Latin American Business Outlook Part of the Global

Latin American Business Outlook Part of the Global Business Outlook A joint survey effort between Duke University, Fundação Getúlio Vargas and CFO magazine Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 1

Top Internal Concerns for Latin American CFOs 1. Ability to maintain margins 2. Attracting and retaining qualified employees 3. Maintaining morale/productivity 4. Ability to forecast results 5. Working capital management 6. Managing IT systems 7. Supply chain risk 8. Counterparty risk 9. Data security 10. Cost of health care 11. Balance sheet weakness Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 2

Top External Concerns for Latin American CFOs 1. Federal government policies 2. Consumer demand 3. Corporate tax rates 4. Currency risk 5. Price pressure from competitors 6. Global financial instability 7. Credit markets/interest rates 8. Inflation 9. Federal budget deficit 10. Cost of fuel 11. Foreign competition Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 3

Forecast of % change over next 12 months Historical Responses 15% Revenue 15% 10% 5% 5% 0% Mar 2013 -5% Jun 2013 Sep 2013 Dec 2013 Latin America United States Asia Africa Mar 2014 Europe 15% Product Prices Mar 2014 Response 0% United States Europe Asia Latin America Brazil Peru Chile 15% 10% 5% 5% 0% Mar 2013 -5% Jun 2013 Sep 2013 Dec 2013 Latin America United States Asia Africa Mar 2014 Europe 0% United States Europe Asia Latin America Brazil Peru Chile Notes: Presented data are the mean value for each region or country. Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 4

Forecast of % change over next 12 months Historical Responses Earnings 15% 10% 5% 5% 0% Mar 2013 -5% Jun 2013 Sep 2013 Dec 2013 Latin America United States Asia Africa Mar 2014 Europe 15% Capital Spending Mar 2014 Response 0% United States Europe Asia Latin America Brazil Peru Chile 15% 10% 5% 5% 0% Mar 2013 -5% Jun 2013 Sep 2013 Dec 2013 Latin America United States Asia Africa Mar 2014 Europe 0% Notes: Presented data are the mean value for each region or country, except medians are shown for Latin American earnings in Mar 2013 and Mar 2014. Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 5

Forecast of % change over next 12 months Historical Responses Wages & Salaries # FT Employees 10% Mar 2014 Response 10% 5% 5% 0% Mar 2013 -5% Jun 2013 Sep 2013 Dec 2013 Latin America United States Asia Africa Mar 2014 0% Europe United States Europe Asia Latin America Brazil Peru Chile -5% 10% 5% 5% 0% Mar 2013 -5% Jun 2013 Sep 2013 Dec 2013 Latin America United States Asia Africa Mar 2014 Europe 0% United States Europe Notes: Presented data are the mean value for each region or country, except medians shown for Latin America in Mar 2013. #FT=Number of Fulltime Employees Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 6

Business Optimism Index (Scale from 0 to 100) Historical Responses Country / Region 75. 0 65. 0 55. 0 45. 0 35. 0 Mar 2013 Jun 2013 Sep 2013 Dec 2013 Latin America United States Asia Africa Mar 2014 Europe Own Company 75. 0 65. 0 55. 0 45. 0 35. 0 Mar 2013 Jun 2013 Sep 2013 Dec 2013 Latin America United States Asia Africa Mar 2014 Europe Mar 2014 Response 80 70 60 50 40 30 20 10 0 Brazil Mexico Argentina Chile Peru Colombia Ecuador Notes: Presented data are the mean value for each region or country Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 7

Mergers and Acquisitions 35% 30% 25% 20% 15% 10% 5% 0% United States Europe Asia Latin America Plan to Acquire Latin American Business Outlook Africa Brazil Peru Chile Cross-border Acquisition Duke University / FGV / CFO Magazine Mar 2014 8

Where will your cross-border acquisitions occur? 100% Target Region 80% 60% 40% 20% 0% US US/Canada Latin American Business Outlook Europe Asia/Pacific Basin Asia Latin America Duke University / FGV / CFO Magazine Africa Mar 2014 9

Effects of Tighter FED Monetary Policy What effect, if any, has the U. S. Federal Reserve Bank's plan to taper its quantitative easing program had on your company's optimism about its business prospects for 2014? 100% 80% 60% 40% 20% 0% US Very negative Latin American Business Outlook Europe Somewhat negative Asia Latin America None Somewhat positive Duke University / FGV / CFO Magazine Africa Very positive Mar 2014 10

Uncertainty and Business Planning—Econ Conditions Does Uncertainty about Economic Conditions Affect Your Business Planning? 60% 56% 54% 50% 40% 30% 25% 20% 10% 5% 0% Reduce/Delay Hiring Latin American Business Outlook Reduce/Delay Capital Spending Increase cash holdings Duke University / FGV / CFO Magazine No real effect Mar 2014 11

Uncertainty and Business Planning—Govt Policies Does Uncertainty about Government Economic Policies Affect Your Business Planning? 68% 70% 60% 54% 50% 40% 30% 18% 20% 10% 5% 0% Reduce/Delay Hiring Latin American Business Outlook Reduce/Delay Capital Spending Increase cash holdings Duke University / FGV / CFO Magazine No real effect Mar 2014 12

Corporate Culture United States Latin America Customerorientation Integrity Adaptability Collaboration Near-term results orientation Strategic results orientation Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 13

Changes to Corporate Culture First Priority for Improvement in Latin American Corporate Culture: 40% 30% 29. 6% 24. 3% 20% 14. 8% 11. 3% 10% 0% 6. 1% Strategic results orientation Customer-orientation Latin American Business Outlook Adaptability Near-term results Internal transparency orientation Duke University / FGV / CFO Magazine Mar 2014 6. 1% Collboration 14

Real Estate Bubbles Do you think that there is a real estate bubble in your country? 100% 80% 60% 40% 20% 0% US Europe Asia Latin America Yes Latin American Business Outlook Africa Brazil Peru Chile China No Duke University / FGV / CFO Magazine Mar 2014 15

Past and Expected Return on Assets (ROA) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% US Europe Asia Latin America Approximate ROA in 2013 Latin American Business Outlook Africa Brazil Peru Chile Expected ROA in 2014 Duke University / FGV / CFO Magazine Mar 2014 16

Duke/FGV CFO Survey in Latin America Press Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 17

Duke/FGV CFO Survey in Latin America Press Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 18

Latin American Business Outlook Part of the Global Business Outlook A joint survey effort between Duke University, Fundação Getúlio Vargas and CFO magazine Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 19