1

CIM Finance Group

September 11th 2008

Chris WallUKTI

High Growth Market SpecialistMexico & Brazil

What is a High Growth Market and Why Brazil & Mexico?

• Markets whose economies Goldman Sachs and others have identified as drivers of the global economy

• UK’s two largest trading partners in Latin America – but underperforming

• 4th & 5th largest GDP’s by 2050

• Strategic suppliers

• Strategic consumers

• Strategic opportunities

2

3

The Largest Economies in 2050The Largest Economies in 2050

The World in 2050

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

GDP 2006 US$ bn

Brazil & Mexico – some facts

• Size

• GDP USD 1.3 trillion & USD 893 bn

• Per capita USD 6,800 & USD 8,500

• Inflation 6% & 5%

• Sound, stable macroeconomic policies• Strong & stable political institutions• Reducing Country Risk• Now themselves globalising• Familiar, friendly, Anglophile business culture

4

Why Latin American Markets are Doing Well

• Commodities

• Oil

• Food

• South – South trade

5

Opportunities for the Financial & Professional Service Sectors

• Financial Services• International listings• Insurance & reinsurance• M&A• Investment

• Legal Services• Arbitration

• Project Support & Project Finance• Infrastructure• Privatisation

• Pension Funds• Carbon Credits

6

Infrastructure

Sector Between …billion USD

And …billion USD

Highways 26 37Railways 4 8Ports 6 10Airports 5 7Telecommunications 25 26Water supply and sanitation 14 16Irrigation and flood control 4 6Electricity 34 46Oil & Gas Production 73 96Refinery, Gas and Petrochemicals 34 50Total 226 301

Investment in infrastructure for 2007 - 2012:

between 226 and 301 billion USD

Opportunity Sectors in Mexico

Automotive Location of Assembly PlantsAutomotive Location of Assembly Plants

•BAJA CALIFORNIA

•(MEXICALI)

•TOYOTA

•KENWORTH (TRUCKS)

•SONORA

•FORD HERMOSILLO (PC)•CHIHUAHUA

•FORD (ENGINES)•COAHUILA

•(RAMOS ARIZPE)

•G.M. (PC & UV)•COAHUILA

•(SALTILLO)

•DAIMLER CHRYSLER (ENGINES &UV)

•NUEVO LEON

•(GARCIA)

•M.B. (BUSES)

•NAVISTAR(TRUCKS)

•JALISCO

•(GUADALAJARA)

•HONDA (PC)

•AGUASCALIENTES

•NISSAN (PC & ENGINES)

•MARCOPOLO (BUSES)

•OYMSA (BUSES)

•GUANAJUATO

•(SILAO)

•G.M. (ENGINES)

•STATE OF MEXICO

•(TOLUCA)

•G.M. (TRUCKS)

•CHRYSLER (PC&UV)

•BMW (PC)

•VOLVO (TRUCKS)

•(SANTIAGO)

•M.BENZ (TRUCKS)

• (TULTITLAN)

•VOLVO (TRUCKS)

• (CUAUTITLAN)

•FORD (PC&UV)

•MORELOS

•(CIVAC)

•NISSAN (PC&UV)

•PUEBLA

•V.W. (PC& Engines)

•HIDALGO

•MCI (BUSES)

•SAN LUIS POTOSÍ

•SANIA (TRUCKS)

•CUMMINS (ENGINES)

Aerospace industry location in Mexico

Support from UKTI

• Strategic advice

• Market advice

• Market leads

• Market visits

• Handholding

• https://www.uktradeinvest.gov.uk

• http://www.britishexpertise.org/

10

UKTI High Growth Markets Programme

• Formulation and execution of market entry or market expansion strategies

• Tactics for addressing business opportunities in the HGM’s

• Provides an objective opinion on clients’ business decisions

• Helping corporates make sense of business information about the market

• Helping corporates overcome decision making paralysis by managing information overload or plugging gaps

• Identification and management of business risk

• Identification of business opportunities before they come into the public domain

11

High Growth Markets – The Team

Paul CorcutRussia

Chris WallBrazil and Mexico

Paul Duffy Turkey, Saudi Arabia

Mexico

Peter HurstSouth Africa

Stephen Evans South East Asia

Taiwan

Steven Spalding South East Asia

South Korea

Dr Andrew Hinton South East Asia

South Korea

Jeremy Gordon China

Shakeel Mughal India, Middle East

South Africa 12

Phil DowrickUAE, Qatar

Saudi Arabia

19/04/23

19/04/23Opportunies in Mexico -

Richard Morris

19/04/23Opportunies in Mexico -

Richard Morris

Thank You

16

Chris WallHigh Growth Market

SpecialistMexico & Brazil

chris.wall@pera.com