1. Chile A LONG TERM BUSINESS PARTNER JORGE PIZARRO CRISTI EXECUTIVE VICE PRESIDENT FOREIGN INVESTMENT COMMITTEE

2. A long term partner Mature business environment FDI in Chile: A solid track record A land of opportunities A new FDI attraction strategy WHY CHILE?

3. Economy GDP 2013 US$ 277 Billion (IMF) GDP per capita (PPP, 2014) US$ 23,165 (IMF) 1° place in Latin America Actual interest rate (Monetary Policy) 3.0% (Oct 2014) Unemployment rate 6.7% (Jun-Aug 2014) External Public Debt (2013) US$ 24.4 billion Exports (2013) US$ 77.4 billion Imports (2013) US$ 74.9 billion SNAPSHOT OF THE CHILEAN ECONOMY

4. 1. A LONG TERM PARTNER

5. Chile is the best evaluated economy in Latin America and, indeed, one of the best evaluated among emerging economies worldwide. Its sustained economic growth and social progress have been highlighted by different international organizations and, in 2010, it became the first South American country to join the Organisation for Economic Co-operation and Development (OECD). BEST EVALUATED ECONOMY IN LATAM

6. *Selected economies. Global Competitiveness Index 2014-2015 (33 out of 144 economies)* CHILE LEADS LATIN AMERICA Doing Business 2014 (34 out of 189 economies)*

7. Source: Economist Intelligence Unit Chile’s Sovereign Ratings Fitch Ratings A+ Standard & Poor’s AA- Moody’s Aa3 DBRS AA- Risk overall ranking 2014 (Selected economies) A LOW RISK COUNTRY

8. Over the past 30 years, Chile’s financial system has undergone significant development, with an increase in the number of participants, the variety of products, and market depth. Chile’s banking system is largely privately owned (except for BancoEstado), with a significant presence of foreign-owned subsidiaries. Currently, there are 23 banks established and operating in the country: 18 of them are considered “established in Chile", 4 are subsidiaries of foreign banks and one is State-owned. All banks are subject to the supervision of the Superintendence of Banks and Financial Institutions (SBIF) and are ruled by the General Banking Act and by regulations issued by SBIF. According to the OECD (in its latest economic review about Chile- October 2013) the financial system remains healthy and reflects strong financial supervision. HEALTHY FINANCIAL SYSTEM

9. WHAT THEY SAY ABOUT CHILE “Chile has been a model of democracy in Latin America. It's been able to consistently transition from center-left governments to center-right governments, but always respectful of democratic traditions”. President of the USA, Barack Obama June 30, 2014

10. 2. MATURE BUSINESS ENVIRONMENT

11. Thanks to its political and economic stability, openness to trade, legal security and excellent growth prospects, Chile has maintained an attractive and dynamic business climate for investors. THE BEST BUSINESS ENVIRONMENT IN LATAM

12. BUSINESS ENVIRONMENT RANKING GLOBAL RANKING 2014-2018 (13 out of 82 economies) Source: Economist Intelligence Unit. Selected economies.

13. *Selected economies. Source: Transparency International A TRANSPARENT COUNTRY Corruption Perception Index 2013 (22 out of 174 economies)*

14. 1Norway 2Australia 3Switzerland 4Netherlands 5United States 6Germany 14United Kingdom 15Korea (Republic of) 17Japan 20France 26Italy 27Spain 40United Arab Emirates 41Chile 41Portugal 49Argentina 50Uruguay 71Mexico 79Brazil 82Peru 98Colombia 98Ecuador Source: UNDP HUMAN DEVELOPMENT INDEX 2014 41 OUT OF 187 ECONOMIES

15. Source: The Institute for Economics and Peace (IEP) 2014 GLOBAL PEACE INDEX 30 OUT OF 162 COUNTRIES

16. 63% of world population 85% of the global GDP 93.8% of Chile’s export markets 13 Free Trade Agreements 3 Economic Partnership Agreement 6 Economic Complementation Agreement 2 Agreements in negotiation Agreements in force Agreements signed but not yet in force 23 FREE TRADE AGREEMENTS WITH 61 COUNTRIES

17. Australia Belgium Brazil Canada Colombia Korea Croatia Denmark Ecuador Spain France Ireland Malaysia Mexico Norway New Zealand Paraguay Peru Poland Portugal United Kingdom Russia Sweden Switzerland Thailand Chile has entered into 25 ADTA with 25 countries. AVOIDANCE OF DOUBLE TAXATION AGREEMENTS

18. “Foreign investment plays a key role in boosting and diversifying our economy and creating value”. President Michelle Bachelet July 30, 2014 WHAT THEY SAY ABOUT CHILE

19. 3. FDI IN CHILE: A SOLID TRACK RECORD

20. Source: World Investment Report, UNCTAD, 2014 Developed economies Developing and transition economies TOP 20 FDI HOST ECONOMIES 2013 US$ Billions

21. Source: Central Bank FDI IN CHILE, 2003-2013 US$ Billions

22. Source: Chile Central Bank Jan-Jun Jul-Dec FDI INFLOWS IN CHILE JANUARY-JUNE 2004-2014, US$ Millions

23. Source: Central Bank of Chile By countryBy sector FDI INFLOWS IN CHILE 2009-2013, US$ 100.8 Billion

24. WHAT THEY SAY ABOUT CHILE “(I’m expecting) a brilliant future for the Chilean economy”. Prime Minister of Japan, Shenzo Abe August 1, 2014

25. 4. A LAND OF OPPORTUNITIES Investment opportunities

26. THE CHILEAN MINING SECTOR IN FIGURES  Chile has 28% of the world´s copper reserves (USGS 2012)  Chile is the world´s number 1 producter of copper( 32% ),the 6th most important producer of silver and also produces:  Natural nitrates (100% )  Iodeine ( 58%).  Lithium ( 45%)  Mining companies have plans to invest US$104 billion during the next 9 years (August 2014)  The combined expenditure of the companies in the mining industry is at least US$15 billion per year  There are at least 4600 mining supplier companies in Chile and world class mining suppliers are present in the country Further information is available at: www.minmineria.cl MINING

27. New Government Guidelines New approach in regards to water scarcity. Identify new solutions to ensure adequate supply of this critical input for the mining industry. Formation of an expert commission to come up with national policies in regards to lithium exploitation. To foster mining-related educational programs and training to equip the industry with qualified and compeititive staff. New Policies for the mining industry to encourage collaboration and integration among all relevant players (suppliers, research institutions, government, exploration companies, etc). MINING

28. Exploration opportunities:  Most mining multi-nationals are present in Chile.  Most of the country has not yet been explored.  There are many mining properties for sale. The majority are small and have not been explored.  There are projects which need capital investments in order to expand. Supplier opportunities:  Equipment and supplies.  Engineering and consulting.  Construction.  Production support services.  Locating headquarters in Chile to export to other countries in the region. MINING: OPPORTUNITIES

29. THE CHILEAN ELECTRIC SECTOR IN FIGURES  The installed capacity is 17.7 GW (December 2013)  The capacity is distributed via different networks::  The Central Inter-connected System (SIC) 78%  The Norther nInter-connected System (SING) 21%  The Aysén and Magallanes systems, 1%  In 2013 the gross generation of SIC and SING was 68,050GWh which was an increase of 3.8% compared to 2012.  In 2013 hydroelectric generation (excluding mini hydro power stations) accounted for 26.6% of generation, coal fired power 46.4%, natural gas 16.6% and renewable non- conventional sources 6.3% Further information is available at: www.minenergia.cl Source: Chile's National Commission of Energy ENERGY

30. NEWS AREAS OF FOCUS FOR ENERGY - PILLARS – (1) 1.New Role of Government. 2. Reduction in energy prices through more competition, efficiency and diversification in the Energy Market. 3. Development of our own Energy Resources. 4. Connectivity for Energy Development. 5. An Efficient Energy Sector that manages consumption. 6. Boost to investment in energy infrastructure. 7. Citizen’s Participation and planning of opportunities by territory. Source: Chile's Energy Agenda (1) ENERGY

31.  Generation: new projects to satisfy an increase in demand from regulated and free customers. From 2014 through 2025, 45% of the new electric generation capacity will come from NCRE (1).  Energy Efficiency: a strong boost with the public sector playing a significant role in increasing sustainability.  NCRE: Promotion of NCRE, especially solar and geothermal technologies.  LNG: The use of gas for electricity generation will be leveraged.  Barriers to entry in generation: will be reduced in order to increase competition and the number of players, including foreign companies. Source: Chile's Energy Agenda (1) ENERGY: OPPORTUNITIES

32. INFRASTRUCTURE IN CHILE IN FIGURES  In the period 2006 – 2014, there were 49 tenders for concessions including those for improvements and regenration worth US$9,96 billion.  For the period 2014-2023 there is a portfolio of potential concessions projects with a value of more than US$11 billion.  Increased need for road infrastructure due to an increase in the number of vehicles in circulation in Chile of 65% in the period 2005-2012 ( 3,973,913 vehicles in 2012).  In the period 2014-2012 there will be a strong investment in regional infrastructure projects for a total amount of US$18 billion. Further information is available at: www.mop.cl INFRASTRUCTURE

33. NEW AREAS OF FOCUS FOR INFRASTRUCTURE  Reconstruction work in areas affected by natural disasters.  Review and improvement of the concessions system with an emphasis on delivering value and efficiency in providing services.  Development of Ports.  Protection plan for airport zones.  Development and improvement of border crossings.  Social and recreational infrastructure.  Continuation of the Chacao crossing project.  Maritime connectivity. INFRASTRUCTURE

34. Challenge of improving national infrastructure (Chile is in 45th place in the ranking of global infrastructure of the World Economic Forum) Public and private needs by 2018: Urban roads (including public transport) US$ 21.7 billion. Ports US$ 2.6 billion. Water resourcres US$ 3.6 billion. Interurban roads US$ 10.3 billion. Airports US$ 1.4 billion. Hospital and prison infrastructure US$ 4.2 billion. INFRASTRUCTURE: CHALLENGES AND OPPORTUNITIES

35. FOOD INDUSTRY IN FIGURES  Chile is in 17th place in the ranking of food exporting countries. The aim is to be in the top 10 countries by 2020.  Food exports in 2013: more than US$ 15 billion.  Food products account for around 20% of exports.  They account for 7.9% of Chile’s GDP. Further information is available at: www.minagri.gob.cl FOOD INDUSTRY

36. NEW AREAS OF FOCUS FOR THE FOOD INDUSTRY  Improving productivity and competitiveness of Chilean agriculture.  Boosting innovation and research especially in functional foods.  Improving water management (irrigation).  Maintaining leadership in food safety and sanitary rules.  Ensuring the sustainability of fishing resources.  Improving access to external markets with better quality and differentiation of products. FOOD INDUSTRY

37. FRUIT INDUSTRY An area of 330,000 hectares areas planted for fruit cultivation. Main products exported (by volume) grapes, apples, kiwis, avocadoes, plums, blueberries and cherries. Investment opportunities: Primary production fresh fruit, dried fruit, cherries and berries. Management and value creation for waste and by-products of fruit industry. Fruit production for food processing. SALMON Chile is the second largest producer in the world after Norway with 27% of world production (792,000 tonnes). Investment opportunities: Salmon food. Cage services. Food safety controls and disease prevention. FOOD INDUSTRY: CHALLENGES AND OPPORTUNITIES

38. WINE Chile is the 8th most important producer worldwide with annual production of 1.28 million litres Investment opportunities: Production of speciality wines (organic, high altitude etc.) Functional foods based on sub-products from grapes. DAIRY INDUSTRY Production 2.675 billion litres. Investment opportunity: Milk production from cattle. Production of products derived from milk. FOOD INDUSTRY: CHALLENGES AND OPPORTUNITIES

39. 6. A NEW FDI ATTRACTION STRATEGY

40.  That adds value to our exports.  That energizes highly concentrated markets.  That generates quality jobs and allows development of our human capital.  That points to long term sustainable growth.  With high quality standards and best practices.  That allows a good productive linkage with local suppliers.  Seeking innovative and technological development.  In different regions and key economic sectors. WE ARE LOOKING FOR MORE AND BETTER FDI

41. We are improving to offer the best service to foreign investors: Information about Chile’s business climate and specific investment opportunities. Portfolio of public investment projects and tenders. Guidance to apply to sectorial investment incentives programs. Direct contact with sectorial ministers, state agencies and the Chilean private sector. Assistance in preparing schedule of meetings. Reports and publications. THE NEW INVESTMENT PROMOTION AGENCY

42. Information services Information about Chile’s business climate. Portfolio of public and private investment projects. Reports and other publications. FDI statistics. Material in Spanish, English and Chinese. Participation in forums. Investment facilitation services Legal advice for the signing of a foreign investment contract. Assistance in preparing schedule of meetings. Processing of investors’ queries and applications. Assistance to contact public and private sectorial institutions. SERVICES, ACTIVITIES AND TOOLS

43. Head of the FDI Attraction Unit Vicente Mira| vmira@ciechile.gob.clvmira@ciechile.gob.cl Energy Jorge Yáñez | jyanez@ciechile.gob.cljyanez@ciechile.gob.cl Mining and Infrastructure Nicolás Muñoz | nmunoz@ciechile.gob.clnmunoz@ciechile.gob.cl Tourism and TI Martin Pathan | mpathan@ciechile.gob.clmpathan@ciechile.gob.cl Food Industry and Biotechnology Vanessa Séverin | vseverin@ciechile.gob.clvseverin@ciechile.gob.cl Small and medium enterprises Salvatore Di Giovanni | sdigiovanni@ciechile.gob.clsdigiovanni@ciechile.gob.cl CONTACTS

44. www.chileinvestmentforum.cl

45. “Trust, believe and invest in Chile.” President Michelle Bachelet

46. www.ciechile.gob.cl info@ciechile.gob.cl