KPMG IN CHILE
Why invest in Chile? www.kpmg.cl
Why invest in Chile? Social and economic stability
WORLD COMPETITIVENESS YEARBOOK 2012
• Sustained economic growth at a steady pace since the early 1990s. • Positive trend in the most relevant indicators about production, wages, jobs, GDP, and inflation.
0 10 20 30 40 50
• Highest per capita income in the region. GDP ANNUAL GROWTH 8 7 6 5 4 % 3 2 1 0 -1 -2
7,0
4 18
Hong Kong
USA
Singapore United Kingdon
28
29
Chile
France
44
46
Perú
Brazil
GLOBAL COMPETITIVENESS REPORT 2011-2012 0 10 20 30 40 50 60
1
2
3
5
10 31
Switzer- Singa- Sweden land pore
USA
United Kingdon
36
Chile
Spain
53
58
Brazil
México
Source: World Economic Forum 2012
6,2
6,1
5,7
5,2
6,0 4,8
3,3
-1,0 2004
2
Source: Source: Institute for Management Development 2012
• One of the most competitive economies in the region and one of the most sophisticated and efficient financial markets. • Prominent position in all the rankings related to the “quality of life”.
1
2005
2006
2007
2008
2009
2010
2011
2012
CHILE’S SOVERING RATINGS Aaa Aa1 Aa2 Aa3 A1 A2
AAA AA+ AA AAA+ A
Aa3
Source: Central Bank of Chile, 2012
Moody’s
AAA AA+ AA AAA+ A
A+
Standard & Poor’s
A+
Fitch Ratings
Source: Rating Agencies, 2012
ANNUAL INFLATION EVOLUTION 10 8,0 6,0 % 4,0 2,0 0 -2,0
STAGE OF DEVELOPMENT
9,5
3,6 1,0
Transition 1-2
Factor driven
3,9
2,7
1
3,2
3,4
1,9
2
Transition 2-3
Efficiency driven
3 Innovation driven
2,6 Institutions 7
2003
2004
2005
2006
2007
2008
2009
-1,0 2010
Innovation 2011
2012
Source: Central Bank of Chile, 2012
5
Business sophistication
4
4
Infrastructure Macroeconomic environment
3
UN HUMAN DEVELOPMENT REPORT 2011 2
6
2
23
28
44
45
Market size
Health and primary education
1
57 84
Australia
USA
Spain
United Kingdon
Chile Argentina México
Brazil
Technological readiness
Higher education and training
Source: World Economic Forum 2012
Financial market development
Chile
Labor market efficiency
Goods market efficiency
Economies in transition from 2 to 3
GLOBAL COMPETITIVENESS REPORT 2011-2012 6,0
5,9
5,6
5,3
Strategic Location 4,6
4,6 3,6
USA
Chile
Brazil
Perú
Colombia
México Argentina
Source: World Economic Forum 2012
Stable institutional framework • Respect for the democratic values.
• Privileged location in South America, bordered by Argentina, Bolivia and Peru. Four main geographic areas with different economic activities.
• Low corruption level. • Most reliable police services in Latin America. • High judicial independence. • High confidence in the political system.
Technology leadership
• Strong safeguards for investment contracts.
• Chile is positioned highest amongst the emerging economies with maximum impact on development of Information Technologies and Communications.
• The protection of copyrights, trademarks and patents is specifically legislated.
MOBILE PHONE SUBSCRIPTIONS
CORRUPTION PERCEPTION INDEX
(per 100 hab)
(1: maximim perception; 10 void perception)
10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0
9,5
7,2
150 125 100 75 50 25 0
7,1
3,8
3,4
3,4
3,0
3,0
142
130 116
Argentina
United Kingdom
Chile
100
94
90
80
Brazil
Perú
Colombia
USA
México
Source: World Economic Forum 2012
New Zeland
Chile
USA
Brazil
Perú
Colombia
México Argentina
INTERNET USE (per 100 hab)
Source: Transparency International, 2011
TRANSPARENCY OF GOVERNMENT POLICYMAKING 2012 7,0 6,0 5,0 4,0 3,0 2,0 1,0
104
6,3 5,3
Singapore
Chile
4,5
USA
4,4
Perú
4,3
Colombia
4,2
México
Source: World Economic Forum 2012
4,1
Brazil
100 80 60 40 20 0
3,3
95
94 79 45
40
36
34
Chile
Brazil
Argentina
Perú
7 Iceland
Colombia
USA
India
Source: World Economic Forum 2012
AVAILABILITY OF LATEST TECHNOLOGIES
Argentina 7,0 6,0 5,0 4,0 3,0 2,0 1,0
6,9
Sweden
6,3
USA
6,0
Chile
5,4
Brazil
5,1
Perú
4,8
4,8
Argentina Colombia
Source: World Economic Forum 2012
4,1
Russia
Investor´s benefits
STRENGTH OF INVESTOR PROTECTION
• Promotion of private investment projects with several tax exemptions, and double taxation avoidance agreements in force with 24 countries. • There are no restrictions on capital flows.
0 25 50 75 100 125 150
• Member of the OECD since 2010.
1
20
28
36 77
93
100
Brazil
Luxembourg
131 New Zeland
Perú
Chile
México
China
Source: World Economic Forum 2012
• Accounting and auditing principles aligned with international practice. • 22 trade agreements with 59 countries, including Free Trade Agreements with main trading partners. • Flat-rate tariff of 6% on imports from other countries.
EASE OF CUSTOMS PROCEDURES 7,0 6,0 5,0 4,0 3,0 2,0 1,0
6,0
5,5 4,4
4,3
4,1 3,1
Finland
Chile
Perú
USA
México
Brazil
2,7
Argentina Venezuela
High quality of life
• 52% of the workers have technical or college education, ranked first in Latin America.
• Excellent scores on environmental performance.
• Literacy: 96,5 % of the population.
• Health Coverage: 1.8 doctors per 1000 inhabitants.
• Education rate: 94.9 per 100 inhabitants.
• Birth life expectancy: 78,7 years.
• High flexibility of wage determination.
• Infant mortality: 7/1000 births.
EDUCATION
• Drinkable water and sanitary drainage access: 95% of the total population.
(per 100 hab)
97
Argentina
Ireland
Chile
94
Brazil
92
Colombia
92
USA
Source: UNESCO 2010
ACCESS TO UNIVERSITY DEGREES (per 100 hab)
68
62
58
52 34
Spain
Argentina
Canada
Source: UNESCO 2010
2,3
Source: World Economic Forum 2012
Skilled workforce
94
Switzerland
Japan
Chile
Brazil
LIVING COST INDEX 0 25 50 75 100 125 150 175
2°
4°
10°
27°
32°
51°
63°
75°
148°
156°
Tokio, Moscow, S. Pablo, Paris, New Caracas, Bogota, Santiago, México Buenos Japan Russia Brazil France York, USA Vene- Colombia Chile City, Aires, zuela México Argentina Source: Mercer 2012
At KPMG we create value based on the knowledge and experience of our professionals, for the benefits of our clients, our people, and our community
AUDIT The independent audit is one of the key aspects to give assurance about the accounting information used by third parties. Our main professional responsibility is to examine financial statements and issue an opinion about its fair presentation. We also provide a wide range of services related to the internal audit function. TAX SERVICES Our tax services include, among others, the review and preparation of tax filings, the assessment of the company’s tax situation, the analysis of the tax effects of particular transactions, and the permanent tax advisory work. OUTSOURCING We provide this service in accounting, tax, legal, internal audit and payroll. LEGAL AND NOTARY SERVICES With our legal and notary services we provide, not only our legal technical knowledge but also our support in the implementation of transactions through creative solutions in the following disciplines: Commercial Law, Labor Audit, Contractual Arrangements and Public Biddings and Lawsuits. MANAGEMENT ADVISORY SERVICES Our management advisory services help clients to design, plan, and implement their business strategy, and the processes that allow them to adapt to changes in the environment, helping them to keep and improve their competitive position. FINANCIAL ADVISORY SERVICES Our financial advisory services include, among others, helping our clients with business valuation, asset appraisals, mergers and acquisitions, financial restructuring transactions, due diligence and business plan preparation. ECONOMIC ADVISORY SERVICES Our services in this area consist of business cycle analysis, industrial analysis, and company’s management key variables. Also, we have a wide experience in the project preparation and evaluation, including those aimed to achieve the national interest that will allow the client to receive tax benefits. HUMAN RESOURCES We want to be your Strategic Partner in putting into practice a proper human capital management, aligning them to the business strategies. The services provided in this area range from the staff search and selection to change management and the human resources performance evaluation. INFORMATION TECHNOLOGY (IT) ADVISORY SERVICES The planning, implementation, and operation of IT systems requires a permanent management control. At KPMG, we assist management in this task, providing them with methodologies and skilled staff. Our professionals are able to support our clients in the use technology helping to reduce the security threats.
KPMG en Chile Santiago Isidora Goyenechea 3520 Piso 13 Las Condes T: +56 2 798 1000 E: mail@kpmg.com Viña del Mar Avenida Libertad 269 of. 1201 Piso 12 Torre Libertad T: +56 32 297 3581 Concepción O’Higgins 940 of. 504 T: +56 41 286 1852
www.kpmg.cl /kpmgchile
@kpmgchile
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