The Latin American PVC market First Brazilian PVC Congress Sao Paulo, June 7, 2005

Outlook focused on  The Andean Countries  Mexico, Chile  Central America and  The Caribbean

 Regional economic data  Outlook on PVC markets  Challenges, opportunities What we will see:

Latin American Economies by size US$ Billions  Regional economic data Source: International Monetary Fund's World Economic Outlook

GDP per capita, 2004  Regional economic data USD$ Source: International Monetary Fund's World Economic Outlook

GDP per cápita in Central America 2004  Regional economic data Source: International Monetary Fund's World Economic Outlook

Per capita GDP in the Caribbean 2003 (US $)  Regional economic data US$ Source: International Monetary Fund's World Economic Outlook

Colombia Population: 45 millions Per capita GDP US$  Regional economic data Real GDP US$ Bs 95.2 GDP Growth (%) Source: International Monetary Fund's World Economic Outlook

Mexico Population: 105 millions Per capita GDP US$ 6502 Real GDP US$ Bs 676,5  Regional economic data GDP Growth (%) Source: International Monetary Fund's World Economic Outlook

Venezuela Population: 24 millions Per capita GDP US$ 4148 Real GDP US$ Bs 107,5  Regional economic data GDP Growth (%) Source: International Monetary Fund's World Economic Outlook

GDP Growth (%)  Regional economic data Source: International Monetary Fund's World Economic Outlook

Contents  Regional economic trends  Outlook on PVC market  Challenges, opportunities

Production Capacities kt / year PVC MVC EDC Source: CMAI BRAZIL Solvay Indupa Carbocloro Braskem Pequiven Petco Policyd Primex- Mexichem 268 Pemex

Total PVC production capacities ( k t / year) Mexico: 53% Colombia: 30% Source: CMAI,

Colombia´s Additional Emulsion PVC Total Capacity, Jan 2006: tons per year

PVC Internal Demand (kt / year) Venezuela´s production and consumption was dramatically impacted in 2003 Sources: CMAI, and analysis by PETCO

PVC Demand Andean Countries and Chile (Tons per year) Sources: CMAI and analysis by PETCO

PVC Demand Central America and the Caribbean Sources: CMAI, and analysis PETCO

Plastics Consumption: PVC VS Others (Colombia, 000 metric tons per year) Source: Acoplasticos

PVC per cápita consumption, 2004 Kg./Person Sources: CMAI, and analysis PETCO

PVC per cápita consumption / each US$1,000 of GDP 2003 Sources: CMAI, and analysis PETCO

Millions TM: PVC applications market share, 2003 Sources: CMAI, World Bank and analysis by PETCO

PVC applications market share, 2003 Sources: CMAI, World Bank and analysis by PETCO

Why the growing in “Other Aplications¨ has been limited”?  Little advantage of the existing opportunities to export manufactured vinyl products  Little exploration of the potential domestic markets for PVC products which have a long and succesful record in developed countries.

Challenges, opportunities  Free trade agreements lays the way towards a market with great demand of manufactured products  Latin American PVC products can accede competitively to that market

Medical devices Commercial opportunities

Synthetic leathers Commercial opportunities

Non slip rug pads Multipurpose liners Place mats Commercial opportunities

Traffic Cones Commercial opportunities

Furniture

Commercial opportunities Roofing titles

Commercial opportunities Roofing membranes

Commercial opportunities Flooring

Profiles for windows and building systems

Our challenges  To promote the regional internal markets development  To emulate the Chinese industry in its huge exports of PVC final products  To impulse innovation and design of new vinyl products  To reach a better understanding of vinyl applications and benefits

The Colombian Award for PVC Innovations