Colombia is leading the wave of the next hottest commercial and outsourcing destinations. See why.

1. Accelerance,)Inc.)
303)Twin)Dolphin)Drive,)Suite)600)
Redwood)City,)CA))94065))USA)
+1D877D992D2235)x101)U.S.)TollDFree)
+1D650D472D3785)Global)Calls)+)Fax)
http://www.Accelerance.com
Investment Environment and Business
Opportunities in Colombia
December, 2011
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2. About Proexport
Proexport is Colombia’s entity in charge of the
promotion of International Tourism, Foreign Direct
Investment, and non-traditional exports
TOURISM INVESTMENT EXPORTS

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

4. Proexport’s Representatives in the US
New
Chicago York
San Francisco Washington
Atlanta
Los Angeles
Houston
Miami

5. Some recent investment projects supported by Proexport
2011 - Announced a new product and development research
center
2010 - Bilingual contact center operation for the United States
and Colombia
2011 - Global service center for BPO and IT operations
2011 - Investment in Terranum Development, a leading corporate
property company in Bogota
2010 – Opened a new business hotel offering 264 rooms, located in the
heart of Bogota´s financial district.
2010 – Acquired the assets of ESI de Colombia. ESI is a value added
reseller of industrial electrical equipment an engineering services

6. General facts
 The land area of ​Colombia"
is nearly 1,141,000 km2, almost"
3 times the size of California and twice
the size of Texas"
 Bordering the Pacific and
Atlantic oceans"
 Colombia is one of the most
biodiverse countries in the world."
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7. Same time zone with the East Coast of the US – Rapidly
increasing connectivity (Aprox. 3 hour flight to Miami and 5 hours to NY)
In January 2013 an Open Skies agreement will enter into full force
City of Weekly direct
City of Origin
Destination Frequencies
Miami Bogota 42
New York Bogota 26
Ft. Lauderdale Bogota 21
Houston Bogota 14
Orlando Bogota 14
Miami Cali 14
Miami Medellin 14
Miami Barranquilla 7
Atlanta Bogota 7
Miami Cartagena 7
New York Medellin 7
Ft. Lauderdale Cartagena 6
Washington Bogota 5
Ft. Lauderdale Medellin 5
Ft. Lauderdale Armenia 4
Source: Aerocivil. Proexport Calculation Total: 193

8. Colombia's population is 46 million
The percentage of population under 30 years of age is 55%"
7 metropolitan areas with over 1 million people" |

9. The second largest Spanish speaking country in the world
Population
Millions of People - 2010*
112.469
46.927 45.92
40.52 38.206
34.033
29.96 28.631
22.2
17.09
11.27 10.637 10.63 9.4119 8.417
7.8665 7.6247 5.077 4.9181
4.388
Source: EIU (Economist Intelligence Unit)
*Forecast (October 10, 2011)

10. Macroeconomic stability
GDP, Inflation and Unemployment rate (%) 2002 – 2011e
15.5
14.0 13.6
Unemployment
11.8 12.0 12.0 11.8
11.2 11.3 rate
9.0
7.7
7.0 6.5 6.7 6.9
5.5 5%-6%
4.9 GDP
4.3
5.7
5.3
4.7 4.5 Inflation
3.9 2.0
3.5 3.2 3%-4%
2.6
1.5
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011e
Source: DANE- Colombia Central Bank - Economist Intelligence Unit Forecast
e: Estimated

11. The three top risk rating agencies granted Colombia
“investment grade” on its sovereign debt in 2011
The three agencies agree on the country's positive
economic and financial situation, highlighting:
 Its ability to deal with external shocks
 Its historic fulfillment of obligations
 An increase in its macroeconomic credibility
 A visible improvement in security conditions
May 31, 2011

12. The third "friendliest" country to do business in Latin America and
the top reformer in the region
Change in Doing Business Ranking, 2007-2012*
(Variation in the number of positions)
World World
Country Ranking Ranking
2012 2011
Chile 39 41
Peru 41 39
Colombia 42 47
Mexico 53 54
Panama 61 63
Argentina 113 114
Costa Rica 121 121
Brazil 126 120
Ecuador 130 131
Venezuela 177 175
Source: Doing Business 2012 World Bank Report
*Positive numbers indicate improvements in business environment

13. Colombia: the 28th largest economy in the world when
adjusted by PPP and one of the largest non-OECD
economies
GDP (PPP)
US $ Billions - 2010
437
417
383
352 348 342 327
277 277
259 259
229 220
188 173
121
Note: GDP adjusted by purchasing power parity (PPP)
Source: EIU (Economist Intelligence Unit) (October, 2011)

14. Colombia among the top economies in the world by 2050
Top 30 economies of the world, by 2050
GDP US$ constant 2000 (Billion)
Colombia will be the top economy in
Latin America for growth in GDP
per capita. h"p://www.research.hsbc.com/midas/Res/RDV?
p=pdf&key=ej73gSSJVj&n=282364.PDFH
Source: The World in 2050, Quantifying the shift in the global economy, HSBC, Global Research. 2011.

15. GDP Per Capita adjusted by PPP is close to US $10,000
Colombia's GDP Per Capita (PPP)*,
2000 – 2010 (US $)
9,820
9,300
8,842 8,940
8,474
7,817
7,204
6,817
6,343
5,826 5,984 6,151
+126%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (f)
• GDP Per Capita adjusted to prices at purchasing power parity (PPP)
• (f) : Forecast
Source: EIU (Economist Intelligence Unit)
(October 12, 2011)

16. According to international standards, Colombia is part of
the group of upper-middle-income countries since 2005
US$
7000 Per-Capita National Income *
(Current USD)
6000
Upper Middle Income
5000
4000
3000
Lower Middle Income
2000
1000
Low Income
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Source: Ministerio de Hacienda y Crédito Público – EIU
* Classification based on a World Bank methodology

17. A rapidly growing consumer market: 46 million of Mobile
Telephony lines by 2011
Mobile Phone Penetration
2010 98.20%
2009 91%
Active cell phone users per year 2008 85.20%
2007 77.3%
Year Active lines Variation % 2006 68.6%
2005 47.5%
2000 2,256,801 2004 23.0%
2003 13.9%
2001 3,265,261 44.69% 2002 10.5%
2001 7.6%
2002 4,596,594 40.77% 2000 5.3%
2003 6,186,206 34.58% 1999 4.7%
1998 4.4%
2004 10,400,000 68.12% 1997 3.2%
2005 21,849,993 110.10% 1996 1.3%
1995 0.7%
2006 29,762,715 36.21% 1994 0.2%
2007 33,941,118 14.04%
2008 41,364,753 21.87% Operator Users 2008 Users 2009 Users 2010 Variation
2009 42,025,520 1.60% Colombia Móvil 4,012,102 4,516,509 5,208,793 15,33%
2010 44,477,653 5,83% Telefónica Móviles 9,963,095 8,964,575 10,004,521 11,60%
June 2011 46,147,937 - Comcel 27,389,556 27,673,546 29,264,339 5,75%
Total 41,364,753 41,154,630 44,477,653
Source: CRC, Communication Regulation Comission

18. Strong growth in internet connections
4,384,181
3,181,431
2,150,718 2,179,951
1,072,881
501,238
218,405
2004 2005 2006 2007 2008 2009 2010
Source: CRC, Communication Regulation Comission 2008, 2009, 2010 include mobile networks

19. 2011 will be a record year in exports
Colombia Exports by Country
Exports, 2000 – September 2011 Jan – Sept 2011
US$ Billions
45,000
41.5
37.6
39.8 United States
40,000
• US$ 15.5
35,000
• Share 37.5%
30,000 32.8
28.9 Netherlands
25,000
• US$ 1.9
20,000
• Share 4.7%
15,000 13.1
Chile
10,000
• US$ 1.7
5,000
• Share 4.1%
0
China
• US$ 1.6
• Share 4%
Variation 2008 - 2009: -12,7%
Variation 2009 - 2010: 21,2%
Variation Jan Sep 2010 – Jan Sep 2011: 43,2%
Source: DANE (Departamento Nacional de Estadísticas) ( National Department of Statistics)

20. Colombia has access to 486 million consumers with the
current agreements that are in force
Europe
North America
EFTA Russia
Canada
European
Union
United States
Mexico Dominican
Republic
Panama Venezuela
North Triangle
Costa Rica
Colombia
CAN
LATAM
Chile
Mercosur
In Force: CAN, Mexico, Chile, Mercosur, Northern Triangle, Canada,
Switzerland and Liechtenstein (members of EFTA)" Under Negotiation: Panama
Upcoming: United States, European Union, Norway, and Iceland
Venezuela Future: Costa Rica, Dominican Republic
Elaborado por OEE-MCIT

21. Future trade agreements
North America Europe
EFTA
Russia
Canada
European
Union
United States Turkey Japan
South
Dominican Rep. Korea Asia
Mexico
North Triangle Panamá Venezuela Persian
Gulf
Costa Rica
Colombia
CAN
LATAM Mercosur
Chile
In Force: CAN, Mexico, Chile, Mercosur, Northern Triangle, Canada, Under Negotiation: Panama, Venezuela, South
Switzerland and Liechtenstein (members of EFTA) Korea, Turkey.
Upcoming: United States, European Union, Norway, and Iceland Future: Costa Rica, Dominican Republic, Russia, Gulf
Community, Japan.
Elaborado por OEE-MCIT

22. Colombia and US Bilateral Trade Relationship (2010)
 Colombia and the US traded US$27 billion in 2010 and US$25.5 billion
between January and September 2011.
 The US is the top market for Colombia exports and the first source of
Colombia´s imports.
 Colombia is the 20th market for US exports the 25th supplier of US imports.
 Colombia is the 3rd market for the US in Latin America and its 4th supplier.
 Selected by the US Eximbank as one of nine priority countries for the US
around the world.

23. 2011 will be a record year in FDI flows to Colombia
Main Investors in Colombia
2000 – 2010**
United States
• Stock US$ 9,333 M
• Share 28.8%
Great Britain
• Stock US$ 4,631 M
• Share 12.8%
Spain
• Stock US$ 2,637 M
• Share 7.3%
Mexico
• Stock US$ 1,517 M
• Share 4.2%
Variation 2008 - 2009: -32%
Variation 2009 – 2010: -5%
Variation I Sem 2010 – I Sem 2011: +91.4%
*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)

24. US companies have a strong presence in Colombia
Eight US companies in different sectors rank among the
largest in Colombia. In 2010 they recorded:
 Close to US$ 8.3 billion in sales
.
 Exports over US$ 670 million
 Approximately 120,000 related jobs
Source:Calculations by Proexport using Revista Dinero’s “2010 top companies in Colombia” figures

25. Colombia is also increasing its investment flows abroad
(utilities, banking and financial services)
US $Million
6,529
4,662
3,088
2,254
938
325 913
142
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Assembly of the first 500,000-volt electric Purchased 60% of Peruvian energy
transmission system in Peru. Investment: company Cálidda.
US $130 Million Investment: US$ 111 Million
Purchased ING companies in Chile, Acquisition of one hundred percent of the
Mexico, Peru, Uruguay and Colombia Central American Bank
Investment: US$ 3.763 Billion Investment: US$ 1.9 Billion
Source: Banrep

26. National Development Plan 2010 - 2014
Strengthen cultivable
Make use of large,
areas and update them
unexplored gold and
with technology to
coal reserves
increase exports
Leading driver of
economic and social
development
Stimulate the creation,
Promote the
improvement and
development of
expansion of
“Housing for All”
infraestructure

27. The Government is boosting 12 sectors through its
Productive Transformation Program
SERVICES" MANUFACTURING" AGRO-INDUSTRIES"
Business process Chocolate,
Graphic Arts
outsourcing Confectionary, and
Industry "
BPO&O" its raw materials"
Textile, Apparel,
Beef"
Software & IT" Fashion & Design "
Electric Energy and
Palm, vegetable
Health Tourism " related Goods and
oils & fats "
Services"
Auto Parts &
Shrimp Farming"
Vehicles"
Cosmetics &
Personal Care"

28. International research and consulting firms
recognize Colombia as a key player in BPO
Top 30 Countries for Offshore Services in 2010-2011
and 2011-2012
Gartner identified the following variables as Colombia’s strongest Latin America’s main BPO&O
countries selected by Gartner:
assets for Offshore Services:
Criterion Rating Argentina Costa Rica
Cost Good Brazil Mexico
Chile Panama
Political and Economic Environment Good
Colombia Peru
Cultural Compatibility Good
Source: Gartner (November 2011)
Labor Pool Good
Government Support Good
Colombia:
Latin America’s Hidden Outsourcing Jewel
Tholons identified the KPO segments were Colombia will be going in 2014:
1. Pharmaceutical R&D KPO Market Value in 2014:
2. Engineering Services (ESO)
3. Information Technology Services (ITO) USD 1,745 million
4. Other KPO
Source: Tholons (September 2010)

29. A competitive Free Trade Zone framework
 Tax, trade and customs benefits.
 No restriction on sales to the local market.
 Different types of FTZs suited to investors'
needs .
 Approximately 30 Free Trade Zone Parks
(multi-user) and 70 single - enterprise FTZs
around the country
 Close to 4 million square meters available
to companies in FTZ parks around the
country
 Companies such as Unisys, Convergies,
Teleperformance and Genpact operate out
of FTZs in Colombia. |

30. To sum up
• Colombia stands as one of the most interesting emerging markets. It ranks among the
top countries in Latin America due to its market size, macroeconomic stability, long term
growth potential, oppennes to foreign investment and new business opportunities.
• A sustained improvement in security conditions has led to a significant growth in foreign
investment, exports and international tourism. An increasing number of foreign companies
in the oil&mining, manufacturing and services sectors are choosing Colombia as a
location for their investments.
• The US is Colombia’s largerst trading partner and investor and US companies already
have a strong presence in the country. This relationship will grow stronger thanks to the
FTA.
• Colombias offers a wide range of opportunities to IT/BPO companies to serve the
growing domestic and regional markets. Foreign companies can find reliable local
partners to explore new business ventures.
• Count with Proexport as a partner to further your growth in Colombia and Latin America.
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