Reorganizing and Evolving Corporate Structures of Market Infrastructures: "The Peruvian Case " Francis Stenning Chairman & CEO Panama, February 2008

Initial Structure Nonprofit Association 100% Owned by Stock Brokers (50) Caja de Valores De Lima 1990 The Regulator authorized the Lima Stock Exchange to implement internally a division to provide CSD services. Lima Stock Exchange

Initial Structure Nonprofit Association 100% Owned by Stock Brokers (50) Caja de Valores De Lima 1997 New Market Law required that CSD services had to be handled independently from the Exchanges. LSE was forced to spin-off its CSD division. CAVALI was incorporated. Limited Purpose Corporation Original Shareholders - 20% LSE - 80% Stock Brokers CAVALI Lima Stock Exchange

Exposition of Motives Adapt local market to the requirements of international standards, in with trends set globalization Promote Stock Exchanges specialization in trade functions. Promote the development of Central Securities Depositary with specialization in providing securities clearing and settlement services. Improve market confidence levels and transparency. Institutionalize a self-regulatory organization system with the Stock Exchanges under control of its partners.

Special Features as Limited Purpose Corp. Aspect1997 Business Purpose Registry, Custody, Clearing and Settlement of Securities Paid-In CapitalMinimum amount, and adjusted annually (US$750K) ShareholdersLimited by shareholder – 20% for Exchanges y 5% for others Only Participants Board MembersOne representative of each type of Participant. TariffsApproved by Regulator ContractsApproved by Regulator Statues of Incorporation Approved by Regulator Liquidation & Dissolution Approved by Regulator

Evolution of Special Features Aspect1997Today Business Purpose Registry, Custody, Clearing and Settlement of Securities Derivatives, and open to other related activities Paid-In CapitalMinimum amount, and adjusted annually (US$750K) Approximately US$1.0MM ShareholdersLimited by shareholder – 20% for Exchanges y 5% for others Only Participants Extended limits – 40% for Stock Exchanges y 5% for others. Freely Board MembersOne representative of each type of Participant. All chosen freely at shareholders meeting TariffsApproved by RegulatorRegulator determine only maximum limits. ContractsApproved by RegulatorEliminated Statues of Incorporation Approved by RegulatorUnchanged Liquidation & Dissolution Approved by RegulatorUnchanged

Stock Public Listing OBJECTIVES: Determine the true market value of shareholders holdings. Consolidate advances in Corporate Governance Practices –Transparency –Economic Efficiency –Independence (LSE / Regulator / Participants) Improve future funding alternatives –Local Projects –International projects Interconnections Consultancy Joint Ventures Capitalize locally and internationally on Corporate Image

Stock Valuation CAVALI Stock Value per stock (S/.) Company Total Value (S/.) Nominal Value MM (US$ 4.6 MM) Last Transaction before listing (2006) MM Initial price ( ) MM Maximum Price ( ) MM Current Price ( ) MM (US$ 74.0 MM) Market Cap. / Book Value16 PER10x

Improvements in Corporate Governance Bank Ind SB Board Committees: Auditing Development Good Corporate Governance Cash & Investments External consultancy with CAF financing for diagnostic and improvements in Good Corporate Governance practices

Shareholding Structure CAVALI LSE (30%) 18 Associates Participants (65%) 22 Participants Others (2%) Before After LSE (30%) 150 Stockholders Participants (50%) 15 Participants Others (20%) 164 Stockholders 2 Stockholders