Colombia Presentation July 2011

1. COLOMBIA: An Upcoming Emerging Market for International Investors July 2011

2. About Us Proexport promotes International Tourism, Foreign Direct Investment and Exports EXPORTS INVESTMENT TOURISM

4. Proexport Around the World Canada UK United States Mexico Germany Spain France Russia Chile Peru Brazil Ecuador North Triangle South Central America Venezuela Caribbean China India UK NEW OFFICES Arab Emirates Turkey Japan South Korea Shanghai Hong Kong Singapore

5. Colombia among the markets with “easy access” and high growth rates according to HSBC and World Bank Source: HSBC: World in 2050- World Bank: Doing Business Report 2011

6. “ The new BRICs are Colombia , Indonesia, Vietnam, Egypt, Turkey and South Africa (CIVETS). They are countries with major populations, dynamic, diverse economies, political stability and each of them has a brilliant future. Any company with global ambitions will have to take immediate action in these markets.” Michael Geoghegan, CEO HSBC April 26, 2010 in his speech to AmCham Hong Kong Colombia, The C in the CIVETS

7. Colombian shares as a reference of international capital markets Source: Standard & Poor’s The stock behavior of the CIVETS group is much better than reported by the BRICS group since 2008.

8. EAGLES: “Emerging And Growth-Leading Economies” Each one of these countries is expected to contribute more to the global growth in the next 10 years than the average of the developed countries . Colombia is on the waiting list to become an Eagle . According to BBVA Research, EAGLE’s Group will be responsible of the half of world growth in the next 10 years. In change, G7 Group just contributes a 14% of this growth Colombia Brazil Russia China India South Korea Indonesia Egypt Mexico Argentina South Africa Taiwan Turkey Peru Vietnam Malaysia Bangladesh Nigeria Pakistan Philippines Poland Thailand

10. “ Yet against all odds Colombia has become the country to watch in the hemisphere.” Newsweek, July 2010 . The World is talking about Colombia… “ Whether on security, democratic stability, or vibrancy, the strength of Colombia’s democracy is there for all to see” Eric Farnsworth, vice president of the Council of the Americas. “ Colombia has increasingly become a bright star in the Latin American constellation,” Walter Molano, Emerging-market analyst of BCP Securities Beyond BRICs: New investment hotspots The BRIC economies have paid out handsomely, but where will you find the next global opportunities? Colombia is a potential investment hot spot: "It is rated as the most business-friendly Latin American country by the World Bank and after several delays is due to sign a free-trade agreement with the US in the coming year,” " Safety and security is less of an issue now as the government seems to be winning its battle against crime and its expected economic growth rates and demographics in the coming years are among the best in the whole region ." Alex Duffy, Fidelity´s Latin America Fund The Independent, 30 April 2011

11. Security Perception Source: ANDI (Asociación Nacional de Industriales) Enhanced economic performance has come hand in hand with improved security World Crisis

12. Source: EIU (Economist Intelligence Unit) (23 May 2011) Colombian Economy: Bigger than Chile, Ireland, Malaysia, Egypt, Singapore and New Zealand GDP US$ Thousand Millions – 2010

13. Note: GDP fixed to prices under Power Purchasing Parity Source EIU (Economist Intelligence Unit) (23 May 2011) The 28 th largest world economy when adjusted by PPP and one of the largest non-OECD

14. Source: EIU (Economist Intelligence Unit) *Forecast (23 May 2011) The third largest population in Latin America and the second largest Spanish speaking population in the world

15. GDP Per-Capita has doubled since 2004 Source: EIU (Economist Intelligence Unit) (23 May 2011) 140%

16. GDP per- capita is reaching US$10,000 when adjusted by PPP GDP at purchasing power parity (PPP), divided by population Source : EIU (Economist Intelligence Unit) (23 May 2011) Colombian GDP per Capita (PPP) 2000 – 2010 US$ 57%

17. Source: Ministerio de Hacienda y Crédito Público Per-Capita National Income – Atlas Methodology (Current USD) According to international standards, Colombia is part of the group of upper-middle-income countries since 2005

18. Variation 2008 - 2009: -32% Variation 2009 – 2010: -5% Variation I Quarter 2010 – I Quarter 2011: 132 % *FDI by Exchange Balance **Participation by country positive accumulated inflows, it doesn´t includes investment or reinvestment of profits in the oil sector, Value 2000 - 2010: US$ 32.462 million Source: Banco de la República (Balance of Payments) (Central Bank) Main Investors in Colombia 2000 – 2010** Annual FDI net inflows have multiplied by four

19. Natural Resources exploitation gathers 70% of FDI flows to Colombia Participation by country positive accumulated inflows, it doesn´t includes investment or reinvestment of profits in the oil sector Accumulated Value 2009-IQ 2011 US$ 16,203 millions Source: Banco de la República FDI Inflows to Colombia by No Traditional Sectors, 2009 – I Quarter 2011 FDI Inflows to Colombia by Sector 2009 – I Quarter 2011

20. Exports have tripled in nine years Variation 2008 - 2009: -12,7% Variation 2009 - 2010: 21,2% Variation Jan Apr 2010 – Jan Apr 2011: 37% Source: DANE (Departamento Nacional de Estadísticas) ( National Department of Statistics) Colombia Exports by Country 2010

21. In nine years international visitors in Colombia doubled. While tourism in the world increased 6,7%, in Colombia this trend increased 8,9% in 2010* Variation 2008–2009: 17,2% (includes cruise) Variation 2009 - 2010: 8,1% (includes cruise) Variation Jan Apr 2010 – Jan Apr 2011: 15,9% *It doesn't Include cruise ** Includes cruise Source: DAS (Departamento Administrativo de Seguridad) (National Department of Security) International visitors in Colombia by Country – 2010*

22. The Highest level of international reserves and the lowest level of inflation on record Source: Banco de la República (Colombian Central Bank)

23. In terms of Globalization, Colombia is ranked 3rd among Latin America countries, performing better than world economies such as Japan, Brazil, Russia and Indonesia. Source: Ernest and Young – The Globalization Index 2010, Ranking among 60 countries. Globalization Index, 2010

24. Emerging Markets Bond Index Plus (EMBI+), basis point spread over US treasuries. Source: JPMorgan - Central Bank of Peru Declining spreads on Sovereign Debt -Lower than Latin America as a region-

25. MILA (Integrated Latin-American Market): Merging of the Chilean, Peruvian and Colombian Stock Exchange Markets Over 500 Companies 46 dealing over US$ 1 million daily 58 dealing between US$500 thousand and US$ 1 million

26. Source: Top Reformers Report, World Bank *Positive figures show improvements in business environment Doing Business Ranking Variation, 2007-2011* (Change in positions) Colombia: the third most “Business Friendly” country in Latin America and top reformer in the region Latin-America Ranking Country Mexico 35 Peru 36 Colombia 39 Chile 43 Panama 72 Argentina 115 Costa Rica 125 Brazil 127 Ecuador 130 Venezuela 172

27. Ranking made up by 183 countries Source: Doing Business, 2011 (World Bank) Strength of Investor Protection, 2011 Rating Ranked among the top countries on investor protection World Ranking Country 5 Colombia 20 Peru 28 Chile 44 Mexico 74 Brazil 109 Argentina 109 Panama 179 Venezuela

28. Source: OECD – Colombia Economic Assessment, 2010 Colombia vs. OECD Countries (Doing Business Indices - World Bank)

29. In Force Signed In Negotiation Future Positioning Colombia as an export platform: 11 free trade agreements (FTA) with 48 countries allowing preferential access to over 1,500 million consumers

30. Note: The International investment agreements (IIA) include Agreement Investment Treaties (BIT) (agreement) and Free Trade Agreements (FTA) with investment section (chapter). In Force Signed In Negotiation In 2011, Colombia will be negotiating 18 international investment agreements (IIA)

31. In Force Signed In Negotiation In 2011, Colombia will be negotiating 16 double taxation agreements (DTA)

32. Encourage and improve production of competitive products and services ESTABLISHED SECTORS Promote development of NEW & EMERGING SECTORS Promote value added, innovation & development in AGRIBUSINESS SECTOR Chocolate Confectionery Palm and vegetable Oil Shrimp Farming Cattle Productive Transformation Program: A Public - Private Partnership to strengthen and build “world class sectors” Health Services Exportation Business Process Outsourcing and Off shoring BPO&O

40. Free Trade Zone Approved Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status are calculated in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000 exchange rate. For 2011, the M.M.L.W is COP 535.600. The M.M.L.W, as well as the exchange rate are subject to variations. Single - Company Free Trade Zone Permanent Free Trade Zone 91 Free Trade Zones Investment commitments Total Investment (USD Million) 6,781 Direct Jobs 46,632 Indirect Jobs 95,831 Investment executed so far Total Investment (USD Million) 2,436 Direct Jobs 6,289 Indirects Jobs 23,031

41. Requirements for industrial firms of goods and services Source: Ministry of Trade, Industry and Tourism. The investment amounts required to obtain the Free Trade Zone status are calculated in Minimum Monthly Legal Wages (M.M.L.W). This information is presented in dollars using a US$1 = COP 2,000 exchange rate. For 2011, the M.M.L.W is COP 535.600. The M.M.L.W, as well as the exchange rate are subject to variations. PERMANENT FREE TRADE ZONES (PFTZ) Several firms installed in a FTZ already established Total Assets (US$) Investment Ammount (US$ Million) Minimum direct jobs generation 0 – 134.000 0 0 134.001 – 1,34 Million 0 20 1,34 Million – 8,03 Million 1,34 30 More than 8,03 Million 3,08 50 Back

43. * According to the national statistics this products classification is called “products not classified previously”. Exchange rate: US$ 1 = COP 2,000. Minimum Monthly Legal Wages (M.M.L.W.) for 2011 is COP 535.600. M.M.L.W. and Exchange Rate are subject to changes. SINGLE-COMPANY FREE TRADE ZONES (SCFTZ): A single firm can get all FTZ advantages by installing itself in any place in Colombia FTZ type Investment (US$ Million) Or related jobs to the production Agribusiness 20,09 500 Subsectors which are eligible for FTZ status under agribusiness requirements Biofuels Meat and Fish Oil and grease products from vegetables and animals Dairy products Legume and fruits, prepared or preserved, tea, soup, vinegar, sauces and yeast* Coffee Back

44. Other incentives by sector: Income tax exemption for up to 20 years

45. New employees under twenty eight (28) years old. Length of benefit by employee: 2 years. New employees certified in displacement situation, reintegration or disability . Length of benefit by employee: 3 years. New women employees above 40 years old with more than 1 year unemployed. Length of benefit by employee: 2 years. New employees with incomes lower than 1.5 SMMLV . Length of benefit by employee : 2 years. Formalization and Employment Generation Discount in the income tax and supplementary contributions, and other contributions from payroll ( Do not include positions generated by mergers or replacements)