Regional Analysis: Latin American Cable Markets

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1 Regional Analysis: Latin American Cable Markets Philip Radbourne Director Research, Wire & Cable Team Integer Research Ltd, London Office International Cablemakers Federation Congress 2012, Rio de Janeiro 2-6 October 2012

Research Ltd, London Office International Cablemakers

2 Latin American Cable Markets Introduction Global Wire & Cable industry Overview of Latin America cable markets Leading suppliers Conclusions

3 Integer Research Ltd London office Founded in 2002 in London We track range of industries, from cable, power systems, metals, mining, through chemicals and emissions 40 staff in London, 95% of business outside the UK Team in Detroit, USA since Opened up offices in Beijing and Tokyo in 2011 Running Advanced Cable Asia Conference in Shanghai in November 2012

London, 95% of business outside the UK Team in Detroit, USA since 2009.

4 Our Experts & Authors of the ICF Survey Philip Radbourne is Research Director at Integer Research Ltd. He is one of the founders of the company. Philip has more than 13 years of experience in business analysis and consulting. Josie Armstrong is Business Manager for Integer s wire and cable business. Josie has experience in managing and undertaking single client assignments covering a range of industries including wire and cable, aluminium, copper, steel/iron ore, coal, uranium, and fertilizers. Worked for BP Australia, and time working in China. Dr Robert Davies is a Principal Consultant at Integer Research. Over 19 years experience in the cable industry, Robert has worked in various corporate planning and strategic planning roles in the UK and east Asia. Ex BICC & Brand-Rex. Dr Niall Macfadyen is a Principal Consultant at Integer Research. Niall has worked in the cable industry for more than 20 years, gaining a range of operational experience in fibre optic cables and electronics, R&D, sales and product management. Ex Tyco & Pinacl. Andrea Valentini is a Senior Analyst and regular contributor to consulting assignments and publications for Integer s wire and cable business. Now runs our Tokyo office. Italian, speaks Arabic, Spanish, Portuguese and now Japanese. Ex Italian Chambers of Commerce in Cairo.

Josie has experience in managing and undertaking single client assignments covering a range of industries including wire and cable, aluminium, copper, steel/iron ore, coal, uranium, and fertilizers.

5 Latin American Cable Markets Introduction Global Wire & Cable industry Overview of Latin America cable markets Leading suppliers Conclusions

Global GDP collapsed in 2009 6 GDP, constant prices, Yr-on-Yr % change 5 4 3 2 1

6 Global GDP collapsed in GDP, constant prices, Yr-on-Yr % change Source: IMF, EIU

...led to largest decline in world cable market for 30 years 14 12 10 8 6 4 2 0-2 -4-6 -8 % change Yr-on-Yr in

7 ...led to largest decline in world cable market for 30 years % change Yr-on-Yr in cable volume Source: Eurostat, Integer, Industry sources

cable volume 2000 2001 2002 2003 2004 2005 2006 2007 2008

8 Latin American was steaming ahead in 2008, but will growth rates continue?

9 Brazil overtook the UK, to become the 6th largest economy in the world in 2011 GDP, US$ billion Source: IMF, EIU

10 Are the economies coming down to earth? 10 GDP, % change on previous year Argentina Brazil Latin American average Source: ECLAC, EIU, 2012 is an EIU forecasts

Argentina Brazil Latin American average 2003 2004 2005

Brazil dominates Latin American economic output and cable demand 3500 3000 2500 2000 Cable demand in

11 Brazil dominates Latin American economic output and cable demand Cable demand in 2011, US$ million GDP, US$ billion Source: IMF, IBGE, ECLAC, Integer, Industry sources

in 2011, US$ million GDP, US$ billion 1500 1000

12 Brazil dominates Latin American market cable demand Insulated cable demand, US$ million Bolivia Uruguay Paraguay Ecuador Venezuela Peru Chile Colombia Argentina Brazil Source: Integer, SINDICEL, IBGE, Industry sources

2006 2007 2008 2009 2010 2011 Bolivia Uruguay Paraguay Ecuador Venezuela Peru

13 Brazilian cable imports hit US$861m in 2011, China now leading supplier Insulated cable imports, US$ million Telecom/Data/Signal Cables Signal & Control Cable Power Cable - >1kV, MV, HV, EHV Low Voltage Energy <1kV Fibre Optic Cable Enamelled/Magnet Wire - Round Enamelled/Magnet Wire - Other Coaxial Cable/Electronic Wire/Data Source: UNComtrade, GTIS, Integer, SINDICEL

EHV Low Voltage Energy <1kV Fibre Optic Cable Enamelled/Magnet Wire - Round Enamelled/Magnet Wire - Other Coaxial

14 Latin American Cable Markets Introduction Global Wire & Cable industry Overview of Latin America cable markets Leading suppliers Conclusions

15 Cable production locations dominated by São Paulo and adjacent states Barranquilla Cali & Bogota Size of green circle related to number of cable plants Lima São Paulo Santiago Buenos Aires Source: ICF, Integer, Industry Sources, Sindicel, Madem

circle related to number of cable plants Lima São Paulo

16 São Paulo state is dominant cable producing region in Latin America Cundinamarca Cable production in 2011, US$ million Carabobo Paraná Lima Cali Rio de Janeiro Santiago Minas Gerais Buenos Aires São Paulo Source: Integer, Industry Sources, Sindicel, Madem

Cali Rio de Janeiro Santiago Minas Gerais Buenos Aires São Paulo 0 500

17 A sample of leading Brazilian cable producers in 2012

18 A snapshot of cable producers in rest of Latin America

19 Nexans leads Latin American market in terms of insulated cable production US$ million Venezuela Uruguay Peru Colombia Chile Brazil Argentina Source: Integer, Industry Sources, Sindicel, Madem

20 Top 15 Brazilian insulated cable producers (excludes ACSR & rod production) Cable production in 2011, US$ million Fibre optic cable LAN cable Copper Telecom Electronic & Coaxial Cable OEM Cable Signal & Control Energy Industrial & Special Power Infrastucture Magnet Strip Magnet Wire Flexible & Cords (cable) Building Wire Auto Wire Source: Integer, Industry Sources, Sindicel, Madem

Coaxial Cable OEM Cable Signal & Control Energy Industrial & Special Power Infrastucture Magnet Strip

21 Prysmian IMSA CIMET Marlew CEARCA Nexans Epuyen Argenplas CyA Fonseca Cableplast CIBASA SA Erpla LVH SA Anicor Derluz Conduplast Cademsa/Cobrhil Plásticos Conducom SA Furukawa Nasello Tecno Indusil CEDAM Felrro AC Argentina Cetya S.A. Conductores RG American Dulah Indecable S.A. The leading Argentine insulated cable producers (excludes ACSR) US$ million Fibre Optic Cable LAN cable Copper Telecom Electronic & Coaxial Cable OEM Cable Signal & Control Energy Industrial & Special Power Infrastucture Magnet Strip Flexible & Cords (cable) Building Wire Auto Wire Magnet Wire Source: Integer, Industry Sources, Madem

22 Latin American Cable Markets Introduction Global Wire & Cable industry Overview of Latin America cable markets Leading suppliers Conclusions

23 Chinese exports of cable to Latin America have overtaken those of the US Source: Integer, Industry Sources, Sindicel, Madem

24 Thank you for your attention For further information and questions on the survey, please contact: Josie Armstrong Business Manager Wire & Cable Philip Radbourne Director Research Tel: Fax: Integer Research Ltd London Office, Invicta House Golden Lane London, EC1Y 0TL, UK Source: Integer, Industry Sources, Sindicel, Madem

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