Global Issue 2016 by AméricaEconomía

0 November 2016

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GLOBAl ISSUE

APEC 2016

SPECIAL EDITION NOVember 2016 l

COAST-TO-COAST POTENTIAL

LIFE AFTER THE BOOM

GIANTS BELOW ZERO

The growth of the middle class in Latin America gives Asian APEC economies the space to dynamize their investments in the region.

With Chinese demand softening, Latin America has to face an agenda marked by climate change, aging, and artificial intelligence.

The 500 Largest Firms in Latin America endured a complicated 2015 due to low commodity prices and the economic slowdown.

THE ALLIANCE INSIDE AND OUT

ALONG AN ALTERNATIVE PATH

ACADEMIC TIGERS

Everything businesspeople need to know about investing in countries of the Pacific Alliance, the most important economic bloc in Latin America.

Professor John C.Edmunds proposes a scheme of guaranteed basic income to reduce juvenile unemployment and help immigrants.

The Tecnológico de Monterrey for the third time leads the Ranking of MBAs elaborated by AméricaEconomía Intelligence. The Chilean Universidad Adolfo Ibañez is getting closer.

100

108

GLOBAL SCHOOLS UNDER A NEW MAGNIFYING GLASS

REGIONAL CONTRASTS

RANKING MULTILATINAS

In this year’s edition of the Ranking of the Best Global Business Schools for Latin Americans, a new component was measured: multiculturalism.

While Colombian cities took off, the economic situation in Brazil made São Paulo fall in the Ranking of the Best Cities for doing business.

Although the difficult Latin American economic context has chilled their rhythm of expansion and their margins, the multilatinas continue to aim their sights beyond their countries of origin.

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GLOBAl ISSUE

APEC 2016

NEW CHALLENGES The 80s were hard times for Latin Amepublisher Elías Selman C.

rica. But they were also thrilling times

GENERAL EDITOR Fernando Chevarría León EXECUTIVE EDITOR Rodrigo Lara Serrano Editors Bruna Lencioni (São Paulo), Jorge Cavagnaro (Guayaquil), Rery Maldonado (La Paz), Carolina Torres (Tegucigalpa), Lino Solís de Ovando (Santiago) editor-at-large Samuel Silva REPORTERS Laura Villahermosa, Hugo Flores (Lima), Alejandro González (Bogota), Camilo Olarte (Ciudad de Mexico), Hebe Schmidt (Madrid) DESIGN Sandra Florián TRANSLATION Robert Barros

gion faced. Globalization of financial and

–because of the multiple challenges the re-

AMERICAECONOMIA INTELLIGENCE (Research and Special Projects) DIRECTOR Andrés Almeida SENIOR RESEARCHER Fernando Valencia ANALYSTS Catherine Lacourt, Juan Francisco Echeverría, Carlos Alcántara AMERICAECONOMIA.COM SUBDIRECTOR of DIGITAL MEDIA Lino Solís de Ovando SUBEDITORS Gastón Meza, Patricio Díaz, Daniela Arce, Juan José Castillo, Daniela Zárate JOURNALISTS Héctor Cancino, Fernando Zúñiga, Juan Toro, Cristian Yánez, Matías Kohler DIGITAL DEVELOPMENT Leonardo Cabrera CEO Ricardo Zisis Country Manager Peru Alejandra Bustamante COMMERCIAL COORDINATOR Pablo Altamirano CONFERENCES María Pía Aqueveque MARKETING Jorge Coloma, Nicholas O’Connor CHAIRMAN Robert R. Paradise

trade relations meant those were times of change. And those changes went beyond the political desires of the region –where each economy had often operated in isolation from the rest. Of course, this state of affairs was a barrier and a clear disadvantage along the road to better business opportunities and economic growth. Luckily, some three decades later the times are better for the region, with world-class multilatinas, more integrated economies, and economic growth. The Global Issue which you hold in your

unfinished tasks, Latin America confronts

hands, and which we put together espe-

new challenges”.

cially for the Asia-Pacific Economic Coo-

Finally, since its creation in 2011,

peration (APEC) Forum, is an in-depth

the Pacific Alliance (PA) has attracted

analysis of these changes. Here we bring

the world’s attention with its progress in

together some of the best research done

economic integration and its ambitious

by AméricaEconomía Intelligence. In

investment and trade plans –but above all,

this issue, you will find rankings of the

with the important growth of its mem-

500 Largest Firms of Latin America, the

ber countries: Chile, Colombia, Mexico,

Best MBAs in the region and the world,

and Peru. Therefore, we present “Doing

and the Best Cities for Doing Business in

Business in the Pacific Alliance,” in which,

Latin America. Plus, in our report 2016

in collaboration with PwC Peru, we offer

Multilatinas Ranking you will find out

indispensable information on costs, regu-

which Latin American companies are also

latory stability, fiscal matters, regulation of

the most global.

foreign investment, and other crucial data

Latin America has truly become a land of opportunities for investors, many

that every investor interested in the Pacific Alliance should take into account.

of whom have increased their presence in this part of the world in recent years. But although Latin America has made great progress in the last decades, many challenges remain unsolved –while the region now faces new ones. All this is detailed in the articles “Pacific Partners” and “With

Fernando Chevarría León General editor fchevarria@americaeconomia.com

AméricaEconomía is published monthtly by Nanbei Ltda. Printed in Empresa Editora El Comercio S.A., in Lima (Peru), under the responsibility of Seminarium Perú S.A. Legal deposit 2008-05933. Periodical Publication. Registry PP09-0011. Certificate of of lawfulness N° 4090. Certificate of content lawfulness N° 3346.

GLOBAl ISSUE

APEC 2016

PACIFIC PARTNERS

The Asian economies in the APEC forum have in Latin America a space for investing. The growth of the middle class on both sides of the ocean helps. BY Darwin Cruz Fiestas

sia and Latin America appa-

of this figure: 1.8 billion people. Some

generates new needs for trade and invest-

rently have little in common.

two-thirds of this tremendous population

ment. These aim at greater sophistication

To begin with, their time

growth, which will take place in less than

to satisfy the demands of their popula-

zones. When it is midnight in

15 years, will be concentrated in China

tions. The present conjuncture requires

Asia, midday shines in Latin America. Not

–and throughout Asia. On the other hand,

a shift in the relations between Latin

to speak of their cultural customs. Whe-

according to the World Bank, the middle

America and Asia-Pacific from ventures

reas for someone from China a gift of fruit

class in Latin America continues to grow,

that revolve around raw materials, such as

on a special day is an unbeatable gift, in

though at a slower rhythm than in previous

minerals, to manufacturing and services

Latin America there’s nothing better than

years due to the fall in raw materials prices.

that assure added value, but above all that

an electric appliance or a high-end cell

Thus, 3.5 million people joined the

integrate economies into value chains on

phone. Beyond these differences –bea-

middle class in 2014; in other words, in

both sides of the immense Pacific ocean.

rable, no doubt– there is a similarity that

only one year this socioeconomic strata

This shift is particularly needed among the

might constitute a very close bond: the

grew by the equivelent of one-third of the

members of the APEC forum –made up

growing middle class in both continents.

total growth that had taken place during

of 21 Pacific Rim economies, among them

According to forecasts by the Organi-

the period 2002-2012, the golden age of

Mexico, Peru and Chile in Latin America,

sation for Economic Cooperation and

commodities. Institutions such as the

who consensually work in different fields

Development (OECD), the world’s middle

CAF and the World Bank estimate that

of economic interdependence.

classes will grow to 4.9 billion people by

middle classes in Latin America make

2030. The magnitude of this increase is

up one-third of the regional population,

evident once we consider that in 2009 the

around 200 million people.

middle class amounted to less than half

This similarity between both regions

The investments The APEC member countries have an overall population of almost 3 billion

Hagit Berkovich / 123RF

inhabitants, represent almost 60% of the

For China, this growth in investment

Ferrero DU & Uría, in Peru, it would be

world GDP and almost 50% of world

in Latin America was a way to become

easier to carry out infrastructure invest-

trade. The value of the investments by this

more efficient –not only in costs, but also

ments, specially from China, if countries

forum, specially by the economies located

in productivity and in supplying raw mate-

became members of the Asian Infrastruc-

in the Asian continent, in Latin America

rials. On average, unfortunately, the region

ture Investment Bank, of which many

and the Caribbean grew by 83% between

has not taken advantage of this investment

APEC member economies are founders or

2001 and 2012, according to the ECLA

boom to better its own productivity.

candidates. Peru has already announced

report entitled “The rise in the concentra-

Even though to date only Brazil has

that it will soon request membership.

tion of Asian and Latin American value

attracted manufacturing-related invest-

chains. Can the small firms change the

ments (automotive, electricity), for at least

senior analyst at APEC’s Policy Support

course?”

a couple of years now the Asian giant has

Unit, points out that this tendency by

demonstrated its interest in participating

China to diversify its investments by

tween 2000 and 2013 China significantly

in the area of regional-level infrastruc-

sector has become increasingly evi-

increased its investments in the region, by

ture. Above all, stand out railroads (the

dent. His examples include the fact that

almost US$122 billion (including capital

transoceanic rail project that will unite

Huawei owns assembly and trade centers

from the special regions of Hong Kong and

the Atlantic and Pacific oceans by way of

in Argentina and production centers in

Macao). These investments were concen-

Brazil and Peru, as well as the Caribbe-

Mexico; Lenovo is in Brazil producing

trated in natural resources, mainly mine-

an-Pacific project in Colombia) and the

computers and digital components,

rals, petroleum, and gas, in countries such

polemical canal in Nicaragua.

whereas in recent years Peru and Argen-

This same report confirms that be-

as Argentina, Venezuela, Brazil, Colombia, Ecuador and Peru.

According to Viviana García, a partner at the law firm Philippi, Prietocarrizosa

For his part, Carlos Kuriyama, a

tina have received investments in finance from the ICBC Bank; Peru has also

GLOBAl ISSUE

APEC 2016

received Chinese investment in fishing

Connected regions

and energy. Xinwei Telecom is offering

FDI inflows from Asia-Pacific by country, 2001-2006 and 2007-2012 (%)

Argentina two hydro-electric plants will

Source: Prepared by the authors, on the basis of United Nations Conference on Trade and Development (UNCTAD), “Bilateral FDI Statistics 2014”, Geneva, 2014 [online] http://unctad.org/en/Pages/DIAE/FDI%20 Statistics/FDI-Statistics-Bilateral.aspx.

be built. “Whereas in Uruguay, it has been

FDI INFLOWS:

interesting to see Chinese investment in

Peru

telephone services in Nicaragua. And in

the production of automobiles and auto parts,” he notes. Notwithstanding this growth, the Asian giant still is not the main investor. That slot is occupied by the European Union and the United States. Further-

Guatemala

Colombia

Argentina

Panama

Trinidad and Tobago

Other

Chile

that have begun to look at Latin Ame-

Peru

Ecuador

Argentina

Other

Venezuela

(Bol. Rep. of)

Panama

Chile

Brazil

more, according to ECLA, there are firms from other APEC economies, like Korea,

Brazil

Mexico

rica. In fact, two thirds of Korean investment in the region has landed in Brazil

FDI OUTFLOWS:

and Mexico, due to their large internal

Malaysia

markets and access to third markets. “Thus, Mexico received 26% of all the Korean investment flows in the region

South Korea

Japan

Other

Myanmar

South Korea

Thailand

Other

Taiwan Province of China

China

during 2012,” notes a study by this United Nations organization. This would indicate that investments in the region are beginning to diversify not only in regards to

Taiwan Province of China

the origin of capital, but also in terms of

Thailand

their destinations.

India

But will the image of the region as a source of raw materials really be put to

ribbean from investments in export-ori-

business services, electrical generation,

one side? According to Eleonora Silva,

ented manufacturing, which demands

infrastructure services, and tourism.

the CAF’s director in Peru, this diversi-

less capital than investments in natural

fication of the investments by the APEC

resources. Added to this is the region’s

out that there are very good prospects in

economies in the region will consolidate.

comparative advantage due to the low

the region for developing services given

This is because some members, such as

cost of labor for making products and

its growing and relatively young middle

the United States, Japan, and Austra-

exporting them. “This type of investment

class with greater purchasing power. This

lia, have visions of extractive activities

continues to be important in Central

situation attracts more investment than

that also share the scene with maquila

America, Mexico, and the Dominican Re-

sectors like industry and agriculture.

schemes and even schemes of properly

public, among others,” she notes.

These investments are already taking

industrial transformation, depending on

The CAF’s director also considers that

Carlos Kuriyama, of APEC, points

shape, says the expert in trade and invest-

each firm’s strategy. The expert notes that

interest in investing in the automotive

ments, with the announcement of new

once Asian-side APEC member econo-

sector, where multinational firms pre-

projects in Latin America, mostly invol-

mies decide to consolidate their presence

dominate, will remain steady and that in-

ving services, in particular, transporta-

in Latin America, the latter’s economies

terest has grown recently in various types

tion and communications (US$18 billion

will benefit Latin America and the Ca-

of services: financial services, off-site

in 2014) and electricity, gas, and water

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GLOBAl ISSUE

APEC 2016

Indicators for Latin American countries Source: The World Factbook -CIA.

POPULATION

GDP (US$)

Structure of GDP

Inflation

Argentina

43,886,748

585.6 billion

Bolivia

10,969,649

Brazil

205,823,665

Chile

COUNTRY

Exports Imports

RAD stock

(%)

(US$ billions)

Services (60.4%), Industry (29.1%), Agriculture (10.5%)

27.6

65.95

60.56

125.9

33.21 billion

Services (48.5%) Industry (38.3%), Agriculture (13.2%)

4.1

9.5

10.43

10.56

3.1 trillion

Services (71.9%), Industry (22.2%), Agriculture (5.9%)

189.1

174.2

820.5

(US$ billions)

4.3

61.82

201.4

48.52

56.05

154.5

Services (74.3%), Industry (19.7%), Agriculture (6%)

0.8

9.7

15.44

27.63

77.1 billion

Services (72.7%), Industry (23.5%), Agriculture (4%)

4.4

15.24

17,650,114

240.2 billion

Services (61.6%), Industry 35%), Agriculture (3.4%)

Colombia

47,220,856

293.2 billion

Services (56.7%), Industry (36.9%), Agriculture (6,4%)

Costa Rica

4,872,543

52.9 billion

Cuba

11,179,995 16,080,778

98.83 billion

Services (59.7%), Industry (34.2%), Agriculture (6.1%)

18.36

20.93

14.91

El Salvador

6,156,670

25.77 billion

Services (63.8%), Industry (25.5%), Agriculture (10.7%)

-0.7

4.5

9.2

9.7

Guatemala

15,189,958

63.9 billion

Services (62.7%), Industry (23.8%), Agriculture (13.4%)

2.4

10.73

17.64

10,485,800

8.6 billion

Services (56.3%), Industry (20.1%), Agriculture (23.6%)

7.5

1.1

3.4

1.2

8,893,259

20.3 billion

Services (59.7%), Industry (26.4%), Agriculture (13,9%)

3.2

7.7

10.9

1.1 trillion

Services (62.4%), Industry (34.1%), Agriculture (3.5%)

2.7

430.9

434.8

142.8

4.4

5.9

15.9

23.29

44.96

Ecuador

Haiti Honduras Mexico

123,166,749

Nicaragua

5,966,798

12.2 billion

Services (58.9%), Industry (22.9%), Agriculture (18.1%)

Panama

3,705,246

52.1 billions

Services (77%), Industry (20%), Agriculture (3%)

0.1

Paraguay

6,862,812

28.08 billion

Services (62.6%), Industry (18.5%), Agriculture (18.9%)

2.9

8.35

9.6

60.05

Peru

30,741,062

389.1 billion

Services (58.5%), Industry (34.5%), Agriculture (7%)

3.5

36.35

38.97

87.13

Dominican Republic

10,606,865

67.49 billion

Services (63%), Industry (31.4%), Agriculture (5.6%)

0.8

9.6

15.3

30.3

3,351,016

53.79 billion

Services (71.9%), Industry (20.6%), Agriculture (7.5%)

8.7

7.7

9.8

23.97

30,912,302

239.6 billion

Services (63.2%), Industry (32.9%), Agriculture (3.9%)

121.7

47.5

33.4

58.84

Uruguay Venezuela ND = No data.

(US$13 billion). The volume of these

parent company, who thereby can resolve

one of the main Latin American experts

investments is greater than the volume

an unexpected regional supply shortage.

on the Asian economy.

of all the new projects announced for

These investments form a value chain that

extractive sectors, which rise to US$11

will become stronger once this Central

what is needed to create the necessary

billion, according to data from the United

American country and the Asian econo-

framework for attracting greater quali-

Nations Conference on Trade and Deve-

nomy sign a free-trade agreement.

ty investment. It is for this reason that

lopment (UNCTAD).

The platform One case to watch is Guatemala, where in 1995 South Korea began to in-

“Generally Korea increases the flow

Free-trade agreements are precisely

Carlos Aquino asserts that the Pacific

of its investments in those countries with

Alliance can be the perfect platform for

which it has a free-trade agreement. For

bringing capital from the Asian APEC

example, in Peru, Korean firms have

economies to the region.

explored the possibility of business in the

The Pacific Alliance is formed by

vest in the textile sector. Currently, four of

aeronautical and naval fields,” notes Car-

Mexico, Colombia, Peru, and Chile. These

the six largest Korean textiles companies

los Aquino, who holds a PhD in Econom-

are open, export-oriented economies

invest in Guatemala via subsidiaries of the

ics from Kobe University in Japan and is

whose main market goal is the Asian con-

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GLOBAl ISSUE

APEC 2016

tinent. Overall, the bloc represents 37% of the GDP of Latin America and the Caribbean, and its average growth is projected to be 2.6% for the period 2014-2016. The bloc exported a total of US$512 billion in goods during 2015, which represents 55% of the total exports from Latin America, and attracted US$7 billion in direct foreign investment. Of the members of the Pacific Alliance, Colombia is the only member who isn’t also part of APEC. Even so, according to Carolyn Robert, International Trade Lead Specialist at the IDB, the bloc would be a perfect platform for commerce and investment from and

Of the members of the Pacific Alliance, Colombia is the only member who isn’t also part of APEC. Even so, according to Carolyn Robert, International Trade Lead Specialist at the IDB, the bloc would be a perfect platform for commerce and investment from and towards the APEC Asian economies.

towards the APEC Asian economies.

areas: opening of businesses, obtaining construction permits, obtaining credit, trade across borders, and fulfillment of contracts. Kuriyama says that despite the progress made, there is still much to be done in these areas. For example, in Peru in 2015 it took on average 174 days to obtain a construction permit, while in Singapore it takes only 26 days. Similarly, while in New Zealand it takes only half a day to do the paperwork to open a business, in Colombia it takes 11 days. For these reasons, the countries of the Pacific Alliance, and Latin America more generally, need to press down on

Moreover, for their part, the countries

in different sectors such as energy, tou-

the accelerator and carry out structural

have begun to partipate in cooperation

rism, and infrastructure.” notes Carrizosa.

reforms that brighten the business cli-

meetings with economies such as Indonesia, Malaysia, Philippines, Singapore, and Thailand, countries which are the

mate, as well as improve logistics through

The challenges Although in Latin America there are

the use of technology. Finally, the region needs to take a more active role in APEC

fastest growing economies in the bloc of

many diverse opportunities for attrac-

regarding the transfer of technology and

Southeast Asia countries.

ting investments from the Asian side of

the creation of knowledge, so to prevent

APEC, there are also many challenges that

development from being reduced to

[trade blocs], we’ve identified areas of

Latin America must overcome. The main

maquilas of commoditized manufacturing

cooperation to deepen trade ties and eco-

challenge involves forming the mentioned

and the sale of unsophisticated services.

nomic relations based on increasing [our]

value chains. “That is how the Asians work.

It is necessary to seek synergies in which

participation in Asia-Pacific value chains,”

It is for that reason that Japan, for example,

everyone ends up winning. An association

says Robert.

is one of the main investors in Southeast

among Peru and Chile with Singapore in

Asia,” explains Carlos Aquino.

the development of varieties of green leaf

“Within the framework of these

Increasing productive chains is one

But to establish these chains in the

vegetables, berries, and vegetables adap-

achieved via the cumulation of origin

region, and even in the Pacific Alliance

ted to vertical farming (and the struggle

among its member countries, which in

which seeks to form them among its

against plant illnesses), is one example.

turn, according to Martín Carrizosa, presi-

four member countries, it is necessary to

The preceding implies a concept of

dent of the Colombia Chapter of the Paci-

remove excessive formalities and manage

enriched investment, in which public and

fic Alliance Business Council (PABC), will

to facilitate investments. This is a very

private ensembles of specialized R+D

favor the insertion of firms from this Latin

important aspect, according to Carlos

operate, systematically articulating with

American bloc into global value chains.

Kuriyama, who reveals that the APEC

each other, rather than waiting for the

technical secretariat is promoting initia-

cornucopia to overflow with riches, an

not part of the APEC forum, we view with

tives to this end. One is the APEC Ease

overly religious vision of automatism.

great enthusiasm and expectation the

of Doing Business, whose goal is to turn

Asian market and the investment oppor-

doing business in Latin America into

capital to export global products and

tunities that might be generated, because

something easier, faster, and less costly.

solutions, which are present in the minds

Latin America overall offers opportunities

This APEC instrument focuses on five

of its entrepreneurs and researchers.

of the Pacific Alliance’s goals and will be

“Although my country, Colombia, is

Latin America also needs Asian

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GLOBAl ISSUE

APEC 2016

WITH UNFINISHEED TASKS, LATIN AMERICA CONFRONTS NEW CHALLENGES The end of the Chinese boom smashes the regionâ&#x20AC;&#x2122;s illusion that development can happen without much thought. From now on, the threats and promises posed by climate change, aging, and artificial intelligence present us with a new game. BY Rodrigo Lara SERRANO, Buenos Aires

AMÉRICAECONOMÍA NOVEMBER 2016

‘‘I

am going to work here. I

Muriel, a young Argentinian programmer

make more money, poh!”.

and amateur musician who can be found,

Luis parks cars during the

every August and September, in a cottage

farmer’s market on Emilia

in Redonda beach, on Nicaragua’s Pacific

Tellez street in Ñuñoa, a neighborhood in

coast. Right now, two groups of “traveling

Santiago, Chile. He is also studying to be a

entrepreneurs” are basing their activities

refrigeration technician. Luis is a likeable

here. They call themselves the “WiFi

fellow. Perhaps because he moves like a

Tribe”, and for now Muriel is one of them.

two-legged cat, has a winning smile, and a

The group, which selects its members,

glimmer of mischief in his green eyes. Or

does projects and remote work (some

perhaps because, with a rictus of serious-

basic, some not), and moves from one

ness, he waves his arms like a DJ, as if

country (or continent) to another every

moving the cars to the rhythm of scratches made upon invisible platters in the air. People leave him their car keys, or get his help loading their purchases. Then, they give him 400, 600 or 1,000 pesos (US$0.60 to US$1.60). That is how he organizes traffic in the confines of three passages and a couple of alleyways each Wednesday and Saturday. He has worked already in refrigeration, in a couple of warehouses. It’s not that he doen’t like the work. It’s just that, moneywise, he makes more on the streets. And there is no difference in job security:

Harvard economist Dani Rodrik proposes two growth channels: one of “fundamentals,” based on the accumulation of abilities generalized throughout the economy and of institutional capacities; and one of “structural transformation” based on industrialization.

the work in refrigeration is temporary, for

four to six weeks. Even though Luis and Muriel are very different people, and do very different work, both still share something: they turn vice into a virtue. They resignify insecurity as freedom, converting job insecurity and informality in an adventure. Hundreds of thousands of young people in Latin America are living in a similar fashion –from the 23-year-old Colombian engineer who organizes a crowdfunding to the Guatemalan girl who, at only fourteen, crosses Mexico by herself to reach the United States. There is a problem, though. These stories might be the basis for a personal

a company hired by supermarkets and bu-

fall to US$515 (CLP$340,000). In other

epic (if all goes well) for Luis, Muriel, and

sinesses that need to keep a “cold chain”.

words, for him the numbers add up. But,

the others, but they might also be nothing

isn’t there any extra social value in being a

more than a new disguise for two old

“technician”?

symptoms of Latin American backward-

“Sure, poh, it’s a bit cold in the winter, but it’s not long before summer arrives.” With his brother, also a car watcher, Luis and his family travel to the nearby coast whenever there is an extended holiday

ness: informality and low productivity

Consuming to belong “In Chile, as with other new middle

–both effect and anticipation of a repetition of one more new cycle of frustration

–and are now saving to buy a car. It may

classes in the region, status is given by

for their countries, which have not arrived

seem odd that someone would rather park

consumption,” says sociologist Carlos

at development. And nor will they –accor-

cars in the street than repair and maintain

Catalán Bertoni, who specializes in culture

ding to Harvard economist Dani Rodrik,

sophisticated equipment, but Luis can

and consumption. “Consuming is the

who in two recent papers explains why.

earn US$150 a week (and probably a lot

mechanism of inclusion. Equality is expe-

“I propose a framework that distinguishes

more on summer months). That is US$600

rienced via consumption. The car watcher

between two channels of growth, with

a month. In Chile, according to the last

doesn’t care what the elite woman who

overlapping but distinct requirements: a

Labor Survey (Encla), the gross salary of

goes to the market thinks. What he wants

‘fundamentals’ channel that relies on the

nearly half of the wage workers is US$636

is to own a car.”

accumulation of economy-wide skills and

(CLP$420,000), although the net earnings

Something similar is going on with

institutional capabilities, and a ‘structural

GLOBAl ISSUE

APEC 2016

transformation’ channel that relies on industrialization. I argue that slow-to-moderate growth is possible with the former, but that rapid convergence requires the latter.” Rodrik is far from being nostalgic for factory smokestacks. He simply notes that the only countries that developed after World War II, growing for three decades at rates of 4.5% or more annually, were those that industrialized quickly. The exceptions are very small, resource-rich nations (like Oman or Botswana) that, after growth, faced serious setbacks.

18%

of GDP is Latin America’s internal savings rate.

2.5%

is the GDP growth rate around which Latin American economies revolve in the absence of a commodity or investment boom.

Productivity, the Cinderella The economist also claims to have

can handle the heterogeneity of risks” in the economy. Although Titelman recognizes that “great progress has been made on some instruments,” bankers from the region and those from outside are not as innovative as they think they are. In Chile, the country that presents itself as the most advanced in the region (its per capita income is equal to 41% of that of the United States in terms of PPP and 27% at market prices), the SMEs involve almost one million entrepreneurs. “This represents one eighth of the labor force”, says economist Ricardo Ffrench-Davis, who believes that a first start towards a

laws, growth moves between 1.5% and

solution is to “democratize capital forma-

identified the mechanism that makes this

2.5% when there is no boom in commodi-

tion and entrepreneurial opportunities via

an iron rule, especially for open econo-

ties or in foreign investments.

a profound reform of the capital markets,

mies after the mid-80s or 90s. The problem is that, in a globalized

“Latin America has a very high

with a decided bias towards financing

productivity gap. It hasn’t closed it, it has

development.” To this end, he proposes

economy, it is no longer enough to match

rather grown wider,” agrees Daniel Titel-

that part of the US$171 billion that Chi-

the pace of global productivity –you have

man, chief of the Economic Development

lean pension funds (AFPs) have invested

to surpass it. “When TFP [Total Factor

Division at ECLAC. Since the economic

abroad gradually be oriented to financing

Productivity] growth in manufacturing is

structure is based on commodities, “when

lines of credit directed principally at that

global, only those countries with the more

negative shocks hit, the economies have

group of one million entrepreneurs.

rapid TFP growth will avoid deindustria-

no capacity to respond,” he notes.

lization,” he argues. “So, for Latin America

Catalán, the sociologist, doubts this.

And commodities are not the only

“The private system has no incentives to

or Africa to experience industrialization

economic “bridge” linking the present and

manage this savings ‘risk’. And, with this

as open economies, they must have had

the future that tends to fall without any

State, we can’t do it. We’ve arrived too late.”

TFP growth in manufacturing that was

prior notice. “Investments in the region

faster than in the rest of the world, which

have contracted for seven straight quar-

evidently did not happen.”

ters,” he adds. The challenge to moderate

Hard work and lean pay The fact is that the SMEs are the place

the shocks, then, involves “how to promote

where a good part of the productivity gap

the Latin American economies retained

investments not tied to commodities, (…)

can be closed. In Brazil, Roberto Afonso,

a handful of companies which, in global

because investment is the bridge between

an economist at the Instituto Brasileiro de

terms, were highly productive. And –with

present and the medium and long terms.”

Economia, says that this isn’t the main pro-

According to the economist, the

blem. “I don’t believe that lack of financing

What did happen was that each of

notable exceptions– a service sector steeped in such extensive informality that

region has another flaw that prevents

is the major problem for this segment in

it pushed down the total productivity of

increasing growth: its financial system.

Brazil; the financial agents of the BNDES

their economies.

First, internal savings remain at 18%

offer reasonable credit. What is lacking is

of the GDP; “this is relatively low.” But

improving those firm’s ability to develop

announcements by government officers,

also missing is access to financing for

projects and cutting fiscal and labor costs,

firms, and the media regarding reforms,

entrepreneurs and SMEs. “There is a need

which are very high in comparison with

agreements, commissions, projects, and

to develop the financial system so that it

other countries.”

This explains why, despite continual

GLOBAl ISSUE

APEC 2016

123RF/ KRISTO-GOTHARD HUNOR

Also in Brazil, Armando Castelar Pinheiro, coordinator of Applied Economics at FGV (Getulio Vargas Foundation) and a member of the Superior Economics Council of Fiesp (Federation of Industries of the State of São Paulo), thinks that a better future for his country requires, right now, concentrating on Rodrik’s first “channel” of growth. “Brazil’s current potential for sustained growth is in this range (2%-2.5%) due to low investment, low productivity growth, and a workingage population that is growing more slowly,” he says. In his opinion, more manufacturing is not the answer: “Under present condi-

Latin America squandered its demographic bonus without reaching development. 123RF

tions, if there were more manufacturing industry, performance would be even

As a result, “without a doubt, po-

worse, given that productivity in the

pularity is [now] the central factor [for

sector is falling. We must remember that

politicians]. When the president is un-

Brazil has had slow growth since the

popular and protesters call for his or her

beginnings of the 80s, when the partici-

resignation, it is easy for the congressional

pation of the manufacturing sector in the

opposition to justify a political trial,” he

GDP was much higher than the interna-

says. “Presidents during the last decade

tional norm.”

understood this. For this reason, they emphasized economic growth and short-

Afonso, closer to Rodrik, states that “we have to again pursue macroeconomic

term public spending to keep hold on the

policy and create coherent and consistent

popular coat-of-arms.” As no path of solid long-term prospe-

solutions around diverse macro instru-

rity is visible on the horizon, “I think in

ments –not only fiscal, but also monetary, Rather than a sign of entrepreneurial freedom, massive informality reveals the low productivity of the regional economies.

the future we will see more participation,

of growth is broken: “Brazil still lacks

for almost the entire region. Although

this tension.” says Pérez-Liñan.

better institutions with which to design

democracy is not in danger, it will be hard

and adopt consistent and coherent macro

to find consistent state policies. “What is

tures for pensions, alone, will triple from

solutions.”

distinctive about the new pattern of ins-

here to 2070. “Inasmuch as the phase

tability,” he explains, “is that governments

of the demographic boom is over”, says

are unstable, but the democratic regime

Paulo Saad, chief of the Latin American

exchange, credit, and commercial instruments.” Nevertheless, none of this can be done because Brazil’s primary source

We are all going to be populists In this regard, Aníbal Pérez-Liñán,

but with the price of greater intolerance. Democracies again will have to navigate And there will be tensions. Expendi-

holds because there is no military inter-

and Caribbean Demographic Center´s

professor of Political Science at the

vention.” Between 1990 and today, eight

(CELADE) Population Division, referring

University of Pittsburgh and an expert on

presidents in the region left power after

to the period when the proportion of the

institutional performance, has bad news

impeachment proceedings and nine more

population in economically active age

for the future. Not only for Brazil, but

in the face of popular protests.

groups grew relative to the population in

GLOBAl ISSUE

APEC 2016

123RF / MOHD HAIRUL FIZA MUSA

economically dependent age groups, “the accelerated aging of the population and its incidence upon social and economic demands will become the most relevant demographic tendency in the region.” Saad continues: “For instance, in the countries further advanced in this demographic

indications (public policies, for example), few perhaps, of steps that some countries in the region are taking towards a new technological frontier.” The next 30 years might bring a more unexpected loss than that of climate regularity –a psychological one. Rather than

transition (Argentina, Brazil, Chile, Costa

speak of Latin America “it’s more correct

Rica, Cuba, and Uruguay), elderly adults

to speak of South America, Central Ame-

will go from representing around 15% of

rica, and North America, including the

the working-age population to between

Caribbean,” says Khatchik Derghouga-

40% and 60% by 2070.”

ssian, an expert in international relations

And pensions may not be the largest stumbling block to be navigated. “Even though the debate has focused on pen-

at the Universidad de San Andrés, in ArEarly deindustrialization was a mistake. The future is now even further away.

sions, health care may be the main fiscal

gentina. A lot has to do with the fact that “I don’t think it is in the interest of Mexico to resume a vanguard position in Latin

challenge for aging economies. Therefore,

the WHO). And “the available evidence

America.” With Mexico moving from

preparing health systems for rapidly aging

shows that climate change intensifies the-

the backyard to the front yard, ironically,

societies is a basic task for governments,”

se effects of atmospheric contamination,”

the weight of the region for the U.S., in

he adds.

recalls José Luis Samaniego, Director of

coming decades, might remain relatively

the ECLAC’s Sustainable Development

equal to the semi-autonomy of today.

Until now, the preferred response among regional economists and politicians has been to raise the retirement age

and Human Settlements Division. The region is beginning to understand

Finally, although a pessimist is a well-informed optimist, Pérez Liñán

(and/or employer and employee contribu-

that “the climate is a global public good,

believes that there is a way to find a bright

tions) and the coverage of health insuran-

that requires adaptation and mitigation

side in the future of people like Luis and

ce. Although we are beginning to suspect

efforts,” says Samaniego. “Some studies

Muriel in the region: “Perhaps we should

that the second robotic revolution or the

carried out in the region suggest that

invert the problem and ask what type of

first of artificial intelligence (AI) might

losses in agriculture would be transferred

economic development do societies with

result in a situation in which 50% of the

to communities and lead to emigration.

democractic leaderships seek and what

labor force no longer has these benefits

This matter should be better studied in

type is sought by societies with centrali-

(see the John C. Edmunds column in this

the context of the economics of climate

zed political power.” And he recalls: “The

issue). The solution would be to provide

change,” states Jorge Martínez, research

Latin American countries with the longest

an universal income, but to do so pre-

assistant and international migration

democratic histories, such as Costa Rica

supposes that the jump in productivity

expert at the CELADE.

and Uruguay, are precisely those that

among businesses with AI manpower would pay the taxes to finance this.

For Facundo Albornoz, an economist

most invest in education, health, and

specialized in commerce and develop-

social security.” This is not trivial, because,

ment at the University of Nottingham, “it

“given such investment in human capital,

In the 18 main cities in the region, the

is evident that the exploitation of non-

externally-driven periods of rapid growth

PM2.5 –a particulate matter index of air

renewable (or slowly renewable) resour-

can lead to a more equitable distribution of

pollution– already exceeds that allowed

ces will in the future reach its limit. Also,

prosperity and a reduction of inequality.”

by the WHO (although in nine cities

the worries that this provokes compels us

This situation is not to jump for joy, but it

these levels are equal to or lower than the

to think about novel forms of production

certainly is part of the current Latin Ame-

maximum established by the European

that counterbalance the ecological dama-

rican reality. If Sisyphus had had alpine

Union, which more than doubles that of

ge that producing generates. There are

boots, he would have had a better time.

Another future issue is pollution.

GLOBAl ISSUE

APEC 2016

IT’S GETTING COLDER Profitwise, 2015 turned into the worst year for the members of the club of Latin America’s 500 Largest Firms. Although there were notable exceptions, the majority remained below zero, affected by the economic slowdown, low commodity prices, and the depreciation of currencies. BY Andrés Almeida AND Catherine Lacourt, AméricaEconomía Intelligence

‘‘W

e are restructuring,

cuts in investments, budgets, and hirings,

of hundreds of Latin American firms are

reducing costs, and

as well as the sale of any assets considered

stained by bad news.

creating efficiency.”

nonessential to the core business, among

During 2015, this

other strategies to become profitable.

among sizes, trajectories, nationalities,

phrase was a cliché among CEOs of most

Nevertheless, the fire didn’t burn the way

or products. Not even the most emble-

–if not all– companies operating in Latin

everyone expected or would have liked,

matic companies escaped –companies that

America. And so too arrived mass layoffs,

and as a result the financial balance sheets

had been performing well in the past few

And the malady did not discriminate

AMÉRICAECONOMÍA NOVEMBER 2016

years, such as the Colombian firm Ecopetrol or the Peruvian Belcorp. Overall, if 2014 was bad, 2015 was worse. The total annual sales of the AE 500 fell -18,2% between 2014 and 2015 (whereas in the previous ranking the decline was only -4,6%), while the percentage fall in profits reached a chilling -116%, as compared to -41% in the previous period (taking into consideration only those firms that reported profits in the last valid ranking). This means that the AE 500 lost US$452 billion, a sum equivalent to a little less than Belgium’s GDP. In regards to profits, the aggregate total gives a total loss of US$10.7 billion, which is equivalent to a little more than the GDP of Armenia.

Three major phenomena negatively tint the performance of the AE 500: a dollar that was particularly hard on the Latin American currencies, which were also pushed down by the non-recovery; the fall in commodity prices; and the chaotic situation in Brazil, where 195 of the firms in the Ranking Latin America’s 500 Largest Firms are located.

Losses? Yes, but only if we include the

only firms present in the 2016 ranking). These falls had an enormous impact given that these three sectors together represent almost a third of the total sales of the AE 500 in 2016. Third, the chaotic situation in Brazil affects the general results. Even though as a whole the changes in sales of the Brazilian firms were slightly lower than overall in the region (-22.5% versus -18.2%), the profits of the Brazilian firms collapsed by almost 200% between 2014 and 2015. After all eight Brazilian firms reported losses of over US$1 billion. Cases like Petrobras (US$-9.77 billion), Vale (-US$25 billion) and México’s Comisión Federal de Electricidad (US$-12.4 billion) are alarming. Furthermore, various Brazilian firms under judicial investigation for corruption

three firms with the greatest losses (Pe-

between the 31st of December of 2014

disappeared from our scene, either because

mex, Petrobras, and Vale). When they are

and 2015. For the effects of this ranking,

their sales fell dramatically and they fell

excluded, the aggregate profits of the AE

these figures are calculated considering

out of the group of 500 or becaues they

500 turn positive, at some US$36.5 billion.

the conversion from the local currency.

simply did not report data by the closing

The three mentioned firms, together,

These declines take place upon the basis

date of this research. Among these cases

lost US$47.2 billion during 2015: a little

of a 2014 that had already been hit by

are Odebrecht and subsidiaries, Andrade

less than the gross domestic product of

the deterioration of the Latin American

Gutierrez and subsidiaries, the subsidia-

Croatia in 2015.

currencies in the face of the dollar. This is

ries of Camargo Corrêa, Grupo OAS and

In the same vein, the number 500

a significant blow if you consider that 326

subsidiaries, and Galvão Engenharia.

company this year did not break the

of the firms are in Brazil or Mexico, 211

Undoubtedly, if the firms had been more

US$1 billion sales barrier, achieving only

of which are multilatinas or multinational

transparent, the Brazilian effect would

US$947 million, which for this indicator

subsidiaries; that is, firms that are heavily

have been even sharper.

harks back to 2009, the last year in which

exposed to the international market that

sales were below this symbolic figure

speaks in dollars.

–until now. In 2014 the lower cutoff was US$1.25 billion. The performance of the AE 500 firms

And while we are on defeats, it must be noted that transparency has been one

Second, commodity-producing

of the victims. Aside from the companies

companies, particularly extractive firms,

mentioned, bad results led various firms

did terribly. As we’ve already seen, three

not to publish their financial reports. En-

needs to be seen in the context of three

extractive companies, all export-oriented,

tire information systems even ceased pu-

major phenomena that negatively tint

greatly impacted the aggregate profits

blication, as occurred with those repor-

their earnings.

of the AE 500. As for variations in sales,

ting on exports in Brazil and Mexico.

First, the dollar has been particularly

taking into account the 10 most relevant

Chiaroscuros

hard on the Latin American currencies.

firms, the Petroleum/Gas, Mining, and

Consider only the Brazilian real and the

Steel/Metallurgy sectors saw the most

Mexican peso: these currencies depre-

dramatic falls in annual sales: 28.3%,

truth than saying that when it rains,

ciated by 24.6% and 14.4%, respectively,

19.2% and 16.9%, respectively (including

everybody gets wet. Some get drenched to

Nothing could be further from the

GLOBAl ISSUE

APEC 2016

The 500 by country NUMBER OF FIRMS RK

COUNTRY 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Brazil

207

211

212

226

223

215

210

201

203

195

Mexico

111

134

126

119

117

110

120

118

119

131

Chile

Argentina

Venezuela

Colombia

Peru

Ecuador

Chile/Brazil

Bolivia

Costa Rica

Uruguay

Panama

Brazil/Paraguay

El Salvador

Guatemala Total

500

the bone, fall resoundingly in the rankings or even disappear from them, while other firms are sheltered by sectors that are more

The 500 in history Year

Sales (in US$ millions)

Change

Minimum (in US$ millions)

1991

324,069.8

196.0

1992

375,102.7

15.7%

166.5

1993

402,867.2

7.4%

162.6

1994

512,087.0

27.1%

193.5

all, both the Software /IT and the Electro-

1995

544,318.2

6.3%

215.5

nics sectors increased their annual sales.

1996

553,580.3

1.7%

267.2

1997

645,180.0

16.5%

350.4

or less incombustible –their officers sit by the fire and smoke their cigars. From the start, technology wins. Over-

An example is the Brazilian firm

1998

629,847.0

-2.4%

316.0

increasing sales by 8.5%, obtained profits

1999

624,527.4

-0.8%

278.5

2000

881,208.1

41.1%

357.7

on the order of US$1.19 billion.

2001

855,427.7

-2.9%

331.7

Cielo (number 144), which in addition to

In this manner, 90 firms increased their sales. Similarly, 75.2% of those 303 firms that report earnings indicate that these are positive. These results occur in all sectors. The most outstanding cases are found in the Retail sector. There, five firms in four different countries combine growth

2002

831,571.6

-2.8%

324.9

2003

938,208.0

12.8%

362.0

2004

1,122,496.6

19.6%

464.3

2005

1,364,398.2

21.6%

526.2

2006

1,581,618.0

15.9%

570.3

2007

1,955,734.7

23.7%

821.8

2008

1,882,521.8

-3.7%

719.0

2009

2,004,608.2

6.5%

901.6

2010

2,338,493.4

16.7%

1,052.9

2011

2,457,750.9

5.1%

1,109.5

2012

2,637,714.0

7.3%

1,211.6

2013

2,599,177.6

-1.5%

1,256.1

(54), Falabella Perú (147), Supermerca-

2014

2,480,807.9

-4.6%

1,250.3

dos La Favorita in Ecuador (212) and the

2015

2,028,778.8

-18.2%

947.4

in sales with positive earnings: Almacenes Éxito in Colombia (35), Oxxo in Mexico

AMÉRICAECONOMÍA NOVEMBER 2016

TOTAL SALES (US$ MILLIONS) 2006

2007

2008

2009

2010

2011

2012

2013

2014

Var. % sales 15/14

2015

Partic. % 2015

610,088.2

825,018.2

746,786.7

956,790.2

1,162,356.3

1,165,978.6

1,171,167.5

1,126,034.2

1,085,673.6

830,848.3

-23.5

43.8

532,016.3

645,721.6

588,245.5

580,695.4

600,552.6

59,752.7

724,353.5

713,031.8

676,428.2

614,126.3

-9.2

27.3

137,953.1

158,345.4

164,322.2

152,323.9

211,358.9

253,394.4

264,954.7

253,707.3

245,789.5

204,158.5

-16.9

9.9

88,240.6

107,736.8

117,493.5

105,376.7

113,654.2

124,793.6

110,826.3

154,538.4

148,880.6

117,668.5

-21.0

6.0

118,360.8

109,557.5

147,586.6

85,001.7

101,218.6

132,027.2

133,967.5

125,446.3

112,273.7

90,054.1

-19.8

4.5

46,945.5

58,597.4

59,484.0

65,998.8

74,797.4

9,268.4

113,769.3

101,894.8

90,218.1

76,951.1

-14.7

3.6

26,085.2

29,091.7

32,300.0

29,782.7

40,320.3

57,315.6

68,925.4

66,149.3

61,936.2

49,254.2

-20.5

2.5

8,684.0

9,444.4

13,182.6

10,525.2

12,057.7

3,091.3

19,069.5

20,159.9

19,924.0

13,235.7

-33.6

0.8

9,722.2

11,906.0

12,093.5

9,713.0

-19.7

0.5

4,000.0

4,400.0

5,102.0

4,200.0

6,059.0

8,971.1

5,883.4

-34.4

0.4

4,640.4

5,594.2

6,180.8

6,624.3

7,051.9

7,450.2

3,096.1

5,739.8

5,597.5

4,649.7

-16.9

0.2

2,230.7

2,933.0

2,725.9

3,295.8

3,851.9

4,733.4

5,342.6

5,725.8

4,701.9

3,864.2

-17.8

0.2

2,294.0

2,756.5

3,273.9

3,253.4

3,423.2

4,191.6

4,521.2

4,984.8

5,029.0

4,691.0

-6.7

0.2

3,450.5

3,652,1

3,797.9

3,800.4

3,291.0

3,680.8

11.8

0.1

928.3

938.0

940.0

3,151.0

1,581,618.0

1,955,734.7

1,882,521.8

2,004,608.2

2,338,493.4

2,457,750.9

2,637,714.0

2,599,177.6

2,480,807.9

2,028,778.8

-18.2

In fact, in the overall scenario, this

Change in the rate of exchange relative to the dollar 2011 - 2015 (%) Source: www.oanda.com Brazilian Real

sector is undermined by the contraction Chilean Peso

Colombian Peso

Mexican Peso

Peruvian Sol

-15.00 10.00 5.00

of consumption in Brazil. If we perform the inverse exercise and count firms that experienced negative variations in both

9.80

sales and profits, we end up with five

8.33 7.53 6.08

firms, four of which are Brazilian –B2W (188), Magazine Luiza (189), Profarma (496) and Brasil Pharma (499)– and one

is Chilean –Ripley (230). In Food, as well as in Beverage and

-5.00 -10.00

100.0

Grupo Gigante in México (343).

Local currencies in the rut

Argentine Peso

Liquor, we also see sucessful combi-

-8.89 -11.83

-12.27

-14.52

-15.00

nations of growth in sales and profits. Combining both sectors there are six success stories: JBS (5), Femsa (15), Grupo Bimbo (26), Sigma (77), Arca Conti-

-20.00 -25.00

-24.61

nental (99) and Sukarne (226)(the first of

-25.91

these firms is Brazilian; all the others are

-34.25

pany Alicorp (261) also stands out: even

-30.00 -35.00

Mexican). The case of the Peruvian comthought its sales fall slightly by 8.2%, the firm increases its profits from US$4

-40.00

2012-2011

2013-2012

2014-2013

2015-2014

million to US$46 million.

GLOBAl ISSUE

APEC 2016

RK RK 2015 2014

1 - 50

COUNSECTOR/CATEGORY TRY

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

1 PETROBRAS

BRA Petroleum/Gas

90,238.8 125,514.7

-28.1

-8,033.8

-21.7

7,122.3

3,260.5

3 PDVSA

VEN Petroleum/Gas

88,554.0* 120,892.0

-26.7

8,453.0* 12,465.0

-32.2

16,046.0

21,973.0

2 PEMEX

MEX Petroleum/Gas

67,427.4 107,437.3

-37.2

-25,004.7 -17,979.9

4 AMERICA MOVIL

MEX Telecommunications

51,694.7

57,435.8

-10.0

2,026.5

5 JBS

BRA Food

45,707.3

44,834.0

1.9

1,301.8

9 WALMART DE MEXICO Y CENTROAMERICA MEX Retail

28,290.3

29,859.3

-5.3

1,524.8

7 PETROBRAS DISTRIBUIDORA

BRA Petroleum/Gas

27,292.9

36,668.2

-25.6

-325.7

8 VALE

BRA Mining

23,987.7 32,852.3

-27.0

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

FIRM

-9,773.6

-39.1

11,891.0

59,605.9

-35.1

15,446.2

18,386.5

757.7

71.8

3,611.4

3,861.6

2,060.1

-26.0

2,601.1

2,978.9

417.9

-177.9

-331.3

612.6

-12,404.2

355.2

-3,592.3

3,124.6

-4,165.8 10,302.2

11 ULTRAPAR

BRA Petroleum/Gas

21,225.9

25,208.7

-15.8

421.8

462.1

-8.7

1,109.1

43 NISSAN MEXICO

MEX Automotive/Auto parts

20,067.2

19,753.0

1.6

N.D.

12 GPA-GRUPO PÃO DE AÇÚCAR

BRA Retail

19,390.9

24,385.8

-20.5

70.4

472.6

-85.1

751.9

1,836.6

14 TECHINT ARGENTINA

ARG Steel/Metallurgy

19,108.0

23,826.0

-19.8

N.D.

16 IPIRANGA PRODUTOS DE PETROLEO

BRA Petroleum/Gas

18,302.4

21,869.8

-16.3

284.8

327.9

-13.2

724.2

768.3

13 EMPRESAS COPEC

CHI Multisector

18,109.8

23,886.1

-24.2

537.8

857.2

-37.3

1,826.7

2,080.6

18 FEMSA

MEX Beverage/Liquor

18,013.0

17,838.1

1.0

1,022.2

1,130.8

-9.6

2,520.8

2,742.6

15 COMISION FEDERAL DE ELECTRICIDAD

MEX Electrical energy

17,739.8

22,574.3

-21.4

-6,852.7

-1,139.4

-501.5

-2.0

-92.1

17 RAIZEN COMBUSTIVEIS

BRA Bio-energy

17,230.0

20,741.9

-16.9

347.3

389.1

-10.7

706.1

801.3

10 ECOPETROL

COL Petroleum/Gas

16,208.6

28,948.6

-44.0

-1,240.8

3,154.3

-139.3

2,559.7

9,400.5

19 CENCOSUD

CHI Retail

15,495.9

17,668.3

-12.3

327.0

316.5

3.3

1,224.5

1,237.0

31 GENERAL MOTORS MEXICO

MEX Automotive/Auto parts

15,222.4

15,439.9

-1.4

N.D.

25 GRUPO ALFA

MEX Multisector

14,932.3

15,520.9

-3.8

218.4

-137.9

258.4

2,079.3

1,816.9

26 COSAN

BRA Bio-energy

13,383.9

14,885.9

-10.1

129.0

63.6

102.7

1,744.1

1,506.2

20 BRASKEM

BRA Petrochemicals

13,265.7

17,131.0

-22.6

881.0

321.6

174.0

2,571.9

2,093.6

27 AMBEV

BRA Beverage/Liquor

13,107.8

14,171.8

-7.5

3,485.6

4,490.3

-22.4

6,132.0

6,786.9

28 CEMEX

MEX Cement

13,050.1

13,840.1

-5.7

69.4

-459.3

115.1

2,260.1

2,099.0

34 GRUPO BIMBO

MEX Food

12,671.2

12,665.3

0.0

299.0

238.2

25.5

1,224.0

1,091.6

23 GERDAU

BRA Steel/Metallurgy

12,227.1

15,834.0

-22.8

-1,276.9

522.1

-344.6

-170.5

1,907.8

21 YPF

ARG Petroleum/Gas

12,014.7

16,611.5

-27.7

352.4

1,053.5

-66.6

3,379.2

4,763.7

22 CARREFOUR BRASIL

BRA Retail

11,980.4

14,115.2

-15.1

N.D.

30 CODELCO

CHI Mining

11,693.5

13,826.7

-15.4

-2,327.8

710.9

-427.4

-512.2

1,769.9

32 TELEFONICA BRASIL

BRA Telecommunications

11,302.9

13,025.6

-13.2

959.6

1,837.2

-47.8

3,382.6

3,874.8

38 FALABELLA CHILE

CHI Retail

10,938.2

11,562.5

-5.4

733.0

766.6

-4.4

1,421.7

1,490.8

41 COCA-COLA BRASIL

BRA Beverage/Liquor

10,805.5

11,221.2

-3.7

N.D.

33 BUNGE ALIMENTOS

BRA Food

10,597.6

10,422.0

1.7

N.D.

412.1

N.D.

35 117 ALMACENES EXITO

COL Retail

10,393.4

4,796.5

116.7

178.4

192.7

-7.4

597.1

401.7

37 VOLKSWAGEN MEXICO

MEX Automotive/Auto parts

10,255.0

10,730.0

-4.4

N.D.

52 COPEC COMBUSTIBLES

CHI Petroleum/Gas

9,941.4

9,609.9

3.4

N.D.

36 LATAM AIRLINES GROUP

9,713.0

12,116.5

-19.8

-218.7

-110.0

-98.8

1,379.1

1,535.6

CH/BR Air transport

1,175.2

39 103 CLARO TELECOM

BRA Telecommunications

9,453.6

5,149.4

83.6

-155.8

-230.6

32.4

2,775.7

1,320.4

24 PETROECUADOR

ECU Petroleum/Gas

9,284.0

15,767.0

-41.1

752.0

4,807.0

-84.4

1,075.0

5,092.0

73 CISCO MEXICO

MEX Software/IT

9,178.0

6,849.3

34.0

N.D.

39 ELETROBRAS

BRA Electrical energy

9,143.1

11,255.9

-18.8

-4,051.7

-1,128.1

-259.2

-3,002.5

-66.7

42 BRF FOODS

BRA Food

9,033.1

10,795.2

-16.3

872.9

828.1

5.4

1,555.7

1,752.4

49 CARGILL BRASIL

BRA Agro-industry

9,002.5

9,732.2

-7.5

116.6

179.1

-34.9

N.D.

51 FIAT AUTOMOVEIS

BRA Automotive/Auto parts

8,877.7

9,617.5

-7.7

N.D.

45 GRUPO VOTORANTIM

BRA Multisector

8,843.5

10,442.4

-15.3

107.2

622.6

-82.8

1,962.2

2,656.1

47 COCA-COLA FEMSA

MEX Beverage/Liquor

8,807.9

9,973.6

-11.7

591.7

713.8

-17.1

1,693.7

1,909.3

56 FORD MOTOR COMPANY

MEX Automotive/Auto parts

8,695.3

9,184.9

-5.3

N.D.

61 CHRYSLER

MEX Automotive/Auto parts

8,531.3

8,592.8

-0.7

N.D.

55 GRUPO BAL

MEX Multisector

8,496.0

9,196.8

-7.6

110.6

234.8

-52.9

N.D.

AMÉRICAECONOMÍA NOVEMBER 2016

ROE (%) 2015

ROA (%) 2015

NET MARGIN (%) 2015

71,467.3

78,470

-13.7

-3.9

-10.8

7.9

State multilatina

Yes

petrobras.com

100,565.0

140,626

8.4

3.7

9.5

18.1

State multilatina

pdvsa.com

138,391

-37.9

-22.0

-37.1

17.6

State national

Yes

pemex.com

TOTAL ASSETS 2015 US$ millions

118.4

252,541.9

-27.0

227,674.0

-80.1

113,694.5

-65,918.1

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015 1

-16.0

74,949.9

6,490.8

195,475

31.2

2.7

3.9

29.9

Private multilatina

Yes

americamovil.com

-6.5

34,159.0

7,774.1

238,020

16.7

3.8

2.8

7.9

Private multilatina

Yes

friboi.com.br

-12.7

14,663.5

8,775.3

231,996

17.4

10.4

5.4

9.2

Multinational subsidiary

Yes

walmartmexico.com.mx

-154.1

8,765.0

3,613

-3.7

-1.2

State multilatina

br.com.br

-140.4

96,947.3

36,798.3

166,000

-33.7

-12.8

-51.7

-17.4

Private multilatina

Yes

vale.com

-5.6

5,882.2

2,229.0

14,597

18.9

7.2

2.0

5.2

Private multilatina

Yes

ultra.com.br

Multinational subsidiary

nissan.com.mx

State national

Yes

grupopaodeacucar.com.br

Multinational subsidiary

techint.com

12 13

N.D.

15,000

-59.1

13,327.2

2,935.8

173,906

2.4

0.5

0.4

3.9

29,928.0

N.D.

51,191

-5.7

3,786.3

100.7

2,864

282.7

7.5

1.6

4.0

State national

ipiranga.com.br

-12.2

19,881.3

9,333.7

26,694

5.8

2.7

3.0

10.1

Private multilatina

Yes

empresascopec.cl

-8.1

23,663.5

10,493.9

246,158

9.7

4.3

5.7

14.0

Private multilatina

Yes

femsa.com

97.8

74,657.7

7,512.2

69,502

-91.2

-9.2

-38.6

-0.0

State national

cfe.gob.mx

-11.9

3,102.1

730.8

N.D.

47.5

11.2

2.0

4.1

State national

raizen.com

-72.8

38,271.3

13,490.8

33,600

-9.2

-3.2

-7.7

15.8

State national

Yes

ecopetrol.com.co

-1.0

14,254.4

5,599.5

140,474

5.8

2.3

2.1

7.9

Private multilatina

Yes

cencosud.cl

N.D.

15,095

Multinational subsidiary

gm.com.mx

15,418.2

3,595.3

72,750

6.1

1.4

1.5

13.9

Private multilatina

Yes

alfa.com.mx

15.8

17,820.9

-4,616.6

30,305

-2.8

0.7

1.0

13.0

State national

Yes

cosan.com.br

22.8

16,822.7

567.5

8,000

155.3

5.2

6.6

19.4

Private multilatina

Yes

braskem.com.br

-9.6

25,299.8

13,560.0

52,738

25.7

13.8

26.6

46.8

Multinational subsidiary

Yes

ambev.com.br

7.7

31,348.3

8,294.5

44,110

0.8

0.2

0.5

17.3

Private multilatina

Yes

cemex.com

12.1

11,540.8

3,408.2

127,152

8.8

2.6

2.4

9.7

Private multilatina

Yes

grupobimbo.com.mx

-108.9

19,665.8

8,889.8

45,000

-14.4

-6.5

-10.4

-1.4

Private multilatina

Yes

gerdau.com.br

-29.1

27,967.7

9,265.8

22,025

3.8

1.3

2.9

28.1

Private multilatina

Yes

ypf.com.ar

N.D.

76,077

Multinational subsidiary

carrefour.com.br

-128.9

33,443.8

9,732.8

19,117

-23.9

-7.0

-19.9

-4.4

State national

codelco.cl

-12.7

28,528.8

19,237.2

34,000

5.0

3.4

8.5

29.9

Multinational subsidiary

Yes

vivo.com.br

-4.6

17,773.7

5,255.9

105,583

13.9

4.1

6.7

13.0

Private multilatina

Yes

falabella.cl

N.D.

60,001

Multinational subsidiary

coca-cola.com

N.D.

20,000

Multinational subsidiary

bunge.com.br

48.6

16,167.3

2,342.6

41,771

7.6

1.1

1.7

5.7

Multinational subsidiary

Yes

exito.com.co

N.D.

14,763

Multinational subsidiary

Yes

vw.com.mx

N.D.

State national

Yes

copec,cl

-10.2

18,051.2

2,848.6

50,413

-7.7

-1.2

-2.3

14.2

Private multilatina

Yes

lan.com

110.2

19,124.7

1,985.2

N.D.

-7.8

-0.8

-1.6

29.4

Foreign multilatina subsidiary

Yes

claro.com.br

-78.9

9,661.6

5,658.7

4,854

13.3

7.8

8.1

11.6

State national

petroecuador.com.ec

cisco.com/web/MX

N.D.

8,000

Multinational subsidiary

-4,399.6

41,984.5

11,809.3

23,696

-34.3

-9.7

-44.3

-32.8

State multilatina

Yes

eletrobras.gov.br

-11.2

11,331.3

3,792.3

105,733

23.0

7.7

9.7

17.2

Private multilatina

Yes

perdigao.com.br

3,718.9

932.5

8,023

12.5

3.1

1.3

Multinational subsidiary

cargill.com.br

N.D.

19,601

Multinational subsidiary

fiat.com.br

-26.1

23,090.4

10,099.6

39,300

1.1

0.5

1.2

22.2

Private multilatina

votorantim.com

-11.3

12,154.5

6,055.5

83,703

9.8

4.9

6.7

19.2

Private multilatina

Yes

cocacola-femsa.com.mx

N.D.

8,640

Multinational subsidiary

ford.com.mx

chryslerdemexico.com.mx

bal.com.mx

N.D.

11,000

Multinational subsidiary

18,010.8

5,523.7

55,966

2.0

0.6

1.3

State national

1 - 50

14.4

*The information was supplied by Venezuela’s People’s Ministry of Petroleum and Mining at the end of May 2016 and may differ from data published by the company after the research was concluded.

EBITDA MARGIN (%) 2015

EMPLOYEES 2015

EQUITY 2015 US$ millions

EBITDA VARIATION 15/14

GLOBAl ISSUE

APEC 2016

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

51 - 100

RK RK 2015 2014

FIRM

COUNSECTOR/CATEGORY TRY

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

29 WALMART BRASIL

BRA Retail

8,226.9

11,033.6

-25.4

N.D.

54 GRUPO MEXICO

MEX Mining

8,198.6

9,302.5

-11.9

1,019.3

1,794.2

-43.2

3,533.7

4,091.0

58 TERNIUM

ARG Steel/Metallurgy

7,877.4

8,726.1

-9.7

59.8

-104.2

157.4

1,073.1

1,380.6

66 OXXO (FEMSA COMERCIO)

MEX Retail

7,682.4

7,422.6

3.5

2,733.9

2,666.8

2.5

N.D.

44 OI (EX-TELEMAR)

BRA Telecommunications

7,674.4

10,512.4

-27.0

-1,384.5

-1,640.4

15.6

2,186.7

3,799.8

63 ORGANIZACION TECHINT MEXICO

MEX Steel/Metallurgy

7,416.2

8,110.7

-8.6

N.D.

46 TENARIS ARGENTINA

ARG Steel/Metallurgy

7,327.3

10,362.4

-29.3

-82.7

1,346.4

-106.1

840.6

2,540.6

40 ENERSIS

CHI Electrical energy

-41.5

1,303.7

935.3

39.4

64 ESCONDIDA

CHI Mining

6,575.0

8,004.5

-17.9

1,094.0

2,412.7

-54.7

N.D.

48 ENAP

CHI Petroleum/Gas

6,351.0

9,836.6

-35.4

170.5

156.6

8.9

266.5

230.2

72 ORGANIZACION SORIANA

MEX Retail

6,323.3

6,894.8

-8.3

215.4

250.8

-14.1

431.3

478.1

75 GRUPO ARCELOR MITTAL

BRA Steel/Metallurgy

6,240.1

6,694.8

-6.8

528.2

528.7

-0.1

590.5

1,318.5

81 KALUZ

MEX Multisector

6,214.0

6,266.2

-0.8

N.D.

87 GRUPO COPPEL

MEX Retail

6,193.3

5,790.8

7.0

N.D.

50 GRUPO CAMARGO CORREA

BRA Multisector

6,025.6

9,702.6

-37.9

N.D.

1,126.4

1,762.9

68 CEMIG

BRA Electrical energy

5,973.7

7,271.9

-17.9

699.0

1,167.3

-40.1

1,390.0

2,374.9

98 TOYOTA BRASIL

BRA Automotive/Auto parts

5,900.1

5,293.0

11.5

N.D.

60 COPERSUCAR

BRA Bio-energy

5,887.8

8,616.7

-31.7

-3.1

58.7

-105.2

167.7

181.6

57 YPFB

BOL Petroleum/Gas

5,883.4

8,652.0

-32.0

N.D.

1,061.1

N.D.

70 TELEFONOS DE MEXICO

MEX Telecommunications

5,822.2

7,241.8

-19.6

184.8

425.3

-56.6

1,375.2

2,008.8

93 MEXICHEM

MEX Petrochemicals

5,722.1

5,569.8

2.7

135.5

124.3

9.0

907.5

816.3

90 EMBRAER

BRA Aerospace

5,695.9

5,558.5

2.5

67.8

296.3

-77.1

610.6

737.1

71 SAM´S CLUB

MEX Retail

5,673.8

7,141.8

-20.6

N.D.

76 CPFL ENERGIA

BRA Electrical energy

5,669.0

6,440.6

-12.0

242.7

353.3

-31.3

1,051.8

1,399.2

78 AMERICAS MINING CORPORATION

MEX Mining

5,453.6

6,338.8

-14.0

629.7

1,194.7

-47.3

N.D.

88 SAMSUNG BRASIL

BRA Consumer goods

5,449.2

5,600.0

-2.7

N.D.

77 110 SIGMA

MEX Food

5,409.1

4,838.9

11.8

366.2

37.0

889.4

793.9

566.5

62 VIAVAREJO

BRA Retail

5,405.8

8,438.4

-35.9

0.8

349.1

-99.8

259.5

844.8

79 UNILEVER BRASIL

BRA Consumer goods

5,400.3

6,326.7

-14.6

N.D.

89 WALMART CHILE

CHI Retail

5,377.7

5,698.4

-5.6

510.4

220.5

131.5

466.4

499.4

65 MARFRIG

BRA Food

5,300.3

7,842.6

-32.4

-164.4

-275.2

40.3

480.0

620.8

94 EL PUERTO DE LIVERPOOL

MEX Retail

5,277.6

5,499.0

-4.0

532.5

525.7

1.3

859.7

881.8

67 GRUPO SALINAS

MEX Multisector

5,202.9

7,370.7

-29.4

-433.0

530.0

-181.7

N.D.

97 ARAUCO

CHI Cellulose/Paper

5,146.7

5,328.7

-3.4

367.7

436.9

-15.8

744.5

811.0

85 CORREIOS E TELEGRAFOS

BRA Logistics

5,113.9

5,975.0

-14.4

N.D.

3.7

N.D.

92 GRUPO CARSO

MEX Multisector

5,100.2

5,578.5

-8.6

358.2

384.9

-6.9

703.7

733.4

96 GRUPO TELEVISA

1,727.9

6,580.6 11,249.5

2,211.6 3,827.4

MEX Media

5,090.3

5,424.8

-6.2

630.1

364.7

72.7

1,931.2

88 109 RENAULT BRASIL

BRA Automotive/Auto parts

5,064.1

4,880.0

3.8

N.D.

BRA Retail

5,029.4

6,008.8

-16.3

70.2

159.2

-55.9

694.8

770.2

90 104 MERCEDES BENZ BRASIL

BRA Automotive/Auto parts

4,905.5

5,065.6

-3.2

N.D.

MEX Petrochemicals

4,832.4

5,827.9

-17.1

158.9

54.2

193.0

569.0

377.7

92 111 EMP. CMPC

CHI Cellulose/Paper

4,827.7

4,855.4

-0.6

-3.8

138.1

-102.7

970.3

815.8

69 TIM BRASIL

BRA Telecommunications

4,808.5

7,256.5

-33.7

581.1

575.5

1.0

1,853.4

2,061.1

91 AMIL

82 LOJAS AMERICANAS 86 ALPEK

BRA Health

4,651.1

5,608.7

-17.1

-35.0

-123.6

71.7

N.D.

95 112 GRUPO CHEDRAUI

MEX Retail

4,546.6

4,832.7

-5.9

100.6

115.7

-13.1

289.1

318.5

96 102 LOUIS DREYFUS COMMODITIES BRASIL

BRA Agro-industry

4,524.3

5,176.0

-12.6

N.D.

-62.2

N.D.

4,501.7

6,045.3

-25.5

860.4

877.2

-1.9

1,062.6

1,532.9

84 GLOBO COMUNICAÇÕES E PARTICIPAÇÕES BRA Media

80 ORGANIZACION TERPEL

99 129 ARCA CONTINENTAL 100 107 GRUPO ELEKTRA

COL Petroleum/Gas

4,429.5

6,301.7

-29.7

33.0

53.3

-38.1

N.D.

MEX Beverage/Liquor

4,419.8

4,195.1

5.4

418.9

440.5

-4.9

941.7

909.3

MEX Multisector

4,387.9

5,016.1

-12.5

-295.7

511.6

-157.8

447.9

583.5

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

EBITDA VARIATION 15/14

TOTAL ASSETS 2015 US$ millions

EQUITY 2015 US$ millions

EMPLOYEES 2015

ROE (%) 2015

ROA (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015

N.D.

71,864

Multinational subsidiary

wal-martbrasil.com

-13.6

22,301.7

10,298.2

29,801

9.9

4.6

12.4

43.1

Private multilatina

Yes

gmexico.com

-22.3

8,062.6

4,803.0

16,700

1.2

0.7

0.8

13.6

Multinational subsidiary

ternium.com

N.D.

132,900

35.6

Private multilatina

femsa.com

-42.5

27,218.5

3,707.8

16,557

-37.3

-5.1

-18.0

28.5

State national

Yes

telemar.com.br

N.D.

20,327

Foreign multilatina subsidiary

-66.9

15,361.9

12,087.0

21,700

-0.7

-0.5

-1.1

11.5

Multinational subsidiary

Yes

-42.2

21,780.6

8,495.8

12,222

15.3

6.0

19.8

33.6

Multinational subsidiary

Yes

enersis.cl

N.D.

4,518

16.6

Multinational subsidiary

mineraescondida.cl

15.8

5,453.6

700.7

2,210

24.3

3.1

2.7

4.2

State national

enap.cl

-9.8

5,887.6

2,897.9

81,874

7.4

3.7

3.4

6.8

State national

Yes

soriana.com.mx

-55.2

9,517.4

4,738.4

N.D.

11.1

5.5

8.5

9.5

Multinational subsidiary

Yes

arcelormittal.com.br

N.D.

25,440

State national

kaluz.com

techint.com

tenaris.com

2,223.3

2,737.0

95,875

Private multilatina

Yes

coppel.com.mx

-36.1

N.D.

52,000

18.7

Private multilatina

camargocorrea.com.br

-41.5

11,469.3

3,645.9

7,860

19.2

6.1

11.7

23.3

State national

Yes

cemig.com.br

N.D.

Multinational subsidiary

Yes

toyota.com.br

-7.6

2,684.9

138.8

580

-2.2

-0.1

2.8

copersucar.com.br

N.D.

5,517

ypfb.gov.bo

Private multilatina

State national

7,648.9

40.7

N.D.

453.9

2.4

3.2

23.6

Private multilatina

Yes

telmex.com.mx

11.2

8,690.6

2,909.4

18,803

4.7

1.6

2.4

15.9

Private multilatina

Yes

mexichem.com.mx/

-17.2

12,784.2

4,099.3

19,000

1.7

0.5

1.2

10.7

N.D.

28,500

Private multilatina

Yes

Multinational subsidiary

embraer.com.br

sams.com.mx

-24.8

11,371.8

2,153.1

9,584

11.3

2.1

4.3

18.6

State national

Yes

cpfl.com.br

14,080.7

6,340.7

N.D.

9.9

4.5

11.5

Private multilatina

gmexico.com

Multinational subsidiary

samsung.com/br/

Private multilatina

Yes

gruposigma.com.mx

State national

Yes

pontofrio.com

unilever.com.br

79 80

N.D.

4,772

40.1

4,809.1

800.9

40,044

45.7

7.6

6.8

14.7

-69.3

4,624.8

1,310.2

66,654

0.1

0.0

4.8

N.D.

Multinational subsidiary

-6.6

5,011.8

2,670.2

49,063

19.1

10.2

9.5

8.7

Multinational subsidiary

Yes

dys.cl

-22.7

5,868.2

180.5

45,000

-91.1

-2.8

-3.1

9.1

Private multilatina

Yes

marfrig.com.br

-2.5

6,648.2

4,096.1

53,514

13.0

8.0

10.1

16.3

State national

Yes

liverpool.com.mx

82 83

13,810.8

3,636.2

69,534

-11.9

-3.1

-8.3

Private multilatina

gruposalinas.com.mx

-8.2

13,806.9

6,646.4

14,748

5.5

2.7

7.1

14.5

Private multilatina

celarauco.cl

N.D.

State national

correios.com.br

-4.1

5,444.8

3,186.0

73,407

11.2

6.6

7.0

13.8

Private multilatina

Yes

gcarso.com.mx

11.8

16,272.0

5,051.6

43,964

12.5

3.9

12.4

37.9

Private multilatina

Yes

televisa.com.mx

renault.com.br

N.D.

6,200

-9.8

5,759.4

488.8

20,771

14.4

1.2

1.4

13.8

N.D.

13,336

50.7

4,329.6

1,731.7

5,096

9.2

3.7

3.3

18.9

14,728.3

7,902.0

17,562

-0.0

-0.1

-10.1

9,932.9

4,750.7

N.D.

12.2

5.8

3,172.1

1,801.3

6,000

-1.9

-9.2

2,841.6

1,433.1

42,096

N.D.

-30.7

6,253.2

3,656.1

1,211.3

455.6

3.6

7,569.5

2,950.8

49,302

14.2

-23.2

11,483.2

2,987.3

65,346

-9.9

Multinational subsidiary

State national

Yes

Multinational subsidiary

11.8

Private multilatina

20.1

Private multilatina

12.1

38.5

-1.1

-0.8

7.0

3.5

2.2

6.4

N.D.

23.5

13.8

19.1

23.6

Private multilatina

globopar.com.br

2,109

7.2

2.7

0.7

Private multilatina

terpel.com

5.5

9.5

21.3

Private multilatina

Yes

arcacontal.com

-2.6

-6.7

10.2

Private multilatina

Yes

grupoelektra.com.mx

americanas.com.br

mercedes-benz.com.br

Yes

alfa.com.mx

Yes

cmpc.cl

Multinational subsidiary

Yes

tim.com.br

State national

Yes

amil.com.br

State national

Yes

chedraui.com.mx

Multinational subsidiary

Yes

ldcommodities.com.br

99 100

51 - 100

-31.5

GLOBAl ISSUE

APEC 2016

101 - 150

RK RK 2015 2014

COUNSECTOR/CATEGORY TRY

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

101 118 AVIANCA-TACA

COL Air transport

4,361.3

4,703.6

-7.3

-139.5

128.5

-208.6

767.1

102 114 TERNIUM MEXICO

MÉX Steel/Metallurgy

4,354.8

4,863.9

-10.5

N.D.

103 113 GRUPO EPM

COL Multisector

4,333.0

4,942.0

-12.3

465.6

1,103.0

-57.8

591.5

1,445.8

104

83 CSN - CIA SIDERURGICA NACIONAL

BRA Steel/Metallurgy

4,301.5

6,001.5

-28.3

352.9

-39.2

1,001.4

1,782.8

1,525.7

105

77 CASAS BAHIA

BRA Retail

4,264.8

6,471.9

-34.1

N.D.

106 124 MAGNA INTERNACIONAL

MEX Automotive/Auto parts

4,261.0

3,984.0

7.0

N.D.

107 123 SAMSUNG ELECTRONICS MEXICO

MEX Consumer goods

4,367.3

-2.7

N.D.

108 108 JOHNSON CONTROLS MEXICO

MEX Automotive/Auto parts

4,191.8

5,133.0

-18.3

N.D.

-219.9

245.6

207.8

109 106 GENERAL MOTORS BRASIL

BRA Automotive/Auto parts

4,186.4

5,042.1

-17.0

N.D.

110 138 FORD BRASIL

BRA Automotive/Auto parts

4,182.0

3,956.4

5.7

N.D.

111 119 NEOENERGIA

BRA Electrical energy

4,164.9

4,539.9

-8.3

131.2

224.0

-41.4

679.0

869.0

112 101 COPEL

BRA Electrical energy

4,132.1

5,179.9

-20.2

334.6

448.8

-25.4

725.3

870.8

113 133 NEMAK

MEX Automotive/Auto parts

4,098.2

4,163.5

-1.6

266.0

229.8

15.7

759.0

702.0

114

95 NESTLE

4,249.7

N.D.

777.3

N.D.

BRA Food

3,964.3

5,487.3

-27.8

N.D.

115 143 AMAGGI

BRA Bio-energy

3,955.8

3,838.7

3.0

N.D.

116 163 CARREFOUR ARGENTINA

ARG Retail

3,943.0

3,334.1

18.3

N.D.

117 115 VOTORANTIM CIMENTOS

BRA Cement

3,940.8

4,886.2

-19.3

224.7

421.5

-46.7

906.4

1,296.2

118 144 ENERGIA ARGENTINA

ARG Electrical energy

3,911.4

3,750.5

4.3

N.D.

119 121 GE BRASIL

BRA Consumer goods

3,844.1

4,400.0

-12.6

N.D.

120 137 ELETROPAULO

BRA Electrical energy

3,834.5

3,929.0

-2.4

28.4

-49.0

157.9

270.3

177.2

121 148 GRUPO ARGOS

COL Cement

3,821.7

3,726.0

2.6

200.1

390.8

-48.8

814.9

921.4

122 131 INDUSTRIAS PEÑOLES

MEX Mining

3,751.7

4,167.9

-10.0

-50.1

81.2

-161.7

710.2

882.6

123 149 PEPSICO DE MEXICO

MEX Beverage/Liquor

3,687.0

4,113.0

-10.4

N.D.

124 151 ITAIPU BINACIONAL

BR/PY Electrical energy

3,680.8

3,291.0

11.8

2,035.9

1,103.8

84.4

2,423.2

1,923.0 N.D.

125 122 ADM DO BRASIL

BRA Multisector

3,660.9

4,390.8

-16.6

N.D.

126 132 GRUPO MODELO

MEX Beverages/Liquors

3,593.0

4,162.7

-13.7

N.D.

127 160 GENERAL ELECTRIC MEXICO

MEX Consumer goods

3,570.8

3,419.6

4.4

N.D.

128

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

FIRM

CHI Mining

3,539.0

4,483.9

-21.1

N.D.

129 116 CLARO MOVIL COLOMBIA (COMCEL)

- ANGLO AMERICAN

COL Telecommunications

3,526.7

4,784.2

-26.3

N.D.

1,334.3

1,868.2

130 145 HEWLETT-PACKARD MEXICO

MEX Software/IT

3,516.2

3,791.8

-7.3

N.D.

131 155 FLEXTRONICS MANUFACTURING

MEX Automotive/Auto parts

3,512.8

3,565.8

-1.5

N.D.

132 105 PETROPERU

PER Petroleum/Gas

3,501.7

5,050.4

-30.7

147.8

-37.8

491.6

N.D.

133 136 HIPERMERCADOS LIDER

CHI Retail

3,493.2

3,743.9

-6.7

N.D.

134

BRA Automotive/Auto parts

3,483.8

6,784.9

-48.7

N.D.

135 175 HONDA BRASIL

BRA Automotive/Auto parts

3,404.7

3,059.9

11.3

N.D.

136

CHI Mining

3,394.6

5,145.6

-34.0

701.7

850.7

-17.5

890.7

2,141.4

137 161 GRUMA

MEX Food

3,369.1

3,381.1

-0.4

44.0

290.3

-84.8

518.3

506.7

138 171 ENERGISA

BRA Electrical energy

3,348.5

3,081.3

8.7

91.2

104.4

-12.7

439.0

578.6

139 127 SABESP

BRA Sanitation

3,285.8

4,173.1

-21.3

150.5

336.1

-55.2

1,155.3

1,084.9

140 164 SMU

CHI Retail

3,285.7

3,256.6

0.9

-52.5

-165.4

68.3

175.1

67.9

141 156 NACIONAL DE DROGAS

MEX Retail

3,244.2

3,561.5

-8.9

N.D.

142 125 ALESAT COMBUSTÍVEIS

BRA Petroleum/Gas

3,184.5

4,312.1

-26.2

9.5

16.2

-41.7

77.2

74.0

143

74 VOLKSWAGEN BRASIL 99 ANTOFAGASTA PLC

BRA Electrical energy

3,172.2

4,232.0

-25.0

103.9

160.0

-35.1

269.3

534.5

144 192 CIELO

BRA Software/IT

3,120.5

2,875.2

8.5

985.2

1,198.3

-17.8

1,468.3

1,428.7

145 141 TELECOM

ARG Telecommunications

3,119.6

3,907.4

-20.2

261.9

429.9

-39.1

820.8

1,016.5

146 159 RAIZEN ENERGIA

BRA Electrical energy

3,108.8

3,447.7

-9.8

132.1

113.8

16.0

863.1

919.6

147 185 FALABELLA PERU

PER Retail

3,057.0

2,966.7

3.0

162.3

146.5

10.8

N.D.

148 130 QUIÑENCO

CHI Multisector

3,051.6

4,191.0

-27.2

136.2

564.3

-75.9

73.0

1,000.9

149 158 LIGHT

BRA Electrical energy

2,987.2

3,435.2

-13.0

11.9

246.7

-95.2

308.5

673.5

150 157 ARCOS DORADOS

ARG Entertainment

2,930.4

3,504.3

-16.4

-51.6

-109.0

52.6

230.2

251.7

- CEMIG DISTRIBUIÇÃO

AMÉRICAECONOMÍA NOVEMBER 2016

EBITDA VARIATION 15/14

EQUITY 2015 US$ millions

TOTAL ASSETS 2015 US$ millions

EMPLOYEES 2015

ROE (%) 2015

ROA (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

-1.3

6,361.9

1,372.6

21,145

-10.2

-2.2

-3.2

17.6

N.D.

10,156

-59.1

13,056.9

5,854.2

10,025

8.0

3.6

10.7

13.7

16.9

13,649.2

2,150.4

22,000

16.4

2.6

8.2

41.4

N.D.

25,000

Multinational subsidiary

N.D.

7,500

Multinational subsidiary

18.2

15,558.7

7,472.8

26,197

5.9

Multinational subsidiary

N.D.

Multinational subsidiary

WEB SITE

RK 2015 101

Private multilatina

avianca.com.co

Foreign multilatina subsidiary

ternium.com

102

State multilatina

eeppm.com

103

Private multilatina

Yes

csn.com.br

104

State national

casasbahia.com.br

105

magna.com

106

samsung.com.mx

107

johnsoncontrols.com

108

chevrolet.com.br

109

N.D.

Multinational subsidiary

ford.com.br

110

-21.9

7,172.2

2,492.7

26,499

5.3

1.8

3.1

16.3

State national

Yes

neoenergia.com

111

-16.7

8,121.6

3,996.8

8,592

8.4

4.1

8.1

17.6

State national

Yes

copel.com.br

112

8.1

4,163.4

1,561.9

21,600

17.0

6.4

6.5

18.5

Private multilatina

alfa.com.mx

113

N.D.

Multinational subsidiary

nestle.com.br

114

N.D.

4,376

State national

grupomaggi.com.br

115

N.D.

Multinational subsidiary

carrefour.com.ar

116

-30.1

9,355.1

2,231.0

N.D.

10.1

2.4

5.7

23.0

Private multilatina

votorantim-cimentos.com

117

N.D.

16,581

State national

enarsa.com.ar

118

N.D.

Multinational subsidiary

ge.com/br

119

3,724.4

796.5

6,152

3.6

0.8

0.7

7.1

Multinational subsidiary

Yes

aeseletropaulo.com.br

120

-11.6

12,998.7

7,122.4

9,247

2.8

1.5

5.2

21.3

Private multilatina

argos.com.co

121

-19.5

6,408.8

3,029.8

11,555

-1.7

-0.8

-1.3

18.9

Private multilatina

Yes

penoles.com.mx

122

40,000

Multinational subsidiary

pepsico.com

123

Arriando banderas

N.D.

26.0

13,809.2

100.0

14.7

55.3

65.8

N.D.

3,750

22,909.2

N.D.

31,034

N.D.

11,800

N.D.

10,069

37.8

N.D.

10,000

N.D.

20,000

2,763.5

942.0

2,487

15.7

5.3

N.D.

Ventas anuales (MM US $) y variación de ventas 2015-‐14, según países Fuente: AméricaEconomía Intelligence

1.200.000

1.000.000

800.000

-28.6

600.000

400.000

200.000

N.D.

-‐11,0

-‐17,4

Brasil

México

3,029 2,035.9

-‐15,7

Chile

-‐18,2

Argen@na

-‐26,6

Venezuela

itaipu.gov.py

124

adm.com

125

gmodelo.com.mx

126

ge.com.mx

127

angloamerican.co.uk

128

Foreign multilatina subsidiary

comcel.com.co

129

Multinational subsidiary

hp.com.mx

130

Multinational subsidiary

flextronics.com

131

4.2

State national

Yes

petroperu.com

132

lider.cl

133

volkswagen.com.br

134

honda.com.br

135

-‐16,9

Colombia

N.D.

43,082

5,023.1

579.0

17,891

N.D.

-58.4

N.D.

5,950

2.3

2,562.9

984.7

19,117

4.5

State national

Multinational subsidiary

Yes

Private multilatina

Yes

Multinational subsidiary

2015

-‐11,6

Perú

2014

Var. %

-‐5

-‐10

-‐15

-‐17,8

-‐20

-‐25

-‐30

-‐33,0

Ecuador

Resto

-‐35

1 1

Multinational subsidiary

20.7

26.2

State national

Yes

antofagasta.co.uk

136

1.7

1.3

15.4

Private multilatina

Yes

gruma.com

137

-24.1

5,191.0

620.5

N.D.

14.7

1.8

2.7

13.1

State national

Yes

energisa.com.br

138

6.5

9,456.7

3,848.3

4,200

3.9

1.6

4.6

35.2

State national

Yes

sabesp.com.br

139

158.0

2,543.6

477.9

33,795

-11.0

-2.1

-1.6

5.3

State national

Yes

N.D.

6,428

State national

smu.cl

140

nadro.com

141 142

4.3

425.4

55.4

N.D.

17.1

2.2

0.3

2.4

State national

ale.com.br

-49.6

4,146.5

690.4

N.D.

15.0

2.5

3.3

8.5

State national

Yes

cemig.com.br

143

2.8

8,410.6

1,829.4

N.D.

53.9

11.7

31.6

47.1

State national

Yes

cielo.com.br

144

-19.3

2,959.9

1,323.1

5,321

19.8

8.8

8.4

26.3

State national

Yes

telecom.com.ar

145

-6.2

6,867.0

2,304.4

N.D.

5.7

1.9

4.2

27.8

State national

Yes

raizen.com

146

3,872.4

1,412.3

29,699

11.5

4.2

5.3

-92.7

50,753.4

4,260.2

1,318

3.2

0.3

4.5

2.4

-54.2

4,182.0

1,029.5

N.D.

1.2

0.3

0.4

10.3

-8.5

1,407.0

286.9

83,348

-18.0

-3.7

-1.8

7.9

Foreign multilatina subsidiary

Yes

sagafalabella.com

147

Private multilatina

Yes

quinenco.cl

148

State national

Yes

light.com.br

149

Private multilatina

Yes

arcosdorados.net

150

101 - 150

52.6

GLOBAl ISSUE

APEC 2016

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

151 - 200

RK RK 2015 2014

FIRM

COUNSECTOR/CATEGORY TRY

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

151 166 YARA BRASIL

BRA Agro-industry

2,919.8

3,045.7

-4.1

N.D.

152 128 CGE

CHI Electrical energy

2,902.6

4,218.1

-31.2

134.9

100.2

34.7

490.7

670.8

153 210 SUZANO PAPEL E CELULOSE

BRA Cellulose/Paper

2,868.6

2,703.9

6.1

-64.7

-20.9

-209.3

1,251.2

900.9

154 212 GRUPO VILLACERO

MEX Steel/Metallurgy

2,862.1

2,731.4

4.8

N.D.

155 120 USIMINAS

BRA Steel/Metallurgy

2,857.7

4,369.8

-34.6

-907.9

48.2

-1,982.4

-650.2

677.8

156 173 COAMO

BRA Agro-industry

2,857.0

3,080.2

-7.2

228.9

241.0

-5.0

276.3

236.8

157 147 ENEL BRASIL - ENDESA BRASIL

BRA Electrical energy

3,739.7

-24.1

221.2

378.5

-41.6

158 162 EDP - ENERGIAS DO BRASIL

BRA Electrical energy

2,835.9

3,311.7

-14.4

355.2

276.7

28.4

810.4

686.4

159 221 FIBRIA

BRA Cellulose/Paper

2,828.2

2,636.2

7.3

96.0

57.9

65.8

1,519.7

1,313.9

160 216 SUPERMERCADOS JUMBO

CHI Retail

2,823.5

2,708.0

4.3

N.D.

161 168 TELEFONICA DEL PERU

PER Telecommunications

2,815.0

3,123.4

-9.9

-146.7

322.6

-145.5

N.D.

162 176 GRUPO INDUSTRIAL LALA

MEX Food

2,785.5

3,046.5

-8.6

225.9

208.7

8.2

393.7

370.4

163 177 SODIMAC

CHI Retail

2,781.9

3,024.3

-8.0

127.9

153.4

-16.6

174.4

200.8

164 165 COMERCIAL MEXICANA

MEX Retail

2,779.9

3,240.2

-14.2

119.3

144.8

-17.6

216.5

285.9

165 254 LEAR CORPORACION MEXICO

MEX Automotive/Auto parts

2,777.3

2,373.9

17.0

N.D.

166 247 TELEFONICA MOVIL ARGENTINA

ARG Telecommunications

2,774.0

2,440.7

13.7

N.D.

167 169 NESTLE DE MEXICO

MEX Food

2,773.7

3,174.2

-12.6

N.D.

168 146 GOL

BRA Air transport

2,743.3

3,746.2

-26.8

-1,251.6

-463.8

-169.9

66.2

360.3

169 126 REFINERIA LA PAMPILLA

PER Petroleum/Gas

2,743.1

4,114.5

-33.3

30.7

-64.6

147.6

N.D.

170 187 WEG

BRA Manufacturing

2,738.3

2,918.0

-6.2

324.4

355.3

-8.7

414.6

500.5

171 231 CERVECERIA CUAUHTEMOC -HEINEKEN

MEX Beverage/Liquor

2,717.1

2,533.0

7.3

N.D.

172 191 GRUPO AEROMEXICO

MEX Air transport

2,714.0

2,906.2

-6.6

67.0

53.0

26.4

320.5

225.8

173 182 SEGURO SOCIAL DE SALUD - ESSALUD

PER Health

2,703.8

2,921.8

-7.5

29.4

130.2

-77.4

70.9

130.2

174 189 BAYER BRASIL

BRA Chemicals/Pharma

2,699.5

2,937.6

-8.1

178.5

398.6

-55.2

339.2

586.0

175 198 INDUSTRIAS BACHOCO

MEX Food

2,672.5

2,828.9

-5.5

220.4

265.9

-17.1

336.6

416.2

176 225 MINERVA

BRA Food

2,672.3

2,600.4

2.8

-224.6

-155.6

-44.3

279.6

243.0

177 174 TEREOS

BRA Bio-energy

2,656.1

3,031.2

-12.4

-79.7

-15.3

-422.2

275.5

354.7

178 186 EMBOTELLADORA ANDINA

CHI Beverage/Liquor

2,646.8

2,964.6

-10.7

123.9

124.5

-0.5

406.6

451.2

179 266 ACEITERA GENERAL DEHEZA

ARG Food

2,642.7

2,381.5

11.0

N.D.

180 153 WHIRLPOOL BRASIL

BRA Manufacturing

2,633.7

3,594.8

-26.7

80.5

263.8

-69.5

192.8

422.5

181 204 MAKRO

BRA Retail

2,606.8

2,791.2

-6.6

N.D.

182 202 GRUPO SANBORNS

MEX Retail

2,567.5

2,789.8

-8.0

178.6

197.8

-9.7

338.7

355.4

183 244 JABIL CIRCUIT

MEX Manufacturing

2,555.5

2,475.4

3.2

N.D.

184 245 SUPERMERCADOS SANTA ISABEL

CHI Retail

2,544.1

2,449.9

3.8

N.D.

185

BRA Petrochemicals

2,544.0

N.D.

186 170 ANCAP

URU Petroleum/Gas

2,536.9

3,239.9

-21.7

-198.0

-50.6

-291.1

-53.7

-88.2

187 152 CENCOSUD BRASIL

BRA Retail

2,531.3

3,555.8

-28.8

N.D.

188 179 B2W - CIA. GLOBAL DO VAREJO

BRA Retail

2,528.9

2,963.8

-14.7

-117.4

-60.8

-93.2

183.0

192.2

189 150 MAGAZINE LUIZA

BRA Retail

2,519.0

3,639.5

-30.8

-18.4

47.9

-138.5

130.4

225.3

190 217 ENTEL

CHI Telecommunications

2,516.0

2,710.6

-7.2

-1.6

93.2

-101.7

499.7

604.4

191 227 MABE

MEX Manufacturing

2,740.6

2,876.5

-4.7

59.7

17.7

238.0

N.D.

192

BRA Electrical energy

2,497.1

3,109.1

-19.7

-11.0

129.9

-108.5

192.8

470.7

193 207 RAIA DROGASIL

BRA Retail

2,496.4

2,750.9

-9.3

95.4

82.4

15.8

204.4

184.9

194 362 FLEXTRONICS BRASIL

BRA Manufacturing

2,474.3

1,699.2

45.6

N.D.

195 215 GRUPO NUTRESA

COL Food

2,472.3

2,713.9

-8.9

133.2

158.6

-16.0

N.D.

196 248 CEMENTOS ARGOS

COL Cement

2,461.9

2,437.2

1.0

152.9

122.6

24.7

472.8

445.1

197 240 AURORA ALIMENTOS

BRA Food

2,454.9

2,493.5

-1.5

N.D.

198 167 CODELCO DIV. EL TENIENTE

CHI Mining

2,453.1

3,209.3

-23.6

915.0

1,478.1

-38.1

N.D.

199 232 SYNGENTA BRASIL

BRA Agro-industry

2,443.4

2,530.9

-3.5

N.D.

200 263 AUTORIDAD DEL CANAL DE PANAMA

PAN Ports/Airports

2,441.0

2,323.9

5.0

1,360.8

1,325.4

2.7

1,453.4

1,417.0

- DOW BRASIL

- LIGHT SERVIÇOS DE ELETRICIDADE

2,838.5

333.7

726.4

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

EBITDA VARIATION 15/14

TOTAL ASSETS 2015 US$ millions

EQUITY 2015 US$ millions

EMPLOYEES 2015

ROE (%) 2015

ROA (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015 151

2,113.5

412.6

3,033

Multinational subsidiary

yarabrasil.com.br

-26.9

6,168.3

1,937.8

5,241

7.0

2.2

4.6

16.9

Private multilatina

Yes

cge.cl

152

38.9

8,030.2

905.7

N.D.

-7.1

-0.8

-2.3

43.6

Private multilatina

Yes

suzano.com.br

153

villacero.com

154

N.D.

3,500

-195.9

7,787.9

3,762.0

4,012

-24.1

-11.7

-31.8

-22.8

16.7

2,297.2

1,025.8

7,019

22.3

10.0

8.0

9.7

State national

Private multilatina

Yes

usiminas.com.br

155

State national

coamo.com.br

156

-54.1

3,972.2

2,033.9

2,659

10.9

5.6

7.8

11.8

Multinational subsidiary

endesabrasil.com.br

157

18.1

5,165.8

1,630.5

18,144

21.8

6.9

12.5

28.6

Multinational subsidiary

Yes

energiasdobrasil.com.br

158

15.7

8,258.0

3,577.8

N.D.

2.7

1.2

3.4

53.7

Private multilatina

Yes

N.D.

19,022

Private multilatina

fibria.com.br

159

jumbo.cl

160

3,784.1

1,614.1

5,493

-9.1

-3.9

-5.2

Multinational subsidiary

Yes

telefonica.com.pe

161

6.3

1,993.0

1,465.7

33,244

15.4

11.3

8.1

14.1

Private multilatina

Yes

lala.com.mx

162

-13.1

1,098.4

339.5

20,177

37.7

11.6

4.6

6.3

Private multilatina

sodimac.cl

163

-24.3

2,561.8

1,864.9

27,240

6.4

4.7

4.3

7.8

State national

Yes

comerci.com.mx

164

N.D.

46,600

Multinational subsidiary

lear.com

165

N.D.

10,093

Multinational subsidiary

movistar.com.ar

166

N.D.

13,802

Multinational subsidiary

nestle.com.mx

167

-81.6

2,909.0

-1,275.6

16,472

-98.1

-43.0

-45.6

2.4

Private multilatina

Yes

voegol.com.br

168

1,286.6

489.4

673

6.3

2.4

1.1

Multinational subsidiary

Yes

relapasa.com.pe

169

-17.2

4,001.2

1,691.6

N.D.

19.2

8.1

11.8

15.1

N.D.

16,000

170 171

Yes

aeromexico.com

172

esHealth.gob.pe

173 174

Yes No

Private multilatina State national

41.9

2,883.8

622.6

13,392

10.8

2.3

2.5

11.8

-45.6

3,345.0

2,756.5

N.D.

1.1

0.9

1.1

2.6

-42.1

3,391.4

881.3

4,800

20.2

5.3

6.6

12.6

Multinational subsidiary

bayer.com.br

-19.1

2,338.2

1,603.0

25,231

13.8

9.4

8.2

12.6

State national

Yes

bachoco.com.mx

175

15.1

2,332.0

-107.8

N.D. -208.5

-9.6

-8.4

10.5

Private multilatina

Yes

minerva.ind.br

176

-22.3

4,257.2

1,098.4

24,000

-7.3

-1.9

-3.0

10.4

Branch multinational

Yes

tereosinternacional.com.br

177

-9.9

3,114.8

1,170.8

15,808

10.6

4.0

4.7

15.4

Private multilatina

Yes

koandina.com

178

agd.com.ar

179

N.D.

2,159

Private multilatina

-54.4

1,838.0

704.0

19,000

11.4

4.4

3.1

7.3

Multinational subsidiary

Yes

N.D.

7,144

Multinational subsidiary

-4.7

2,391.3

1,581.2

48,125

11.3

7.5

7.0

13.2

Private multilatina

Yes

sanborns.com.mx

182

N.D.

15,604

Multinational subsidiary

jabil.com

183

N.D.

State national

santaisabel.cl

184

N.D.

Multinational subsidiary

dowbrasil.com

185

39.1

1,816.3

170.7

N.D. -116.0

-10.9

-7.8

-2.1

State national

ancap.com.uy

186

N.D.

23,326

Foreign multilatina subsidiary

cencosud.com

187

-4.8

2,791.1

759.2

N.D.

-15.5

-4.2

-4.6

7.2

State national

Yes

b2winc.com

188

-42.1

1,567.9

185.8

22,000

-9.9

-1.2

-0.7

5.2

State national

Yes

magazineluiza.com.br

189

-17.3

4,600.2

1,346.9

12,694

-0.1

-0.0

-0.1

19.9

State national

Yes

entel.cl

190

2,153.7

425.4

18,400

14.0

2.8

2.2

Private multilatina

mabe.com.mx

191

whirlpool.com.br

180

makro.com.br

181

-59.0

3,072.2

652.9

N.D.

-1.7

-0.4

7.7

State national

Yes

light.com.br

192

10.6

1,318.4

738.9

N.D.

12.9

7.2

3.8

8.2

State national

Yes

drogaraia.com.br

193 194

N.D.

Multinational subsidiary

flextronics.com

4,100.5

2,491.9

45,084

5.3

3.2

5.4

Private multilatina

Yes

inversioneschocolates.com 195

6.2

5,428.8

2,522.1

9,247

6.1

2.8

6.2

19.2

Private multilatina

Yes

N.D.

18,656

State national

6,070.0

N.D.

4,750

15.1

37.3

State national

N.D.

Multinational subsidiary

2.6

12,395.7

8,755.9

9,926

15.5

11.0

55.8

59.5

State national

1 1

argos.com.co

196

aurora.com.br

197

codelco.cl

198

syngenta.com

199

pancanal.com

200

151 - 200

weg.com.br ccm.com.mx

Private multilatina Multinational subsidiary

GLOBAl ISSUE

APEC 2016

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

201 - 250

RK RK 2015 2014

FIRM

COUNSECTOR/CATEGORY TRY

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

201 180 BASF BRASIL

BRA Chemicals/Pharma

2,428.5

2,909.3

-16.5

-108.9

-28.9

-277.2

112.0

146.2

202 214 CPFL - CIA. PAULISTA DE FORÇA E LUZ

BRA Electrical energy

2,416.7

2,698.5

-10.4

83.7

187.1

-55.3

226.4

412.9

203 236 SIGDO KOPPERS

CHI Construction/Engineering

2,407.8

2,504.4

-3.9

134.6

134.9

-0.2

373.0

366.2

204 241 GRUPO ICE

C.RI Electrical energy

2,403.9

2,483.1

-3.2

-20.7

-192.5

89.3

596.9

758.9

205 154 ENEX

CHI Petroleum/Gas

2,393.4

3,591.7

-33.4

27.9

56.6

-50.7

N.D.

206 275 SUPERMERCADOS UNIMARC

CHI Retail

2,379.4

2,207.0

7.8

N.D.

207 206 CCR RODOVIAS

BRA Construction/Engineering

2,752.9

-13.6

245.3

502.0

-51.1

208 183 ALTOS HORNOS DE MEXICO

MEX Steel/Metallurgy

2,376.0

2,971.4

-20.0

-249.0

-57.0

-337.0

13.3

281.8

209 228 CULTIBA

MEX Beverage/Liquor

2,367.0

2,324.7

1.8

-7.0

-128.0

94.5

201.6

74.3

210 243 PROCTER & GAMBLE DE MEXICO

MEX Chemicals/Pharma

2,350.6

2,480.9

-5.3

N.D.

211 267 SHELL CHILE

CHI Petroleum/Gas

2,348.5

2,270.2

3.4

N.D.

212 250 SUPERMERCADOS LA FAVORITA

ECU Retail

2,347.7

2,271.1

3.4

168.4

168.5

-0.0

344.6

328.4

213 196 TRANSPETRO

BRA Shipping

2,331.1

2,874.8

-18.9

289.8

336.9

-14.0

-369.5

-509.0

214 193 PAN AMERICAN ENERGY

ARG Petroleum/Gas

2,331.0

2,902.6

-19.7

152.8

458.8

-66.7

904.3

1,459.4

215 271 HOME DEPOT MEXICO

MEX Retail

2,314.2

2,246.8

3.0

N.D.

216

MEX Retail

2,312.4

N.D.

217 257 GRAÑA Y MONTERO

PER Multisector

2,306.4

2,351.9

-1.9

41.5

121.2

-65.8

N.D.

218 261 AXION ENERGY ARGENTINA

ARG Petroleum/Gas

2,284.3

2,419.2

-5.6

N.D.

219 190 CARGILL ARGENTINA

ARG Agro-industry

2,279.1

2,925.7

-22.1

N.D.

220 139 GERDAU AÇOS LONGOS

BRA Steel/Metallurgy

2,266.4

4,017.2

-43.6

-627.5

287.5

-318.3

-185.7

594.6

221 200 CLARO ARGENTINA

ARG Telecommunications

2,262.4

2,809.3

-19.5

635.9

766.5

-17.0

795.2

932.7

222 235 MINERA ANTAMINA

PER Mining

2,251.0

2,427.7

-7.3

N.D.

995.5

N.D.

223 218 COPA AIRLINES

PAN Air transport

2,250.1

2,705.1

-16.8

-225.0

361.7

-162.2

-50.1

524.9

224 172 RECOPE

C.RI Petroleum/Gas

2,245.8

3,104.9

-27.7

-10.9

30.0

-136.2

23.0

97.5

225 224 JUMBO RETAIL ARGENTINA

ARG Retail

2,245.6

2,657.8

-15.5

N.D.

226 280 SUKARNE

MEX Food

2,235.2

2,107.2

6.1

83.8

129.5

-35.3

188.1

208.8

227 205 NATURA

BRA Chemicals/Pharma

2,216.1

2,757.1

-19.6

144.1

272.7

-47.2

419.7

578.5

228 279 IBM MEXICO

MEX Software/IT

2,192.9

2,182.0

0.5

N.D.

229 184 TOYOTA ARGENTINA

ARG Automotive/Auto parts

2,173.8

2,974.3

-26.9

N.D.

230 230 RIPLEY CORP.

CHI Retail

2,173.3

2,543.2

-14.5

-64.3

73.6

-187.3

132.6

152.2

231 237 GRUPO XIGNUX

MEX Multisector

2,172.3

2,497.8

-13.0

20.2

0.1

163.9

180.9

232 142 ENDESA

CHI Electrical energy

2,171.1

3,899.9

-44.3

553.9

551.9

0.4

748.2

1,853.9

233 262 AES GENER

CHI Electrical energy

2,159.4

2,332.8

-7.4

264.1

184.0

43.6

666.4

648.2

234 219 CODELCO DIV. CHUQUICAMATA

CHI Mining

2,156.6

2,680.1

-19.5

183.9

820.3

-77.6

N.D.

235 255 SOUZA CRUZ

BRA Agro-industry

2,153.6

2,358.3

-8.7

852.8

645.3

32.2

N.D.

236 265 GRUPO CLARIN

ARG Media

2,138.6

2,295.7

-6.8

145.0

94.1

54.1

685.3

592.7

237 211 SHELL CAPSA ARGENTINA

ARG Petroleum/Gas

2,138.1

2,758.3

-22.5

N.D.

238 312 MOSAIC BRASIL

BRA Chemicals/Pharma

2,137.9

1,921.4

11.3

N.D.

239 199 ARCOR

ARG Food

2,120.2

2,815.7

-24.7

61.7

61.3

0.5

243.6

293.3

240 246 AGROSUPER

CHI Food

2,120.2

2,449.2

-13.4

162.6

239.9

-32.2

231.2

334.3

241 284 CCU

CHI Beverages/Liquor

2,112.4

2,141.1

-1.3

170.3

197.2

-13.6

415.9

416.6

242 282 NIDERA SEMENTES BRASIL

BRA Agro-industry

2,107.6

3,125.4

-32.6

N.D.

43.9

22.8

243 310 TETRA PAK BRASIL

BRA Manufacturing

2,103.7

1,957.4

7.5

N.D.

244 333 GOOGLE BRASIL

BRA Software/IT

2,075.9

1,827.1

13.6

N.D.

245 281 CORPORATIVO FRAGUA

MEX Retail

2,069.0

2,168.9

-4.6

56.3

65.8

-14.5

122.0

137.9 529.2

246

- FARMACIAS SIMILARES

996.5 1,324.0

BRA Electrical energy

2,058.1

1,840.8

11.8

11.7

104.8

-88.8

244.7

247 268 COSTCO MEXICO

MEX Retail

2,046.1

2,267.9

-9.8

N.D.

248 233 BAVARIA

COL Beverage/Liquor

2,026.5

3,099.6

-34.6

627.2

718.8

-12.8

1,242.3

1,160.0

249 242 SOUTHERN PERU COPPER CORP.

PER Mining

2,021.2

2,481.8

-18.6

336.7

565.0

-40.4

N.D.

250 188 VOLKSWAGEN ARGENTINA

ARG Automotive/Auto parts

2,008.1

2,950.9

-31.9

N.D.

- REDE ENERGIA

2,378.8

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

EBITDA VARIATION 15/14

TOTAL ASSETS 2015 US$ millions

EQUITY 2015 US$ millions

EMPLOYEES 2015

ROE (%) 2015

ROA (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015 201

-23.4

2,941.9

584.5

4,456

-18.6

-3.7

-4.5

4.6

Multinational subsidiary

basf.com.br

-45.2

3,132.0

379.4

N.D.

22.0

2.7

3.5

9.4

State national

Yes

cpfl.com.br

202

1.8

3,465.4

1,185.4

18,877

11.4

3.9

5.6

15.5

Private multilatina

Yes

sigdokoppers.cl

203

-21.4

10,019.2

5,079.8

N.D.

-0.4

-0.2

-0.9

24.8

State national

grupoice.com

204

N.D.

2,704

1.2

Private multilatina

205

N.D.

State national

-24.7

6,083.5

1,061.0

N.D.

23.1

4.0

10.3

41.9

State national

Yes

unimarc.cl

206

ccrnet.com.br

207

-95.3

3,594.1

986.0

21,811

-25.3

-6.9

-10.5

0.6

State national

Yes

ahmsa.com

208

171.4

1,628.5

537.7

40,405

-1.3

-0.4

-0.3

8.5

State national

Yes

209

N.D.

7,000

Multinational subsidiary

pg.com.mx

210

N.D.

Multinational subsidiary

4.9

1,709.3

1,275.9

10,952

13.2

9.9

7.2

14.7

State national

shell.cl

211

Yes

supermaxi.com

212

27.4

3,208.4

1,488.3

9,125

19.5

9.0

12.4

-15.9

State multilatina

transpetro.com.br

213

-38.0

9,738.4

4,565.4

N.D.

3.3

1.6

6.6

38.8

Private multilatina

pan-energy.com

214

N.D.

14,500

Multinational subsidiary

homedepot.com.mx

215

N.D.

12,000

Private multilatina

farmaciasdesimilares.com.mx 216

2,644.4

936.2

29,049

4.4

1.6

1.8

Private multilatina

Yes

gym.com.pe

217

N.D.

2,586

Multinational subsidiary

axionenergy.com

218

N.D.

4,400

Multinational subsidiary

cargill.com.ar

219

-131.2

4,636.9

2,528.6

N.D.

-24.8

-13.5

-27.7

-8.2

State national

gerdau.com.br

220

N.D.

3,615

28.1

35.1

N.D.

2,860

-109.5

3,715.5

1,587.4

9,302

-14.2

-6.1

-10.0

-2.2

-76.4

1,578.6

1,064.1

1,789

-0.7

-0.5

1.0

-1.0

N.D.

7,400

-9.9

1,407.2

640.3

10,886

13.1

6.0

3.7

8.4

-27.5

2,635.9

288.5

N.D.

49.9

5.5

6.5

18.9

N.D.

4,400

Foreign multilatina subsidiary

cti.com.ar

221

State national

antamina.com

222

Private multilatina

Yes

copaair.com

223

State national

recope.go.cr

224

jumbo.com.ar

225

sukarne.com.mx

226

Foreign multilatina subsidiary

State national

Private multilatina

Yes

natura.com.br

227

Multinational subsidiary

ibm.com.mx

228

N.D.

4,316

Multinational subsidiary

toyota.com.ar

229

-12.9

3,239.6

1,080.1

24,276

-5.9

-2.0

-3.0

6.1

Private multilatina

Yes

ripley.cl

230 231

-9.4

1,850.0

488.7

17,979

4.1

1.1

0.9

7.5

Private multilatina

Yes

xignux.com

-59.6

10,261.8

3,733.5

2,328

14.8

5.4

25.5

34.5

Multinational subsidiary

Yes

endesa.cl

232

2.8

7,265.8

2,217.3

1,391

11.9

3.6

12.2

30.9

Multinational subsidiary

Yes

gener.cl

233

5,585.2

N.D.

6,342

3.3

8.5

State national

N.D.

39.6

Multinational subsidiary

Yes

15.6

1,900.7

556.6

15,248

26.1

7.6

6.8

32.0

State national

Yes

N.D.

1,049

Multinational subsidiary

N.D.

Multinational subsidiary

-16.9

1,469.8

426.6

N.D.

14.5

4.2

2.9

11.5

Private multilatina

-30.8

2,148.6

1,285.9

16,000

12.6

7.6

7.7

10.9

Private multilatina

-0.2

2,570.6

1,491.3

8,100

11.4

6.6

8.1

19.7

Private multilatina

Yes

92.2

2,570.6

199.2

953

2.1

Multinational subsidiary

N.D.

1,631

Multinational subsidiary

N.D.

Multinational subsidiary

-11.6

943.1

518.0

29,540

10.9

6.0

2.7

5.9

State national

Yes

-53.8

3,313.0

599.5

N.D.

2.0

0.4

0.6

11.9

N.D.

9,470

7.1

5,112.4

1,527.2

4,994

41.1

12.3

30.9

61.3

4,749.0

4,116.0

4,909

8.2

7.1

16.7

N.D.

7,837

State national

Yes

Multinational subsidiary

State national

Yes

Multinational subsidiary

Yes

Multinational subsidiary

1 1

codelco.cl

234

souzacruz.com.br

235

grupoclarin.com.ar

236

shell.com.ar

237

mosaicco.com

238

arcor.com.ar

239

agrosuper.cl

240

ccu.cl

241

niderasementes.com.br

242

tetrapak.com/br

243

google.com.br

244

farmaciasguadalajara.com.mx 245 postosredeenergia.com.br 1

246

costco.com.mx

247

bavaria.co

248

southernperu.com

249

volkswagen.com.ar

250

201 - 250

-14.7

GLOBAl ISSUE

APEC 2016

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

251 - 300

RK RK 2015 2014

FIRM

COUNSECTOR/CATEGORY TRY

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

251 229 EQUATORIAL

BRA Electrical energy

2,001.7

2,520.8

-20.6

226.8

237.4

-4.4

284.5

252 294 INRETAIL PERU CORP AND SUB

PER Retail

1,999.4

2,062.6

-3.1

42.5

38.1

11.6

N.D.

244.9

253 321 IBERDROLA BRASIL

BRA Electrical energy

1,999.3

1,994.6

0.2

N.D.

363.9

254 181 COLLAHUASI

CHI Mining

1,990.5

2,979.9

-33.2

211.2

682.3

-69.0

N.D.

255 322 SANMINA-SCI SYSTEMS MEXICO

MEX Manufacturing

1,979.1

1,693.6

16.9

N.D.

256 197 MOLINOS RIO DE LA PLATA

ARG Agro-industry

1,973.0

2,873.0

-31.3

84.3

78.5

7.3

121.9

173.0

453.3

257 269 DPSP DROGARIAS

BRA Retail

2,262.8

-13.2

46.9

82.6

-43.2

258 338 GOLDCORP MEXICO

MEX Mining

1,961.0

1,807.0

8.5

N.D.

259 289 ASOC. DE COOP. ARGENTINAS

ARG Consumer goods

1,949.1

2,096.4

-7.0

N.D.

260 290 CASA LEY

MEX Retail

1,936.6

2,099.0

-7.7

N.D.

261 288 ALICORP

PER Food

1,935.4

2,108.4

-8.2

46.3

4.0

1,046.4

N.D.

262 276 TAG

BRA Logistics

1,930.1

2,194.6

-12.1

N.D.

263 256 CELESC

BRA Electrical energy

1,926.0

2,324.6

-17.1

36.7

191.0

-80.8

100.1

374.1

264 273 IOCHPE-MAXION

BRA Automotive/Auto parts

1,920.9

2,200.1

-12.7

13.9

25.2

-45.1

210.7

244.9

265 238 EMPRESAS ICA

MEX Construction/Engineering

1,914.9

2,669.7

-28.3

-1,180.6

-204.7

-476.7

-294.5

481.8

266 292 COELBA

BRA Electrical energy

1,913.1

2,063.3

-7.3

108.4

170.9

-36.6

332.5

428.2

267 274 ARCELOR MITTAL

MEX Steel/Metallurgy

1,913.0

2,216.0

-13.7

N.D.

268 286 PRIMAX

PER Petroleum/Gas

1,913.0

2,504.4

-23.6

4.8

13.4

-64.1

73.2

75.5

269

N.D.

- CINEPOLIS

1,965.0

105.3

240.1 N.D.

MEX Entertainment

1,907.7

N.D.

270 213 FORD ARGENTINA

ARG Automotive/Auto parts

1,902.8

2,730.6

-30.3

N.D.

271 285 IBERDROLA MÉXICO

MEX Electrical energy

1,894.5

2,014.1

-5.9

N.D.

272

- CEMIG GERAÇÃO E TRANSMISSÃO

BRA Electrical energy

1,889.3

2,904.4

-35.0

655.9

777.4

-15.6

1,092.0

1,519.3

273

- AT&T MÉXICO

MEX Telecommunications

1,881.9

N.D.

274 425 GRUPO BRASIL KIRIN

BRA Beverage/Liquor

1,876.9

2,676.9

-29.9

N.D.

275 356 EMPRESAS BANMEDICA

CHI Health

1,872.7

1,747.8

7.1

64.5

79.4

-18.7

164.0

168.3

276 405 ALSEA

MEX Entertainment

1,866.6

1,542.9

21.0

56.7

45.1

25.7

248.7

189.7

277 308 KIMBERLY CLARK DE MEXICO

MEX Cellulose/Paper

1,861.8

1,970.8

-5.5

250.5

240.0

4.4

508.9

506.9

278 302 MOVISTAR MEXICO

MEX Telecommunications

1,855.1

2,004.3

-7.4

N.D.

279 252 COMGAS

BRA Petroleum/Gas

1,850.9

2,377.0

-22.1

196.1

227.6

-13.9

429.4

534.1

280 223 EXXONMOBIL

COL Petroleum/Gas

1,841.5

2,649.8

-30.5

-0.5

9.5

-105.2

N.D.

281 208 AEROPUERTOS Y SERVICIOS AUXILIARES MEX Ports/Airports

1,841.0

2,747.8

-33.0

-34.0

-39.9

14.7

N.D.

282 315 ENTEL PCS

CHI Telecommunications

1,828.7

1,916.4

-4.6

206.6

223.1

-7.4

480.0

532.0

283 249 TRACTEBEL

BRA Electrical energy

1,827.0

2,408.8

-24.2

421.0

514.5

-18.2

870.9

1,077.4

284 301 BUNGE ARGENTINA

ARG Agro-industry

1,821.2

2,057.7

-11.5

N.D.

285 259 TELECOM PERSONAL

ARG Telecommunications

1,818.6

2,302.0

-21.0

N.D.

286 201 SAMARCO MINERAÇÃO

BRA Mining

1,818.5

2,804.9

-35.2

-1,637.5

2,160.6

-175.8

311.7

660.2

287 234 SIDERAR

ARG Steel/Metallurgy

1,813.2

2,509.6

-27.8

135.2

382.7

-64.7

321.5

647.3

288 222 LOS PELAMBRES

CHI Mining

1,807.2

2,663.6

-32.2

N.D.

0.0

1,518.6

289 264 FURNAS

BRA Electrical energy

1,799.6

2,300.7

-21.8

-19.7

-151.1

86.9

-119.2

389.7

290 328 CMPC TISSUE

CHI Cellulose/Paper

1,796.1

1,858.1

-3.3

-80.6

-52.9

-52.4

N.D.

291 253 DEACERO

MEX Steel/Metallurgy

1,792.1

2,397.8

-25.3

N.D.

292 352 GRUPO CONDUMEX

MEX Manufacturing

1,785.1

1,757.5

1.6

N.D.

293 272 HERINGER FERTILIZANTES

BRA Chemicals/Pharma.

1,769.9

2,215.0

-20.1

-94.3

3.0

-3,266.3

55.6

123.5

294 316 SUPERMERCADOS GUANABARA

BRA Retail

1,768.9

1,912.9

-7.5

N.D.

295 344 UNIMED RIO

BRA Health

1,761.3

1,778.5

-1.0

N.D.

296 330 CHILECTRA

CHI Electrical energy

1,759.3

1,841.0

-4.4

266.1

248.6

7.0

249.2

296.7

297 363 PETROBRAS CHILE

CHI Petroleum/Gas

1,755.2

1,696.7

3.4

N.D.

298 430 BIOSEV

BRA Bio-energy

1,754.9

1,453.8

20.7

-153.7

-481.9

68.1

660.2

42.3

299 313 REPSOL COMERCIAL - RECOSAC

PER Petroleum/Gas

1,750.0

1,920.0

-8.9

N.D.

300 317 GRUPO ACS

MEX Construction/Engineering

1,744.9

1,909.7

-8.6

N.D.

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

EBITDA VARIATION 15/14

TOTAL ASSETS 2015 US$ millions

EQUITY 2015 US$ millions

EMPLOYEES 2015

ROE (%) 2015

ROA (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015

-37.2

3,531.1

976.2

N.D.

23.2

6.4

11.3

14.2

State national

Yes

equatorialenergia.com.br

251

2,298.4

926.8

N.D.

4.6

1.8

2.1

State national

Yes

inretail.pe

252

N.D.

3,747

Multinational subsidiary

Yes

iberdrola.es

253

N.D.

2,740

10.6

Multinational subsidiary

collahuasi.cl

254

N.D.

13,800

Multinational subsidiary

sanmina-sci.com

255

-29.6

771.2

213.8

N.D.

39.4

10.9

4.3

6.2

State national

Yes

molinos.com.ar

256

-56.1

824.1

325.0

N.D.

14.4

5.7

2.4

5.4

State national

257

N.D.

5,310

Multinational subsidiary

goldcorp.com

258

N.D.

State national

acacoop.com.ar

259

N.D.

22,000

State national

casaley.com.mx

260

1,827.5

653.8

3,231

7.1

2.5

2.4

Private multilatina

Yes

alicorp.com.pe

261

N.D.

State national

Yes

tag.com.br

262

2,241.4

624.2

N.D.

5.9

1.6

1.9

5.2

State national

Yes

celesc.com.br

263

-14.0

2,241.8

604.2

N.D.

2.3

0.6

0.7

11.0

Private multilatina

Yes

iochpe-maxion.com.br

264

-161.1

6,260.5

-177.0

22,116 -667.2

-18.9

-61.7

-15.4

Private multilatina

Yes

ica.com.mx

265

-22.3

2,708.2

861.2

N.D.

12.6

4.0

5.7

17.4

State national

Yes

coelba.com.br

266

N.D.

6,700

Multinational subsidiary

arcelormittal.com

267

-3.0

751.2

243.2

3,996

2.0

0.6

0.3

3.8

State national

primax.com.pe

268

N.D.

34,000

Private multilatina

cinepolis.com

269

N.D.

2,886

Multinational subsidiary

ford.com.ar

270

N.D.

801

Multinational subsidiary

iberdrola.es

271

-28.1

3,936.1

1,202.2

N.D.

54.6

16.7

34.7

57.8

State national

Yes

cemig.com.br

272

6,411.8

N.D.

19,000

Multinational subsidiary

att.com.mx

273

N.D.

10,850

State national

brasilkirin.com.br

274

-2.6

1,458.5

367.0

20,053

4.4

3.4

8.8

Private multilatina

Yes

empresasbanmedica.cl

275

17.6

alsea.com.mx

276

kimberly-clark.com.mx

277

31.1

1,899.3

517.3

58,999

11.0

3.0

13.3

Private multilatina

Yes

0.4

1,968.3

389.5

8,039

64.3

12.7

13.5

27.3

Multinational subsidiary

Yes

Multinational subsidiary

movistar.com.mx

278

State national

Yes

comgas.com.br

279

N.D.

2,479

-19.6

2,488.0

892.6

N.D.

22.0

7.9

10.6

23.2

342.4

249.8

N.D.

-0.2

-0.1

-0.0

Multinational subsidiary

exxon.com

280

815.1

466.3

2,445

-7.3

-4.2

-1.8

State national

asa.gob.mx

281

-9.8

1,514.1

673.7

2,480

30.7

13.6

11.3

26.2

State national

entelpcs.cl

282

-19.2

4,292.8

1,862.9

N.D.

22.6

9.8

23.0

47.7

Multinational subsidiary

Yes

tractebelenergia.com.br

283

N.D.

1,300

Multinational subsidiary

bungeargentina.com

284

N.D.

State national

personal.com.ar

285

-52.8

7,693.9

-463.8

3,001 -353.0

-21.3

-90.0

17.1

Multinational subsidiary

samarco.com.br

286

-50.3

2,353.7

1,820.3

5.7

7.5

17.7

Private multilatina

Yes

siderar.com.ar

287

lospelambres.cl

288

N.D.

7.4

-100.0

N.D.

928

0.0

State national

-130.6

6,991.8

2,866.2

3,548

-0.7

-0.3

-1.1

-6.6

State national

furnas.com.br

289

1,900.0

N.D.

8,536

-4.2

-4.5

Private multilatina

cmpctissue.cl

290

N.D.

7,700

Private multilatina

deacero.com

291

N.D.

15,911

Private multilatina

condumex.com.mx

292

-55.0

935.2

69.0

N.D. -136.6

-10.1

-5.3

3.1

Multinational subsidiary

Yes

heringer.com.br

293

N.D.

1,831

State national

N.D.

State national

-16.0

2,158.5

1,568.6

686

17.0

12.3

15.1

14.2

Multinational subsidiary

Yes

N.D.

Foreign multilatina subsidiary

petrobras.com

297

16,124 -830.3

-5.3

-8.8

37.6

Multinational subsidiary

Yes

biosev.com

298

supermercadosguanabara.com.br 294 unimedrio.com.br

295

chilectra.cl

296

N.D.

1,461.6

2,877.6

-18.5

N.D.

1,822

Multinational subsidiary

repsol.com/pe_es

299

N.D.

3,000

Multinational subsidiary

grupoacs.com

300

251 - 300

-73.2

GLOBAl ISSUE

APEC 2016

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

301 - 350

RK RK 2015 2014

FIRM

COUNSECTOR/CATEGORY TRY

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

301 345 MONSANTO BRASIL

BRA Agro-industry

1,728.0

1,778.0

-2.8

N.D.

302 306 DIA BRASIL

BRA Retail

1,724.8

1,993.7

-13.5

N.D.

303 309 LOJAS RENNER

BRA Retail

1,724.1

1,941.5

-11.2

162.4

175.4

-7.4

336.1

377.7

304 326 GRUPO EMPRESARIAL ANGELES

MEX Health

1,723.6

1,862.1

-7.4

N.D.

305 300 SQM

CHI Mining

1,723.5

2,018.0

-14.6

212.6

296.9

-28.4

631.4

710.5

306 387 DAIMLER MEXICO

MEX Automotive/Auto parts

1,714.7

1,589.6

7.9

55.6

40.7

36.5

147.4

140.9

307 379 GRUPO DOW

ARG Petrochemicals

1,610.9

6.0

N.D.

308 291 INDUSTRIAS CH

MEX Steel/Metallurgy

2,094.4

-19.2

25.8

44.2

-41.5

309 251 PETROBRAS ENERGIA ARGENTINA

ARG Petroleum/Gas

1,689.4

2,427.0

-30.4

65.6

53.6

22.5

350.0

454.1

310 293 JSL

BRA Trucking

1,680.5

2,061.5

-18.5

13.1

26.9

-51.3

306.4

323.4

311 296 INTERCEMENT BRASIL (EX-CAMARGO CORREA CIMENTO)

BRA Cement

1,677.2

2,053.5

-18.3

-25.8

160.0

-116.1

366.0

505.2

312 324 PATAGONIA

ARG Retail

1,674.0

1,875.2

-10.7

41.1

63.1

-34.9

83.3

112.7

313 375 FERREYROS

PER Multisector

1,673.0

1,717.0

-2.6

50.4

32.2

56.5

195.4

174.7

314 364 GyM

PER Construction/Engineering

1,668.0

1,631.0

2.3

-19.2

65.0

-129.5

N.D.

315 377 PARIS

CHI Retail

1,662.1

1,616.8

2.8

N.D.

316

- UNE EPM TELCOMUNICACIONES

COL Telecommunications

1,656.8

935.1

77.2

-96.3

-12.0

-702.5

446.8

234.5

317

- CODELCO DIV, MIN, HALES

N.D.

1,708.0 1,691.6

N.D. 210.0

N.D.

N.D. 168.0

CHI Mining

1,653.0

673.7

145.4

108.8

133.4

-18.5

N.D.

318 441 TELEVISA CABLE Y TELECOMUNICACIONES(3)

MEX Media

1,646.9

1,417.6

16.2

N.D.

319 373 ISA

COL Electrical energy

1,640.0

1,771.3

-7.4

218.3

214.1

2.0

893.5

964.6

320 347 HP BRASIL

BRA Software/IT

1,639.3

1,767.7

-7.3

N.D.

321 260 CNH

BRA Automotive/Auto parts

1,634.0

3,688.0

-55.7

N.D.

322 320 XSTRATA COPPER CHILE

CHI Mining

1,631.6

1,897.9

-14.0

N.D.

323 287 CODELCO DIV. R, TOMIC

CHI Mining

1,630.5

2,116.3

-23.0

410.3

725.3

-43.4

N.D.

324

MEX Automotive/Auto parts

1,627.8

N.D.

BRA Electrical energy

1,620.8

2,250.2

-28.0

28.5

756.8

-96.2

N.D.

326 394 CMPC CELULOSA

CHI Cellulose/Paper

1,614.3

1,771.4

-8.9

101.9

235.7

-56.8

N.D.

327 417 SCHNEIDER ELECTRIC MÉXICO

MEX Electronics

1,609.3

1,506.5

6.8

N.D.

328 297 GVT HOLDING

BRA Telecommunications

1,604.8

2,015.9

-20.4

-743.3

235.1

-416.2

-545.5

812.0

- VALEO MEXICO

325 270 ELETRONORTE

329 358 CLARO ECUADOR

ECU Telecommunications

1,604.0

1,726.0

-7.1

N.D.

584.0

782.0

330 334 KLABIN

BRA Cellulose/Paper

1,595.7

1,821.3

-12.4

-351.6

271.8

-229.4

698.7

986.9

331 331 GRUPO BOSCH BRASIL

BRA Automotive/Auto parts

1,588.6

1,832.9

-13.3

N.D.

332 277 LOUIS DREYFUS ARGENTINA

ARG Agro-industry

1,587.1

2,205.5

-28.0

N.D.

333 348 C. VALE

BRA Agro-industry

1,585.6

1,765.9

-10.2

38.7

36.0

7.6

108.9

99.6

334 303 GERDAU AÇOMINAS

BRA Steel/Metallurgy

1,584.8

2,000.3

-20.8

-50.9

-0.2

-21,540.5

214.4

294.2

335 283 INVEPAR

BRA Construction/Engineering

1,580.1

2,132.9

-25.9

-268.3

-97.8

-174.2

446.5

544.6

336 438 KENWORTH MEXICANA

MEX Automotive/Auto parts

1,572.2

1,438.1

9.3

83.2

102.5

-18.8

N.D.

337 339 ELEKTRO

BRA Electrical energy

1,565.2

1,772.5

-11.7

104.1

163.4

-36.3

233.3

335.7

338 416 GRUPO INDITEX MEXICO

MEX Manufacturing

1,562.2

1,506.5

3.7

N.D.

339 346 AMERICA MOVIL PERU - CLARO

PER Telecommunications

1,557.0

1,767.8

-11.9

N.D.

409.1

621.4

340 353 AJE GROUP

PER Beverage/Liquor

1,550.0

1,600.0

-3.1

N.D.

341 343 GUARARAPES-RIACHUELO

BRA Manufacturing

1,545.1

1,759.6

-12.2

98.3

178.7

-45.0

203.3

314.2

342 350 VIAKABLE

MEX Manufacturing

1,542.4

1,761.5

-12.4

N.D.

343 443 GRUPO GIGANTE

MEX Retail

1,538.4

1,409.3

9.2

86.5

82.7

4.6

176.6

188.4

344 403 AUTOLIV MEXICO

MEX Automotive/Auto parts

1,534.7

1,546.6

-0.8

N.D.

345 370 WALMART ARGENTINA

ARG Retail

1,514.0

1,635.4

-7.4

N.D.

346 342 PARANAPANEMA

BRA Mining

1,507.8

1,762.0

-14.4

37.8

46.1

-18.0

74.5

92.1

347 369 METALSA

MEX Automotive/Auto parts

1,506.2

1,655.9

-9.0

N.D.

348 407 GRUPO PALACIO DE HIERRO

MEX Retail

1,504.1

1,537.1

-2.2

44.3

32.5

36.5

124.7

108.9

349 479 TELEFONICA DE ARGENTINA

ARG Telecommunications

1,503.3

1,282.3

17.2

N.D.

350 359 TELEFONICA MOVIL VENEZUELA

VEN Telecommunications

1,500.1

1,726.0

-13.1

N.D.

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

EBITDA VARIATION 15/14

TOTAL ASSETS 2015 US$ millions

EQUITY 2015 US$ millions

EMPLOYEES 2015

ROE (%) 2015

ROA (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015 301

N.D.

Multinational subsidiary

monsanto.com

N.D.

8,853

State national

dia.com.br

302

-11.0

1,645.1

648.3

N.D.

25.0

9.9

9.4

19.5

State national

Yes

lojasrenner.com.br

303

grupoempresarialangeles.com 304

N.D.

30,000

State national

-11.1

4,630.9

2,333.3

4,800

9.1

4.6

12.3

36.6

State national

Yes

sqm.cl

305

4.6

2,422.0

446.0

7,126

12.5

2.3

3.2

8.6

Multinational subsidiary

daimler.com.mx

306

N.D.

1,684

Multinational subsidiary

dow.com

307

25.0

2,511.0

1,709.6

5,378

1.5

1.0

1.5

12.4

Private multilatina

Yes

industriasch.com.mx

308

-22.9

2,239.0

995.4

N.D.

6.6

2.9

3.9

20.7

Foreign multilatina subsidiary

Yes

pecom.com.ar

309

-5.3

2,452.8

286.1

N.D.

4.6

0.5

0.8

18.2

State national

Yes

juliosimoeslogistica.com.br

310

-27.6

2,524.9

695.5

N.D.

-3.7

-1.0

-1.5

21.8

-26.2

481.0

168.6

N.D.

24.4

8.5

2.5

5.0

11.8

1,388.0

498.3

6,662

10.1

3.6

3.0

N.D.

-1.2

N.D.

90.5

2,408.6

675.7

N.D.

-14.2

4,201.1

N.D.

Private multilatina

cimentocaue.com.br

311

State national

Yes

laanonima.com.ar

312

11.7

State national

Yes

ferreyros.com.pe

313

State national

gym.com.pe

314

Private multilatina

paris.cl

315

-4.0

-5.8

27.0

State national

une.com.co

316

2.6

6.6

State national

codelco.cl

317

Private multilatina

Yes

televisa.com.mx

318

State multilatina

isa.com.co

319

hp.com/br/pt/home

320

N.D.

8,747.6

3,545.1

3,242

6.2

2.5

13.3

54.5

N.D.

Multinational subsidiary

N.D.

3,242

Multinational subsidiary

cnhbrasil.com.br

321

N.D.

Multinational subsidiary

322

2,709.9

N.D.

1,287

15.1

25.2

State national

codelco.cl

323

N.D.

8,500

Multinational subsidiary

valeo.com

324

6,869.0

3,359.6

3,379

0.8

0.4

1.8

State national

eletronorte.gov.br

325

5,476.3

N.D.

2,266

1.9

6.3

Private multilatina

cmpc.cl

326

N.D.

9,000

Multinational subsidiary

-167.2

3,164.1

2,163.7

17,978

-34.4

-23.5

-46.3

-34.0

Multinational subsidiary

Yes

schneider-electric.com

327

gvt.com.br

328

-25.3

N.D.

2,882

36.4

Foreign multilatina subsidiary

conecel.com.ec

329

-29.2

7,369.8

1,501.6

16,000

-23.4

-4.8

-22.0

43.8

State national

Yes

klabin.com.br

330

N.D.

10,600

Multinational subsidiary

bosch.com.br

331

N.D.

1,094

Multinational subsidiary

ldc.com.ar

332

9.3

1,295.8

362.1

7,471

10.7

3.0

2.4

6.9

State national

cvale.com.br

333

-27.1

3,029.3

1,648.6

N.D.

-3.1

-1.7

-3.2

13.5

State national

Yes

gerdau.com.br/gerdauacominas 334 335

-18.0

8,207.5

973.8

8,542

-27.5

-3.3

-17.0

28.3

State national

Yes

invepar.com.br/es

1,127.4

569.5

2,195

14.6

7.4

5.3

Multinational subsidiary

kenmex.com

336

-30.5

1,934.2

550.6

N.D.

18.9

5.4

6.7

14.9

Multinational subsidiary

Yes

elektro.com.br

337

Multinational subsidiary

inditex.com

338

Foreign multilatina subsidiary

Private multilatina

N.D.

4,996

-34.2

N.D.

4,012

26.3

N.D.

15,000

-35.3

1,973.1

951.1

N.D.

10.3

5.0

6.4

13.2

State national

N.D.

5,365

State national

-6.3

2,335.4

997.7

25,238

8.7

3.7

5.6

11.5

N.D.

11,551

N.D.

5,100

-19.1

1,488.7

96.7

N.D.

39.1

2.5

4.9

claro.com.pe

339

ajegroup.com

340

Yes

lojasriachuelo.com.br

341

viakable.com

342

State national

Yes

grupogigante.com.mx

343

Multinational subsidiary

autoliv.com

344

Multinational subsidiary

walmart.com.ar

345

State national

Yes

paranapanema.com.br

346

Private multilatina

metalsa.com.mx

347

State national

Yes

elpalaciodehierro.com.mx

348

Multinational subsidiary

Yes

telefonica.com.ar

349

Multinational subsidiary

movistar.com.ve

350

N.D.

12,000

14.4

1,855.9

953.5

12,313

4.7

2.4

2.9

8.3

N.D.

7,162

N.D.

6,760

301 - 350

-7.4

GLOBAl ISSUE

APEC 2016

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

351 - 400

RK RK 2015 2014

FIRM

COUNSECTOR/CATEGORY TRY

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

351 354 NOVELIS BRASIL

BRA Manufacturing

1,482.0

1,750.0

-15.3

N.D.

352 341 CAP

CHI Steel/Metallurgy

1,471.2

1,793.2

-18.0

2.1

55.6

-96.1

279.8

346.5

353 355 OLIMPICA

COL Retail

1,462.3

1,749.8

-16.4

24.4

43.9

-44.4

93.4

109.4

354 357 AMPLA

BRA Electrical energy

1,452.6

1,707.9

-14.9

-9.9

72.5

-113.6

103.3

360.1

355 335 GRUPO SIMEC

MEX Steel/Metallurgy

1,450.8

1,816.6

-20.1

52.1

81.5

-36.1

163.8

89.5

356

MEX Retail

1,445.3

N.D.

1,413.7

2.2

69.4

117.1

-40.7

- FARMACIAS DEL AHORRO

N.D.

357 484 FRESNILLO PLC

MEX Mining

358 429 PHILIP MORRIS MEXICO

MEX Agro-industry

1,443.0

1,474.0

-2.1

N.D.

359 368 RIPLEY CHILE

CHI Retail

1,440.9

1,660.5

-13.2

59.8

94.6

-36.7

50.3

89.6

360 383 SYNGENTA AGRO MEXICO

MEX Agro-industry

1,418.8

1,601.1

-11.4

N.D.

361 295 ELECTROLUX DO BRASIL

BRA Manufacturing

1,413.7

2,055.9

-31.2

-24.6

65.8

-137.3

40.7

151.9

362 365 SANOFI-AVENTIS

BRA Chemicals/Pharma

1,409.8

1,679.8

-16.1

N.D.

363 327 CONSTRUTORA QUEIROZ GALVÃO

BRA Construction/Engineering

1,408.2

1,860.5

-24.3

20.4

-26.5

177.0

80.0

46.5

1,444.4

433.1

567.3

364 399 GRUPO WONG (CENCOSUD)

PER Retail

1,407.0

1,551.0

-9.3

N.D.

108.5

86.6

365 386 IBM BRASIL

BRA Software/IT

1,404.2

1,594.0

-11.9

N.D.

366 464 TOYOTA MOTOR SALES DE MEXICO

MEX Automotive/Auto parts

1,402.9

1,346.1

4.2

N.D.

367 397 FINNING CHILE

CHI Manufacturing

1,399.0

1,556.0

-10.1

N.D.

368 390 MINERA VALPARAISO

CHI Multisector

1,397.8

1,588.2

-12.0

127.5

108.2

17.7

626.4

584.5

369 440 FERROMEX

MEX Trucking

1,384.4

1,422.2

-2.7

N.D.

370 396 CBMM

BRA Mining

1,382.8

1,565.7

-11.7

416.8

582.6

-28.5

802.9

940.8

371 431 SAMSUNG ELECTRONICS CHILE

CHI Electronics

1,382.3

1,467.4

-5.8

N.D.

372 381 COTO

ARG Retail

1,380.1

1,611.1

-14.3

N.D.

373 299 SOTREQ

BRA Automotive/Auto parts

1,375.9

2,003.5

-31.3

N.D.

144.6

200.9

374 418 CONTINENTAL TIRE DE MEXICO

MEX Automotive/Auto parts

1,375.6

1,506.2

-8.7

N.D.

375 392 TIENDAS ELEKTRA

MEX Retail

1,364.9

1,550.7

-12.0

N.D.

376 336 MCDONALD`S BRASIL

BRA Entertainment

1,362.0

1,816.0

-25.0

N.D.

377 389 CAPUFE

MEX Trucking

1,355.7

1,585.3

-14.5

N.D.

378 378 GRUPO ALGAR

BRA Multisector

1,354.1

1,615.6

-16.2

56.2

29.1

93.1

232.0

237.4

379 442 DRUMMOND

COL Mining

1,349.5

1,414.5

-4.6

-164.0

-20.5

-698.3

137.2

229.5

380 374 PAGUE MENOS

BRA Retail

1,342.3

1,568.9

-14.4

8.7

43.3

-80.0

74.7

123.7

381 388 TELEFONICA MOVIL CHILE

CHI Telecommunications

1,337.9

1,585.6

-15.6

175.2

177.4

-1.2

N.D.

382 393 MRV

BRA Construction/Engineering

1,336.3

1,557.9

-14.2

153.6

268.0

-42.7

150.2

275.4

383 428 ELECTRICARIBE

COL Electrical energy

1,333.5

1,478.8

-9.8

14.8

-33.0

144.9

242.8

63.5

384 376 SIEMENS BRASIL

BRA Consumer goods

1,333.5

1,623.5

-17.9

N.D.

385 404 UTE

URU Electrical energy

1,327.3

1,586.0

-16.3

174.4

404.4

-56.9

969.4

899.0

386 455 SEARS

MEX Retail

1,318.3

1,373.0

-4.0

N.D.

387 451 CGE DISTRIBUCION

CHI Electrical energy

1,313.8

1,384.9

-5.1

37.1

81.3

-54.3

95.4

108.7

388 419 COLBUN

CHI Electrical energy

1,310.2

1,505.4

-13.0

204.1

79.7

156.1

582.2

536.2

389 140 LG ELECTRONICS MEXICO

MEX Consumer goods

1,308.1

1,437.9

-9.0

N.D.

390 424 ALKOSTO

COL Retail

1,300.5

1,484.7

-12.4

41.5

42.2

-1.8

N.D.

391 456 CAMIL

BRA Food

1,299.8

1,522.6

-14.6

31.1

39.1

-20.4

94.6

106.1

392 360 M. DIAS BRANCO

BRA Food

1,296.8

1,704.5

-23.9

169.4

223.0

-24.0

192.6

286.7

393 411 ULTRAGAZ

BRA Petroleum/Gas

1,296.5

1,522.6

-14.8

60.0

82.5

-27.2

100.2

149.1

394 426 CELPE

BRA Electrical energy

1,295.5

1,466.2

-11.6

19.9

48.4

-58.8

130.2

173.8

395 448 EATON

BRA Manufacturing

1,291.3

1,396.3

-7.5

N.D.

396 340 PEPSI-COLA BRASIL

BRA Beverage/Liquor

1,289.0

1,790.0

-28.0

N.D.

397 450 ALCOA

BRA Steel/Metallurgy

1,283.3

1,384.4

-7.3

N.D.

398 351 GRUPO MARTINS

BRA Retail

1,280.0

1,765.5

-27.5

N.D.

399 439 GRUPO OMNILIFE

MEX Health

1,279.7

1,424.7

-10.2

N.D.

400

ARG Steel/Metallurgy

1,279.0

N.D.

- ACINDAR GRUPO ARCELOR

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

EBITDA VARIATION 15/14

TOTAL ASSETS 2015 US$ millions

EQUITY 2015 US$ millions

EMPLOYEES 2015

ROA (%) 2015

ROE (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015 351

N.D.

Multinational subsidiary

novelis.com

-19.2

5,692.7

1,846.1

4,193

0.1

0.0

0.1

19.0

State national

Yes

cap.cl

352

-14.6

872.4

356.3

1,100

6.8

2.8

1.7

6.4

State national

olimpica.com.co

353

-71.3

2,193.6

705.2

N.D.

-1.4

-0.5

-0.7

7.1

83.1

2,122.7

1,680.4

4,191

3.1

2.5

3.6

11.3

Multinational subsidiary

Yes

ampla.com

354

Private multilatina

Yes

gsimec.com.mx

355

fahorro.com

356

N.D.

18,000

State national

-23.7

3,857.7

1,483.4

3,840

4.7

1.8

4.8

30.0

Multinational subsidiary

fresnilloplc.com

357

N.D.

1,800

Multinational subsidiary

pmintl.com.mx

358

-43.8

2,155.8

965.6

16,650

6.2

2.8

4.2

3.5

N.D.

2,791

-73.2

895.8

276.5

4,616

-8.9

-2.7

-1.7

2.9

Multinational subsidiary

N.D.

5,300

Multinational subsidiary

Yes

72.3

1,044.6

572.5

16,862

3.6

2.0

1.5

5.7

Private multilatina

25.3

N.D.

13,966

7.7

Foreign multilatina subsidiary

N.D.

Multinational subsidiary

N.D.

5,800

Multinational subsidiary

toyota.com.mx

366

N.D.

3,356

Multinational subsidiary

finning.cl

367

7.2

10,596.3

4,143.0

2,661

3.1

1.2

9.1

44.8

State national

Yes

minera.cl

368

N.D.

7,804

State national

ferromex.com.mx

369

-14.7

1,959.8

467.9

N.D.

89.1

21.3

30.1

58.1

State national

N.D.

Multinational subsidiary

ripley.cl

359

syngenta.com.mx

360

electrolux.com.br

361

en.sanofi.com

362

queirozgalvao.com

363

cencosud.cl

364

ibm.com.br

365

Private multilatina

Multinational subsidiary

N.D.

15,075

State national

884.4

176.4

4,781

10.5

State national

N.D.

18,800

Multinational subsidiary

N.D.

5,000

State national

N.D.

Multinational subsidiary

N.D.

4,577

State national

-2.3

1,595.4

441.0

4,577

12.7

3.5

4.1

17.1

State national

-40.2

3,583.6

2,502.9

N.D.

-6.6

-4.6

-12.2

10.2

-39.6

826.2

247.7

20,000

3.5

1.0

0.6

5.6

1,967.3

1,006.3

4,544

17.4

8.9

13.1

-45.5

3,196.2

1,339.8

N.D.

11.5

4.8

11.5

282.1

1,758.0

641.6

N.D.

2.3

0.8

1.1

cbmm.com.br

370

samsung.com/cl

371

coto.com.ar

372

sotreq.com.br

373

continentaltire.com.mx

374

elektra.com.mx

375

mcdonalds.com.br

376

capufe.gob.mx

377

Yes

algar.com.br

378

Multinational subsidiary

drummondco.com

379

State national

paguemenos.com.br

380

Multinational subsidiary

telefonicachile.cl

381

11.2

State national

Yes

mrv.com.br

382

18.2

Multinational subsidiary

eletricaribe.com

383

Multinational subsidiary

siemens.com.br

384

State national

ute.com.uy

385 386

N.D.

6,459

7.8

6,877.2

3,970.9

6,761

4.4

2.5

13.1

73.0

2,391.3

1,699.3

18,948

Multinational subsidiary

sears.com.mx

-12.3

1,379.4

666.6

974

5.6

2.7

2.8

7.3

State national

Yes

cge.cl

387

8.6

7,133.3

3,453.9

962

5.9

2.9

15.6

44.4

State national

Yes

colbun.cl

388

N.D.

5,000

Multinational subsidiary

lg.com/mx

389

869.3

487.2

N.D.

8.5

4.8

3.2

State national

alkosto.com.co

390

-10.8

1,049.8

400.2

N.D.

7.8

3.0

2.4

7.3

State national

camil.com.br

391

-32.8

1,430.7

1,042.8

N.D.

16.2

11.8

13.1

14.9

State national

Yes

mdiasbranco.com.br

392

-32.8

420.6

N.D.

3,636

14.3

4.6

7.7

State national

ultragaz.com.br

393

-25.0

1,387.4

472.7

N.D.

4.2

1.4

1.5

10.1

State national

Yes

celpe.com.br

394

N.D.

Multinational subsidiary

N.D.

Multinational subsidiary

N.D.

2,857

Multinational subsidiary

399.6

86.7

4,082

State national

N.D.

4,000

Private multilatina

N.D.

Multinational subsidiary

1 1 1

eaton.com

395

pepsico.com.br

396

alcoa.com/brasil

397

martins.com.br

398

omnilife.com.mx

399

acindar.com.ar

400

351 - 400

-28.1

GLOBAl ISSUE

APEC 2016

RK RK 2015 2014

FIRM

401 - 450

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

401 493 CR ALMEIDA

BRA Construction/Engineering

1,277.7

1,261.9

1.3

N.D.

402 458 GRUPO AUTOFIN

MEX Automotive/Auto parts

1,277.5

1,357.1

-5.9

14.1

29.9

-52.9

N.D.

403 420 NUEVA EPS

COL Health

1,277.0

1,508.5

-15.3

-26.7

-21.6

-24.0

N.D.

404 462 CELG D

BRA Electrical energy

1,275.8

1,350.9

-5.6

-286.1

-212.0

-35.0

6.1

41.7

405 307 CENTINELA

CHI Mining

1,266.1

1,985.8

-36.2

N.D.

172.2

N.D.

767.2

406 395 ZAFFARI E BOURBON

BRA Retail

1,264.8

1,568.7

-19.4

N.D.

407 384 LOJAS CEM

BRA Retail

1,600.3

-21.1

N.D.

408

- METAPETROLEUM

1,262.5

N.D.

N.D. N.D.

COL Petroleum/Gas

1,259.0

N.D.

-1,059.9

N.D.

-540.8

N.D.

409 435 SONDA

CHI Software/IT

1,256.3

1,449.1

-13.3

60.4

78.4

-23.0

170.9

212.4

410 311 AVON BRASIL

BRA Chemicals/Pharma

1,252.6

1,909.3

-34.4

N.D.

411 325 PERNAMBUCANAS

BRA Retail

1,250.7

1,870.0

-33.1

0.8

63.3

-98.7

88.5

187.1

412 499 HIPERMERCADOS METRO (CENCOSUD)

PER Retail

1,238.0

1,250.0

-1.0

N.D.

413 478 DANONE MEXICO

MEX Food

1,224.3

1,285.0

-4.7

N.D.

414 278 CYRELA REALTY

BRA Construction/Engineering

1,218.0

2,165.2

-43.7

125.6

246.2

-49.0

212.5

390.4

415

- UNILEVER DE MEXICO

MEX Chemicals/Pharma

1,217.8

1,220.7

-0.2

N.D.

416

- OFFICE DEPOT DE MEXICO

MEX Retail

1,213.6

N.D.

80.4

N.D.

417

- DOW QUIMICA MEXICANA

MEX Petrochemicals

1,212.0

1,189.6

1.9

N.D.

418 385 ENAMI

CHI Mining

1,209.9

1,597.6

-24.3

-53.0

-95.0

44.2

N.D.

419

MEX Automotive/Auto parts

1,204.5

1,151.7

4.6

N.D.

BRA Automotive/Auto parts

1,201.8

1,346.1

-10.7

N.D.

421 408 KOMATSU CUMMINS CHILE

CHI Multisector

1,200.6

1,534.5

-21.8

122.0

132.6

-8.0

248.2

269.3

422

BRA Consumer goods

1,199.2

1,139.9

5.2

N.D.

423 366 CENCOSUD COLOMBIA 424 - TRAFIGURA PERU 425 492 APERAM

COL Retail PER Mining BRA Steel/Metallurgy

1,189.4 1,188.0 1,186.3

1,665.9 731.0 1,263.0

-28.6 62.5 -6.1

3.3 N.D. N.D.

-111.6 6.3 N.D.

102.9 -

45.5 N.D. N.D.

34.6 N.D. N.D.

426 319 BELCORP

PER Chemicals/Pharma

1,185.0

1,407.0

-15.8

N.D.

427 494 SUPERMERCADOS PERUANOS

PER Retail

1,185.0

1,256.0

-5.7

8.0

4.9

63.1

N.D.

428

MEX Steel/Metallurgy

1,179.7

N.D.

- HONDA DE MEXICO

420 463 IVECO - LG BRASIL

- THYSSENKRUPP MEXICO

429 459 DROGARIA SÃO PAULO

BRA Retail

1,176.5

1,354.4

-13.1

21.3

47.3

-55.0

63.4

100.3

430 421 CELPA

BRA Electrical energy

1,174.8

1,483.9

-20.8

145.9

128.5

13.6

130.5

211.2

431

BRA Retail

1,172.4

N.D.

432 412 MINERA SPENCE

CHI Mining

1,170.3

1,517.1

-22.9

188.3

279.1

-32.5

N.D.

433 454 ALL AMERICA LATINA

BRA Logistics

1,164.0

1,364.4

-14.7

-330.1

-758.1

56.5

291.1

-43.5

434 446 UCP BACKUS & JOHNSTON

PER Beverage/Liquor

1,160.9

1,239.0

-6.3

347.1

318.4

9.0

588.6

553.5 158.8

435

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

COUNSECTOR/CATEGORY TRY

- MATEUS SUPER

CHI Construction/Engineering

1,160.6

1,155.1

0.5

111.1

148.6

-25.3

149.4

436 490 NIDERA ARGENTINA

- CCHC (INVERSIONES LA CONSTRUCCION)

ARG Agro-industry

1,158.9

1,281.5

-9.6

N.D.

437 457 COELCE

BRA Electrical energy

1,158.8

1,347.9

-14.0

101.9

93.6

8.8

185.5

261.1

438 447 ALPARGATAS

BRA Manufacturing

1,157.7

1,381.2

-16.2

76.4

104.3

-26.7

132.0

149.9

439 401 CHEVRON PETROLEUM

COL Petroleum/Gas

1,157.6

1,549.5

-25.3

71.6

80.2

-10.7

N.D.

440 453 IRMAOS MUFFATO & CIA.

BRA Retail

1,149.1

1,378.8

-16.7

N.D.

441

375.6

COL Electrical energy

1,148.7

1,087.3

5.6

-3.1

71.6

-104.4

212.7

442 436 CODENSA

COL Electrical energy

1,147.6

1,442.8

-20.5

160.8

227.0

-29.2

385.4

495.6

443 486 OXITENO

BRA Petroleum/Gas

1,145.4

1,270.4

-9.8

162.6

128.9

26.1

207.6

197.0

444 461 GLENCORE

PER Mining

1,144.6

1,469.7

-22.1

N.D.

445 449 LOJAS RIACHUELO

BRA Retail

1,141.4

1,395.6

-18.2

N.D.

446

CHI Electrical energy

1,139.5

1,243.5

-8.4

93.9

89.1

5.4

311.6

309.8

447 409 CEDAE

BRA Sanitation

1,138.3

1,532.0

-25.7

69.8

171.3

-59.2

248.9

432.3

448 485 GRUPO KUO

MEX Multisector

1,134.3

1,269.7

-10.7

33.0

-47.4

169.6

169.2

128.6

449 472 CHESF – CIA. HIDROELÊTRICA DO SÃO FRANCISCO BRA Electrical energy

1,133.4

1,326.2

-14.5

-133.5

-416.0

67.9

-152.2

43.0

450 433 CERVECERIA Y MALT. QUILMES

1,124.6

1,436.2

-21.7

N.D.

- CELSIA

- E.CL (EX-EDELNOR)

ARG Beverage/Liquor

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

EBITDA VARIATION 15/14

TOTAL ASSETS 2015 US$ millions

EQUITY 2015 US$ millions

EMPLOYEES 2015

ROA (%) 2015

ROE (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015

N.D.

State national

cralmeida.com.br

401

1,472.8

581.3

7,502

2.4

1.0

1.1

State national

autofin.com.mx

402

N.D.

2,542

-2.1

State national

nuevaeps.com.co

403

-85.3

1,265.1

N.D.

2,095

-22.6

-22.4

0.5

State national

celg.com.br

404

N.D.

2,100

State national

405

N.D.

9,942

State national

zaffari.com.br

406

N.D.

11,000

State national

lojascem.com.br

407

1,081.6

325.8

N.D. -325.3

-98.0

-84.2

-43.0

Multinational subsidiary

408

-19.5

1,114.8

647.1

5.4

4.8

13.6

Private multilatina

Yes

sonda.cl

409

Multinational subsidiary

avon.com.br

410

State national

pernambucanas.com.br

411

19,652

9.3

N.D.

1,371.9

253.5

16,167

0.3

0.1

7.1

N.D.

Foreign multilatina subsidiary

N.D.

13,000

Multinational subsidiary

-45.6

3,571.4

1,651.7

N.D.

7.6

3.5

10.3

17.4

State national

Yes

N.D.

6,100

Multinational subsidiary

808.0

N.D.

12,000

9.9

6.6

Multinational subsidiary

officedepot.com.mx

416

N.D.

597

Multinational subsidiary

dow.com/es/mexico

417

703.2

316.7

1,616

-16.7

-7.5

-4.4

State national

enami.cl

418

N.D.

6,116

Multinational subsidiary

honda.mx

419

N.D.

25,000

Multinational subsidiary

iveco.com/brasil

420

-7.9

N.D.

5,329

10.2

20.7

Multinational subsidiary

N.D.

Multinational subsidiary

31.3 -

1,953.0 N.D. N.D.

1,437.5 N.D. N.D.

N.D. N.D. 2,055

0.2 -

0.3 -

3.8 -

Foreign multilatina subsidiary State national Multinational subsidiary

N.D.

8,000

786.5

274.4

16,654

2.9

1.0

0.7

metro.com.pe

412

danone.com.mx

413

brazilrealty.com.br

414

unilever.com.mx

415

kcl.cl

421

lg.com/br

422

No No No

carrefour.com.co trafigura.com aperam.com

423 424 425

Private multilatina

belcorp.biz

426

State national

Yes

supermercadosperuanos.com.pe 427 3

thyssenkrupp-uhdemexico.com/es 428

N.D.

3,050

Multinational subsidiary

-36.8

500.8

167.7

11,000

12.7

4.3

1.8

5.4

State national

Yes

drogariasaopaulo.com.br

429

-38.2

1,923.6

517.6

N.D.

28.2

7.6

12.4

11.1

State national

Yes

celpa.com.br

430

N.D.

11,882

State national

grupomateus.com.br

431

N.D.

1,108

16.1

Multinational subsidiary

spence.cl

432

768.6

4,241.2

572.1

11,700

-57.7

-7.8

-28.4

25.0

State national

Yes

all-logistica.com

433

6.3

1,133.0

572.4

4,048

60.6

30.6

29.9

50.7

Multinational subsidiary

backus.com.pe

434

-5.9

10,905.2

1,107.9

12,792

10.0

1.0

9.6

12.9

State national

cchc.cl

435

nidera.com.ar

436

coelce.com.br

437

alpargatas.com.br

438

texaco.com.co

439

supermuffato.com.br

440

Private multilatina

celsia.com

441

33.6

Multinational subsidiary

codensa.com.co

442

14.2

18.1

Private multilatina

ultrapar.com

443

Multinational subsidiary

glencorexstrata.com

444

State national

riachuelo.com.br

445

2.9

8.2

27.3

State national

Yes

e-cl.cl

446

N.D.

1,235

Multinational subsidiary

-29.0

1,293.3

562.5

N.D.

18.1

7.9

8.8

16.0

Multinational subsidiary

Yes

-11.9

1,055.9

516.1

N.D.

14.8

7.2

6.6

11.4

Private multilatina

Yes

427.7

59.9

N.D.

119.5

16.7

6.2

Multinational subsidiary

N.D.

10,367

State national

-43.4

3,207.6

1,362.0

N.D.

-0.2

-0.1

-0.3

18.5

-22.2

1,460.1

722.9

1,034

22.3

11.0

14.0

5.3

858.3

N.D.

1,809

18.9

N.D.

0.6

3,255.4

1,724.3

911

5.4

-42.4

3,734.6

1,597.3

6,480

4.4

1.9

6.1

21.9

State national

Yes

cedae.com.br

447

31.6

1,436.5

448.5

18,048

7.4

2.3

2.9

14.9

State national

Yes

kuo.com.mx

448

-453.8

4,194.5

2,482.5

4,563

-5.4

-3.2

-11.8

-13.4

State national

Yes

chesf.gov.br

449

N.D.

5,200

Multinational subsidiary

quilmes.com.ar

450

401 - 450

-52.7

GLOBAl ISSUE

APEC 2016

RK RK 2015 2014

FIRM

451 - 500

NET SALES SALES SALES PROFITS 2015 US$ 2014 US$ VARIATION 2015 US$ 15/14 millions millions millions

EBITDA NET EBITDA PROFIT 2014 PROFITS VARIATION 2015 US$ US$ 2014 US$ millions 15/14 millions millions

451 466 SIEMENS MEXICO

MEX Consumer goods

1,123.4

1,486.0

-24.4

57.8

6.8

744.6

N.D.

452 432 MINERA CERRO VERDE

PER Mining

1,115.6

1,467.1

-24.0

33.2

377.6

-91.2

415.3

778.4

453 487 SUPERMERCADOS BH

BRA Retail

1,114.6

1,268.5

-12.1

N.D.

454

MEX Media

1,113.0

N.D.

455 422 DURATEX

BRA Manufacturing

1,111.9

1,482.9

-25.0

51.5

145.3

-64.6

255.7

456.9

456

MEX Chemicals/Pharma

1,110.0

N.D.

1,511.0

-26.7

N.D.

- SKY - BASF MEXICO

N.D.

457 415 WHITE MARTINS GASES INDUSTRIAIS

BRA Petrochemicals

458 434 LOCALIZA

BRA Logistics

1,102.1

1,448.5

-23.9

112.9

152.8

-26.1

262.3

459

BRA Retail

1,089.6

1,080.6

0.8

N.D.

460 445 GAS NATURAL FENOSA MEXICO

MEX Electrical energy

1,086.7

1,401.7

-22.5

127.8

N.D.

461 500 CENCOSUD ARGENTINA

ARG Retail

1,086.0

1,237.6

-12.3

N.D.

462 391 GENERAL MOTORS ARGENTINA

ARG Automotive/Auto parts

1,083.9

1,582.2

-31.5

N.D.

463

- AMRESORTS

MEX Entertainment

1,080.5

N.D.

464

- LAN PERU

- SDB COMERCIO DE ALIMENTOS

1,107.0

N.D.

N.D. 360.9

PER Air transport

1,078.0

1,134.0

-4.9

5.1

1.1

379.0

25.0

-13.1

465 398 COPASA

BRA Health

1,075.8

1,537.5

-30.0

-3.3

118.4

-102.7

242.6

412.3

466

MEX Trucking

1,074.5

N.D.

BRA Trucking

1,074.0

1,495.4

-28.2

41.9

170.0

-75.4

353.0

505.1

468 460 CONDOR SUPER CENTER

BRA Retail

1,070.5

1,353.4

-20.9

N.D.

469

MEX Petroleum/Gas

1,070.1

N.D.

82.1

N.D.

470 498 MINERA YANACOCHA

PER Mining

1,070.0

1,210.0

-11.6

-450.1

-400.2

-12.5

375.0

471.0

471 372 DUPONT BRASIL

BRA Chemicals/Pharma

1,069.1

1,649.3

-35.2

-133.3

15.4

-967.4

-193.5

31.2

472

COL Electrical energy

1,064.0

968.3

9.9

315.5

412.0

-23.4

557.1

1,080.3

473 402 CODELCO DIV. ANDINA

CHI Mining

1,062.3

1,584.0

-32.9

112.3

510.8

-78.0

N.D.

474

- KIMBERLY-CLARK BRASIL

BRA Consumer goods

1,051.2

1,115.2

-5.7

N.D.

475

- VOLARIS

MEX Air transport

1,051.0

950.4

10.6

142.4

41.0

247.6

171.5

37.0

476

- IDEAL

MEX Construction/Engineering

1,049.7

1,001.3

4.8

14.1

-86.4

116.3

425.9

450.9

CHI Manufacturing

1,049.6

1,547.6

-32.2

52.2

11.3

361.4

205.8

184.7

478 471 CEG

BRA Petroleum/Gas

1,046.0

1,311.5

-20.2

79.8

119.4

-33.2

N.D.

479

- DHL MEXICO

MEX Logistics

1,040.6

N.D.

480

- GLORIA

PER Food

1,035.0

1,123.3

-7.9

62.9

82.2

-23.4

N.D.

481

- BANDEIRANTE ENERGIA

172.6

- KANSAS CITY SOUTHERN MEXICO

467 414 ARTERIS (EX- OHL BRASIL) - FEMSA COMBUSTIBLES FEMCO

- GRUPO ENERGIA DE BOGOTA

477 406 MASISA

(1) AméricaEconomía Intelligence Estimate / (2) Press information (3) Data estimated by Expansión (MX) or Semana (CO) rankings

COUNSECTOR/CATEGORY TRY

BRA Electrical energy

1,031.3

1,139.0

-9.5

73.5

89.4

-17.8

145.8

482 473 TELEFONICA COLOMBIA

COL Telecommunications

1,029.2

1,324.9

-22.3

N.D.

483

COL Mining

1,028.4

1,221.2

-15.8

-12.3

68.3

-117.9

264.4

285.4

- CARBONES DEL CERREJON

484 367 FIAT AUTO ARGENTINA

ARG Automotive/Auto parts

1,017.9

1,662.5

-38.8

N.D.

485

- EMGESA

COL Electrical energy

1,016.9

1,108.8

-8.3

275.5

426.7

-35.4

N.D.

486

- SODIMAC COLOMBIA

COL Retail

133.2

1,014.3

1,250.0

-18.9

45.3

53.0

-14.5

106.0

487 483 CIA. MINERA ANTAPACCAY (EX-XSTRATA TINTAYA) PER Mining

1,002.1

1,149.6

-12.8

N.D.

488 194 CBA

1,000.8

626.5

59.7

417.6

-293.9

242.1

N.D.

BRA Steel/Metallurgy

489 239 MAN LATIN AMERICA

BRA Automotive/Auto parts

982.0

2,493.5

-60.6

N.D.

490

- BIO PAPPEL

MEX Cellulose/Paper

981.3

832.8

17.8

6.8

44.3

-84.6

157.2

138.0

491

- ELEMENTIA

MEX Cement

981.3

1,038.0

-5.5

0.1

32.5

-99.7

173.6

181.1

492

- GFAMSA

MEX Retail

979.7

1,005.9

-2.6

8.5

25.1

-66.1

96.5

97.7

493 488 PROSEGUR

BRA Logistics

977.6

1,266.4

-22.8

N.D.

494 329 NEXTEL BRASIL

BRA Telecommunications

975.3

1,469.8

-33.6

-2,318.4

-721.1

-221.5 -1,168.8

-60.6

495

CHI Food

973.7

1,085.7

-10.3

60.3

51.8

16.4

163.6

146.6

496 476 PROFARMA

- EMP. CAROZZI

BRA Retail

972.2

1,283.6

-24.3

-5.9

-19.4

69.3

21.0

13.5

497 413 RENAULT ARGENTINA

ARG Automotive/Auto parts

954.7

1,516.7

-37.1

N.D.

498

BRA Consumer goods

954.4

1,081.5

-11.8

N.D.

- NOKIA BRASIL

499 468 BRAZIL PHARMA

BRA Retail

500 481 CIA. ESTADUAL DE DISTRIBUIÇÃO DE ENERGIA ELÉTRICA BRA Electrical energy

950.4

1,317.7

-27.9

-183.6

-228.2

19.5

-120.4

-162.4

947.4

1,060.3

-10.6

-144.3

-165.7

12.9

-119.0

-121.3

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

EBITDA VARIATION 15/14

TOTAL ASSETS 2015 US$ millions

EQUITY 2015 US$ millions

EMPLOYEES 2015

ROE (%) 2015

ROA (%) 2015

NET MARGIN (%) 2015

EBITDA MARGIN (%) 2015

TYPE OF FIRM

PRESENCE ON STOCK NOTES EXCHANGE

WEB SITE

RK 2015 451

632.8

150.6

5,245

38.4

9.1

5.1

Multinational subsidiary

siemens.com

-46.6

7,852.0

4,498.0

4,200

0.7

0.4

3.0

37.2

Multinational subsidiary

Yes

fcx.com

452

N.D.

14,998

State national

supermercadosbh.com.br

453

Private multilatina

State national

Yes

sky.com.mx

454 455

N.D.

2,527.3

1,271.6

N.D.

4.0

2.0

4.6

23.0

N.D.

1,100

Multinational subsidiary

N.D.

Multinational subsidiary

-27.3

1,717.9

544.7

6,185

20.7

6.6

10.2

23.8

Private multilatina

Yes

localiza.com

458

N.D.

7,790

State national

459

2,561.9

1,371.5

1,056

9.3

5.0

11.8

Multinational subsidiary

gasnaturalmexico.com

460

N.D.

Foreign multilatina subsidiary

tarjetacencosud.com.ar

461

N.D.

2,100

Multinational subsidiary

chevrolet.com.ar

462

Multinational subsidiary

Foreign multilatina subsidiary

N.D.

23,874

291.1

255.6

14.7

3,985

34.5

2.0

0.5

2.3

-41.2

3,066.7

1,584.3

N.D.

-0.2

-0.1

-0.3

22.6

State national

Yes

3,068.5

N.D.

3,850

State national

Yes

-30.1

2,828.5

629.8

N.D.

6.7

1.5

3.9

32.9

Multinational subsidiary

duratex.com.br

-44.0

basf.com/mx

456

whitemartins.com.br

457

amresorts.com

463

lan.com

464

copasa.com.br

465

kcsouthern.com/es-mx

466

Yes

ohlbrasil.com.br

467

N.D.

9,285

State national

condor.com.br

468

186.7

13.2

4,551

622.8

44.0

7.7

Private multilatina

469

-20.4

2,965.4

2,228.8

1,745

-20.2

-15.2

-42.1

35.0

Multinational subsidiary

Yes

yanacocha.com.pe

470

-720.5

1,650.2

478.0

4,955

-27.9

-8.1

-12.5

-18.1

Multinational subsidiary

dupont.com.br

471

-48.4

7,416.6

3,302.5

N.D.

9.6

4.3

29.6

52.4

State multilatina

grupoenergiadebogota.com 472

4,197.1

N.D.

1,699

2.7

10.6

State national

codelco.cl

N.D.

Multinational subsidiary

363.4

882.2

394.5

3,304

16.1

13.6

16.3

Private multilatina

36.1

473

kimberly-clark.com.br

474

Yes

volaris.com

475

-5.5

5,640.1

354.0

2,698

4.0

0.2

1.3

40.6

Private multilatina

Yes

ideal.com.mx

476

11.4

1,905.5

930.4

9,278

5.6

2.7

5.0

19.6

Private multilatina

Yes

masisa.cl

477

746.2

301.3

N.D.

26.5

10.7

7.6

Multinational subsidiary

Yes

ceg.com.br

478

N.D.

4,400

Multinational subsidiary

934.6

470.9

N.D.

13.4

6.7

6.1

Private multilatina

Yes

dhl.com.mx

479

grupogloria.com/gloria

480

-15.5

N.D.

7.1

14.1

Multinational subsidiary

bandeirante.com.br

481

N.D.

4,984

Multinational subsidiary

telefonica.com.co

482

-7.4

1,948.2

1,260.6

N.D.

-1.0

-0.6

-1.2

25.7

Multinational subsidiary

cerrejon.com

483

N.D.

1,958

Multinational subsidiary

2,750.6

1,107.2

N.D.

24.9

10.0

27.1

Multinational subsidiary

-20.4

665.3

277.0

7,670

16.4

6.8

4.5

10.5

Foreign multilatina subsidiary

N.D.

1,318

Multinational subsidiary

2,010.1

1,670.5

N.D.

25.0

20.8

41.7

State national

fiat.com.ar

484

emgesa.com.co

485

homecenter.com.co

486

antapaccay.com.pe

487

cba.ind.br

488

1,674.9

N.D.

1,722

Multinational subsidiary

man-latin-america.com

489

13.9

1,601.5

652.8

10,583

1.0

0.4

0.7

16.0

Private multilatina

Yes

biopappel.com

490

-4.2

1,746.8

913.6

5,837

0.0

17.7

Private multilatina

Yes

elementia.com

491

-1.1

2,370.4

615.9

19,117

1.4

0.4

0.9

9.9

State national

Yes

grupofamsa.com

492

N.D.

50,764

Multinational subsidiary

prosegur.com.br

493

-1,829.1

1,293.8

-2,218.1

N.D. -104.5 -179.2

-237.7

-119.8

494

11.6

1,234.8

396.7

10,047

15.2

4.9

6.2

16.8

55.6

640.3

187.4

6,048

-3.2

-0.9

-0.6

2.2

N.D.

2,824

N.D.

25.9

654.6

152.7

N.D. -120.2

-28.1

-19.3

-12.7

State national

Yes

brasilpharma.com.br

499

1.9

930.3

24.7

4,118 -584.3

-15.5

-15.2

-12.6

State national

Yes

ceee.com.br

500

Multinational subsidiary

nextel.com.br

Private multilatina

Yes

carozzi.cl

495

State national

Yes

profarma.com.br

496

Multinational subsidiary

renault.com.ar

497

nokia.com/pt_int

498

451 - 500

GLOBAl ISSUE

APEC 2016

Doing business in the Pacific Alliance A guide to the main regulatory and legislative aspect that individuals and companies interested in investing in the regional bloc should take into account.

ince its creation in 2011, the Pacific Alliance has called the worldâ&#x20AC;&#x2122;s attention for its achievements in its economic

integration process and its ambitious trade and investment plans, but especially for the significant growth of its member countries. Investors around the world look with particular interest to what happens in Chile, Colombia, Mexico and Peru, which are the four countries that make up the Pacific Alliance (PA), and know their most important objectives and results, but there are some questions that still have no answer. Finally, when choosing a new destination, investors should consider more then financial results. It is equally important to have accurate information on costs, regulatory stability, tax issues, etc. AmĂŠricaEconomĂa Peru, in cooperation with PwC Peru, addresses the main labor, foreign investment regulation, corporate and costs issues that any investor interested in the Pacific Alliance should keep in mind.

AMÉRICAECONOMÍA NOVEMBER 2016

Chile FOREIGN INVESTMENT CONSIDERATIONS In Chile, foreign direct investment is defined as the transfer to the country of foreign capitals or assets owned or controlled by a foreign investor, for an amount equal to or in excess of US$ 5,000,000, or its equivalent in other currencies. Furthermore, a foreign direct investment is classified as such when, within the above-mentioned amount, it transfers assets to the country and materializes through the acquisition or purchase of ownership interests of a company or in the capital stock of the company receiving the investment incorporated in Chile directly or indirectly, which gives control of at least 10% of the voting shares of the referred company.

Foreign investors in Chile have a number of rights, including: (i) to remit the capital transferred and the net profits generated by their investment abroad; (ii) to access to the formal exchange market to settle or obtain foreign currency; (Iii) non-discrimination regarding the applicable legal system for domestic investors; and (iv) exemption from Value Added Tax (VAT) on imported capital assets. In order to facilitate foreign investment, the regulatory framework that entered into force in 2016 eliminated the deadline for the entry of foreign capital to the country as well as the restriction to transfer the previous

capital in less than one year as from the date of entry of said capital to the country. It also establishes a more expeditious procedure for foreign investors to request tax exemption from sales and services in the import of capital goods and eliminates the need for additional authorizations to reap the benefits of this Act. Should an investor may not be classified as a foreign investor, he/she may use, for foreign exchange transactions, the regulations established in the Compendium of Foreign Exchange Regulations of the Central Bank of Chile, which includes all the rules governing the capital flows in the Chilean market.

With regard to labor costs, contributions are deducted from worker’s compensation, except for the occupational life and disability insurance, which is paid by the employer:

on worker’s remuneration or taxable base. Unemployment Insurance: l Indefinite-term Employment Contract: up to 0.6% of the worker’s remuneration or taxable base. l Fixed-term Employment Contract: 0% (no contribution is deducted).

LABOR LEGISLATION The dependent employment relationship commences by means of an employment contract governed by the Labor Code, which may be consensual or in writing. In order to establish this working relationship, there are different types of employment contracts; among them: l Fixed-term Employment Contract: it establishes the commencement and termination date of the contract, which may be renewed for another fixed period. l Indefinite-term Employment Contract: it does not establish the term of the employment relationship. l Per working time: used for specific tasks, in which the employment relationship concludes after completing the work. It may not be renewed and the person may execute a new contract with the same company for another job.

Mandatory Employee Contributions Retirement Pension: l Worker’s individual account in the Private Pension Fund Management Company (AFP): 10% of remuneration or taxable base, amounting to CLP$1,948,465 (approximately US$2,961.19). l Administration fee: it varies depending on the AFP. Health: l Private Health Insurance Companies (Isapre) or National Health Fund (Fonasa): 7%, applied

Mandatory Employers Contributions Occupational Life and Disability Insurance: l 1.41%, of employee’s remuneration or taxable base, according to the bidding valid as at June 30, 2018. Unemployment Insurance (it varies according to the type of contract and is applied on the employee’s remuneration or taxable base): l Indefinite-term Employment Contract:

GLOBAl ISSUE

APEC 2016

1.6% to the individual worker’s account and 0.8% to the Solidarity Severance Fund. l Fixed-term Employment Contract; per specific work or service: 2.8% to the individual worker’s account and 0.2% to the Solidarity Severance Fund.

Occupational Accidents and Diseases (Mutual): l Minimum 0.95% and, from that limit, it increases depending on the loss ratio of the company. Furthermore, Chilean labor legislation

includes the employment relationship by subcontracting, which is governed by Law No. 20.123, as well as independent work, in which the benefits of the person hired shall be those that the parties have agreed upon in the respective service contract.

amount of their investment contributions. A minimum of two (2) and a maximum of fifty (50) members are required. Its incorporation is made through formal procedures; i.e., it must be recorded in a public deed executed before a Chilean Notary Public, an extract of which must be filed with the Registry of Companies and published in the Official Gazette.

500 or more shareholders for a period of ninety (90) days, or when at least 10% of its subscribed capital is owned by at least one hundred (100) shareholders, it becomes a general stock corporation. The Joint Stock Company is incorporated by means of written articles of incorporation, duly recorded in the Registry of Companies and published in the Official Gazette. This corporate form can be incorporated by a public deed or by a private instrument signed by the parties, whose signatures must be authorized by a Chilean Notary Public and the referred instrument must be registered in the notarial record book of said authenticating officer.

CORPORATE CONSIDERATIONS Today, setting up business or incorporating companies in Chile is a simple and easy task which, generally speaking, should not take more than 10 to 15 days. However, it is necessary to carry out a series of formal procedures; including the following: a) if the founding partner or shareholder is a foreign resident, he/she shall initially process his/ her Taxpayer ID Number; b) then, the articles of incorporation shall be prepared, which shall be executed before a Notary Public; c) after this document has been put into the form of a public deed, the registration of an extract of the articles of incorporation in the respective Registry of Companies and the publication thereof in the Official Gazette shall be requested, which shall take, as a general rule, sixty (60) days (except in the case of joint stock companies, for which the deadline is one month); d) subsequently, incorporators must go to the Internal Revenue Service in order to request the Taxpayer ID Number of the company incorporated and to indicate the address of the principal place of business within the country, the personal details of the legal representative and the date of commencement of operations. This set of procedures marks the beginning of the obligations of the company as a taxpayer subject to the Chilean tax system.

Business Corporations Limited Liability Company: it is a company in which its members are liable for the

General stock corporation: it is a legal entity incorporated by the establishment of a common fund, provided by shareholders who are liable for their respective contributions only, and is administered by a Board of Directors composed of members subject to revocation. Corporations with more than five hundred (500) shareholders must be regulated by the Superintendency of Securities and Insurance, as it resembles a publicly traded company. Rights of shareholders are represented by shares, which are contained in freely transferable certificates. The Management is composed of two governance bodies: the Shareholders’ Meeting and the Board of Directors, which appoints a Manager. Its formation is formal in nature.

Joint Stock Company (SpA): it is a legal entity whose equity interest is represented by shares. It may be established and exist with a single shareholder. This type of company is very flexible and its bylaws may provide different series of shares that can participate separately in the results of different businesses. When this type of company has

General Partnership: this type of legal entity, incorporated through formal procedures, is established by means of a public deed, an extract of which is recorded in the Registry of Companies. At least two members are required. A publication in the Official Gazette is not required. Partners are liable jointly and severable for the corporate liabilities under the corporate name.

l Limited Partnership: there are two kinds of partners in this type of company: general partners, with powers of administration, and limited partners, silent partners and funding partners. It requires at least two (2) partners or shareholders. In turn, there are two types of limited partnerships: the limited partnership, in which limited partners have the same rights of a general partnership; and limited partnership by shares, in which shares repre-

GLOBAl ISSUE

APEC 2016

senting the rights of partners are issued as in general stock corporations. Non-commercial limited partnerships are consensual, while commercial limited partnerships by shares are formal in nature.

Non-commercial Partnerships Non-commercial General Partnership: in this type of partnership, the partners are liable for their personal assets, the share of the insolvent partner is charged on the other partners and resolutions are adopted by l

unanimous consent. It requires a minimum of two (2) partners or shareholders. The dissolution of these companies, as well as its incorporation, is consensual; i.e. no formal requirement must be met.

Foreign Corporations Branches

Non-commercial Limited Partnership: general partners are liable for their personal assets and limited partners for their contribution. A minimum of two (2) partners or shareholders is required. The dissolution of these companies, as well as its incorporation, is consensual.

While a branch in Chile of a foreign company is not a type of corporation, this is governed by the Business Corporations’ Act. When a general stock corporation seeks to establish a branch in Chile, it shall appoint an agent or representative who, for practical and tax purposes, shall be domiciled or resident in Chile. Said agent or representative shall request the formal notarial registration, in a notary’s office located in his/ her domicile, of the background information evidencing the existence of the company abroad.

entering into different types of contracts, and there are a series of stages that shall be completed in order to materialize the referred import. At first, there is a stage of negotiation, in which an agreement is reached on the contract to be entered into, the goods or services covered by the contract, liability, among other aspects. Subsequently, there is a stage of shipment, in which some issues such as the route of transfer of goods, the possibility

of effecting insurance, among others, are discussed. Finally, the transfer and receipt of goods, customs clearance and taxation are completed. Chile has executed a number of treaties aimed at fostering international relations and business. The customs duty amounts to 6%, but by using import privileges from free trade agreements, most imports can enter with a 0% tariff.

First Category Tax (IDPC): This tax is levied on capital gains produced, among others, by commercial, industrial, mining, service companies, etc. Tax returns must be submitted on an annual basis. During the financial year 2016, the rate of this tax is 24%, which must be calculated on the taxable income of the company. From the financial year 2017 onwards, tax reforms established two new tax systems: the “Imputed Income System” and the “Partially Integrated System”. Under the Imputed Income System, at the end of each financial year income shall

be attributed to the partners or shareholders of companies paying the First Category Tax (IDPC) under this system. The rate will be 25% for 2017 and subsequent years. The owners of companies under this system shall be entitled to use as available credit 100% of the First Category Tax (IDPC) paid by the company. Under the Partially Integrated System, company owners shall be levied with the Global Complementary Tax (GCT) or Additional Tax (IA), as appropriate, on all amounts withdrawn, transferred or distributed from the company for any reason whatsoever. The First Category Tax (IDPC) rate for this

FOREIGN TRADE The National Customs Service is in charge of monitoring and controlling the passage of goods along the coasts, borders and airports of the Republic of Chile, intervening in international traffic for the purpose of collecting taxes on the import, export and other taxes as determined by the laws, and generating border traffic statistics, without prejudice to other functions entrusted to it by law. Imports into Chile may be conducted by

TAX SYSTEM In September 2014, a tax reform was introduced in Chile that changed much of the legislation regulating the matter, particularly with regard to the Income Tax Law. Such reform continues gradually modifying tax regulations of the country.

Taxes established in the Income Tax Law As a general rule, individuals and legal entities domiciled or resident in Chile are taxed on their foreign-source income. By contrast, individuals or entities not domiciled or resident in Chile are taxed only on their Chilean-source income.

GLOBAl ISSUE

APEC 2016

system will be 25.5% in 2017 and 27% in 2018 and subsequent years. When paying their final taxes (GCT or IA), company owners may use as credit 65% of the IDPC paid by the company. The IGC or IA taxpayer must repay an amount equal to 35% of the credit corresponding to the IDPC on withdrawals or dividends received. If the taxpayer is a foreign company domiciled in a country with which Chile maintains in force an agreement to avoid double taxation, the IA taxpayer may use as credit 100% of the IDPC paid by the company. Second Category Tax: This tax is levied on income from dependent employment and is withheld by employers on a monthly basis. The rate is progressive and ranges from 0% to 40% (from 2017 onwards, the maximum progressive rate will decrease to 35%). Second Category Taxpayers are not taxed by other income, unless the source of this income is other than wages or salaries.

Global Complementary Tax (IGC): It is a personal, global, progressive and complementary tax that is determined and paid on an annual basis by individuals domiciled or resident in Chile on taxable income determined under the rules of the first and second category. Its rate gradually increases as the tax base increases. Its maximum marginal rate currently stands at 40%, which from 2017 onwards will be decreased to 35%.

Additional Tax (IA): It is a tax levied on individuals or legal entities not domiciled or resident in Chile. Its general rate stands at 35% and operates on the basis of imputed income, withdrawals, distributions or remittances of Chilean-source income abroad. IA taxpayers are entitled to a credit equal to the IDPC paid by companies on imputed and distributed income and withdrawals. From 2017 onwards, such credit will be determined according to the tax system chosen by the company.

Value Added Tax (VAT) It is the main consumption tax in Chile with a 19% rate that is levied on sales of tangible personal and real property located within national territory, provided that sales are made by a regular vendor. It is a tax also levied on the provision of certain services provided or used in the country. This tax must be declared and paid on a monthly basis, and its amount is determined from the difference between the tax credit and tax debit. There are incentives for investment in capital assets, in which the refund of the VAT of such goods may be applied for. In this regard, Congressional Order (Decreto Ley) 825 provides for a tax exemption for the import of species made by investors and receiving companies for the investment amount actually received as contribution, provided that the goods imported are capital assets forming part of a foreign investment project formally agreed upon with the State of Chile, or capital assets not produced in Chile in sufficient quality and quantity, which are part of a similar domestic investment project and which is considered of interest to the country.

Stamp Tax (ITE) It is a tax primarily levied on documented credit operations, such as bills of exchange, bonds, notes, simple or documentary credits and any other documents, even those that are issued in a dematerialized form, containing a credit transaction. The applicable ITE rate varies depending on whether the payment obligation is a fixed-term obligation (from 0.066% to 0.8% of the credit transaction amount per month between the issuance of the document and the expiration date thereof) or at sight (0.332%).

Municipal License It is a permit necessary to undertake any commercial activity at a given address. The local municipality where the business will be established grants business, professional or in-

dustrial license depending on the activity that is intended to be carried out. Business licenses are paid on an annual basis, but payment is allowed to be made in two semiannual installments. The price varies depending on each municipality. The amount to be paid ranges between 1 Tax Unit (UTM) (US$69.6) and 8,000 UTM (Tax Units) (US$556,720) per year.

Territorial Tax & Other taxes This tax is levied on real estate and is determined on the tax assessment of the properties. The owner or occupant of the property must pay the annual tax in 4 installments. The annual rate of the territorial tax for real estate for residential purposes is 0.98% when the assessment is equal to or less than CLP $79,981,663 as at July 1, 2016. For real estate with an assessment higher than CLP $79,981,663, a rate of 0.98% shall be applied up to that amount (CLP$79,981,663) and a rate of 1.143% shall be applied on the portion exceeding that amount. For its part, the annual rate of the Territorial Tax for Non-agricultural and non-residential real estate, corresponding to unbuilt areas and abandoned properties is 1.204%. A tax benefit surcharge of 0.025% shall be applied on non-agricultural and non-residential real estate, which shall be collected together with the contributions. Non-agricultural real estate intended for residential use are exempted from payment of contributions with an assessment up to $22,394,368 for the second half of 2016. The Territorial Tax Act considers general exemptions for agricultural housing units and properties; and special exemptions for properties used for worship, education and sport. There are also other independent taxes such as the tax on inheritance and donations and Taxes on Municipal Benefits, such as vehicle licenses. Likewise, there are taxes such as those levied on alcoholic, non-alcoholic beverages and the like, the luxury tax and other taxes imposed on casinos, gambling and the like.

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GLOBAl ISSUE

APEC 2016

INTELLECTUAL PROPERTY Chile protects the creations of authors of works of various kinds through copyright, moral, proprietary and related rights. It also provides for the protection of copyright in special cases of authorship, such as computer programs or works derived from or produced by officials in the performance of their duties. The legal protection of copyright on a work extends from the creation thereof,

throughout the life of the author and up to 70 years thereafter, counted as from the date of his death. Upon expiry of the terms of protection of copyright, the work will become part of the common cultural heritage, so its subsequent use does not require any authorization. Pursuant to law, the institution that must ensure the protection of copyright is the Department of Intellectual Property Rights

(DDI), attached to the Directorate of Libraries, Archives and Museums (DIBAM) of the Ministry of Education, which is responsible for the Registry of Intellectual Property, the handling of queries and reports made or requested by individuals and public services, and for advising the Government on all matters relating to copyright, similar rights and related subjects. Registration shall be made in person, online or by mail.

Colombia FOREIGN INVESTMENT CONSIDERATIONS According to the Colombian legal system, there are two types of foreign investments: l Direct Foreign Investment: it is carried out through the acquisition of (a) interests, shares or any kind of contribution representing a companyâ&#x20AC;&#x2122;s capital stock; (b) rights in autonomous equities created through a merchant trust contract as a means to establish a company or for the purchase, sale and management of interests in other companies; (c) real estate, as well as equity securities issued as a result of a real estate securitization process or through real estate funds; (d) investments to the assigned capital stock or investments supplementary to the assigned capital stock of branches established in Colombia by foreign legal entities; or (e) interests in private equity funds.

Portfolio Investment: it is carried out through foreign equity investment funds l

in shares, bonds mandatorily convertible into shares and other securities registered with the National Registry of Securities and Issuers (RNVE). Investments are carried out by means of a currency transfer through the foreign exchange market in order to make a direct contribution to a companyâ&#x20AC;&#x2122;s capital stock or to acquire the rights or shares of third parties in existing corporations. Said transfer may be made in kind or through national currency resources resulting from local credit operations entered into with credit institutions and intended to the acquisition of shares through the public stock market. All foreign investments must be registered with the Bank of the Republic (Central Bank) so that the foreign investor may exercise all the exchange rights vested in him by law. The registration process for the foreign

investment is simple and may be directly carried out before the Bank of the Republic or through an authorized intermediary or compensation account, provided that it is performed by the foreign investor, his/her attorney-in-fact or whoever represents his/ her interests. The filing of Income and Supplementary Tax Returns must be mandatorily made for each transaction, including those events in which no payable tax is generated for the corresponding transaction. It must be noted that foreign investments made in Colombia must be updated on an annual basis within the terms and in accordance with the procedures defined by the Bank of the Republic of Colombia. Once the investments are registered, the holder thereof shall have to the following exchange rights: l To remit abroad 100% of the proven net profits regularly generated by its investments.

GLOBAl ISSUE

APEC 2016

To reinvest profits or to retain transferable undistributed profits in the surplus account. l To capitalize transferable amounts resulting from obligations derived from investments. l

To remit abroad, in freely convertible

currency, the proceeds received from the sale of the investment held in the country, the winding-up of the company or of a portfolio, or the reduction of its capital stock. The strategy for the improvement of commercial relations implemented by

Colombia comprises the negotiation and execution of Agreements for the Reciprocal Promotion and Protection of Investments (APPRIs), as well as Free Trade Agreements (FTAs), which include chapters about foreign investment.

Interest on Severance Pay: equivalent to 12% of the annual severance pay’s value. l Service Bonus: equivalent to 15 days of salary per six months of service. l Transportation Allowance: a monthly payment made to the employees earning no more than twice the SMMLV per COL$72,000 (approximately US$24.60). l Work Footwear and Clothes: this is a payment made every four (4) months to the workers earning no more than twice the SMMLV for an amount of COL$1,288,700 (approximately US$439.40).

for indefinite term contracts, the termination benefits shall depend on the salary received by the employee and on the amount of years for which the employment relationship was maintained. l Indemnity for the failure to pay the salary and the fringe benefits shall be equivalent to one (1) day of salary per day of default for the first 24 months.

LABOR LEGISLATION Depending on their duration, employment contracts are classified as follows: l Fixed-term Contract: the duration of this type of contract may not exceed three (3) years. It may be extended for an indefinite period. l Contract according to the Duration of the Contracted Work or Task. l Accidental or Transitory Contract: the duration of this type of contract may not exceed one (1) month and it is entered into for the performance of tasks other than the company’s regular activities. l Indefinite Term Contract: this type of contract has no established termination date. Colombian labor system also covers a series of payments arising from the employment relationship:

Salary In 2016, the Current Legal Monthly Minimum Salary (SMMLV) amounts to COL$689,454 (approximately US$235.10). l The comprehensive salary is comprised of the ordinary salary, fringe benefits, surcharges and other benefits, statutory and additional bonuses, severance pay, allowances, etc., but does not include vacations. The comprehensive salary must be established in writing in the employment contract. l

Fringe Benefits Severance Pay: a monthly salary paid for each year of services.

Contributions to the Comprehensive Social Security System Contributions to the General Pension System: 16% of the employee’s monthly salary, out of which the employer pays 12% and the employee pays 4%. The employees earning more than four (4) SMMLV shall pay an additional 1% allocated to the solidarity fund. Additionally, the employees earning from sixteen (16) SMMLV shall make an additional contribution between 0.2% and 1%. l Contributions to the Health Social Security System: 12.5% of the employee’s monthly salary, out of which the employer pays 8.5% and the employee pays 4%. l Contributions to the Labor Risks System: between 0.348% and 8.7%, depending on the company’s level of risk. The total value of this contribution shall be covered by the employer. l Parafiscal Contributions: Payments made by employees to the Colombian Institute of Family Welfare (ICBF), to the National Apprenticeship Service (SENA), and to the Family Compensation Funds. l

Statutory Rest Periods If an employee works up to two (2) Sundays per calendar month, he/she shall be entitled to receive a surcharge equivalent to 75% of the ordinary salary in proportion to the worked hours, or a whole rest day. If the employee works more than three (3) Sundays, he/she shall be entitled to receive a 75% surcharge in addition to a rest day. l Employees are entitled to a 15-day-business-day paid vacation per year of services. l

Termination Benefits In the event of a unilateral contract termination without just cause, termination benefits are equivalent to the remaining time until the agreed termination of the contract or the completion of the works in the case of fixed-term contracts or contracts according to the duration of the works, respectively. As

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GLOBAl ISSUE

APEC 2016

CORPORATE CONSIDERATIONS While there are several types of companies in Colombia, four (4) of them are the most used by foreign investors: Simplified Joint Stock Company (S.A.S.): this type of company may be incorporated by one or more individuals or legal entities (either Colombian or foreign), whose liability is limited to the amount of their respective contributions. It should be noted that both its incorporation, as well as the amendments made to its Bylaws, may be carried out by means of a private document. Its name must be always followed by the initials “S.A.S.”

Joint Stock Company (S.A.): this type of company must have at least five (5) shareholders (either Colombian or foreign individuals or legal entities), whose liability is limited to the amount of their respective contributions. Its incorporation is carried out by means of a public deed authenticated by a Notary Public, which also applies to the amendments made to their Bylaws. Its name must always be followed by the initials “S.A.” and it is mandatory to appoint a statutory auditor (external auditor). l

Limited Liability Company (Ltda.): this type of company must be incorporated by means of a public deed authenticated by a Notary

Public. Additionally, it must have at least two (2) members and no more than twenty-five (25) members (either Colombian or foreign individuals or legal entities), whose liability is limited to the amount of their contributions, except for labor or tax obligations, in which case the liability shall be joint and several. Any amendment to the Bylaws or any transfer of units of interest (membership interests) must be also carried out by means of a public deed. Its name must be always followed by the abbreviation “Ltda.” l Branch of a Foreign Corporation: in accordance with Colombian commercial law, a branch of a foreign corporation is considered a commercial establishment necessary for a corporation incorporated and domiciled abroad to carry out ongoing activities and commercial transactions in Colombia. In this sense, from a legal point of view, the branch of the foreign corporation and its main office are considered as the same legal entity, in a way in which the main office is totally responsible for all the obligations of its branch. The branch must be incorporated by means of a public deed, and both its Bylaws and its corporate bodies are those of its main office. It is mandatory for the branch to appoint a statutory auditor (external auditor).

In Colombia, the two (2) most used investment vehicles are the Simplified Joint Stock Companies and the Branches of a Foreign Corporation. In both cases, the incorporation procedure has three stages: (i) The filing of the articles of incorporation, which in the case of a Simplified Joint Stock Company (S.A.S.) may be made by means of a private document, and in the case of a Branch of a Foreign Corporation, by means of a public deed. In both cases, the articles of incorporation shall contain basic information about the new entity and its shareholders, or about the main office in the case of a Branch; (ii) The registration of the articles of incorporation before the Registry of Companies, which in Colombia is administered by the Chambers of Commerce; and (iii) The registration thereof before the tax authorities (National Tax Registry - RUT) and the obtainment of a Tax Identification Number (NIT). Once the duly authenticated supporting documentation is in Colombia, the incorporation process lasts between one (1) week and ten (10) days. In the case of Branches of a Foreign Corporation, the process may take a few more days, and it should be noted that it shall be necessary to put the articles of incorporation into the form of a public deed.

Tax authorities acknowledge Permanent Customs Users (UAPs) as such during a 5-year period if they have carried out foreign trade operations during the previous twelve (12) months for a FOB value equivalent to US$5,000,000 or for such a value equivalent to the annual mean during the last three (3) years, and if they have filed at least a hundred (100) import or export declarations

during the last twelve (12) months. UAPs shall be entitled to the following benefits once they have registered as such: l Automatic release of imported goods. l Possibility to import raw materials or supplies according to the temporary import regime for industrial processing, in such a way to allow the import of said raw materials or supplies without the payment of customs

FOREIGN TRADE The Colombian legal system focuses on facilitating customs-related import, export and transportation operations through the control of the application of several forms of foreign trade. In that sense, in 2005, Colombia implemented the Single Foreign Trade Counter (VUCE), an electronic system that consolidates all the government procedures in relation to trade operations at an international level.

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GLOBAl ISSUE

APEC 2016

duties, taking into account that these shall be used for the manufacture of exported goods. l Granting of a global guarantee that covers all the foreign trade operations before the Colombian customs authority (National Bureau of Taxes and Customs - DIAN). In the case of imports, any person registered with the RUT and the DIAN may carry out import-related activities in Colombia. However, only those persons authorized by the DIAN may submit import declarations through the Customs Information System. On the other hand, ordinary import is the most used method in Colombia. By applying this method, a Colombian importer receives freely disposable goods once the Customs

Authority has electronically or manually approved and cleared them. The obligations of the importer include: declaration of goods through the electronic system, compliance with the labelling requirements, payment of all the applicable customs duties and obtainment of the approval for each import declaration. Regarding the export of goods, the process starts with the submittal and approval of a shipment authorization (Request for Shipment Authorization - SAE), observing the procedures established in the customs regulations. Once the shipment has been authorized, the goods have been loaded and the carrier has issued the corresponding bill of lading, the request for shipment authoriza-

tion shall be deemed as the respective export declaration. In Colombia, exports are not subject to customs duties. Also, there is no general drawback program implemented for the export of previously imported goods. If the registered importer needs to export products or pieces that must be repaired or replaced outside Colombia, they may resort to the temporary export regime in order to reimport them without paying customs duties or VAT. The DIAN may request the Registered Exporter to submit import declarations for the products or pieces that are being exported so as to prove their legal entry to the Colombian territory.

TAX SYSTEM The Colombian tax system sets forth both national and territorial (departmental and municipal) taxes. The following constitute the main national taxes:

National taxes Income tax and Taxes Levied on Occasional Income: Both corporations and individuals domiciled in Colombia are levied on their income (both regular and occasional) regardless of whether it comes from a national or foreign source. On the other hand, non-domiciled foreign corporations are only levied on their national-source income (both regular and occasional). Additionally, branches and permanent establishments of foreign corporations located in Colombia are only levied on their national-source regular and occasional income. As a general rule, income tax is levied on an annual basis and coincides with the calendar year. The general income tax rate is 25%. In the case of industrial users that manufacture and offer goods and services in the Free Trade Zone, the income tax rate is equivalent to 15%. l

Income Tax for Equality (CREE): Corporations, legal entities and persons treated as such filing their tax return, as well as foreign entities that declare and pay income tax in Colombia, in relation to their national-source income and obtained through branches or permanent establishments, are subject to this tax. However, non-profit corporations are not subject to this tax. Likewise, free trade zones authorized before December 31, 2012, are not covered by this tax. The taxable base for the payment of CREE may not be less than 3% of the taxpayer’s net equity as of the last day of the previous taxable year. For taxable years 2015, 2016, 2017 and 2018, a surtax was created on top of the CREE, which is calculated based on the amount that exceeds COL$ 800,000,000 (approximately US$ 272,800) of the taxable basis subject to CREE. For taxable year 2016, a rate of 6% is applied; for 2017, this rate shall be increased to 8%; and for 2018, it shall be increased to 9%. l

Wealth Tax: The wealth tax is generated by the ownerl

ship of an equity equal to or higher than COL$1,000,000,000 (approximately US$ 341,000), as of January 1, 2015. The taxable base for this tax is made up of the net equity owned by the taxpayer as of each causation date, with a right to any kind of reduction, such as the deduction of the net equity value from the shares held in domestic corporations, as well as the first 12,200 Tax Value Units (UVTs) (approximately US$ 123,778 in 2016) of the dwelling house or apartment. In 2016, the wealth tax rate fluctuated between 0.15% and 1%; and, in 2017, it shall fluctuate between 0.05% and 0.4%. Value Added Tax (VAT): This tax is mainly levied on the sale of tangible personal property other than fixed assets, the provision of services within the national territory, and the import of tangible personal property that has not been expressly excluded. This tax must be mandatorily collected and paid to the Colombian Tax Authority by whoever carries out any activities that generate it, even when this tax is financially assumed by the final consumer.

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GLOBAl ISSUE

APEC 2016

There is currently a general VAT rate of 16% that is applied to most transactions, as well as differential rates of 5% and 35% for some goods and services. National Consumption Tax: The activities that generate this tax comprise the provision or sale to the final consumer (or the import by the final consumer) of certain products or services, such as mobile phone carriers, certain vehicles, the sale of prepared meals, etc. The causation of this tax does not include the causation of the VAT. The rates are as follows: 4% for mobile phone carriers, between 8% and 16% for taxable vehicles, and 8% for consumption in restaurants and the consumption of prepared meals.

Tax on Financial Transactions: This tax is ongoing, of instant causation, and it is levied on financial transactions through which a person may access funds deposited in checking or savings accounts, as well as in deposit accounts held with the Bank of the Republic and by drawing cashierâ&#x20AC;&#x2122;s checks. The rate is equivalent to 0.4% of the total value of the financial transaction through which financial resources are accessed. It is possible to deduce from the taxpayerâ&#x20AC;&#x2122;s Income Tax the 50% of the amounts paid for this tax, regardless of whether there is or not a causal relationship between such amounts and the taxpayerâ&#x20AC;&#x2122;s income-generating activity.

Territorial taxes Industry and Commerce Tax: This tax is levied on the income obtained from the development of industrial, commercial, and service-related activities carried out, directly or indirectly, by individuals, legal entities or de facto corporations in their respective municipal jurisdictions. The taxable base of this tax comprises the gross amount obtained by the taxpayer minus the deductions and exemptions to which they are entitled. The rate of this tax is defined by each municipality, all of which are autonomous regarding the fixation of rates within the following ranges established by law: a rate between 0.2% and 0.7% for industrial activities, and a rate between 0.2% and 1% for commercial and service-related activities.

The applicable rate depends on the quality of the property (that is, if it is rural, urban or suburban), and it ranges between 0.4% and 1.2%, in a differential way, depending on the economic purpose of each property. This tax is 100% deductible on the Tax Return, provided that it has a causal relationship with the income-generating activity.

Property Tax: The Unified Property Tax is imposed on the ownership of real estate properties located in urban, suburban or rural areas, with or without buildings. Therefore, the owners or possessors of real estate properties are subject to this tax. The taxable base of this tax comprises the property valuation in force adjusted according to the Consumer Price Index. In areas such as the Capital District of Bogota, the taxable base comprises the property valuation carried out by the taxpayer.

Registration Tax: This tax is levied on all documentary acts, contracts or legal transactions that must be registered with the chambers of commerce and with the Public Records Offices. The taxable basis of this tax comprises the value included in the document containing the act, contract or legal transaction. Regarding documents that do not establish a value, the taxable basis shall be determined according to the nature of the document. In the case of acts, contracts or legal transactions establishing a value and subject to registration with the Public Records Offices, the taxable base shall range between 0.5% and 1%. Likewise, the acts, contracts or legal transactions establishing a value and subject to registration with the Chambers of Commerce shall range between 0.3% and 0.7%. In the case of acts, contracts or legal transactions that do not establish a value, the taxable base shall range between two (2) and four (4) statutory minimum salaries per day.

industrial property registration process starts with the submittal of a request before the SIC, the payment of the corresponding fees and the publication of the request. Afterwards, a decision will be made regarding the challenges filed, and regarding the granting or denial of the registration. Finally, the corresponding remedies will be filed and a final decision shall take place. On the other hand, intellectual property

is overseen by the National Copyright Bureau (DNDA). This institution is responsible for designing, directing, managing and implementing domestic policies regarding copyright and related rights. Its main purpose is to generate an increased respect for literary and artistic copyright. The general process for copyright registration starts with the submittal of a request before the DNDA, either virtually or in person.

INTELLECTUAL PROPERTY In Colombia, industrial property and copyright are subject to different domestic and international regulations and standards. Regarding industrial property, the Superintendency of Industry and Commerce (SIC) is the entity responsible for granting rights on new creations and signs used by merchants to differentiate their products and services. Likewise, it is the entity that decides on denominations of origin. The

AMĂ&#x2030;RICAECONOMĂ?A NOVEMBER 2016

Mexico FOREIGN INVESTMENT CONSIDERATIONS Every investor interested in Mexico should consider that it has been the general policy of the Mexican government not to offer special tax concessions to encourage foreign businesses to locate in Mexico. However, special tax incentives are granted to taxpayers that wish to contribute to qualified film and theatre projects and to taxpayers who are involved in the agriculture, livestock, fishing and timber industries. Certain other considerations should be noted when deciding to invest in Mexico: l 100% foreign ownership is permitted in

labor-intensive in-bond processing and in a majority of economic activities, including commercial and service sectors. Banking industry is almost 100% private and majority foreign ownership of banks is allowed. l Private and direct foreign investment at 100% is now permitted in telecommunications and satellite communications. l No free-trade zones exist in Mexico. l Specific duty deferral programs allow termporary imports, besides strategic bonded warehouses, which bring additional benefits. l

Incentives are not offered for establishing international financial center operations. l Mexico is not a tax-haven country, its tax rates are comparable to those of both developed and developing countries. l The Mexican government has a policy and procedures that aim to simplify the setting of a company, including the reduction of formalities and time for issuance of authorization resolutions. l There are no exchange controls. l Capital and earnings can be freely remitted abroad. l

LABOR LEGISLATION Labor is readily available in most regions of Mexico, with internationally competitive levels of efficiency. However, turnover is moderate, especially in the highly competitive labor intensive industries and unionization and collective labor contracts are common in both capital and labor intensive industrial enterprises. Social security plays an important role in labor relations in Mexico. Fringe benefits, including labor law benefits, are significant relative to total payroll costs. The social security system is in effect for all industrial areas and many agricultural zones, although social security premiums are payable by both the employer and the employee. In addition to these costs, profit sharing is mandatory for most businesses, and amounts to 10% of adjusted taxable income. Compliance with general provisions of Labor

Law, as well as Social Security, Hygiene, Safety and Environmental Care are monitored by the authority and default is subject to penalties which may be material in some cases. Although foreign ownership of companies is generally allowed, the employment of foreign nationals is generally limited to 10% of the total workforce. Certain exceptions may apply when a free-trade agreement is in effect. Work visas are required.

Wages and salaries Minimum daily wages are established for separate regions of the country by a National Minimum Wage Committee, working through local committees made up of representatives of government, organized labor and private industry. Formerly, new

minimum wages were approved every year, but in the past, as a result of the relatively high rate of inflation, on occasion minimum wages were adjusted more than once a year. In recent years the annual increases have not exceeded the inflation rates as measured by the National Consumer Price Index. The variation in wage rates in the different regions has been considerably reduced, and only two different minimum rates are now in effect, varying from a low of 63.77 pesos per day in some regions to 67.29 pesos per day in Mexico City and in some regions near the U.S. border. The Minimum Wage Committees have also established professional minimum wage rates for a number of semiskilled and skilled jobs and office jobs. The committee for Mexico City fixed rates for a total of 59 different positions for 2014.

GLOBAl ISSUE

APEC 2016

Overtime pay and other required payments Double time must be paid for the first nine hours of overtime each week and triple pay if unusual circumstances require more than nine extra hours (the legal maximum) in any week Triple pay is also provided for work on the seven legal holidays. Sunday work entitles a worker to a premium of 25% of regular pay, even if the worker receives a day off during the week A Christmas bonus equivalent to 15 days’ pay must be paid to all employees on or before December 20 each year.

Fringe benefits Collective labor contracts often provide for benefits over and above those stipulated by the federal labor law and other legislation with regard to early retirement, number of holidays, length of vacations and a wide range of benefits that are not taxable to employees, such as contributions to general savings funds. Many taxpayers grant coupons for meals and groceries, which under certain conditions are not taxable to the employees. From 2014, the referred to coupons will only be partially deductible for the employer in most cases. Some contracts still oblige the employer to pay the employees’ part of the social security contributions or even the personal income tax, although the latter does not represent deductible expenses for the employer and is infrequent. Many companies provide major medical and group life insurance, particularly for white-collar employees and executives. However, the provisions of the income tax law described in Chapter 15 should be reviewed before benefits are granted to only part of a company’s workforce. Fringe benefits, including labor law

benefits, are significant relative to total payroll costs.

Hours worked The maximum work week is six eight-hour shifts, although in practice a 40-hour week is often in effect, particularly in offices. Regular time for the night shift is seven hours and for a split shift seven and one-half hours.

Paid holidays and vacations The legal holidays are listed in Chapter 1 under “Hints for the business visitor;” four or five more are often granted to office employees and under collective labor contracts. The present law requires that a vacation of six working days be granted after the first year of service, with an additional two days for each of the next three subsequent years, with an additional two days for every five years of service after the fourth year. A premium of 25% of the regular salary must also be paid during vacations. Nonunion employees are commonly granted a two-week vacation period.

Equal opportunities Workers are categorized as unionized and non-unionized employees. In the case of entities with no unions, the distinction commonly made is between confidential employees (those conducting managerial activities, as discussed above) and regular employees. Under the Mexican Constitution no individual may be discriminated against on the basis of race, religion or sex. However, employers have traditionally enjoyed the liberty to hire or dismiss confidential employees at their discretion, and, in the case of unionized employees, companies

commonly fill vacancies in accordance with the collective labor contract but can also hire and dismiss unionized employees as required (however, see “Termination of employment” below).

Health and safety All employers must meet minimum health and safety requirements on their premises. For this purpose the labor law provides for the formation of health and security committees made up of members of management and the workforce. The committees, together with labor authorities, have the responsibility to analyze and investigate causes of work-related accidents and illnesses and to develop safety practices and procedures, to communicate them and to oversee compliance. Both the Social Security and the labor authorities are empowered to issue safety regulations and to inspect the employers’ premises in order to evaluate compliance with minimum work safety standards and special standards developed in accordance with the type of industry or activity and to impose sanctions for non-compliance. Further, Mexican Federal Labor Law provides that all business activities and ventures have the obligation to create five employer-employee committees so as to regulate and control the labor conditions of the labor relationship. These committees consist of a mixed number of members from the workforce and management and are as follows: a. Security and Hygiene Committee. b. Training and Teaching Committee. c. Committee in charge of drafting the Internal Labor Regulations. d. Committee in charge of elaborating the Seniority Chart. e. Committee in charge of elaborating the Profit sharing project.

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CORPORATE CONSIDERATIONS A potential investor, domestic or foreign, has free choice to operate through almost any form of entity. A stock corporation (S.A., S.A. de C.V. or S.A.P.I.) is the most commonly used entity for a subsidiary of a foreign corporation, although sometimes a general partnership with unlimited liability (Sociedad en Nombre Colectivo), a limited partnership (Sociedad en Comandita) or a limited liability company (Sociedad de Responsabilidad Limitada) is used, especially if the objective is that the Mexican entity be treated as a foreign partnership for tax purposes in the investor’s home country, where applicable. A foreign corporation may also conduct most business activities through a registered branch or permanent establishment in Mexico, such as a representative office with or without income. Prior authorization to use a specific corporate name is required from the Ministry of Economy (SE) to form any business entity in Mexico. No approval is needed to amend its charter or bylaws unless the amendment involves either a change in the corporate name or the substitution of a provision allowing foreign participation for one prohibiting foreign participation. In addition, certain activities may require prior authorization from the Foreign Investment Commission if the entity will be wholly, partially or neutrally owned abroad. The minimum share capital for a regular corporation established as an S.A., S.A.P.I. or S.A. de C.V. is that determined by the charter or bylaws of incorporation; it is customary that such minimum share capital be in the amount of $50,000 pesos (US$2,603.6), and every corporation must have at least two shareholders. After all necessary governmental authorizations have been secured; the charter and bylaws must be formalized pursuant to a public instrument executed before a public attester. The corporation must then be registered in the Public Registry of Commerce

and with all tax and regulatory authorities, as the case may be.

Forms of business enterprise The main different forms of organization of business entities in Mexico are regulated by the General Law of Mercantile Companies (Ley General de Sociedades Mercantiles), Securities Exchange Law (Ley del Mercado de Valores) the Commercial Code (Código de Comercio) or the Civil Code (Código Civil). The most common forms of business entities are the following: l Sociedad Anónima (S.A.), Sociedad Anónima Promotora de Inversión (S.A.P.I.) or Sociedad Anónima de Capital Variable (S.A. de C.V.): Stock corporation, stock corporation for the promotion of investment and stock corporation with variable capital A most common way for domestic and foreign investors to operate in Mexico is through a stock corporation (Sociedad Anonima—S.A.) formed under the General Law of Mercantile Companies (Ley General de Sociedades Mercantiles). In this case, the corporate name selected is followed by the words Sociedad Anonima or the acronym S.A., which indicates that it is a stock corporation. A foreign-owned Mexican corporation is subject to the laws relating to all local companies in general, as well as to the Foreign Investment Law (Ley de Inversion Extranjera). The Stock Corporation for the promotion of investment was created in order to provide joint-venture investors with a suitable vehicle to enter into covenants which reflect the intention to develop an investment and ultimately cash in the benefits and part ways, allowing the issuance of much tailored stock, and acknowledging enforceability to certain shareholder agreements which were deemed void under business forms. In most respects, this type of entity is identical to the Sociedad

AnOnima, exception made for the form of management which must be entrusted to a board of directors, exclusively. The most common type of stock corporation is the stock corporation with variable capital (Sociedad Anonima de Capital Variable—S.A. de C.V.). There is no mandatory minimum paid-in capital for the organization of a corporation. The charter or bylaws of the corporation may freely determine such amount; it is customary for Mexican corporations to determine a minimum share capital in the amount of $50,000 pesos, which used to be mandatory. Usually, an unlimited maximum capital stock is provided for most of these companies. Sociedad de Responsabilidad Limitada (S. de R.L.): Limited liability Company In most ways the limited liability company (Sociedad de Responsabilidad Limitada,S. de R.L.) is similar to a corporation in actual operation. However, as an organization of individuals, its bylaws can be drafted in such a way as to give it most of the characteristics of a partnership under the tax laws of foreign countries, except for unlimited liability. l

Sociedad en Nombre Colectivo (S. en N.C.): General partnership The General Law of Mercantile Companies also provides for partnerships (Sociedades en Nombre Colectivo), as well as for partnerships with limited and unlimited liability partners (Sociedades en Comandita), but as a result of the unlimited liability (lack of corporate veil) of all or the general partners, as the case may be, these business forms are not common. These business forms have most of the attributes associated with the U.S. concept of a partnership because of the unlimited liability of the partners so designated. Partnerships require at least two partners. l

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Sociedad en Comandita (S. en C.): Partnership with limited and unlimited liability partners The General Law of Mercantile Companies also provides for partnerships (Sociedades en Nombre Colectivo), as well as for partnerships with limited and unlimited liability partners (Sociedades en Comandita), but as a result of the unlimited liability (lack of corporate veil) of all or the general partners, as the case may be, these business forms are not common. These business forms have most of the attributes associated with the U.S. concept of a partnership because of the unlimited liability of the partners so designated. Partnerships require at least two partners. l

Sociedad Civil (S.C.): Civil partnership, i.e., of a non-commercial nature Professional practitioners are usually organized as a civil partnership (Sociedad Civil —S.C.), which resembles in many ways the limited liability partnership (S. de R.L.) mentioned above. The managing partners have unlimited liability, while other partners’ liability is limited to the value of their contributions (2704 Civil Code). This form is also used by some non-profit entities such as educational establishments. By definition, these entities should not engage in commercial operations (any activities involving commercial speculation). The transferability of rights, as well as the admission of new partners, is subject to approval of all the partners.

Asociación en Participación (A. en P.): Joint venture contract The joint venture contract (Asociacion en Participacion—A. en P.) is one whereby a

person grants a participation in the profits and losses of a specific venture or business to others who provide property or services. Such a contract has no legal personality, i.e., a separate legal entity is not created, and operations are conducted in the name of the active managing joint venturer (asociante). The joint venturer (asociante) is the only one with any direct liability to third parties. The silent partner (asociado) has no direct relationship with third parties. The tax treatment applicable to the Asociacion en Participacion is essentially the same treatment as regular corporations solely for tax purposes. See Chapter 19 for additional tax aspects of the joint venture contract. Legal requirements for a valid joint venture contract are minimal. Basically, the contract should identify the contracting parties; specify the contributions and obligations of each under the contract, the purpose of the venture and the life of the contract; and establish the method for distributing profits and losses. Sucursal de sociedad extranjera: Branch of a foreign corporation A foreign corporation can be registered to operate in Mexico, with full access to the local courts, through a branch office (sucursal de sociedad extranjera) after complying with certain formalities as well as obtaining the prior approval of the Mexican government through the General Department of Foreign Investment of the Ministry of Economy, exception made for those foreign corporations from that certain countries with which Mexico has entered into a free trade

agreement (i.e. United States of America, Canada, among others), in which event there is no need to obtain prior authorization, but only to file a notice with the abovementioned authority. The Foreign Investment Commission has expressed a willingness to authorize Mexican branches of non-resident companies, except in those activities where foreign investment is restricted. Comerciante Empresa de persona física: Sole proprietorship As in many Western countries, the sole proprietorship (comerciante/persona fisica) is a very popular form of organization for small businesses. However, the element of unlimited liability generally inhibits the use of this form of organization for large operations, particularly in view of the substantial amount of severance pay that may accrue in favor of employees. Moreover, resident aliens may engage in business activities only if their immigration status is that of a permanent resident (inmigrado). However, in some instances it has been concluded that non-resident individuals with a taxable permanent establishment might operate under the same principles applicable to branches of foreign entities.

Asociación Civil (A.C.): Civil association Charitable and other non-profit organizations take the form of a civil association (Asociacion Civil—A.C.), whose charter prohibits the distribution of profits to its members.

Oficina de Representación con o sin ingresos: Non-income or income-earning representative office.

FOREIGN TRADE Mexico’s commercial conditions provide excellent trade opportunities. General import duty rates range from 0 to 35%, but most imports fall within the range of 3 to 20%. Higher rates apply to different types of

goods and to imports from certain countries, ranging from 35 to 120%. Examples of these goods include fabrics, leather, malt, beans, crabs, live chickens and hens, coffee-based extracts and extracts for juices. Compensato-

ry quotas can raise duties up to 150%. Temporary imports are exempt from customs duties (except for fixed assets) and in some cases will pay value-added tax as from January 2015. However, if certain

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requirements are met, it is possible to obtain an automatic tax credit for such VAT. The Mexican government has continued its policy of progressive reduction of trade barriers to imports. Prior import licenses from the Ministry of Economy (SE) are required only for less than 1% of items or classifications in the customs tariff. Special requirements currently apply for importing products into Mexico in respect of health, ecology, quality, and consumer protection issues. These requirements have different specific formalities, depending on the product to be imported, and are usually

identified by the subheadings included in the Harmonized Tariff System for Merchandise Classification and Codification (HTS). The importation of drug products or substances containing illegal drugs (acetylmorphine, pseudoephedrine, coca leaf, corn poppy, cannabis indica, etc.) is definitely banned. Since the late 1980’s Mexico adopted the HTS, making its import/export classification system compatible with those of most countries with which it commonly trades. In 2007, the current General Import and Export Tariff Law introduced some tariff code reclassifica-

tions and a general reduction in the duties. The customs valuation of merchandise to determine its taxable base for import/ export duty purposes, is generally the transaction value of the goods, which is the value actually paid for the goods. In this sense, Mexico has adopted the valuation agreement approved by the World Trade Organization (WTO). Consequently, if a financial, commercial or other type of relationship exists between the foreign supplier and the Mexican importer (related parties), free competitive conditions must be satisfied.

TAX SYSTEM Resident taxpayers (corporate or individual) are subject to Mexican taxation on worldwide income, while non-resident taxpayers (corporate or individual) are only taxed on Mexican-source income. Individuals are taxed at progressive graduated rates reaching a maximum of 35% and corporate income is taxed at the corporate level at a 30% tax rate. The flat tax, which was assessed as a minimum tax on enterprises, was repealed in 2014. The rights and obligations within the repealed law will be respected. Since 2014, a 10% withholding tax is applied on dividend distributions to individuals and foreign residents. Compulsory profit sharing, equal to 10% of taxable income as adjusted for this purpose, is payable each year to employees, and is deductible for tax purposes. Electronic filing and payment is mandatory for all tax returns filed by corporations and individuals. Filing of financial statements that have been audited by an independent public accountant with an opinion on the tax status is optional, considering certain parameters, as taxable income, number of employees and the value of the fixed assets. Corporate taxpayers are required to file an annual income tax return no later

than March 31, of the following year and are generally required to make monthly advance payments. There are no extensions for corporate returns. Individual returns are due on April 30; and no extensions are granted. Individuals receiving compensation directly from abroad must generally make monthly estimated tax payments. Departing aliens should notify tax authorities of the suspension of their tax obligations. Penalty interest is payable on any unpaid tax, as adjusted for inflation. Severe penalties, including imprisonment, can apply in the case of fraud and for failure to file returns, withhold taxes or pay tax liabilities. The principal taxes payable by commercial and industrial enterprises operating in Mexico and, in certain cases, by foreign companies and individuals, are those levied by the federal government. State and municipal governments have more limited taxation powers and also receive allocations of some federal taxes collected within their borders. The principal taxes are as follows: Federal taxes: l Income tax l Value-added tax l Custom duties l Payroll taxes, mainly social security l Excise taxes on oil and gas production and

on the extraction of mineral resources l Consumer goods and services Local taxes: l On real property ownership and transfers l On salaries In addition to these, there are a number of special federal taxes, such as excise taxes on specific products and services, including high-caloric food, soft drinks, alcoholic beverages, cigarettes and gasoline. Transfers of real estate are subject to a state tax on acquisition of real property. The states are not authorized to levy general corporate income taxes, although some states levy a tax on salaries and professional fees on the employer or payer.

Taxation of foreign corporations Foreign corporations are subject to special considerations: l As from 2014, dividends paid out from a Mexican company are subject to a 10% withholding tax for foreign corporations. Under certain treaties, this rate could be reduced. A similar 10% corporate tax is applicable to profits generated by a Mexican branch (permanent establishment) of a foreign entity. Under certain treaties, this rate could be reduced. l The dividend tax does not apply to profits generated prior to 2014. Separate accounts

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are needed for pre-2014 and post-2013 Cuenta de Utilidad Fiscal Neta – CUFIN (net tax income account) to apply this benefit. Branches are taxed in the same way as corporations, except that payments for interest, commissions, royalties, or fees to the home office of the same legal entity are not deductible. Branches may deduct reasonable allocations of home office expenses. l Mexican tax law generally follows the OECD l

Goods held in bonded warehouses within Mexico do not constitute a permanent establishment. The Mexican customer is considered the importer at the time goods are released from the warehouse.

l Liaison or representative offices can operate tax-free in certain circumstances. However, if they employ local personnel, they are subject to normal payroll obligations. l Mexican-source income that is not connected with the conduct of business through a permanent establishment is generally subject to specific withholding tax rates, although tax treaties reduce or eliminate withholding taxes in some cases.

In general, patents are issued for a non-extendable term of twenty years from date of issue, considering that the legal date of the patent will be the date on which the application was filed. Holders of Mexican patents are required to commence exploitation of their patents within three years after they are issued, except when the holder of the patent has been importing the patented product or a product obtained through the use of a patented process. Otherwise, unless technical or financial just cause can be proven; an obligatory non-exclusive license to use the patent may be authorized by the Mexican

Institute of Industrial Property upon request. In this case, the amount of royalties payable and other terms for such a license will be specified by the authorities. This license will expire if two years have elapsed since it was granted and the holder does not exploit it or prove reasonable cause for not exploiting it. Under the law, trademarks may be registered for a period of ten years, renewable every ten years. Proof of actual use of a trademark within at least three years after it was registered must be furnished to the Mexican Institute of Industrial Property, or the registration will be considered to have lapsed.

model treaty definition of a permanent establishment. l Sales people or agents with authority to execute contracts constitute a taxable permanent establishment. l

INTELLECTUAL PROPERTY Industrial property is protected by the Industrial Property Law enacted in 1991. This law regulates, among others things, patents, trademarks, trade secrets, industrial designs, licenses, slogans, franchises, etc. It is not necessary to submit for prior approval and registration contracts for the use of patents, trademarks or trade names or for providing technical assistance or know-how. However, for due protection of patents, trademarks and copyrights, license agreements for these should be registered with the proper Mexican authorities, particularly to ensure their enforceability vis-a-vis third parties.

Peru FOREIGN INVESTMENT CONSIDERATIONS Investors in Peru have the same rights over their investments as local investors, based on the principle of “national treatment”. No authority has the power to apply differentiated treatment concerning prices, exchange aspects, tariffs, non-custom duties, business information or any other feature with equivalent effects, based on nationality, types of

economic activity or geographic location in the country. No specific restrictions or requirements apply to foreign investment in the vast majority of economic activities according to Peru’s new legal framework. Furthermore, they do not need prior authorization from the government. Investments that require

approval are those involving weapons and/or explosives, private security and surveillance, investments in maritime or air transport, as well as those located within 50km of Peru’s frontier line or in natural protected areas. Moreover, the acquisitions of shares belonging to local investors is freely permitted, both though the stock market as well as over

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the counter operations. Investors have the right to organize and carry out their business activities in any form envisaged by the law. The legal framework for investment promotion provides special regimes among which the following terms prevail: The Legal Stability Agreement: Stability in the regulations to non-discriminatory treatment.

Stability in the income tax regime (dividends). l Stability in the right to use the most favorable market exchange rate. l Stability in the regime of freely available foreign exchange and right of free remittance of profits, dividends and royalties. The agreement for Early Recovery of VAT.: l Reimbursement of Value Added Tax during

the pre-operation stage (minimum duration of 2 years) which is applicable to all sectors of the economy.

perform services under instructions of the latter, while their labor relationship continues to be with the intermediary entity. l Outsourcing agreements: an outsourcing company is hired to render specialized service or work, as long as it assumes the services to be rendered under its own risk, with its own financial, technical and material resources, assumes responsibility for the result of its activities and its employees are its exclusive subordinates. Employees in construction, transportation and industrial companies commonly form the strongest unions, the most important being the Confederación General de Trabajadores del Peru (C.G.T.P.) and the Central de Trabajadores del Perú (C.T.P.). In order to form a union, a minimum of 20 workers is required in case of a company union, and 50 in other kinds (activities, professions, specialties). Agreements reached with unions that comprise more than one-half of a company’s employees are applicable for all employees, even if they are not members of the union.

than two Tax Units (equivalent to S/7,900 or US$2,322.2) that their compensation be paid as an annual package calculated on an annual basis, including all legal and conventional benefits with the exception of profit sharing.

The minimum investment is US$10 million for mining or hydrocarbon activity, US$5 for other activities, except for agricultural activities where there is no such requirement. l The project can be divided into stages, segments or similar. l

LABOR LEGISLATION With regard to the labor relationship, it should be noted that once it is initiated, employees undergo a trial period of three months, during which they can be dismissed for any cause without indemnity. The trial period can be extended to six months or one year for skilled employees, or those appointed for management positions and positions of trust. There are two main forms of direct labor relation in Peru: l Unlimited term agreements: those entered into for an unlimited (i.e. open-ended) period of time (permanent employees). l Fixed Term agreements: those signed for a limited period of time. Fixed term agreements must be formalized in writing and the purpose of each one of them must be duly detailed in the contract. Peruvian employers are obliged to use the Electronic Payroll System to register employees and to comply with their monthly payments. This system is formed by T- Registro, which contains information of the employees, professional services agreements, trainees, outsourced personnel, among others; and PLAME, which contains the monthly payments. Both registries have to be submitted monthly to the Tax Administration. Peruvian labor legislation establishes two kinds of indirect labor agreements: l Intermediation agreements: the rendering of temporary, complementary and highly specialized services. The intermediary entity assigns employees to a company in order to

PAYROLL COSTS:

Profit sharing Employees of companies which perform activities generating corporate income are entitled to participate in the profits of the company, provided the company has more than 20 employees, and they are subject to the labor regime for private company employees. l Employees share the profits of the company through the distribution of a percentage of the company´s net income before taxes. The percentage is 10% for fishing, telecommunications and industrial companies; 8% for mining, wholesale, retail and restaurants; and 5% for other activities. l

Legal bonuses Employers must pay a bonus equal to one monthly salary on July and December.

Salaries Compensations are subject to statutory social contributions and employee’s taxes.

Overtime

The current minimum wage is S/850 (US$249.9). l The employer may also agree with employees whose monthly compensation is not less l

Overtime, including work on statutory holidays, is payable at a premium agreed on between the parties, with a minimum of 25% of the ordinary hourly rate for the first two hours, and 35% for the following.

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l The employer and employee may agree, instead, to compensate overtime with rest periods.

one-sixth of a salary for each year of service and is deposited on a semi-annual basis in a banking or financial institution chosen by the employee.

Night shift additional payment Employers with employees who earn the minimum salary and work between 10:00 p.m. and 6:00 a.m. are obliged to make an additional payment of 35% of the ordinary work hour wage.

Termination of employment

Vacations Employees are entitled to paid annual vacations of one month upon completion of each year of service. l The employer and the employee may agree to allow up to two year’s vacation to accumulate. l

Severance indemnity (CTS) Employees are entitled to a tax-free severance indemnity to be received upon death, retirement, resignation, or dismissal. It is equivalent to one month’s salary plus

Should the employee be terminated and no fair cause exists, the employee will have the right to receive a severance payment equal to 1.5 monthly salaries for each year of service, up to a maximum of 12 salaries for indefinite term labor contracts and 1.5 salaries for each month left in the contract terms for fixed term contracts. l

National Pension and Private Pension systems The contribution for the National Pension System is 13% of the employee’s compensation. l The contribution for the Private Pension System is 10% of the employee’s compensation, plus commission for the pension fund administration and insurance premiums for handicap and burial coverage. l

Life insurance l Employees who have worked for the same employer for 4 years (consecutive or not), are entitled to a mandatory life insurance provided by the employer.

Social security administration for health services (EsSalud) Employers must contribute for all their employees, including foreign employees registered on the payroll, based on the total monthly compensation, including compensation in kind, with certain exceptions such as profit sharing payments and extraordinary bonuses. l The rate of this contribution is 9% of the employee’s compensation.

Industrial work national service (SENATI)

l Individuals or legal entities that develop industrial activities included in Category D of the “International Standard Industrial Classification of all Economic Activities (CIIU)” are obliged to make contributions to SENATI (Servicio Nacional de Adiestramiento en Trabajo Industrial), paying a percentage of 0.75% over all remunerations paid to their workers.

CORPORATE CONSIDERATIONS There are no specific rules establishing percentages for foreign or domestic investment participation. However, the Peruvian Companies Law (Ley General de Sociedades – LGS) requires every corporation or partnership to have at least two shareholders/partners. This requirement does not apply for branches. There is no minimum capital requirement, except for banks, financial entities and certain other controlled companies. However, all companies must deposit their capital in a Peruvian financial entity, and there are minimum amount requirements for opening a bank account, which may vary according to each financial entity.

Forms of Business Enterprise Corporation (Sociedad Anónima - S.A.): l Private corporation: contributions to capital are represented by shares. Liability is limited to the amount of the contribution. It must have a Board of Directors and a General Manager. l Private closed corporation: no more than twenty shareholders are allowed, its shares are not listed on the stock exchange, and the transfer of shares is subject to restrictions. The Board of Directors is optional, but the corporation must have a General Manager. l Public corporation: either (a) an initial public offering of shares or convertible bonds

has been carried out, it has more than 750 shareholders, and/or over 35 percent of the share capital has to be distributed among 175 or more shareholders; or (b) all its shares are registered with the Stock Exchange. The Board of Directors and general manager are both mandatory. The incorporation of a corporation is a straightforward process: the company should be incorporated by two or more individuals or legal entities, by means of a public deed of incorporation issued by a Notary Public and registered at the Peruvian Public Registry. Registration formalities normally take about 10 working days. l

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Limited Liability Company (Sociedad Comercial de Responsabilidad Limitada – S.R.L.):

a permanent legal representative, who acts as general manager.

No more than twenty partners are allowed. All partners have limited liability, and the capital is divided into participations, for which no documents or titles are issued. l Limited Liability Companies are incorporated by Public Deed. l The articles of incorporation or bylaws may impose restrictions and conditions for the transfer of the company’s participations, but they cannot prohibit transfers altogether. Branch of a foreign company (Sucursal): l A branch does not have legal independence or a different legal status from its head office. However, it is considered as an independent company for tax purposes. It must have

A branch is registered by means of a public deed, issued by a legal representative of the head office in Peru. A Peruvian official translator must translate any document that is not in Spanish, in order to submit it to the Peruvian Public Registry for registration.

ness and will be the sole responsible towards third parties.

Consortium or joint venture agreement:

Participation account agreement: l Two or more parties can agree to carry out a particular business activity without incorporating a separate legal entity. One of the associates will act as the managing (active) partner and another individual or legal entity will act as a silent partner (or partners). l The managing partner operates the busi-

Two or more parties associate to actively and directly participate in a certain business. However, each party will maintain its independence at all moment. l Each party will be individually liable to third parties for the activities that it carries out under this agreement. If the consortium enters into agreements with third parties, there is joint liability for the partners if it is stated in the agreement or when determined by law. l For tax purposes, a Consortium or Joint Venture is considered as a separate taxable entity when independent accounting records are kept.

duties are imposed on an ad-valorem basis (the CIF value of the imported goods). Goods are classified for customs duty purposes under the Harmonized System. Pursuant to the drawback regime, an exporter may apply for a refund of the customs duties that it paid upon: (a) the importation of goods contained in the exported goods, or (b) the importation of goods that are consumed during the production of the exported goods. The refund rate is currently 4% of the FOB value of the exported good, provided such amount does not exceed 50% of the good’s production cost. The refund will be applicable for each type of good exported by the expor-

ter and for the first US$20’000,000 worth of goods exported per year (the excess will not be subject to refund). For said purpose, the beneficiaries of the drawback regime are the manufacturer/exporter companies whose cost of production has been increased by the customs duties paid upon the importation of: (a) raw material, (b) intermediate products, or (c) pieces incorporated or consumed in the production of the exported good. Note that fuel or any other energy source used to generate heat or energy for the purposes of obtaining the exported good, is not considered as raw material.

therefore, subject to income tax at a 28% rate (2015-2016), 27% rate (2017-2018) and 26% rate (as from 2019), on net income determined on a worldwide basis. Branches, agen-

cies and permanent establishments incorporated in Peru of non-domiciled companies or entities are subject to income tax at the same rates on their Peruvian source income only.

FOREIGN TRADE Customs duties are imposed on the CIF value of imported goods, at rates of 0%, 6%, 11%. There are no restrictions on imports and exports, although there is a limited list of products which cannot be imported or exported. Exports are not subject to any tax. The import of most capital goods is subject to a 0% rate. Peru is a member of the World Trade Organization (WTO) and has various bilateral agreements based on most favored nation treatment on a reciprocal basis. The Government is empowered to grant duty exemptions under certain circumstances and also to suspend temporarily the assessment of duties on certain products. Customs

TAX SYSTEM Corporate income tax Companies incorporated in Peru are considered domiciled for income tax purposes and,

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For the purposes of determining their taxable income, entities are allowed to deduct business expenses. Requirements, limits and/or caps may be applicable for the deduction of certain expenses. However, certain expenses are disallowed, such as those derived from transactions with: (a) entities domiciled in tax havens, (b) permanent establishments located in tax havens, or (c) entities that obtain revenues or income through tax havens. Notwithstanding this, expenses derived interest loans, insurance premiums, lease of aircrafts and ships, maritime freight and toll for transit through the Panama Canal are excluded from the aforementioned limitation.

Income tax on individuals Individuals are taxable in Peru by reason of their domicile rather than by residence criteria. The tax status of the individual (domiciled or non-domiciled) is determined at the beginning of each fiscal year. Domiciled individuals are subject to income tax on their worldwide income, whereas non-domiciled individuals are only taxed on their Peru source income. Income tax rate is based on a progressive rate schedule on salaries, retribution for services and foreign source income. The tax rate varies from 8% for individuals whose

income is up to 5 tax units (S/19,750 or US$5,805.5) to 30% for individuals whose income is more than 45 tax units (S/177,750 or US$52,249.4).

Financial Trasactions Tax (FTT) FTT is applied at a rate of 0.005% on credits and/or debits on bank accounts held by the taxpayers. However, operations made between accounts of same holder, credits to bank accounts for payment of salaries, among others, are exempted from the FTT. Payments of FTT are deductible as an expense for income tax purposes.

Temporary Net Assets Tax (TNAT) Companies subject to income tax are obligated to pay TNAT, except for companies that are in preoperative stages or that commenced business on January 1 of the fiscal year in which TNAT must be paid. Net assets in excess of S/1,000,000 (or US$293,949) must pay a TNAT of 0.4%. The taxable basis is the value of the net assets set forth in the taxpayer’s balance sheet as of December 31 of the year prior to that of the tax payment, adjusted for deductions and amortisations accepted by the Peruvian law. The amount paid for TNAT may be credited against the taxpayer’s income tax. If not

totally utilized, the remaining TNAT may be refunded by the tax administration.

Value Added Tax (VAT) The rate of VAT is 18% and is applicable to the sale of movable goods within Peru, the rendering of first use of services within Peru, import of goods, construction agreements and the first sale of real estate performed by constructors. The VAT Law follows a debit/credit system and input VAT may be offset by output VAT. Any VAT credit that is not offset in a certain month can be carried forward to be offset with any future output VAT. VAT credit cash refunds are only available for exporters and some entities at pre-operative stages, provided certain conditions are met.

Excise tax The sale of specific goods, including fuel, vehicles, among others, is subject to excise tax. Tax rates, and the manner in which the tax is applied, depend on the type of goods or services. For example, in the case of fuel, the taxpayer is obliged to pay a determined amount per gallon sold locally or imported (between S/0.00 S/1.93 -or US$0.56- per gallon, depending on the type of fuel); and in the case of vehicles, the tax rate is 0%, 10% or 30%, depending on the type of vehicle.

INTELLECTUAL PROPERTY INDECOPI (the National Institute for the defense of Competition and the Protection of Intellectual Property) is the Peruvian Intellectual property organization. Its function is to promote the market and protect the rights of consumers. It also encourages in the Peruvian economy a culture of fair and honest competition, holding harmless all forms of

intellectual property — from trademarks and author’s copyright to patents and biotechnology. Indecopi is a specialized public agency attached to the Office of the Prime Minister, with independent legal status of internal public law. As such, it enjoys functional, technical, economic, budgetary and administrative autonomy (Executive

Order 1033). As a result of its work in promoting the standards of fair and honest competition among the agents of the Peruvian economy, Indecopi is perceived today as a service institution with a strong concern in fostering a culture of equality in order to achieve full satisfaction among its customers — citizens, entrepreneurs and the State.

eru is endowed with more than 72 million hectares of natural forest, and 68 million of these are located in the Amazon. These represent an important global stock of carbon which contributes with the mitigation of climate change, and also represents a new opportunity for investment through carbon markets.

Given that one of the priorities of the APEC is to facilitate investment, looking to reduce time, costs and uncertainty for business, the context of climate change makes us think on management tools and instruments to promote economic growth based on strategic planning and governance for the sustainable use of natural resources and ecosystem services. For this reason, Derecho, Ambiente y Recursos Naturales-DAR (Law, Environment and Natural Resources), a nonprofit civil society organization committed to build governance, sustainable development, and to promote indigenous people’s rights in the Amazon (www.dar.org.pe), wants to share the main tools promoted and enhanced in Loreto to foster quality growth from a 360° integrated vision of the Amazon; which are the result of the joint work of the Regional Government of Loreto, academia and civil society organizations. Loreto, the Amazonian region that addresses climate change L ore to is t he l arge st Ama z on i an department of Peru, with more than 54 million hectares of tropical forest that account for 53% of all of Peru´s carbon stock regarding forest cover. It holds magnificent river basins that the seven natural wonders. Since Loreto is a vast region, the presence of the government to provide basic services for Loreto to reduce poverty in their provinces and districts, which are among the poorest in the country. Regarding the use of natural resources, Loreto’s oil deposits, which have been extracted for over 40 years, account for an approximate

E+E

Bringing the Environment and Economics Together Management tools for an integrated vision of the Peruvian Amazon production of 8 million barrels per year. of 2008 and the inadequate management of the lower oil prices and production value.

Peru is one of the Economic Cooperation (APEC) member economies most vulnerable to climate change, due to our fragile ecosystems and our limited capacity to adapt to this phenomenon. Inter-American Development Bank (IDB) and the Economic Commission for Latin America and the Caribbean (ECLAC) projected that our economic could lose up to 4 % of the Gross Domestic Product (GDP) as a consequence of climate change impacts.

Planning for a development with sustainable investments Loreto is changing strategies for its economic growth and it is moving away from an oil dependent economy to one that integrates conservation and the sustainable use of the goods and services that forests, biological diversity, and water resources provide. A first step to this kind of economic growth has been the strengthening of public administration through the design and implementation of planning and environmental management instruments. Following the best practices recommended by the Organization for Economic Cooperation and Development-OECD and the procedures of the Centro Nacional de Planeamiento Estratégico-CEPLAN (National Strategic Planning Center), Loreto designed and approved a new development regional plan “Loreto to 2021”, in which the region bets on a productive diversification through the sustainable management of forests, aquaculture production and eco-tourism. To guarantee that environmental issues are

ADVERTORIAL widely discussed by key actors, the Regional Government of Loreto, in coordination with the Ministry of Environment, and with the support of DAR, applied a Strategic Environmental Assessment-SEA during the formulation of their a sub-national level in Peru. This SEA in Loreto defined strategies to strengthen environmental policy and to adequately manage economic activities that can cause deforestation (agriculture, infrastructure, hydrocarbons, etc.) and land use change -or forest transformation for cropping, grazing, among others activities-, which are the main causes of climate change in our country and a possible limitation for the achievement of Loreto’s new development perspective. Managing nature’s potential More than 20% of Loreto´s territory are natural protected areas with national, subare a great opportunity to improve incomes through tourism. This sector has a positive growing rate equivalent to 17 % per year, due to the increasing number of tourists each year. Moreover, the establishment of natural protected areas have allowed the lower deforestation rates in approximately 40% (according to GRADE’s estimations for 2000), which makes it imperative to strengthen the mechanisms and strategies used to manage them adequately. In this context, Loreto is working in the design of a Regional Conservation System (SRC), a coordinating space promoted by the Regional Government of Loreto, DAR and other civil society organizations. The SRC

LORETO’S GEOPORTAL PHOTO: ANNIE MORILLO / DAR

is aimed to help reduce negative impacts in natural protected areas through the articulation of government, civil society and the private sector, through the enhancement of strategic land use planning and conservation strategies. In addition to this, local actors that use and protect the forests participate actively as strategic partners in the natural resources comanagement processes. As a result, productive development and food security can be promoted through the research on biodiversity and value chains potentials. Another best practice in Loreto is the utilization of the Spatial Data Infrastructure (IDE) to identify potential investment and disclose the information on the use and occupation of the territory. IDE organizes official geographical information in one repository or geoportal (http://geoportal. regionloreto.gob.pe/) to access updated and

reliable information about Loreto, which can support decision making processes related to sustainable economic activities. With a couple of clicks we can access information regarding forest concessions, fishing areas, and the captured species commercialized in the regional and national foster economic development, for example, by in Loreto: species like paiche are consumed in the best restaurants around the world. A way to assess Loreto’s efforts toward its sustainable development is to identify if these have contributed to reduce greenhouse emissions generated in the region. To this end, DAR, the System of Estimation of Greenhouse Gasses Emissions (SEEG) and local experts have participated in a study which estimates these emissions (historical data from 2005 to to have a greenhouse gasses emissions baseline to measure the results of its transition toward a green economy.

LORETO, A RAINFOREST REGION PHOTO: MARIUSZ KLUSNIAK

A range of tools to facilitate business A territory with effective management and results-measuring tools and instruments, as well as clear rules, fosters a good climate for business, where the risks are identified and mitigated with anticipation. The SEA, t he reg iona l system of conservation, the co-management for the protection of natural resources, and the spatial data infrastructure contributes to our governance, and could well be replicated by other member economies of the APEC.

GLOBAl ISSUE

APEC 2016

John C. Edmunds*

Demographic Opportunity

s we see today in Southern Eu-

The guaranteed basic income effects would ripple through the entire labor market and through the entire macroeconomy.

pian, but it can work because it has primary,

neurs and start-ups and –surprise!– to have

of the lost production is enormous: The

ployment problem. Any young person who

great numbers of young workers fleeing to

Economist recently quoted a study saying

wanted to pursue a worthwhile but unpaid

other countries, stuck in low-value work

that the world GDP would be twice as high

activity, such as art, theater, poetry, or

positions, or simply unemployed. It is also a

if all workers were allowed to work where

community work, would be able to follow

reality that the demographic profiles of Italy,

their skills would be most highly paid.

that aspiration. More importantly, these

Spain and Portugal are becoming more and

Youth unemployment, therefore,

rope, it is perfectly possible to be a developed country with a highly skilled population, good

infrastructure, superb innovation incentives, goverment support to both entrepre-

more top-heavy with elderly people.

secondary, and tertiary economic benefits. The guaranteed basic income scheme, in its most encompassing version, would give a monthly income to every citizen in a country. This would alter the youth unem-

underemployed individuals could go back

complicates the debate about immigration.

to school or begin an apprenticeship to

In the coming decades, some Latin

Instead of seeking immigrants to fill in the

improve their skills and secure a better job.

America countries –driven by a second

shortage of younger workers, Southern Eu-

With the guaranteed basic income, young

wave of automation in white collar and te-

ropean countries struggle to find jobs for

citizens who work at menial jobs could

chnical work– will have to confront similar

young workers, and at the same time try to

afford to quit them. These menial jobs

dilemmas created by the inexorable decline

assimilate arriving immigrants. It is hard

would then be filled by immigrants. The

of the workforce.

for them to decide whether to welcome

immigrants would then be more welcome,

immigrants or block them from coming in.

because they would no longer be compe-

youth unemployment obfuscates the debate

As a result, these countries do not create

ting with natural-born citizens for those

on what to do –because, paradoxically,

enough jobs, nor do they attract their full

menial jobs.

despite the decline, unemployment remains

share of skilled immigrants. In South Ame-

stubbornly high. Outside Germany and the

rica, countries like Argentina, Chile, and

ripple through the entire labor market and

Scandinavian countries, young natural-born

Uruguay, in boom-time years, have lived

through the entire macroeconomy. For a

people face unsatisfactory job prospects.

a similar situation, albeit to a lesser extent.

simple example, consider a young natu-

The highly educated spend many years in

Perhaps in ten or twenty years they will get

ral-born citizen who was working at a gro-

school and, then, many more years after

to the same point.

cery store as a part-time delivery worker.

In Europe, the chronic problem of

graduating before securing a full-time

There is a fiscal remedy that solves both

The effects on employment would

He would not need the income anymore,

position with employee benefits where they

the demographic challenge and the chronic

so he could pursue his dream of becoming

can apply what they’ve learned. This lengthy

youth unemployment puzzle. The solution

a screenwriter, an apprentice, or going

and costly delay is a waste of human capital

is a policy that is called a guaranteed basic

back to school to become a doctor. His

and also gives the young, educated wor-

income scheme. It was proposed half a cen-

job would be taken by a young immigrant

kers an incentive to emigrate to countries

tury ago and was called a negative income

whose education had been interrupted by

where they can move into more responsible,

tax. It has been controversial, but its time

war or economic depression in his country

well-paid jobs more quickly. The magnitude

might have arrived. The idea sounds uto-

of origin. So there would be two people

AMÉRICAECONOMÍA NOVEMBER 2016

PhD in Business Administration from Harvard University, professor of finance at Babson College, Boston, and author of Desafiando la pendiente. * In collaboration with Charles Winrich and Mark Lapham.

www.fundacionirradia.org

with cash incomes when previously there was only one. The effects would ripple well beyond those two people, and would be greater and more widely distributed than a cursory guess might indicate. The second-round effects would radiate outward from those first-round effects. There would

gain. That gain might cause the owners to spend some money that they would not have spent otherwise, and some of that expenditure would be taxed, so the income to the Treasury would increase. Because the second- and third-round effects would be so large, it is difficult to assess the total

also be third-round effects, and the total

fiscal effects of the guaranteed basic inco-

macroeconomic effects might be larger in

me scheme, but a few moments’ reflection

magnitude and more broadly beneficial

shows that it is not as costly as it might

than the first-round cash outlay. In some

seem at first glance.

scenarios, the fiscal effects would be posi-

force. The ILO reported that the number of

tive –the tax authorities take in more than

job-seekers in the world was 200 million at

basic income will grow over time, as

they would spend.

the end of 2014, and was on track to be 201

informed, thoughtful people evaluate

When first considering the guaranteed

Public support for the guaranteed

million by the end of 2015. The outlook

the scheme, see how it dovetails with the

basic income proposal, the debate must

for 2016 and 2017 is not better. Meanwhi-

demographic conundrum, and as more

address and transcend the visceral respon-

le, the world economy has ramped up

people set aside their preconceptions

se: many people do not approve of giving

its productive capacity and can produce

about the virtue of work.

cash to able-bodied people of working age.

more goods than consumers are currently

In previous epochs, anyone who did not

purchasing.

“pull his weight” was labeled a freeloader

When considering the total economic

The difficult task is to insert the guaranteed basic income idea into the mainstream economic debate. The political

or a free rider. Today it is accepted that

effects of such an extreme departure from

landscape is not propitious. The debate is

many people choose low-paying or unpaid

conventional economic policy, it is helpful

still framed in terms of austerity versus

work, and there is public acceptance that

to include the effects on the value of exis-

traditional fiscal stimulus. The proponents

some kinds of work are worthy of cash

ting income-producing properties. Effects

of austerity insist that sooner or later it will

support. The guaranteed basic income

of that kind are not usually included in the

deliver prosperity; this is another policy

scheme goes further, however. It gives cash

calculations framing the debate. But the

that might produce prosperity, and might

to citizens whether they do any work or

increase in the value of income-producing

work faster. It is new, and might seem like a

not. The justification for such unconditio-

properties could be larger than the direct

false prosperity that would someday come

nal largesse rests on different arguments.

costs and benefits of the policy. To see what

crashing down. But thinking people should

These arguments outweigh traditional

the effects would be, we can start with

evaluate the scheme before dismissing it,

precepts and value-laden exhortations.

obvious gains; for example, it would cost

and should think about the fiscal calcu-

The new arguments take into account

more to rent an apartment in some urban

lation, not simply its first round, but also

the sobering fact that the world economy

areas, so the market value of apartment

take into account its effects on the tax base

does not consistently create enough new

buildings would rise. The owners of the

and economic growth, and its effects on

jobs to gainfully employ the entire labor

buildings would benefit from a windfall

the value of businesses and properties.

GLOBAl ISSUE

APEC 2016

* With Fanny Acevedo, Cristรณbal Sรกez and Paulo Meneses.

AMÉRICAECONOMÍA NOVEMBER 2016

RANKING MBA

DefenDING THE trEnches:

EGADE RETAINS FIRST PLACE BY Fernando Valencia Murcia*, AméricaEconomía Intelligence

For the third straight year, Monterrey’s TEC business school is at the summit of the ranking of MBAs, but Chile’s Universidad Adolfo Ibáñez is getting dangerously close. In other sectors, hand-to-hand combat prevails.

oth the Egade Business School

its number of full-time professors (rising

in Mexico and the Universidad

from 34 to 46). Accordingly, it has 13 stu-

Adolfo Ibáñez (UAI) in Chile

dents per full-time professor in its MBA

are clenching their teeth in this

programs, whereas Egade has 32.

ranking, as first place is being fought for

UAI also arrives in first place in terms

inch by inch. More so in this year’s ver-

of the network power of its former stu-

sion, since the Chilean school is closing

dents. This is clearly seen in the increase in

the gap: only two decimal points separate

its survey scores among MBA gradua-

these schools. In 2015, the distance was

tes from the preceding year, a point at

three points.

which new alumni have the chance to take

Whereas Egade in general maintains its positions, the improving record of the

revenge on the school that gave them their degree or redeem it.

UAI arises from a significant increase in

This edition of the ranking is good

Alma mater The 20 non-Latin American universities that most award PhDs degrees to faculty in the ranking Source: AméricaEconomía Intelligence 30 25

27 25

16 15 10

Ha rva rd Un ive rsi Tu IES ty lan EeU Un n i v i Es er ve ad sid rsi ead ty Un de ive Un Na rsi ive va da rra rsi dR da dA am ut ón ón Llu om ll a Un de ive M rsi ad da rid dC om plu M te IT ns ed Un eM ive ad rsi rid ty of Ca Un lifo Co ive lum rn rsi ia da b ia dP Un oli ive té cn rsi ica ty de Un ive V Th ale rsi eW nc da ia ha dA rto ut ón nS om ch oo ad l e Un Ba ive r ce rsi lon ty a of Ca m Un br idg ive rsi e ty of St O an xfo fo rd rd U Un niv ive er sit rsi y ty of Ca Un lifo ive rn rsi ia ty of W ar Bo wi ck sto nU Te niv xa er sA sit & y M U niv Un ive er sit rsi y té de Ge nè ve

GLOBAl ISSUE

APEC 2016

ACADEMIC STRENGTH (1) RK RK 16 15

SCHOOL

CITY

1 Egade Business School

CDMX/Monterrey/Guadalajara*

2 U. Adolfo Ibáñez

Santiago

3 FGV - EAESP

São Paulo

5 PUC - Chile

Santiago

4 Incae Business School

San José/Managua

7 U. de Chile

Santiago

8 Uniandes

Bogotá

6 IAE - Austral

Buenos Aires

9 U. Torcuato di Tella

Buenos Aires

10 10 IESA

Caracas

11 13 ESAN

Lima

12 16 U. del Pacífico

Lima

13 11 U. del Desarrollo

Santiago/Concepción

14 12 U. Diego Portales

Santiago

15 15 FIA - USP

São Paulo

16 14 U. de San Andrés

Buenos Aires

17 18 ICESI

Cali

18 17 U. T. Federico Santa María

Santiago

19 25 U. Externado

Bogotá

20 19 U. del Norte

Barranquilla

21 20 U. de Santiago

Santiago

22 22 UDLAP

Puebla

23 21 U. ORT

Montevideo

24 23 USFQ

Quito

25 29 U. de Palermo

Buenos Aires

26 24 Eafit

Medellín

27 28 U. Alberto Hurtado

Santiago

28 30 U. Privada Boliviana

Cochabamba/La Paz

29 31 Prime Business School - U. Sergio Arboleda Bogotá 30 27 U. Fumec

Belo Horizonte

31 32 U. del Rosario

Bogotá

32 33 EGEU Business School

Santiago

- UEES

Guayaquil

- U. del Litoral

Santa Fe

- U. de Belgrano

Buenos Aires

- U. de Talca

Talca/Santiago

37 34 U. de Guadalajara - Cucea

Guadalajara

Quito

- U. de Las Américas - UDLA

39 35 U. Americana

Asunción

- Unitau

Taubaté

- BSP

São Paulo

MBA Full-time MBA Prof. Prof. students/ PhD from in MBA FT MBA top Prof. World schools

52 46 45 41 43 70 27 50 38 29 39 41 36 26 28 24 32 37 31 50 29 38 15 14 28 38 7 40 34 31 23 19 16 12 27 33 23 10 13 11 3

* Since 2016 Egade fully integrated its Guadalajara operation, which was not included in this ranking that uses data from 2015.

31.6 12.7 3.0 10.2 14.1 13.4 13.2 9.5 17.1 15.8 25.0 15.0 5.4 5.6 12.9 5.2 9.9 4.3 10.2 3.2 6.1 4.6 5.3 6.4 11.8 11.3 2.6 37.2 12.1 8.4 2.3 1.4 19.2 11.8 4.6 2.1 9.1 118.2 22.2 9.7 135.0

11 29 11 32 30 29 4 24 28 7 16 20 16 13 3 10 2 7 5 5 7 3 2 5 12 2 1 5 7 0 1 1 0 0 2 3 2 2 0 0 0

Index 16

83.8 92.7 92.6 100.0 95.9 94.8 85.2 86.5 95.3 73.6 86.0 84.8 91.2 88.7 84.0 80.9 81.1 81.4 71.5 75.1 79.9 76.0 74.8 75.3 74.2 67.5 76.0 70.4 69.9 67.6 62.9 63.6 63.6 60.1 62.2 67.8 64.6 58.1 56.5 65.3 55.7

NETWORK POWER Score Alumni for associa- Associates historical tions graduates

108 116 114 105 106 93 103 117 108 100 104 84 80 85 106 114 95 82 84 68 69 103 75 76 69 95 77 71 71 68 73 55 81 64 77 52 69 52 76 55 53

18 5 5 3 12 7 2 15 5 1 11 1 1 2 1 1 1 1 3 2 1 1 5 1 4 1 1 2 0 0 1 1 1 1 1 1 0 1 2 0 1

3,269 3,215 800 3,700 15,353 8,992 11,832 14,208 1,954 661 8,014 4,276 2,050 1,122 1,200 60 1,387 513 350 956 86 0 369 451 470 1,987 564 73 0 0 13,558 216 474 0 0 625 0 234 590 0 1,750

AMÉRICAECONOMÍA NOVEMBER 2016

INTERNATIONALIZATION

Index 16

97.6 100.0 94.0 89.2 87.9 77.2 90.1 88.1 86.6 87.9 79.7 76.3 75.0 68.8 79.6 85.5 80.3 72.1 74.2 58.4 64.5 77.7 66.0 68.6 66.8 66.7 61.7 65.3 61.8 50.1 73.4 60.2 70.9 61.4 61.2 42.9 58.4 58.6 59.4 37.2 40.2

Exchange Dual degree agreements Visiting with graduates professors Top 100 2015 schools

100 88 16 2 50 40 2 0 0 5 38 92 8 45 0 0 37 12 12 4 31 0 2 0 30 0 0 56 47 0 0 27 0 4 33 0 0 70 0 0 68

14 29 16 19 17 16 12 17 12 14 10 10 11 2 1 4 0 6 2 5 1 0 4 0 0 2 0 1 1 0 3 0 1 0 0 0 0 0 1 1 0

3 10 3 9 8 12 15 15 15 N.D. 28 35 5 10 17 6 8 4 14 24 1 1 12 7 3 1 N.D. 4 21 N.D. 11 N.D. 5 15 N.D. 1 N.D. 5 N.D. N.D. N.D.

PRODUCTION OF KNOWLEDGE

Foreign students

Accreditations

Index 16

247 274 43 115 492 96 51 110 107 13 38 19 6 4 18 14 5 5 26 1 11 19 5 3 0 21 4 11 18 0 3 2 8 9 23 0

4 3 3 2 3 2 3 3 1 3 2 2 1 1 1 1 2 1 2 1 0 1 1 0 1 1 0 1 0 0 0 0 0 0 0 1 0 1 0 0 0

100.0 84.3 82.6 58.5 73.2 55.9 70.2 66.4 28.1 74.8 55.4 59.2 31.5 22.1 30.5 20.8 40.8 22.1 36.3 28.9 17.3 11.3 21.5 5.8 9.3 23.1 7.3 16.7 16.0 1.0 8.0 4.9 4.0 4.4 5.2 1.5 0.3 10.8 1.9 1.1 11.3

23 0 0 0 0

ISI papers Average 2013 - 2016 impact in selected factor journal

56 63 34 72 39 136 48 12 48 13 19 16 27 39 27 31 9 13 4 22 10 9 9 2 9 6 13 4 1 2 0 3 0 2 1 10 0 0 0 0 0

1.621 1.687 1.771 1.811 1.501 1.917 2.740 2.003 1.640 1.334 1.430 1.227 1.417 1.778 1.050 1.268 1.083 1.414 1.450 1.965 1.244 0.743 1.190 2.030 1.194 1.320 0.808 0.704 1.000 1.757 0.000 1.493 0.000 1.636 0.303 0.832 0.000 0.000 0.000 0.000 0.000

Case studies Books by 2013 - 2016 selected in publishers selected bases

5 0 0 0 2 3 7 7 0 14 2 2 1 1 0 3 0 5 0 0 0 1 3 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0

11 4 6 0 5 3 1 4 11 1 0 2 0 4 3 2 0 2 0 0 2 0 1 0 2 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 1

Index 16

85.4 77.4 67.6 87.5 61.0 100.0 83.3 61.3 78.8 52.9 42.3 41.7 47.5 67.3 42.8 50.9 21.3 42.0 23.5 40.6 25.7 17.9 26.5 30.5 25.7 24.4 25.1 12.5 15.5 40.7 0.9 23.3 1.2 24.4 4.8 17.8 0.0 0.0 0.0 0.5 0.6

FINAL INDEX 16

90.74 90.54 87.20 87.14 84.16 83.38 83.12 79.10 77.19 74.30 71.74 71.10 68.64 67.22 66.02 65.55 63.88 61.31 57.96 56.51 55.39 54.77 54.69 53.01 52.10 51.95 51.05 49.69 48.96 45.87 45.23 44.94 44.14 43.93 41.96 40.80 40.49 40.05 37.83 35.74 34.69

APEC 2016

GLOBAl ISSUE

Harvard Public Affairs and Communications

Homemade The 10 Latin American universities that award most PhD degrees to full-time faculty in the ranking Source: AméricaEconomía Intelligence 40

35 30

HARVARD. Along with Tulane University, Harvard is the school that supplies the most PhDs to the professors in the ranking.

www.usp.br

10 7

Ea fit

IES Un E ive rsi P UC da dd Ch ile eB ue n Un os ive Air es rsi da dd eC hil Un e ive rsi los da An d d de e s

Ea es p Un ive rsi Eg da ad de e M Fe ina de s G ral er de ais

FG V-

US P

GRADUATES. The USP is the Latin American university that grants the most PhDs to the full-time professors in the ranking.

The shoemakers and their shoes Full-time professors

Total full-time professors in the ranking and their production of ISI papers, by field

ISI papers

Papers per professor

Source: AméricaEconomía 2016 / Base Thomson Reuters 2.0

200.0 180.0 160.0

1.8

1.7 182

1.6

1.5

1.4

140.0 120.0 100.0

1.2

1.2 106

0.9

1.2

1.0

80.0

60.0

116

81 82 66

40.0

0.8

0.6

0.4 0.2

20.0 0

0.8

Economics

Entrepreneurship and innovation

Strategy and ethics

Finance

Marketing

Operations

0.0

Human resources and organizational development

news for Chile. At least in the Top 10, the

most prestigious journals in the world of

and its internationalization. This, along

Chileans close to the UAI move up a slot.

business.

with significant improvements in network

This is the case for the Pontificia Univer-

In the case of the Universidad de

power by Bogota’s Uniandes, drops the

sidad Católica (PUC-Chile). who takes

Chile, its rise to 6th place is due, if

4th place out of the hands of Incae Busi-

anything, to the decline undergone by

ness School. Even though this Central

IAE–Austral, its closest competitor. It so

American school betters its indicators,

happens that this Argentinian school,

the PUC did so more rapidly in research,

the best in that country, shows important

schools, it is even better for the Peruvian ones.

where it rose from 65 to 72 papers in the

declines in surveys on its network power

ESAN rose from 13th to 11th place,

Argentinians from 6th to 8th place.

Viva Peru! If the news is good for the Chilean

AMÉRICAECONOMÍA NOVEMBER 2016

FIELD

Marketing

Operations

Human Resources and Organizational Development

Sub Sub RK RK 16 15

SCHOOL

N° FT Prof.

Pct. FT Prof. Training

N° ISI Papers (2013-16)

Average journal impact factor

ISI Papers / FT Prof.

Index

U. de Chile

40.8

2.4

1.1

100.0

PUC - Chile

45.0

1.7

2.8

88.3

Icesi

45.0

2.2

0.1

84.5

U. Adolfo Ibáñez

41.0

1.6

2.6

84.4

U. Torcuato di Tella

42.5

2.0

3.5

83.1

Uniandes

42.5

2.6

4.0

82.3

IAE - Austral

41.7

2.7

0.2

81.7

ESAN

44.0

1.9

0.8

80.9

Egade Business School

42.0

1.2

1.6

79.0

FGV - Eaesp

40.8

1.8

0.2

74.2

U. de Chile

45.4

2.1

2.5

100.00

FGV - Eaesp

43.5

1 .5

0.9

78.21

U. Torcuato di Tella

50.0

1.8

4.3

76.81

U. A. Ibáñez

45.0

1.4

3.3

71.62

U. del Norte

35.4

1.8

0.4

66.31

ESAN

50.0

1.1

0.5

65.34

U. Diego Portales

40.0

2.0

3.3

64.89

PUC - Chile

50.0

1.3

1.0

64.36

U. T. Federico Santa María

37.5

0.9

0.4

62.03

10 1

Incae

43.3

1.5

0.3

61.10

FGV - Eaesp

41.5

1.9

1.1

100.0

U. de Chile

38.5

2.3

0.8

89.8

FEA/FIA USP

42.5

2.0

84.4

Uniandes

45.0

2.9

1.7

83.0

Incae

48.6

0.3

0.1

81.8

U. D. Portales

47.5

5.7

0.5

78.5

U. Adolfo Ibáñez

41.7

2.5

0.7

77.1

Egade Business School

48.3

1.1

0.7

76.0

PUC - Chile

47.0

0.5

0.4

76.0

U. Torcuato di Tella

40.0

2.4

0.8

75.1

at the expense of the Chilean universities

whereby it has increased the size of its

dual degrees. Some 92 students are parti-

Del Desarrollo and Diego Portales, and

full-time faculty from 34 to 41 professors.

cipating in these programs.

the Universidad del Pacífico moves up

Currently, 20 of those professors obtained

four places, reaching 12th place.

their doctorate degrees in schools ranking

trench warfare, separated by a minimal

within the top third of the main interna-

distance and must be eager to see what

tional rankings.

happens in 2017. This is pure competi-

In the case of Universidad del Pacífico, the star among the Peruvian schools, this rise is due to constant, significant improvements that began two years ago,

Additionally, they have added two new agreements to grant international

Thus, both schools are involved in

tion, and it is certainly the best news for the Peruvians.

GLOBAl ISSUE

APEC 2016

FIELD

Economics

Entrepreneurship and innovation

Strategy and ethics

Finance

Sub Sub RK RK 16 15

SCHOOL

N° FT Prof.

Pct. FT Prof. Training

N° ISI Papers (2013-16)

Average journal impact factor

ISI Papers / FT Prof.

Index

PUC - Chile

48.4

1.7

2.2

100.0

U. de Chile

45.5

1.8

5.9

92.9

U. Adolfo Ibáñez

50.0

1.1

2.0

85.7

U. Diego Portales

39.7

1.6

1.3

83.7

U. Torcuato di Tella

46.4

1.2

0.7

78.6

U. de Santiago

41.7

1.6

0.6

74.2

Incae

46.4

1.4

73.8

Egade Business School

U. del Desarrollo

U. Alberto Hurtado

U. del Desarrollo

PUC - Chile

4 5

39.4

1.3

0.7

68.8

38.8

1.4

0.5

67.3

45.0

0.8

3.7

66.0

39.4

1.5

1.0

100.00

50.0

2.5

84.87

Egade Business School

40.7

1.8

1.4

83.35

ESAN

40.7

2.8

0.6

78.47

U. del Norte

34.3

2.4

1.6

76.68

U. Fumec

35.0

2.1

0.1

75.04

U. Adolfo Ibáñez

41.0

3.4

0.4

74.33

Incae

43.3

1.4

1.0

69.52

Uniandes

35.8

2.0

0.7

65.62

FEA/FIA USP

40.0

0.1

1.7

63.97

Incae

46.5

1.6

100.0

Uniandes

40.4

3.1

1.8

96.7

IAE - Austral

42.5

2.0

0.6

90.4

Egade Business School

40.0

1.8

2.4

88.5

PUC - Chile

46.7

1.9

1.1

87.6

U. Adolfo Ibáñez

47.1

4.1

0.6

86.1

U. del Pacífico

42.9

1.3

0.4

81.9

FGV - Eaesp

40.0

1.9

1.4

75.6

U. del Desarrollo

46.0

0.8

1.0

72.7

U. San Andrés

40.8

1.5

1.2

72.5

U. de Chile

43.6

1.5

1.4

100.00

U. Torcuato di Tella

44.6

1.4

1.3

97.98

U. Adolfo Ibáñez

48.0

1.7

0.9

91.98

PUC - Chile

50.0

2.0

85.78

ESAN

43.1

0.6

0.5

81.65

Uniandes

41.3

2.5

2.3

81.63

FGV - Eaesp

46.7

1.8

0.2

81.36

IESA

41.0

1.3

1.6

75.77

Incae

43.6

1.5

0.4

71.70

U. Diego Portales

48.3

1.0

0.7

69.35

AMÉRICAECONOMÍA NOVEMBER 2016

MBA Latin America 2016 Methodology Academic strength (40%): Was evaluated using two criteria: the number of full-time professors and the quality of their academic training; and the number of part-time professors and their experience in the world of business. In this component, 80% corresponds to the academic curriculum and the proportion of full-time professors, disaggregated into: academic training, measured as the best degree obtained (10%); the ratio of students per faculty member (15%); the average quality of the faculty, divided by the number of students (75%). The remaining 20% corresponds to the quality of the career trajectory of the part-time professors. The schools reported information on the last three executive positions of their 10 best part-time professors, assigning a score to each position, which is normalized to a baseline of 100. Production of Knowledge (15%): Four indicators are considered: the production of ISI papers over three years (Thomson Reuters base), books, book chapters and cases produced for business schools, disaggregated

as: 80% ISI papers and the remaining 20% to the gross production of books, book chapters, and cases. Internationalization (20%): Some 40% of this component corresponds to agreements signed by the business school, disaggregated into agreements to grant dual degrees, scored according to the quality of the counterpart school (90%), and the quantity of exchange students that originate from these agreements (10%). Another 30% corresponds to acreditations (AACSB, EQUIS, AMBA y SAQS); 10% to memberships (AACSB, ALADEN, AMBA, BALAS, CEMS, CFA, CLADEA, EFMD, EMBA, Global Advances, Management, NIBES, PIM, PRME, SEKN, SUMAQ and UNICON); 10% for hosting international conferences, as a raw number. The final 10% represents exchange agreements with A and B universities, disaggregated into: the raw number of students and agreements with A and B universities (60% and 40%. respectively); the percentage of foreign students and professors; and the raw number of foreign professors who have

taught a class during the last MBA year. Each with a weight of 33.3%. Network Power (25%): The executive positions attained by graduates makes up 90% of this component. This is disaggregated as: the best executive position achieved by the 10 best graduates over the preceding three years (40%); the trajectory of the 10 best graduates in the institution’s history (35%); the score assigned in a suvery of satisfaction by graduates in the year 2014 (25%). The remaining 10% was measured by considering the raw number of placement centers (30%) and the existence of alumni associations (70%). Subrankings: Each of the seven subrankings was evaluated by considering the quantity and quality of the training of the specialist full-time professors (75%), the number of ISI papers published over three years in specialist journals (20%), and the productivity of the specialized faculty in regards to these papers, measured as the quantity of ISI.

GLOBAl ISSUE

APEC 2016

SEEKING TO TRAIN THE multicultural EXECUTIVE We have strengthened the Ranking of the Best Global Business Schools with a new dimension: multiculturalism. Now, people with global expectations can identify the best alternatives. BY Daniela Jara and Carolina Aguilera*, AmĂŠricaEconomĂa Intelligence

hen multinationals in

multicultural experience. This analytical

Latin America and the

dimension was evaluated with such indi-

multilatinas go hunting

cators as the number of foreign students,

for top executives they

the national diversity of these students,

tend to look north, especially towards the

the multicultural training offered by the

United States and Europe. It is natural,

school, as well as gender equality in the

then, that people in the region who

programs: all factors that generate the

aspire to the top want to be trained in

conditions under which students, on a

global business schools. This perspective

day-to-day basis, come into contact with

led to a conceptual and methodological

diversity in an increasingly changing and

reconfiguration of this ranking to bring

complex world.

it in line with the needs of global firms from Latin America.

This approach is consistent with detailed observation of the value

And since it is a question of globalization, it was necessary to place the focus on

offered by these schools: almost all of them have incorporated as part of their training

AMÉRICAECONOMÍA NOVEMBER 2016

the possibility (and even the requirement)

out. In other words, you don’t have to be

attains the highest score on the networks

that their students undergo immersion

European to be multicultural.

with Latin Americans dimension. This

experiences in foreign academic and

prominence is explained by the great

business cultures. After all, global schools

The ones we know so well

presence of Latin American students at

advance at the speed required to adapt to

In this edition the top 10 schools are: (1)

this Spanish school, as well as the massive

economic situations and the requirements

Harvard, (2) IESE, (3) IE, (4) London

participation of Latin American acade-

of management at a global level.

Business School, (5) HEC Paris, (6) Yale,

mics in its programs. From a different

(7) Esade, (8) The Fuqua School, (9) IMD,

angle, the selectivity variable reveals

culturalist dimension are the European

and (10) Haas. These business schools

interesting data. The schools that recruit

ones: London Business School (LBS),

remain the most outstanding business

students with the best GMAT scores are:

IESE, IMD, and HEC Paris. LSB, for exam-

schools for Latin Americans. In these

Harvard, Yale, Haas, Tuck and Kenan

ple, appears as the school that offers the

schools students acquire prestige, multi-

Flager. All have scores over 700 points.

greatest multicultural experience, not only

cultural experience, potential networks

The only European school that shares

because of its location in cosmopolitan

with Latin Americans, and quality aca-

this characteristic is LBS, with an average

London, but also because of the structure

demic training.

score of 701 points. All of these schools

The schools at the top of the multi-

In terms of the Latin American

also receive a high number of applica-

along these lines, as well as its highly

network power of these schools, many

tions, with Harvard standing out with

internationalized faculty. In other words,

have extraordinary platforms with which

almost 10,000 applicants per class. Below

the European schools tend to guarantee a

students can make contact with firms and

stands Haas, The Fuqua and Yale, each

broader cultural presence, which without

headhunters seeking human capital for

with nearly 3,500 applicants.

a doubt makes it possible in the classroom

the region. In this regard, IESE, Fuqua,

to diversify the human experience of

Yale, LBS and Brandeis stand out: each of

dimension shows how each university

attaining an MBA, while at the same time

these schools attained the maximum score

stands in other global rankings, which

generating global networks.

on this variable. From the point of view

strongly impacts upon their prestige.

of the quality of the employment that

Here, Harvard particularly stands out, and

tative component. When we observe the

students can obtain once they graduate,

at respectable distance follow HEC Paris

educational programs in terms of the

we note that many schools attain a high

and Haas. These three schools definitely

contents of their training, the multicul-

or very high score. This is good news for

attain high scores in various international

tural focus –which includes the interrela-

Latin Americans. Mannheim, University

rankings that are carried out with differ-

tionship among business, culture, human

of Miami, Esade, IE and Katz stand out on

ent methodologies. These rankings reveal

diversity, and economics– of schools

this variable.

that these three are especially successful

of its programs, which offer experiences

This dimension has a strong quali-

ESIC, nevertheless, is the school that

such as Tuck, Fuqua and Shanghai stands

Finally, the international positioning

in building their brand.

Global MBA 2016 Methodology 1. Multicultural experience and diversity (22%): • Percentage of foreign students enrolled in the first year. •Number of nationalities enrolled in the first year. • Percentage of foreign members among the academic personnel. • Percentage of women enrolled in the first year. •Internationalization through the academic experience.

•Multicultural education and program contents.

• Business networks with firms from Latin America on the campus.

2. Network potential for Latin Americans (17%): •Percentage of academics from Latin America among the personnel. • Percentage of Latin American students in relation to foreign students enrolled in the first year. • Employment score (according to matrix).

3. Selectivity (33%): • Mean GMAT score of the last class enrolled in the program. • The selectivity of the program. 4. International positioning (28%): • Classification scores in the following global rankings: The Economist, Financial Times and QS.

GLOBAl ISSUE

APEC 2016

RK 16

RK 15

SCHOOL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

1 3 6 7 4 9 12 5 14 2 11 13 0 0 23 0 10 0 0 20 18 32 16 0 31 17 15 0 0 0 28 40 38 21 26 0 0 19 37 0 22 33 34 0 30 35 0 42

Harvard Business School IESE Business School IE Business School London Business School HEC Paris School of Management Yale School of Management Esade Business School The Fuqua School of Business IMD Haas Tuck School of Business Warwick Business School EAE Cass Business School MBA Center and Global Management Education Institute Schulich School fo Business Mannheim Business School ESMT European School of Management and Technology HULT International Business School ESIC Business and Marketing School McDonough School of Business School of Business Administration McCombs School of Business EMLYON Business School HEC Montréal Kenan-Flagler Business School Kelley School of Business School of Business Administration Samuel Curtis Johnson Graduate School of Management Nova Questrom School of Business Chapman Graduate School Eller College of Managment Owen Graduate School of Management NUS Business School Copenhagen Business School UC Davis School of Management Cox School of Business Brandeis International Business School Mendoza College Freeman School of Business HHL Leipzig Graduate School of Management Katz Graduate School of Business Simon Business School Weatherhead School Of Management Leeds School of Business Porto Business School

UNIVERSITY

Harvard University University of Navarra IE University HEC Paris Yale University Ramon Llull University Duke University University of California, Berkeley Dartmouth College University of Warwick City University of London Shanghai University York University University of Mannheim

Universidad Juan Carlos de Madrid* Georgetown University University of Miami The University of Texas at Austin Affiliated at Université de Montréal University of North Carolina Indiana University University of San Diego Cornell University Boston University Florida International University University of Arizona Vanderbilt University National University of Singapore (NUS) University of California, Davis University of Bath Southern Methodist University Brandeis University University of Notre Dame Tulane University University of Pittsburgh University of Rochester Case Western Reserve University University of Colorado at Boulder University of Porto

(1) Data that illustrate performance on different dimensions of analysis, but do not correspond to the sum of variables in the ranking. * Affiliated with...

% Foreign students

33.9 79.9 91.0 81.1 92.5 45.4 95.2 37.6 93.3 43.1 39.2 85.0 90.8 81.9 96.0 83.1 88.7 92.4 93.1 53.1 42.2 33.8 28.3 76.7 58.7 34.4 36.0 38.0 35.4 46.7 34.0 40.4 46.3 19.5 91.6 89.7 34.9 82.2 36.5 81.8 30.3 27.3 90.9 43.8 60.0 43.8 17.6 25.9

N° Nationalities

64 52 71 68 51 47 50 43 39 46 23 11 31 27 8 35 21 40 76 25 40 21 16 24 22 27 16 12 32 19 16 18 5 15 23 22 8 22 15 10 14 6 17 13 18 6 12 7

AMÉRICAECONOMÍA NOVEMBER 2016

SIGNIFICANT DATA (1) % Foreign academics

% Women enrolled

% Latin Americans among all foreign students

38.4 82.7 11.7 86.0 64.5 35.1 40.3 32.1 95.6 45.3 25.0 77.6 31.5 66.7 71.4 63.9 20.6 80.0 67.1 25.6 31.4 44.4 24.4 46.4 48.2 36.8 29.4 15.9 28.0 34.8 28.5 53.3 19.2 17.4 60.0 59.1 2.6 72.5 31.3 21.4 10.7 26.7 38.5 14.8 19.3 23.8 20.5 2.6

41.6 28.0 28.7 36.7 30.2 39.9 30.5 35.8 18.9 40.7 42.3 32.5 44.0 31.9 36.0 30.4 39.6 24.2 38.2 38.8 31.5 35.1 31.7 34.9 41.3 30.1 29.0 44.0 25.9 37.8 38.1 44.2 41.5 25.9 40.0 35.9 23.3 40.0 34.9 40.9 30.3 29.5 15.2 26.3 43.8 48.4 29.4 22.2

11.0 18.4 39.4 16.3 14.1 14.2 27.0 30.8 15.5 24.5 17.9 2.9 86.2 3.4 62.5 4.2 10.6 11.5 29.6 92.3 14.9 42.3 17.3 30.3 21.6 18.9 11.9 9.7 21.6 23.8 6.0 38.1 5.3 11.8 3.4 14.3 6.7 13.5 13.0 11.1 8.1 8.3 13.3 5.7 2.1 3.6 20.0 0.0

DIMENSIONS OF ANALYISIS

Average GMAT score

N° applicants

% Of accepted applicants enrolled

Multicultural experience

Network power in LATAM

Selectivity

International positioning

FINAL SCORE

730 680 685 701 690 721 660 696 663 715 717 n/d 630 634 s/i 662 679 640 615 580 692 643 694 634 613 701 668 621 697 602 682 590 654 690 656 602 683 656 656 606 682 664 630 608 667 642 615 550

9,686 497 1,779 2,322 1,994 3,449 555 3,424 n/d 3.592 2,585 121 1,175 247 43 1,044 473 n/d 2,276 201 1,862 600 2,266 308 176 2,357 1,471 169 1,714 90 1,094 289 160 887 1,081 105 354 208 601 95 692 129 150 730 732 290 259 38

90.7 100.0 64.7 34.6 60.9 45.7 58.4 56.8 n/d 34.6 49.0 64.5 100.0 98.6 80.6 91.2 74.6 n/d 63.7 89.1 33.5 61.1 39.3 57.3 98.4 34.6 43.3 47.3 49.6 66.2 38.4 54.7 66.1 47.0 50.0 59.1 71.7 33.8 60.6 36.1 43.6 43.6 50.8 49.4 33.3 36.8 43.8 81.8

67.9 88.6 72.5 100.0 82.0 63.8 75.9 57.4 84.6 65.9 51.2 72.6 71.4 73.5 75.0 71.9 61.1 80.4 97.5 55.5 52.6 48.5 34.6 64.9 62.5 45.1 37.5 42.2 42.8 52.8 43.1 56.2 42.7 21.3 75.2 70.7 22.0 77.6 43.4 58.1 29.0 27.0 51.5 34.2 51.2 44.7 18.4 13.7

18.1 76.7 80.5 69.1 28.5 78.9 87.3 86.5 40.3 65.4 54.2 54.3 90.5 44.8 79.5 50.6 35.4 44.9 50.0 100.0 64.4 91.6 55.7 57.5 35.6 41.4 55.0 63.7 24.8 63.4 42.1 75.4 36.9 51.7 1.2 28.7 26.1 29.2 28.1 77.1 35.1 55.9 28.4 60.1 16.6 35.1 61.1 55.1

100.0 86.4 71.7 53.6 71.1 71.0 59.2 70.6 77.1 58.5 72.2 61.6 69.1 70.0 70.0 76.7 75.0 63.2 46.9 47.5 49.3 55.0 56.0 49.5 62.7 53.6 50.6 37.8 65.8 43.9 50.9 32.5 61.8 61.4 51.9 39.6 74.9 37.2 59.2 22.3 55.7 49.5 43.5 34.9 40.4 35.5 32.8 33.9

100.0 54.1 57.0 62.9 67.1 48.5 46.9 45.4 45.9 66.0 48.0 35.9 1.2 25.7 1.2 14.3 27.6 10.3 4.2 8.2 25.4 2.3 27.6 8.5 8.5 28.7 27.9 5.6 18.6 5.2 16.7 4.2 3.6 11.3 12.1 9.6 6.7 4.4 4.5 1.2 9.3 1.2 4.2 4.0 7.2 5.1 3.0 1.2

79.2 77.1 70.2 69.9 65.4 65.4 65.2 64.3 64.2 64.1 58.4 56.2 55.3 54.6 54.4 54.3 52.3 49.6 47.2 47.2 46.6 46.1 44.0 43.4 43.3 43.2 42.7 42.5 40.9 39.0 38.6 38.0 37.5 37.5 37.3 36.5 36.2 35.9 35.5 34.5 33.8 32.8 32.0 31.1 29.6 29.3 26.8 24.5

GLOBAl ISSUE

APEC 2016

BY Juan Francisco Echeverría, AméricaEconomía Intelligence

PARTLY SUNNY, PARTLY IN THE DARK

The economic recession and the political crisis made themselves felt in Brazilian cities in 2015, causing São Paulo to fall in the general index. This decline pushed Mexico City into third place in our ranking of cities, but not because of any improvement in its virtues...

mainly to the city’s scores on the en-

midst a volatile economic, financial, and political climate, for many Latin American cities to merely hold ground

and not retreat is news to be thankful for. With the exception of Bogotá, this is not the case for the Colombian cities in América Economía’s Ranking of the Best Cities for doing Business. This is due to the constant rise in positions of the coffee-growing cities, as is the case with Medellín, which rose four places to the 11th rank. This city’s significant rise is due vironmental sustainability dimension, which increased by seven points. On the ground, these improvements are related to the inauguration of an electric trolley network with a total of nine stations, managed by the municipality. They also have to do with the city hosting various Latin American events and conferences, which translated into considerable improvements in the quality of services for executives. Nevertheless, as mentioned, such improvements were not an isolated phenomenon in Colombia: other cities that scaled positions are Cali (19), Cartagena (20) and Barranquilla (21). Basically, all of them rose across the dimensions of services to firms, environmental sustainability, and human capital. Even though Mexico City (3) rose one position in the Ranking, overall this move is not very inspiring, as the city strongly declines on the social and political framework dimension: indicators, such as the World Bank’s governance

pixabay

indicators, on average fall by three points.

100

The quality of institutions also fall in the World Economic Forum (WEF) and the

AMÉRICAECONOMÍA NOVEMBER 2016

Maximum performance

The five best cities on each IURC 2016 Source: AméricaEconomía Intelligence

Brand power

Miami 100.0

Environmental sustainability

San Jose 94.5

Human capital and knowledge economics

Santiago 100.0

Buenos Aires 97.2 Barranquilla 93.2

Miami 100.0

Services for executives

Miami 100.0

Services for firms

Miami 100.0

Mexico City 76.9

Economic framework and dynamism

Miami 100.0

Santiago 89.5

Buenos Aires 97.1

São Paulo 73.3 São Paulo 63.1

Mexico City 63.6 Mexico City 62.8

Bogota 53.7 Bogota 61.9

Bogota 74.1

Where to locate the firm?

partially counterbalanced by increases

The best cities for doing business, according to readers of AméricaEconomía in the 2016 Brand Power Survey

services to executives, and human capital. Nevertheless, in the general index the city doesn’t even manage to increase one point. Therefore, the change in position of

Panama City 59.1 Monterrey 72.5

Panama City 80.9

São Paulo 76.7 Montevideo 95.2

Other cities better endure the downpour of the regional crisis. This is the case of Lima, which moves up two deo (9). This city falls one place largely

160

120

decline is due to the deterioration of the

Panama City 53.2

180

São Paulo.

slides to fourth place. Specifically, this

Mexico City 87.7

positions to 8th place, passing Montevi-

Mexico City has to do with the decline of In effect, the Brazilian city falls five

Miami 89.2

Source: AméricaEconomía Intelligence

140

points in the ranking’s overall index and

Panama City 92.5

Valparaiso-V. del Mar Concepcion-Talcahuano 99.5 98.5

Index of Economic Freedom. This fall is on the dimensions of services to firms,

Bogota 94.0

Cartagena 93.0

Cali 74.1

Mexico City 82.8

Miami 99.9

Santiago 100.0

Santiago 94.4

Cali 93.0

São Paulo 97.3

Infrastructure and physical connectivity

Political and social framework

São Paulo 96.1

161

because of lack of any progress on the

153 149 148

services to firms dimension. Another factor is the rise in the unemployment

121 109

100

102

rate and a small drop in the index of 92

economic freedom. Endurance is also a virtue of the Peruvian capital, which doesn’t give in and rebounds strongly in

services for executives, environmental

social and political framework and of

sustainability, and human capital. Lima

economic dynamism. A severe social,

increases the number of high schools,

political, and institutional crisis, with

M iago ex ic Pa o Ci ty na m Bu a Ci ty en os Ai re s Lim a

ul o

M iam

Legislative and Executive branches, has

lowers its cost of living, maintain a stable Sã

corruption scandals that affect both the brought about the most persistent eco-

CPI from year to year, and, on the environment side, reduces its quota of CO2 emissions. As if these improvements

nomic recession of recent decades. This

try level and the staggered adjustment of

weren’t enough, in the area of human

situation explains why Standard & Poor’s

fiscal policy rocks the cities of Brazil and

capital Lima’s presence in world rankings

downgraded the country’s sovereign risk

makes them fall: Rio de Janeiro dropped

of university prestige (Times Higher

rating, which in 2015 was BBB and this

from 9th to 14th, Brasilia from16th to

Education Ranking, QS Ranking) is also

year is BB. Thus, uncertainty at the coun-

18th, and Campinas from 20th to 25th.

on the rise.

101

GLOBAl ISSUE

APEC 2016

SIGNIFICANT DATA BY CITY (1) RK Coun15 try

RK 16

City

Population GDP 2015 2015 (US$ (Million) Million) 6.00

290,018

Per capita GDP 2015 (US$)

% Unemployment 2015

Investment Banks (2) 2015

Presence of global hotel chains (3) 2015

Total Km urban and suburban electrical transport 2015

Non-stop international air destinations 2015

Direct international air passengers 2015

48,336

5.0

46.3

100

13,812,202

1 .us

Miami

2 .cl

Santiago

7.30

132,322

18,126

6.4

237.1

4,570,698

4 .mx

Mexico City

21.18

338,235

15,970

5.3

457.1

8,198,375

3 .br

São Paulo

21.60

355,740

16,472

7.4

345.1

8,577,710

5 .co

Bogota

9.80

109,688

11,193

9.0

0.0

5,489,009

7 .ar

Buenos Aires

15.18

293,327

19,323

6.0

318.3

4,549,891

6 .pa

Panama City

1.95

31,410

16,124

5.1

13.7

7,124,007

10 .pe

Lima

9.83

111,365

11,329

5.7

34.6

4,698,503

8 .uy

Montevideo

1.66

29,475

17,741

8.4

0.0

975,429

11 .cl

ValparaisoViña del Mar

1.04

17,155

16,495

6.7

51.6

15 .co

Medellin

3.80

51,812

13,635

10.0

64.0

766,016

12 .cr

San Jose

2.60

35,527

13,664

9.2

72.0

2,077,708

14 .cl

ConcepcionTalcahuano

1.02

13,579

13,312

7.9

46.0

59,738

13 14

9 .br

13 .mx

Rio de Janeiro

12.08

137,507

11,388

5.9

393.0

2,639,508

Monterrey

4.35

92,210

21,191

4.2

40.0

886,519

17 .pr

San Juan

2.23

42,719

19,148

9.4

17.2

4,170,070

18 .mx

Guadalajara

4.75

74,797

15,747

4.4

70.8

1,807,472

16 .br

Brasilia

3.71

87,567

23,603

13.6

42.0

683,909

21 .co

Cali

2.90

28,740

9,910

11.0

0.0

556,029

25 .co

Cartagena

1.21

13,312

11,001

8.3

0.0

394,877

29 .co

Barranquilla

1.89

12,887

6,819

8.9

0.0

175,573

23 .br

Curitiba

3.39

38,995

11,520

5.7

0.0

342,217

19 .mx

Queretaro

1.22

22,740

18,650

4.8

0.0

102,796

24 .br

Belo Horizonte

5.09

48,572

9,550

6.1

28.1

470,443

20 .br

Campinas

3.06

44,924

14,691

8.2

0.0

(1) Selected variables that illustrate urban performance; does not include all the criteria used in this ranking. (2) Evaluates the presence in the cities of the 10 main investment banks on a preset list. (3) Evaluates the presence in the cities of the 7 main hotel chains on a preset list. (4) Evaluates the presence in the cities of 37 non-franchise global firms on a preset list. * The ranking orders 52 Latin American cities. For the complete ranking, see americaeconomia.com.

Moving further south, Santiago, Chile

geographical setting, situated in a valley,

ates, entered the top 10 in the ranking,

maintains second place in the ranking as a

surrounded by two mountain chains, and

and is singled out by readers of Améri-

city that is highly stable on all dimensions.

the city’s until now lax control of CO2 and

caEconomía with an increase of 13

The city falls only two points in brand

PM (particulate matter), whose abun-

points on the dimension of brand power.

power and environmental sustainability.

dance is evident throughout the year.

They consider it a good city to live in.

The environment is the Chilean capital’s

Another Chilean city that remains

Similarly, Valparaiso stands out for its ser-

Achilles heel. The environmental problem

on the right path is Valparaíso. This city,

vices for executives, high quality of living

results from a combination of Santiago’s

where the country’s principal port oper-

index, and fall in the cost of living.

102

AMÉRICAECONOMÍA NOVEMBER 2016

IURC DIMENSIONS 2016 Presence 37 global firms (4) 2015

Political and social framework

Economic framework and dynamism

Services for firms

Services for executives

Infrastructure and physical connectivity

100.00

89.2

Human capital

Environmental sustainability 89.2

Brand power

IURC 2016

RK 16

City

99.9

100.00 100.00 Miami

100.0

89.5

79.9

68.4

47.3

100.00

87.8

94.4

87.02 Santiago

69.7

82.8

80.1

76.9

62.8

87.7

83.3

89.4

80.99 Mexico City

69.6

76.7

69.5

70.5

63.1

97.3

90.4

96.1

80.10 São Paulo

68.4

72.9

66.2

74.1

61.9

87.1

94.0

77.36 Bogota

67.0

59.2

90.3

67.4

40.5

97.1

91.5

97.2

75.01 Buenos Aires

80.7

80.9

65.0

60.1

59.1

52.7

92.5

85.0

74.88 Panama City

73.5

56.2

70.5

43.4

65.3

85.2

81.5

70.88 Lima

95.2

68.5

72.1

53.8

31.4

59.1

91.2

77.9

70.75 Montevideo

99.5

76.6

64.5

61.4

28.1

76.3

91.9

50.5

70.73

ValparaisoViña del Mar

67.8

65.0

59.7

70.0

39.2

74.7

89.2

77.7

68.34 Medellin

91.6

65.0

61.2

60.5

35.7

64.7

94.5

64.9

68.09 San Jose

92.0

32.1

Concepcion67.53 Talcahuano

98.5

76.6

63.8

0 10

62.4

28.2

70.6

58.7

71.1

68.0

73.3

56.8

61.6

38.4

71.5

88.1

88.5

67.21 Rio de Janeiro

68.7

72.5

31.8

62.5

85.2

65.3

66.71 Monterrey

87.2

66.3

62.7

62.1

42.2

54.8

89.4

43.1

64.20 San Juan

70.5

65.0

70.3

69.4

37.3

53.9

86.6

56.8

64.16 Guadalajara

17 18

67.9

61.0

54.6

62.5

33.9

60.0

91.1

71.8

63.27 Brasilia

67.6

62.4

57.2

74.1

26.7

56.5

93.0

55.7

61.58 Cali

68.3

60.1

55.6

71.7

35.5

47.5

93.0

60.9

61.48 Cartagena

68.2

61.3

58.3

71.1

24.2

56.1

93.2

49.9

60.05 Barranquilla

70.7

56.3

56.0

63.9

27.5

58.2

92.0

58.3

59.97 Curitiba

69.9

62.5

58.8

67.6

27.2

49.8

86.4

51.2

59.84 Queretaro

23 24 25

70.3

55.9

57.8

61.9

30.3

60.2

89.5

50.3

Belo 58.92 Horizonte

69.2

57.3

55.2

60.0

27.6

73.3

91.8

43.9

58.87 Campinas

Can we reach Miami?

dimensions, by other Latin American

developed. Such a change would make it

As in the past, Miami remains unmove-

cities. Even so the day seems far off when

easier for each city to apply itself –along

able at the summit. This is not by chance.

one of Miami’s closest pursuers can take

all of the dimensions that cover the spec-

We have to remember that Miami is a

away its baton. In order for the three

trum– to being a highly competitive city.

developed city situated in a nation that is

cities closest to accompany Miami in the

For example, Santiago must invest heavily

the greatest world power. Nevertheless,

ranking –Santiago, Mexico City, and São

in lowering pollution levels (for now it

this is not a condition that can prevent it

Paulo– to achieve Miami’s ratings, a lot

has launched a multiyear plan whose re-

from being surpassed, at least on some

dependes on their countries becoming

sults remain to be seen), implement new

103

APEC 2016

pixabay

GLOBAl ISSUE

environmental regulations, and provide incentives for using renewable sources of energy. And, along these lines, it needs to reduce social inequality. For its part, Mexico City faces the considerable challenge of reducing its high levels of insecurity, as well as of increasing environmental sustainability. São Paulo, for its part, must find a stable economy that goes hand in hand with governance of the country, security, services for firms, infrastructure, and connectivity. No one of these three cities faces a simple task. For now, Miami rises as the privileged student in the class, yet the efforts and dedication of the other pupils to improve some day may bear

THE FIRST. For now, Miami has no competitor in the ranking.

fruit–if constant and consistant.

Methodology The IURC (Index of Urban Competitivity) is a complex tool, elaborated and owned by AméricaEconomía, which enables ordering the cities studied from more to less capacity/ potential for business. The IURC is composed of eight dimensions. Each dimension concentrates a certain number of variables which, when combined, summarize specific areas of attributes that are relevant for cities attracting business. These dimensions are: Social and political framework (15%): integrates indicators and variables on political governance, institutionality, security, social development, and juridical security. Economic framework and dynamism (25%): involves indicators and variables on the creation of wealth, investment attraction, economic stability, and the characterization of financial, labor, and product markets. Services for firms (10%): encompasses indicators and variables on installation and business regime costs, the quality and access to informational (telephone and internet) and banking services, and the institutional quality of local governments. Services for executives (10%): encompasses indicators and variables on the cost and quality of living, including access to personal banking services, and the quality of basic services, such

104

as children’s education, hospital care, hotels, and restaurants. Infrastructure and physical connectivity (10%): incorporates variables and indicators concerning the magnitude and quality of air, maritime, and land transport of persons and commercial cargo, both within the countries and abroad, as well as complex indicators on investment and development of public and private infrastructure. Human capital (10%): refers to indicators and variables on the accreditation and quantification of the supply of higher education, the availabilty of local skilled labor, with an emphasis on university training associated with business and innovation capital. Environmental sustainability (5%): incorporates variables and indicators on, in the first place, the quality of the natural resources that determine the health of the city, such as air pollution. Second are variables that measure the coverage of non-polluting urban public transportation. And third are variables that estimate the city’s impact upon the global environmental situation. These also reveal the sense of ecological responsibilty expressed by the city. Brand power (15%): is built from the Survey on Business and the Quality of Life in the Cities of Latin America, carried out in December 2015 among the readers of AméricaEconomía.

SOURCES IURC 2015: Investment banks: Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, The Royal Bank of Scotland, UBS; Hotels: Hilton, Hyatt, Marriott, Ritz, Swishotel, Sheraton, W; 4G Americas, AMBA, AACSB, ACI Worldwide, AméricaEconomía Intelligence, Latin American Central Banks, CB Richard Ellis, Cepal, Cybermetrics Lab, Demographia, Doing Business, World Bank, Eduniversal, Latin American electricity distributors, Electric Transport in Latin America, Allen Morrison, European Quality Assurance Label, EQUIS, FMI, FTI Consulting Ibero-America (Frank Holder), Governance Matters, Heritage Foundation, Human Capital, Latin American national statistical institutes, International Data Corporation (IDC), International Telecommunication Union (ITU), Joint Commission, QS, MasterCard, Mercer, Numbeo, PNDU, OMS, OAG Aviation, Shanghai Jiao Tong University, Simply Hired, Southern Association of Colleges and Schools (SACS), Standard & Poor’s, The Economist Intelligence Unit, The Institute for Economics and Peace, The International Baccalaureate, UNCTAD, UNDESA, UNEP, UNFCCC, UNWTO, Universidad Autónoma de Mexico, University of Notre Dame, SCImago, Times Higher Education, Visa, World Economic Forum, Yale University.

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APEC 2016

GLOBAl ISSUE

STILL LOOKING ABROAD Amidst a complicated regional scene, the multilatinas slow down their expansion, but they don’t lose their way, to the point that the Brazilian ones grow more abroad, while the Colombian ones hold ground. BY Andrés Almeida, AméricaEconomía Intelligence

ne of the advantages of being

very similiar to the contraction (18.2%)

Samba lessons

a multilatina firm used to

registered by Latin America’s 500 Largest

When it comes to mergers and acqui-

be that this status implied,

Companies –whether multilatinas or

sitions, the story of the year was the

with all certainty, continued

not– during the same period.

purchase of South African firm SABMiller

growth at faster rates than other firms

The percentage of sales by multi-

in the region. Between 2002 and 2013,

latinas abroad also fell: this year they

InBev, of which the multilatina Ambev

for example, the multilatina firms in the

represent 41.2% of total sales, a figure

(24) is a constitutive part. And even if

ranking of Latin America’s 500 Largest

considerably lower than the 54.3% repor-

in operating terms the Brazilian parent

Firms grew by a factor of nine, while

ted in the previous edition. And this is

company does not control the assets

other firms grew only by a factor of 2.5.

not a ranking that orders firms by sales

that used to make up SABMiller (just as

Nevertheless, in the 2016 Multilatinas

volume. Rather, the ranking measures

it doesn’t manage the Mexican Grupo

Ranking, presented here, this condition

the internationalization of the firms, and

Modelo, acquired in 2013 by AB InBev,

has been put into question. The econo-

any multilatina with annual sales over

a group that falls out of this ranking

mic slowdown hit them hard: the total

the baseline of US$250 million may com-

due to insufficient data), it is part of the

billings of the 100 most global Latin

pete, with firms of various sizes entering

mega-consortium’s global growth strategy

American firms fell by 18.8%, when we

and exiting the ranking. Thus, the figure

which led it to acquire new operations

compare 2016 with 2015. This figure is

clearly illustrates the slump.

in seven Latin American and Caribbean

108

by the Belgian-Brazilian conglomerate AB

AMÉRICAECONOMÍA NOVEMBER 2016

Mapa mundi

Multilatina cards

Number of multilatinas present, by geographical zone

Multilatinas distribution by country and change in total of companies from previous ranking

Source: AméricaEconomía Intelligence 100 90

92 93

2016

2015

Peru (-1)

74 74

60 50

Source: AméricaEconomía Intelligence

Argentina (=)

63 65

Colombia (+1)

50 41 40

Guatemala (=) 1% Panama (=) 1% Venezuela (=) 1%

5% 30%

10%

15 19

21 8 10

19%

Oc ea nia

Af ric a

As iaPa cifi c W e s Ce te nt rn ra an lA d sia

Eu ro pe

U St nite at d es

Ca na da

M ex ico

Br an Ce az d t nt il he ral A Ca m rib er be ica an

Hi sp an i Amc So er uth ica

Brazil (-2) 26%

Chile (+1)

Mexico (+1)

countries, including Colombia with the

by 16.7%, while their sales overseas fell

which over recent years has allowed the

acquisition in 2015 of the small Bogotá

only by 7.9%. On this measure, Brazilian

firm to enter Brazil, Peru, Bolivia, Chile,

Beer Company (BBC).

companies performed better than their

Argentina, and Bermudas in such a highly

Argentinian and Chilean counterparts.

knowledge-intensive and internationally

It is not an accident that Ambev belongs to the group of firms that grow

competitive sector as electrical power.

abroad while their home markets contract,

Colombia, the new star

just as it is no accident that the company is

Colombia is the new darling of the multi-

Brazilian. In fact, this pattern can be found

latina world, a place previously occupied

among various other firms from Brazil in

by Chile.Whereas Chilean firms tend to

Its name is Sigma and it is from Mexico

different sectors: Votorantim (31), which

halt their globalizing movement, as the

If ISA is surprising, the case of Sigma

allied with the Peruvian Grupo Gloria, just

proportion of their foreign sales falls

(7) is admirable for the simple fact of its

bought in Peru the firm Cementos Otoron-

further than sales in the local market,

sales growth, especially the growth of its

go, previously owned by Portuguese capital;

Colombian firms are doing the opposite.

foreign sales, which reach 34.1%, pushing

Weg (33); Natura (68); Cia. Siderúrgica

Furthermore, the Colombian firms are the

its general sales up 11.6%. Even though it

Nacional (78); and TOTVS (98). Each of

only firms that overall increase their sales

does not increase the number of countries

these firms share the characteristic of either

abroad between 2014 and 2015.

that it operates in, Sigma has deepened

having entered or risen in the ranking. And it seems that Brazilian firms (or

The principal factor behind this

For their part, the Chilean firms tend to maintain their results.

its presence in those countries where it

exceptional fact is the performance of

already stands, for example, as seen in

at least some of them) have finally un-

three Colombian firms: ISA (18), Sura (29)

its acquisition in 2015 of the Spanish

derstood that internationalization is not

and Bancolombia (63). The case of ISA is

firm Campofrío. These factors make it

only a way to stoke the export machine

particularly interesting. This state-owned

grow and become more global. They also

when Brazil slows down or moves in

firm, with 30% participation of priva-

contribute to the nine place rise of the

reverse, like now.

te capital, has become a distinguished

Grupo Alfa (12), of which Sigma is a part,

multilatina. First, it has increased the per-

accounting for 36.2% of its sales.

The lesson is clear when we look a those firms in the ranking that report

centage of its foreign sales by 16.8%, and

data on percentage of sales abroad: the

second it has a high net operating income.

then the biggest actor is also Mexican:

annual sales of the Brazilian firms fell

This reinforces the firms growth strategy,

Aeroméxico (34) climbs 22 positions,

And if it is a question of sharp rises,

109

GLOBAl ISSUE

APEC 2016

SIGNIFICANT DATA

RK RK 16 15

1 2 3 4 5

1 2 3 4 7

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

18 13 5 14 6 21 20 8 11 22 19 26 10 12 16 15 34 25 23 38 27 24 29 45 33 41 56 42 17 35 59 32 31 48 47 36 55 44 52 53 50 54 91

FIRM

Mexichem Cemex Latam Grupo JBS Gruma

COUNTRY OF ORIGIN

Mexico Mexico Chile/Brazil* Brazil Mexico Colombia/ Avianca-Taca El Salvador* Mexico Sigma Argentina Arcos Dorados Peru AJE Group Mexico América Móvil Argentina Tenaris Mexico Grupo Alfa Mexico Grupo Bimbo Argentina Ternium Mexico Nemak Embotelladora Andina Chile Chile Masisa Colombia ISA Brazil Gerdau Chile Sonda Panama Copa Airlines Brazil Marfrig Chile Sigdo Koppers Brazil Ambev Chile Cencosud Argentina Globant Chile Tech Pack Mexico Coca-Cola Femsa Colombia Grupo Sura Chile Viña Concha y Toro Votorantim Cimentos Brazil Brazil Embraer Brazil Weg Mexico Aeroméxico Colombia Grupo Argos Chile Arauco Chile Falabella Mexico Softtek Brazil Vale Chile CMPC Peru Alicorp Chile Empresas Copec Peru Grupo Belcorp Brazil Metalfrio Colombia Grupo Nutresa Argentina Arcor Brazil Fibria Mexico Femsa Brazil BRF Foods Mexico Arca Continental

SECTOR

SALES (US$ milion) Totals Abroad Total 2015

Petrochemicals Cement Air transport Food Food Air transport Food Entertainment Beverage/Liquor Telecommunications Steel/Metallurgy Multiple sectors Food Steel/Metallurgy Automotive/Auto parts Beverage/Liquor Forestry/Cellulose Electrical energy Steel/Metallurgy Technology Air transport Food Construction/Engineering Beverage/Liquor Retail Technology Manufacturing Beverage/Liquor Finances Beverage/Liquor Cement Aerospace Manufacturing Air transport Cement Forestry/Cellulose Retail Technology Mining Forestry/Cellulose Food Multiple sectors Chemicals Manufacturing Food Food Forestry/Cellulose Beverage/Liquor Food Beverage/Liquor

5,708.0 13,050.1 9,713.0 45,707.3 3,369.1 4,361.3 5,409.1 2,930.4 1,550.0 51,694.7 7,100.8 14,932.3 12,671.2 7,877.4 4,098.2 2,646.8 1,052.6 1,640.0 12,227.1 1,256.3 2,250.1 5,300.3 2,414.5 13,107.8 15,495.9 253.8 376.1 8,807.9 4,430.0 896.9 3,940.8 5,695.9 2,738.3 2,714.0 3,821.7 5,146.7 10,938.2 538.6 23,987.7 4,841.0 1,935.4 18,109.8 1,185.0 260.6 2,895.8 2,120.2 2,828.2 18,013.0 9,033.1 4,419.8

Var. 14-15 (%)

Abroad 2015

Totals

% Var. abroad 14-15 2015 (%)

EMPLOYEES Abroad

Total 2015

Var. 14-15 (%)

Abroad 2015

% Var. abroad 14-15 2015 (%)

2.9 4,994.0 12.5 -8.4 10,423.8 -5.9 8,137.5 -25.2 -22.1 1.5 1.9 35,651.7 4.4 -0.4 2,462.0

87.5 79.9 83.8 78.0 73.1

18,803 43,117 50,413 227,168 19,117

-2.4 -2.5 -5.0 9.0 7.1

15,278 33,613 37,810 100,290 11,868

N.A. -2.3 -7.5 9.4 2.7

81.3 78.0 75.0 44.1 62.1

3,227.4

-13.1

74.0

21,245

3.8

12,747

N.A.

60.0

3,101.7 34.1 11.6 -16.4 2,549.4 -13.7 -11.4 1,286.5 -9.2 -10.2 35,620.6 -9.7 5,183.5 -33.7 -31.3 8,511.4 -13.1 -3.8 2.0 0.0 8,236.3 5,514.2 -14.4 -9.7 -11.4 2,392.6 -17.4 1,921.1 -11.3 -10.8 843.3 -29.4 -31.9 1,117.4 16.8 -6.3 -22.8 8,681.3 -10.7 758.8 -19.6 -13.4 -16.8 1,800.0 -17.1 3,127.2 -33.5 -32.4 974.7 N.A. -3.4 5,721.8 10.9 -8.6 -12.4 9,665.0 -14.1 227.4 N.A. 27.1 263.3 -1.8 1.0 -3.1 -11.5 4,232.2 -19.7 1,936.0 16.2 728.6 -6.9 -6.8 1,734.0 32.4 -17.8 0.5 -9.4 4,995.3 -7.2 1,560.9 17.4 1,313.6 -0.8 -6.8 4.3 2.5 1,650.0 1,749.9 N.A. -3.4 4,594.1 -7.6 -12.4 377.0 -7.6 -5.0 -27.8 5,465.4 -9.0 1,914.0 N.A. -0.1 771.8 -3.4 -6.0 7,109.3 -27.6 -24.0 237.0 -32.6 -15.8 139.4 -5.0 -20.6 1,098.7 -2.2 -10.7 636.1 -25.0 -24.7 2,177.7 N.A. 7.3 1.0 5,043.6 -14.0 -16.3 4,533.5 -10.3 1,507.2 N.A. 5.2

57.3 87.0 83.0 68.9 73.0 57.0 65.0 70.0 58.4 72.6 80.1 68.1 71.0 60.4 80.0 59.0 40.4 43.7 62.4 89.6 70.0 48.1 43.7 81.2 44.0 87.7 57.0 48.4 43.2 34.0 42.0 70.0 22.8 39.5 39.9 39.3 20.0 53.5 37.9 30.0 77.0 28.0 50.2 34.1

27,052 N.A. 68,348 -10.1 12,225 N.A. 107,029 -0.6 14,105 N.A. 26,110 2.5 47,046 N.A. 10,855 N.A. 12,600 N.A. 12,744 4.8 3,253 -44.7 2,393 -6.0 20,250 N.A. 16,123 -12.0 2,791 0.4 18,207 -34.0 5,854 N.A. 18,103 1.1 84,667 -7.6 2,186 N.A. 1,634 N.A. 43,391 N.A. 19,290 N.A. 871 3.3 6,279 8.5 2,367 14.2 8,373 13.7 2,277 N.A. 4,271 1.0 5,544 -5.0 54,337 0.4 4,280 7.0 16,302 -7.3 7,903 N.A. 2,597 N.A. 8,040 26.4 5,626 N.A. 1,116 -15.6 12,582 1.7 8,000 N.A. 1,172 N.A. 58,516 25.5 5,245 29.4 16,764 N.A.

67.6 82.0 81.5 54.8 65.0 36.0 37.0 65.0 60.0 77.1 63.0 63.7 45.0 82.0 30.0 60.1 52.2 34.3 60.3 43.4 69.7 51.8 64.0 25.2 41.1 12.2 27.0 17.0 46.2 37.6 51.5 40.0 22.0 45.0 56.5 30.1 65.0 40.0 27.9 38.1 7.0 23.8 5.0 33.8

-7.3

40,000 4.0 83,348 -12.3 15,000 17.2 195,475 2.3 21,700 -21.9 72,529 2.9 127,152 -0.7 16,700 -1.2 21,000 1.2 16,525 2.4 5,164 -44.9 3,756 -4.8 45,000 N.A. 19,652 -10.2 9,302 0.4 30,276 -33.7 11,215 -47.4 52,738 1.7 140,474 -8.3 5,041 55.8 2,343 4.8 83,712 0.4 30,141 0.6 3,450 0.4 15,288 -3.1 19,373 1.1 30,973 1.0 13,392 3.7 9,247 3.0 14,748 8.6 105,583 -0.5 10,700 6.0 74,100 -3.1 17,562 4.4 4,596 N.A. 26,694 11.4 8,656 N.A. 2,791 -12.3 45,084 16.2 21,000 N.A. 16,738 -1.9 246,158 13.6 105,733 -2.8 49,561 13.3

(*) = For measurement effects the country first mentioned is classed as the country of origin/ N.A. = Not available / 1 = Estimates on sales data / 2 = Estimates on employment data

110

AMÉRICAECONOMÍA NOVEMBER 2016

DIMENSIONS OF ANALYSIS

3 3 3 3 3

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

3 3 3

87.1

1.2 0.7 N.A. 0.8 3.3 1.5 0.8 1.5 1.2 1.4 1.6 1.3 2.8 1.9 0.9 1.8 1.6 0.9 1.0 N.A. 1.5 1.4 N.A. 1.9 1.6 2.1 2.7 0.6 0.8 2.6 1.6 N.A. 1.5 3.0 1.2 2.6 N.A. 0.9 1.1 1.3 1.8 1.3 1.7 1.0

3 3

3 3 3

3 3

3 3 3 3

3 3 3 3 3 3

3 3 3 3 3

3 3 3

3 3

3 3 3

3 3

3 3 3

3 3 3 3

3 3

3 3 3

3 3

3 3 3 3 3 3 3

3 3

3 3 3 3 3

3 3

3 3 3 3 3

3 3

3 3 3 3

3 3 3 3 3

3 3 3 3 3 3

3 3 3

3 3 3 3 3 3

MULTILATINA INDEX

99.8 95.7 98.2 97.9 85.5

99.0 100.0 95.0 98.6 91.4 79.0 81.3 53.8 75.7 82.3

100.0 74.7 65.9 72.2 62.8

99.72 89.80 82.97 75.84 75.60

Mexichem Cemex Latam (Lan Tam) Grupo JBS Gruma

73.1

74.6

67.7

75.30

Avianca-Taca

6.8 73.0 82.4 -1.8 97.3 100.0 N.A. 91.9 99.3 3.9 90.2 66.7 -0.1 87.7 79.2 1.5 75.8 43.9 2.4 82.4 45.1 0.8 85.4 79.2 6.5 73.1 73.1 4.7 84.3 94.0 4.3 88.1 76.8 13.3 78.9 77.7 -10.4 87.7 54.8 4.8 71.2 100.0 -10.0 90.4 36.6 -3.1 74.4 73.3 5.2 55.2 63.6 26.6 63.4 41.8 2.1 80.7 73.5 12.5 92.1 52.9 0.5 76.0 85.0 6.7 66.1 63.2 9.5 60.1 78.0 7.8 88.6 30.8 0.6 60.0 50.1 1.2 100.0 14.9 11.8 70.6 33.0 2.5 62.8 20.7 5.2 59.1 56.3 7.1 51.6 45.8 6.7 61.3 62.7 0.0 77.2 48.8 -51.7 45.7 26.8 -0.1 56.5 54.9 2.4 54.0 68.9 3.0 60.3 36.7 0.0 33.7 79.2 7.7 60.2 48.8 5.4 53.5 34.0 2.9 45.1 46.4 3.4 88.4 8.5 5.7 49.8 29.0 9.7 68.2 6.0 9.5 51.2 41.2

77.3 50.6 78.7 65.7 78.0 91.3 78.5 65.7 74.9 28.2 52.0 41.9 70.8 38.6 79.0 59.5 77.1 66.0 33.2 66.8 33.2 55.2 45.7 70.8 72.9 73.5 73.8 80.5 45.7 73.5 37.3 64.9 94.4 44.8 41.9 59.0 61.4 57.4 63.2 65.7 49.1 60.0 65.3 39.7

69.9 49.2 44.3 71.6 52.2 80.7 80.8 58.1 62.2 59.7 54.7 66.9 55.7 50.6 59.4 52.7 64.0 76.1 62.5 47.4 48.8 59.7 58.0 54.6 59.8 54.5 62.7 71.4 65.0 61.4 61.2 41.2 62.2 62.7 54.3 60.1 44.0 49.8 62.1 53.6 60.0 66.4 64.2 63.8

75.29 74.18 74.16 73.27 73.00 72.40 71.82 71.73 69.93 68.14 68.02 67.60 66.49 65.69 65.34 64.66 64.32 64.04 63.93 63.82 61.55 61.29 61.07 60.40 60.03 59.76 59.44 58.39 57.50 57.49 56.85 56.83 55.65 55.62 55.39 54.09 53.71 53.66 53.16 52.09 52.05 51.64 50.87 50.20

Sigma Arcos Dorados AJE Group América Móvil Tenaris Grupo Alfa Grupo Bimbo Ternium Nemak Embotelladora Andina Masisa ISA Gerdau Sonda Copa Airlines Marfrig Sigdo Koppers Ambev Cencosud Globant Tech Pack (Ex Madeco) Coca-Cola Femsa Grupo Sura Viña Concha y Toro Votorantim Cimentos Embraer Weg Aeroméxico Grupo Argos Arauco Falabella Softtek Vale CMPC Alicorp Empresas Copec Grupo Belcorp Metalfrio Grupo Nutresa Arcor Fibria Femsa BRF Foods Arca Continental

Geographic coverage

3 3

3 3 3

3 3 3 3 3

-3.2

3 3

Expansion

3 3 3 3 3 3 3 3 3 3 3

3 3 3 3 3 3

0.7

3 3

Employees abroad

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

3 3 3 3 3

Commercial strength

No No No No No No Yes No No No No No No No No No Yes Yes No No Yes No No No No No Yes Yes No No No No No No No No No No No No No Yes Yes Yes

Net operating income 2015

17 10 20 18 14 26 23 14 12 4 11 7 15 6 30 8 15 19 5 11 5 10 8 11 13 10 12 22 7 14 6 9 26 8 7 12 15 6 14 14 4 13 9 5

Liquidity 2015

3 3 3 3 3

Oceania

3 3 3 3 3 3 3 3 3

Africa

3 3 3 3

3 3

2.4 0.5 -2.3 2.8 1.3

Western and Central Asia

3 3

1.2 1.0 0.5 1.3 1.6

AsiaPacific

3 3 3 3 3

Europe

3 3

3 3 3 3 3

Yes No Yes No No

United States

Mexico

3 3

37 34 18 17 18

Canada

Brazil

Central America and the Caribbean

Hispanic South America

N° of countries Add countries (Yes/No)

SIGNIFICANT DATA

COUNTRIES AND GEOGRAPHICAL AREAS (2015) Presence

FIRM

NOTES

1 1&2

1&2 1&2

1&2 2

1&2

1 2

111

GLOBAl ISSUE

APEC 2016

SIGNIFICANT DATA

RK RK 16 15

52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

49 67 60 74 37 39 62 66 65 61 63 69 40 58 83 82 79 71 64 84 85 76 86 75 72 92 73 89 80 93 81 94 87 88 68 43 97 78 99 95 96 98

FIRM

Petrobras Empresa de Energía de Bogotá Banco Itaú Alpargatas Braskem Alsea Pollo Campero Terpel PDVSA Xignux Grupo EPM SQM Bancolombia Molymet Marcopolo Grupo Simec Natura Banmédica Ripley Industrias CH Grupo Elektra CCU Grupo Carso Colombina Grupo México ENAP Aerolíneas Argentinas Cia. Siderúrgica Nacional Carozzi Intercement Empresas ICA Ultrapar Participações Randon Part Mabe Cinépolis Ferreycorp Grupo Gloria Grupo Televisa Minerva TV Azteca Copersucar Localiza Interceramic Suzano Papel e GOL YPF Duratex Totvs Cosan Telmar Oi

COUNTRY OF ORIGIN

SECTOR

SALES (US$ million) Totals Abroad

Brazil

Petroleum/Gas

Colombia

Electrical energy

Brazil Brazil Brazil Mexico Guatemala Colombia Venezuela Mexico Colombia Chile Colombia Chile Brazil Mexico Brazil Chile Chile Mexico Mexico Chile Mexico Colombia Mexico Chile Argentina Brazil Chile Brazil Mexico Brazil Brazil Mexico Mexico Peru Peru Mexico Brazil Mexico Brazil Brazil Mexico Brazil Brazil Argentina Brazil Brazil Brazil Brazil

Finances Manufacturing Petrochemicals Entertainment Food Petroleum/Gas Petroleum/Gas Steel/Metallurgy Multiple sectors Chemicals Finances Steel/Metallurgy Automotive/Auto parts Steel/Metallurgy Chemicals Health Retail Steel/Metallurgy Retail Beverage/Liquor Multiple sectors Food Mining Petroleum/Gas Air transport Steel/Metallurgy Food Cement Construction/Engineering Petroleum/Gas Automotive/Auto parts Manufacturing Entertainment Multiple sectors Food Media Food Media Agroindustry Logistics Manufacturing Forestry/Cellulose Air transport Petroleum/Gas Manufacturing Technology Bio energy Telecommunications

% Var. abroad 14-15 2015 (%)

Abroad 2015

21.9

78,470

-3.0

6,856

-2.0

8.7

134.1

18.7

1,826

5.9

752

5.2

41.2

-5.9 -3.8 -10.1 47.5 -6.7 -49.9 N.D. -26.4 -6.9 -14.4 15,0 -21.3 N.A. -28.4 39.9 41.1 -16.9 -23.1 -8.8 15.6 -11.0 -18.3 N.A. -34.9 -5.9 28.4 N.A. -26.0 -23.4 -20.5 N.A. N.A. 86.8 23.0 N.A. N.A. N.A. 38.3 N.A. N.A. N.A. N.A. -8.8 -57.3 N.A. 101.1 N.A. -26.2

9.7 35.4 20.0 38.5 70.0 10.8 36.1 44.0 35.2 44.0 30.5 50.4 20.4 39.0 27.0 31.8 33.9 41.0 26.7 27.1 16.1 33.5 5.0 40.6 45.0 25.0 10.0 40.0 31.4 18.0 12.3 5.0 15.0 13.7 15.0 13.8 30.0 21.0 72.7 10.0 29.8 5.0 11.3 7.9 10.2 4.7 5.0 3.3

90,320 17,162 7,995 61,822 8,500 2,252 121,187 19,334 11,327 4,250 34,480 1,685 12,471 5,117 6,591 20,053 25,546 6,128 65,346 8,100 73,407 9,276 29,801 3,685 10,782 23,736 10,047 8,451 22,116 14,597 8,536 18,400 34,000 6,662 1,130 43,900 12,993 5,931 31,785 6,185 4,722 18,538 16,472 22,025 12,186 7,816 13,102 16,557

-3.1 -9.7 -1.2 2.9 N.A. 84.9 -17.8 1.1 13.0 -11.5 0.5 -3.8 -25.8 N.A. -0.1 14.8 -1.7 N.A. -16.0 3.3 1.4 -2.0 -0.7 11.0 34.1 7.9 -5.2 -4.8 -29.3 4.5 -20.5 10.8 25.1 0.4 N.A. 37.0 -8.6 36.5 -53.4 4.6 7.4 N.A. 1.7 N.A. 3.8 7.6 N.A. -9.5

6,839 4,218 1,594 17,928 3,500 1,015 18,178 4,640 2,036 202 8,480 341 1,666 1,919 1,440 7,764 9,435 1,800 15,756 2,010 440 1,545 7,398 416 429 3,862 3,042 423 1,106 626 448 3,760 9,180 1,035 249 959 1,722 890 1,589 390 635 630 329 2,025 561 227 655 828

-2.1 0.4 9.5 1.9 N.A. 15.1 N.A. N.A. 60.8 5.2 -3.4 -5.8 -11.8 N.A. 10.8 93.6 0.5 N.A. -13.4 8.2 N.A. -8.0 -0.7 7.8 -10.4 N.A. N.A. N.A. N.A. N.A. 3.2 N.A. N.A. 20.5 N.A. N.A. -26.4 N.A. N.A. N.A. 17.4 N.A. -13.0 N.A. -8.2 5.1 N.A. N.A.

7.6 24.6 19.9 29.0 41.2 45.1 15.0 24.0 18.0 4.8 24.6 20.2 13.4 37.5 21.8 38.7 36,9 29.4 24.1 24.8 0.6 16.7 24.8 11.3 4.0 16.3 30.3 5.0 5.0 4.3 5.2 20.4 27.0 15.5 22.0 2.2 13.3 15.0 5.0 6.3 13.4 3.4 2.0 9.2 4.6 2.9 5.0 5.0

90,238.8 -28.9

19,737.5

-36.0

199.5

-24.3 2,494.8 410.0 -16.2 -22.6 2,653.1 718.6 20.8 328.7 N.D. 479.0 -28.9 -15.9 31,962.8 955.8 -13.0 -11.3 1,523.4 758.4 -14.4 -9.3 1,486.4 360.2 -35.3 163.1 -44.7 565.8 -20.3 598.4 -19.6 594.6 41.1 736.2 -14.4 693.6 -19.4 1,173.1 -12.5 572.0 -1.4 820.4 -8.7 194.5 -18.3 409.9 -12.0 -35.4 2,580.2 558.2 -5.2 -29.1 1,075.4 97.4 -10.3 670.9 -18.3 602.2 -23.2 -16.8 3,820.7 133.2 -22.9 137.0 -4.7 286.2 86.8 228.7 -2.6 155.3 -7.9 701.0 -6.3 801.7 -10.2 156.3 -15.0 294.4 -31.7 110.2 -23.9 140.9 -3.1 143.4 4.9 310.9 -26.8 945.3 -27.5 113.6 -25.0 25.2 -18.8 669.2 -8.0 256.1 -27.0

25,814.6 1,157.7 13,265.7 1,866.6 469.6 4,429.5 88,554.0 2,172.3 4,333.0 1,723.5 4,867.9 714.1 701.3 1,450.8 2,216.1 1,872.7 2,173.3 1,691.6 4,387.9 2,112.4 5,100.2 581.1 8,198.6 6,351.0 1,240.4 4,301.5 973.7 1,677.2 1,914.9 21,225.9 1,084.9 2,740.6 1,907.7 1,673.0 1,035.0 5,090.3 2,672.3 743.4 5,887.8 1,102.1 473.2 2,868.6 2,743.3 12,014.7 1,111.9 535.5 13,383.9 7,674.4

9.9

(*) = For measurement effects the country first mentioned is classed as the country of origin/ N.A. = Not available / 1 = Estimates on sales data / 2 = Estimates on employment data

112

% Var. abroad 14-15 2015 (%)

Var. 14-15 (%)

Abroad 2015

1,064.0

EMPLOYEES Abroad

Total 2015

Var. 14-15 (%)

Total 2015

Totals

AMÉRICAECONOMÍA NOVEMBER 2016

DIMENSIONS OF ANALYSIS

3 3 3 3

3 3 3 3 3

3 3 3

3 3

3 3 3

3 3

3 3 3 3

3 3 3

3 3

3 3 3 3 3

3 3

3 3 3

3 3 3 3 3 3 3 3

3 3 3 3 3 3

3 3 3

3 3

3 3 3 3 3

3 3 3 3 3 3 3 3 3

3 3 3 3 3 3

3 3 3 3 3 3 3

3 3 3 3 3

Expansion

3 3 3 3 3 3 3 3 3

3 3 3

Geographic coverage

3 3 3 3 3 3 3 3 3 3 3

Employees abroad

3 3 3 3

Commercial strength

3 3 3 3 3 3 3 3 3 3 3 3 3

Net operating income 2015

No Yes No No No No No Yes No No No No No No Yes No Yes No No Yes Yes No Yes No No No No No Yes Yes Yes No Yes Yes No No No No No No Yes No No No Yes Yes No No

Liquidity 2015

18 10 11 6 6 6 5 7 7 15 10 8 22 3 7 3 4 4 7 6 20 12 9 4 15 4 10 8 16 9 13 15 13 8 6 4 4 6 5 8 3 7 8 3 4 7 4 3

Oceania

Africa

Western and Central Asia

AsiaPacific

Europe

United States

Canada

Mexico

Brazil

Central America and the Caribbean

Hispanic South America

N° of countries Add countries (Yes/No)

SIGNIFICANT DATA

COUNTRIES AND GEOGRAPHICAL AREAS (2015) Presence

MULTILATINA INDEX

1.5

-10.8

48.9

10.6

81.5

60.6

49.35

1.2

N.A.

32.1

50.2

45.7

64.9

49.19

1.5 28.4 6.6 1.7 6.6 1.0 3.0 0.6 N.A. N.A. 1.5 27.3 9.5 1.4 0.9 1.5 0.7 10.7 3.8 12.3 N.A. 15.7 9.5 5.6 6.1 1.9 3.6 3.6 1.3 12.4 3.4 0.8 1.3 -3.0 1.5 4.4 1.2 -6.7 8.1 1.8 7.0 2.3 3.1 1.1 3.7 12.4 2.7 1.4 0.0 N.A. 8.2 3.1 6.2 1.4 -1.5 1.1 0.6 -61.7 2.0 2.6 2.6 2.1 2.2 N.A. N.A. N.A. 3.0 1.9 6.1 1.8 1.8 12.4 1.6 -8.4 1.5 -20.6 -0.1 1.1 1.5 10.7 4.7 3.8 -2.3 1.9 0.4 -45.6 2.9 1.0 1.2 2.1 1.8 10.2 1.0 0.2 1.5 -18.0

32.2 48.3 41.1 52.6 76.7 28.1 62.3 58.1 52.1 57.4 48.2 60.6 32.4 52.3 42.4 46.4 48.8 54.6 44.3 42.3 34.2 44.4 22.7 58.4 57.3 42.5 22.5 53.7 46.2 40.6 25.4 19.4 30.0 28.2 28.2 31.8 45.8 33.2 21.7 22.9 40.3 19.5 27.2 27.7 23.2 13.9 24.2 19.9

9.2 30.0 24.3 35.3 50.2 54.9 18.3 29.3 21.9 5.8 30.0 24.7 16.3 45.7 26.6 47.2 45.0 35.8 29.4 30.2 0.7 20.3 30.3 13.8 4.8 19.8 36.9 6.1 6.1 5.2 6.4 24.9 32.9 18.9 26.8 2.7 16.2 18.3 6.1 7.7 16.4 4.1 2.4 11.2 5.6 3.5 6.1 6.1

80.9 69.2 64.5 45.7 49.1 39.7 51.3 45.7 42.9 79.0 49.8 63.2 79.2 36.0 48.3 22.0 38.6 40.8 46.6 37.3 73.8 56.3 61.0 38.6 72.6 48.3 52.6 63,6 69.9 59.0 76,4 61.4 64.9 44.8 38.6 43.9 28.2 43.9 55.8 43.9 24.2 61.9 48.3 22.0 42.9 55.8 28.2 42.9

74.5 51.6 64.2 57.0 22.0 64.6 56.2 53.9 66.6 50.0 55.7 40.2 59.1 45.5 61.3 58.2 46.3 44.1 54.1 60.5 66.9 53.0 59.4 57.6 42.9 57.7 56.6 48.3 44.5 56.7 56.3 52.5 34.0 60.4 54.8 62.7 49.5 46.5 56.0 58.0 48.6 50.7 52.7 61.6 54.1 53.9 59.0 51.4

48.89 48.89 48.50 48.24 48.13 48.08 47.25 47.18 47.07 46.59 46.20 46.02 45.74 45.38 45.30 45.24 45.05 44.00 43.95 43.75 43,55 43.34 43.27 43.03 42.94 42.54 42.37 42.15 40.40 40.35 40.12 39.10 38.90 38.89 37.90 36.20 35.99 35.62 34.92 33.84 33.61 33.51 32.87 32.59 32.01 31.69 30.94 30.51

FIRM

Petrobras Empresa de Energía de Bogotá Banco Itaú Alpargatas Braskem Alsea Pollo Campero Terpel PDVSA Xignux Grupo EPM SQM Bancolombia Molymet Marcopolo Grupo Simec Natura Banmédica Ripley Industrias CH Grupo Elektra CCU Grupo Carso Colombina Grupo México ENAP Aerolíneas Argentinas Cia. Siderúrgica Nacional Carozzi Intercement Empresas ICA Ultrapar Participaçoes Randon Part Mabe Cinépolis Ferreycorp Grupo Gloria Grupo Televisa Minerva TV Azteca Copersucar Localiza Interceramic Suzano Papel e Celulose GOL YPF Duratex Totvs Cosan Telmar Oi

NOTES

1&2 1 2 1

1&2 1 1&2

1 1 1 1&2 2 1 1 1&2 1&2

2 2 2

1&2 2

113

GLOBAl ISSUE

APEC 2016

mainly because of growth in the radius of its operations. Thus, the airline began to operate in five new destinations in Latin

Valid passports

Variations in total sales and in overseas sales 2014-2015 Source: AméricaEconomía Intelligence

America (Ecuador, Dominican Republic,

Variation foreign sales

Nicaragua, Panama and Guatemala) and

1.9

-10.3

Colombia

-4.9 -4.7

Variation total sales

Holland. And this despite ceasing to fly to Cuba and Venezuela.

-7.6

Two examples reveal how Mexico is moving forward among the multilatinas,

Compasses in place

-25

multilatinas believe in their expansion stra-

tegies and continue to bet on maintaining

do so, since if we compare the variation in general sales with that of sales produced

-15

-10

-5

57.1 57.2

10 0

4.8

52.5 53.1

sign that reveals the extent to which the

already attained. And it is good that they

-20

Source: AméricaEconomía Intelligence

globalization followed by the ranking fall,

the international presence that they have

Argentina

Percentage of sales overseas 2014-2015 70

increases by 1.2%. This is an interesting

Chile

Outside bets

Although all of the general indicators of employees abroad of the 100 firms of 2016

Brazil

-19.1 -18.1

ber of Brazilian multilatinas drops from 32 from 25 to 26. And so the gap closes.

Peru

-15.5 -14.6

ranking-to-ranking comparison, the numto 30, while the Mexican multilatinas go

-6.3

-7.9

-16.7

perhaps replacing Brazil. At least in the

Mexico

2015

2014

Var. % 5

46.2 46.8

3.5 39.8

35.1

39.8 39.2

36.6

33.1 2 1

0,6 -0.1

Mexico

-0.5

Chile

Argentina

Colombia

Peru

Brazil

overseas of the 100 firms in this edition from 2015 to 2014 (not from ranking to ranking), the difference is significant: whereas general sales fall 12.7%, foreign sales fall only 8.3%. And those firms that bet on growth abroad have better results. If we look at the set of those firms whose foreign sales grew while local sales fell, we observe that on average their profits were higher than those of the 100 firms overall (7.7% against 2.2% of average net margin). This subset, also, climbs positions more quickly in the ranking, as the commitment of these firms to foreign operations leads them to bet on new territories –more frequently than in general and notwithstanding the fall in aggregate sales.

114

How we do the 2016 Multilatinas ranking The ranking includes firms of Latin American origin with US$250 million + in annual sales in the 2015, with relevant operations in at least two countries other than the country of origin. The Multilatina index is made up by four dimensions which express these firms’ capacity to reach beyond national borders and to broaden their influence in the region and the world. Commercial strength (25%): measures the % of annual sales produced outside the country of origin. Employees abroad (25%): considers the % of employess who work outside the country of origin. Geographic coverage (20%): the markets in which the multilatinas operate are weighted by the geographic zone that they belong to in accordance with a scale associated with

the difficulty of entry: Level 3 (Europe, Asia, Africa, Oceania and Middle East ); Level 2 (United States and Canada); Level 1 (Latin America). Expansion (30%): evaluates the determinants of expansion, considering the total volume of sales in the same year; the annual variation in the number of countries in which the firm operates; states of liquidity in 2015; the % of investment going abroad in 2015; the net margin; and a perceptual evaluation by the AméricaEconomía Intelligence team (5%), based on market and press information. In some cases, estimates were done on the basis of historical data and news reports. In the case of binational firms which emerged out of mergers, the country of origin is considered to be that country in which the multilatina currently has its main headquarters.

-1