmental solutions
years
ARGENTINA • Mexico is currently world's ninth largest mining country and
•Chile is investing 8 billion USD in Mexican mining companies have invested also in other
URUGUAY
public infrastructure in 2011-2014: countries.
ports , metro etc. • The following sectors are of particular interest to Finnish
•Hospital and health care sector companies: energy and environment, offshore, mining and
investments are 1,3 billion USD in metallurgy, water, waste management, infrastructure, forest
2011-2014. and paper industry, ICT, education, wellbeing and
FALKLAND ISLANDS
•Energy and environmental healthcare, pharmaceutical industry.
technologies and solutions are of
high importance.
24.10.2012 © Finpro 5

6. Target Countries - Fast Risings Stars
Fast developing and industrializing countries. COLOMBIA
Large investments in infrastructure, road networks, harbors and airports • Colombia is one of the rising stars in Latin
America. GDP growth in 2011 was 6% and
FDI was 13 Billion USD.
THE
BAHAMAS • FTA with European Union signed in 2011
MEXICO
CUBA
DOMINICAN
REPUBLIC • Infrastructure projects will total 14 Billion in
HAITI PUERTO 2014-2016 related to airports, ports and
BELIZE JAMAICA RICO MARTINIQUE
PERU HONDURAS
ST. LUCIA
roads.
GRENADA
• FTA with European Union signed in 2011
GUATEMALA NICARAGUA • Most important sectors are oil & gas,
TRINIDAD AND TOBAGO
• Peru has been one of the fastest EL SALVADOR PANAMA
infrastructure, ICT, healthcare, education,
VENEZUELA GUYANA
growing economies in the world COSTA RICA FRENCH GUIANA forestry, environment.
in 2002-2011. FDI rose to 10 Billion USD in 2011. COLOMBIA • World’s 5th largest exporter of coal
• Peru has major infrastructure projects SURINAME • Ecopetrol invests 80 Billion USD in 2012-
ECUADOR
related to road, airports, water and ports. 2020 in the oil & gas sector.
• Most important sectors are mining, • Colombia is promoting itself as top destination
PERU
infrastructure, environment, offshore, for healthcare tourism.
education, forestry. BRAZIL
• Forestry sector is developing rapidly and
•5 th country world-wide in mining exploration
there are aggressive incentives for the sector.
investments. Total mining investment portfolio is BOLIVIA • Highly developed sugar cane & palm oil
51 Billion USD in the next few years. production
• Peru offers attractive opportunities in water PARAGUAY • Fast developing IT hardware and services
treatment, waste handling and energy efficiency. sector
CHILE
• 6 Billion USD investment in petrochemical sector
development ARGENTINA
URUGUAY
• Rising culinary market: Lima promotes to be world
URUGUAY • A dynamic and open economy, attracting large foreign
gastronomy capital for 2021 investment in forest and agricultural sector. Domestic
• 1st producer of fish oil and fishmeal investment and foreign direct investment (FDI), increased
• Highly developed textile sector significantly in recent years: 2,5 billion USD in 2011.
• Investments in infrastructure expenditures in railways,
ports, energy and telecommunications
FALKLAND ISLANDS
24.10.2012 © Finpro •Other areas of opportunities are tourism, education 6 and
mining

7. Target Countries –
Large Protected Internal Markets
BRAZIL
THE
ARGENTINA BAHAMAS • World’s 6th largest economy.
MEXICO DOMINICAN
REPUBLIC Growth of 3,5 % per year. Economy
•Economy has been growing at a 6- CUBA
HAITI PUERTO is based on strong internal demand,
BELIZE JAMAICA RICO MARTINIQUE
8% with domestic market HONDURAS
ST. LUCIA
exports of commodities and
development and income GUATEMALA NICARAGUA
GRENADA
massive 900 billion USD investment
TRINIDAD AND TOBAGO
redistribution. EL SALVADOR PANAMA
boom 2011-2014 in industry,
VENEZUELA GUYANA
• Agricultural sector is the most COSTA RICA FRENCH GUIANA infrastructure and civil construction.
dominant, local metal mechanic COLOMBIA
• Major opportunities for Finnish
and automobile industry are strong ECUADOR SURINAME
technology exports to mining, pulp,
•Argentine mining sector has been forest, energy, bioeconomy and
developing strongly in last years . PERU ICT.
By 2011 the investment in mining BRAZIL • New major opportunities in
was about 25 billion dollars. infrastructure investments of 210 BI
•Opportunities can be found except BOLIVIA USD in 2011-2014 for electrical
in mining, also in transport, and energy generation and distribution ,
public utilities sectors, PARAGUAY sanitation, ports and airports.
environmental management, CHILE • One of most challenging business
construction and building materials environment in LA countries
ARGENTINA
and high-tech machinery. specially in tax and labor laws
•Forest sector resources are URUGUAY
mature. There is strong interest in
industry development.
•Well trained work force in the ICT
sector and a developed consumer
FALKLAND ISLANDS
market for health care
24.10.2012 © Finpro 7