This presentation is a brief of why Chile is a great destination for investment

1. Why Chile?
GTCapital
02/10/2012

2. Chile is known for its political and economic
stability…
Country’s characteristics:
• Proper functioning of the institutions of the country
• Very high international integration:
• Chile has 22 commercial trade agreements, including more than 59 countries
• Highly dependent on the production and export of commodities such as copper, molybdenum, wood
pulp, others
• World largest cooper producer
• Member of the OECD since 2009
• Latin America´s most stable economy
• Lowest country risk of the region
General information (year 2011):
• GDP: US$ 248,6 billion
• Population: 17.248.450
• GDP per capita: US$ 14.413
• Inflation rate: 3,4%
• Unemployment rate: 6,6%
Nota: IPC es el índice de precios al consumidor y su variación refleja el cambio en el nivel de precios de la economía (inflación o deflación).
Datos a precios constantes del 2003 2
Fuente: Banco Central de Chile

3. …and has shown steady growth and has very
good prospects
In U.S. dollars, the country’s GDP has grown 9,4% yearly since 2007
Anual GDP
(US$ billion) CAGR
300
9,4%
248.6
217.0
200 182.8
173.3 174.1
100
0
2007 2008 2009 2010 2011
GDP per capita 8,3%
10,440 10,907 10,286 12,697 14,413
(US$)
GDP per capita
14,742 15,373 15,189 16,112 17,222
PPP (US$, FMI)
3
Source: Chile Central Bank

4. In the last years, inflation has been kept stable
and controlled
Consumer price index (%)
10%
8.7
8
6
4.4
4 3.4 Target rate
2.5 of the
Central Bank
2 1.4
0
2007 2008 2009 2010 2011
4
Note: IPC is the consumer price index. Reflects the change in prices (inflation or deflation)
Source: Chile Central Bank

5. Chilean peso has gained strenght against the
U.S. dollar
Currency rate (Chilean peso per american dollar)
600
550
500
450
400
2007 2008 2009 2010 2011
Real exchange rate
94 9,623% 9,574% 9,128% 9,217%
(index 1986=100)
5
Note: IPC is the consumer price index. Reflects the change in prices (inflation or deflation)
Source: Chile Central Bank

6. The IPSA index (stock market) has risen more
than 400% since 2003
IPSA index
5,000 IPSA
CAGR
4,000 03-11
22.06%
3,000
2,000
1,000
0
ene-03 ene-04 ene-05 ene-06 ene-07 ene-08 ene-09 ene-10 ene-11
Strong growth in the value of local companies reflect the good moment the country's economy goes
through
6
Source: Chile Central Bank

7. Mining is the country's most important activity
contributing almost 20% of GDP
GDP per activity
100%
Energy, gas and water
Transport
Finantial services
80 Public administration
Home services
Construction
60 Commerce
Personal
services
40
Industry
Business
20 services
Mining
0
2008 2009 2010 2011
7
Source: Chile Central Bank

8. Investments for more than USD 100 billion are
estimated for the next 8 years in Chile
Chile´s total mining investment 2012 - 2020 (USD MM)
100,000 100,000 100,000
100%
Medium - Small mining
80
60 Private
Total mining
investment Large mining
2012 - 2020 (24 proyects)
40
20
Codelco
0
Total mining investment Total mining investment Total mining investment
2012 - 2020 2012 - 2020 2012 - 2020
Suppliers of goods and services must be prepared to face this challenge considering that
investment in mining in the past 9 years were USD 40 billion. Mining investment to Latin
America for the same period will be approx. USD 300 billion
8
Source: Chile Central Bank

9. Why Chile?
GTCapital
02/10/2012