Latin American Business OutlookPart of the Global Business Outlook

A joint survey effort between

Duke University,Fundação Getúlio Vargas

and

CFO magazine

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 1

Top External Concerns for Latin America CFOs

1. Consumer demand

2. National government agenda/policies

3. (tie) Currency risk

3. (tie) Cost of non-fuel commodities

5. (tie) Global financial instability

5. (tie) Price pressure from competitors

7. Credit markets/interest rates

8. (tie) Global political instability

8. (tie) Cost of fuel

8. (tie) National employment outlook

8. (tie) Foreign competition

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 2

Top Internal Concerns for Latin America CFOs

1. Ability to maintain margins

2. Supply chain risk

3. Ability to forecast results

4. Attracting and retaining qualified employees

5. (tie) Data security

5. (tie) Working capital management

7. (tie) Balance sheet weakness

7. (tie) Managing IT systems

7. (tie) Counterparty risk

7. (tie) Maintaining morale/productivity

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 3

Forecast for NTM % Change (avg. by region)Historical Responses Summer 2012 Response

Rev

enue

Ear

ning

s

Notes: NTM = Next Twelve Months.Data for Latin America represent medians; means used for all other regions.

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 4

Forecast for NTM % Change (avg. by region)Historical Responses

Pro

duct

Pric

esC

apita

l Spe

ndin

g

Summer 2012 Response

Notes: NTM = Next Twelve Months.Data for Latin America represent medians; means used for all other regions.

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 5

Forecast for NTM % Change (avg. by region)Historical Responses

# F

T E

mpl

oyee

sW

ages

& S

alar

ies

Summer 2012 Response

Notes: NTM = Next Twelve Months, FT = Fulltime.Data for Latin America represent medians; means used for all other regions.

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 6

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012

Optimism Level (Scale of 0 to 100)Historical Responses

Cou

ntry

/ R

egio

nO

wn

Com

pany

Summer 2012 Response

Note: Data for Latin America represent medians; means used for all other regions.

7

Latin American Hiring Trends (Summer2012)Within the past year, nearly ¾ of Latin American respondents experienced difficulty filling a job opening. Among this group, a variety of approaches were used to fill open positions.

Yes, 72.4%

No, 27.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Hire someone too junior in the role and providing training

Offer better benefits

Raise the salary

Hire someone too senior for the role

Recruit more actively

Expand our search area

None of these

Other

Difficulty filling an open position within the past year?

If yes, would/did you do any of the following to attract qualified applicants?

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 8

Corruption as a Risk Factor (Summer 2012)The magnitude of business corruption (fraud, bribery, other ethical violations) as a risk factor varies across geography (1=corruption not a significant factor , 5=very significant factor)

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 9

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 10

Corruption Effects (Latin America, Summer 2012)To the extent that business corruption exists, what would you say are its major effects?

CFO Survey in Latin America Press

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 11

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 12

CFO Survey in Latin America Press

Latin American Business OutlookPart of the Global Business Outlook

A joint survey effort between

Duke University,Fundação Getúlio Vargas

and

CFO magazine

Latin American Business Outlook Duke University / FGV / CFO Magazine Summer 2012 13