South America Opportunities on Risks

Latin AmericaA great region in the westernA great region in the western

side, total demand of plastic and Polymer was consumed 25% ofglobal demand approximatedglobal demand approximated amount 60 Trillion USD. While the demand of plastic have beeni d h i l lintegrated to the agriculturalbusiness and food business.While the biggest player for mining still be Chile and Brazil have integrate the system to be the biggest consumer for agricultural gg gfor energy supply.

Journal from Latin today Feb 10 2011Journal from Latin today Feb 10, 2011

Peru GDP VS trade Balance Peru GDP VS trade Balance

2009 passed crisis2009 passed crisis with plus sign

2010 trade b lbalance

Economic Geography in PeruEconomic Geography in Peru

Peru in the World‐ Leading silver producerLeading silver producer. ‐ Second largest copper producer.‐ Leading exporter of asparagus, organic coffee.‐ Leading producer of fishmeal and fish oil.‐ US$ 4,500 per capita income in 20092009.‐ Leading producer of gold, zinc, tin and lead.‐ Third largest country in South g yAmerica.‐ Second largest natural forest area.‐ Only sustainable natural gas 

th S th A i P ifisource on the South America Pacific coast.

Peru greater amount of agriculture in LATAM as Peru greater amount of agriculture in LATAM as same as the growth of imported growth of import same as the growth of imported growth of import plastic resin for agricultural filmplastic resin for agricultural film

Export Agricultural product from LATAM 2006 ‐ 2010 Amount of importing polymer in Peru from 2006 ‐ 2010

MUS

16

18

20

D

8

10

12

14 D

C

B

2

4

6

8 B

A

0

2006 2007 2008 2009 2010

Import agricultural from USA to PeruImport agricultural from USA to Peru

Peru #Peru #2 2 Cupper producer in the worldCupper producer in the world

20092009 Growth of Mining production in ChileGrowth of Mining production in Chile2009 2009 Growth of Mining production in ChileGrowth of Mining production in Chile

Chile HDPE to pipe Demand in 2009Thailand paid 6% import duty while Korea 0 duty

26%

3%4%

4% 3% 2% 4%

Total HDPE Consumption

2008 50,000 MT

21%20%

13%

Korea USA Sweden Brazil Singapore

2009 45,000 MT

2010 ~ 48,000 MT

Segmentation for Application

g p

S. Arabia Thailand Germany Argentina Others

KG ‐ 2009

Distribuidor

Pipes

Segmentation for Application

Pipes

Film

Inyección/Soplado

Soplado

InyecciónInyección

Otros

Tuberia Riego

Planchas

Colombia and Peru Total demand supply for Pipe 4118 MT and 9210 MT in 2009 respectivelyp y

33%13% 1%1%0%

Colombia Total HDPE Consumption

23%

p

2008 5,300 MT

2009 4,100 MT29%

USA Belgium Korea BRASIL Germany Spain

2010 ~ 5,120 MT

29%13%3% 4% 0%

Peru Total HDPE Consumption

7%

13%

2008 7,300 MT

2009 9,210 MT31%

USA Belgium Korea China

BRASIL Germany Spain

2010 ~ 11,210 MT

Chile LLDPE to Rotomolding Demand in 2009Korea free tax while Thailand 6% expected 2010 will reach t0 2100 MT

Segmentation for Application

KG ‐ 2009

Distribuidor

Film

Geomembrana

Otros

Riego

Masterbatch

Inyección

Rotomoldeo

Cables

Total demand supply for Roto Molding 2009 ColombiaWas 4500 MT while expected 7,600 MT for 2010p ,

Saudi Saudi

CustomerCustomer MEXICOMEXICO USAUSA

Saudi Saudi

ArabiaArabia CANADACANADA AustriaAustria Total Total

TotalTotal 3.786.1203.786.120 453.067453.067 188.000188.000 25.72025.720 2.2002.200 4.455.1074.455.107

Supply ability from Mexico and USA

1470

565

RotpPlast

1067 AJ Over

Colombit

Rototec

1353

Import duty is our opportunities or riskCompare with Asia’s cargo we have the less competitiveness in CHILE

ORIGINSORIGINS

DutyDutyraterate USAUSA EUROPEEUROPE KOREAKOREA CHINACHINA TAIWANTAIWAN ARGENTINAARGENTINA BRAZILBRAZIL THAILANDTHAILAND

CHILECHILE 00 00 00 00 66 00 00 66CHILECHILE 00 00 00 00 66 00 00 66

PeruPeru 00 00 00 00 00 00 00 00

BRAZILBRAZIL 1414 1414 1414 1414 1414 00 00 1414

ARGENTINAARGENTINA 1414 1414 1414 1414 1414 00 00 1414ARGENTINAARGENTINA 1414 1414 1414 1414 1414 00 00 1414

COLOMBIACOLOMBIA 5.55.5 5.55.5 5.55.5 5.55.5 5.55.5 2.52.5 2.52.5 5.55.5

BOLIVIABOLIVIA 1010 1010 1010 1010 1010 00 00 1010

Chile import quantity (MT) of HDPE 2009

1. Opportunities loss 120 KT2. Need the FTA to support toE d k t b i ChilExpand market base in Chile.