Lilian Rocca Carbajal

CHAIRMAN

Superintendency of the Securities Market – SMV

April 2012

Peru, Financing/Investment Opportunities in the Capital Markets

ROAD SHOW – LONDON 2012

Peru´s Capital Market: A competitive and attractive market with

investment and financing opportunities

Attractive Capital Market

Continuity in macroeconomic

policy and political stability

Strong economic

growth

Exchange rates and

price stability

Appropriate and flexible regulatory framework

Integration with other markets in the region

The growth of the capital market has aided not only to fulfill the increasing financing needs of the Peruvian entrepreneurial sector but also to offer attractive investment alternatives

that allow for portfolio diversification

Agriculture2.0%

Banking and financial services

56.1%

Electricity8.8%

Retail6.0%

Insurance4.0%

Communications5.5%

Securitization15.0%

Other2.5%

Public Offerings by Economic Sectors

A more dynamic alternative source of financing for companies in Peru

The Peruvian Capital Market: Public Offerings

More than 60 companies have outstanding debt instruments

Single issuances of more than US$ 400 million or with maturities up to 25 years

2,000

3,000

4,000

5,000

6,000

7,000

2002 2004 2006 2008 2010 Feb.2012

US$

mill

ion

Outstanding Debt (Public Offering)

US$ 6,300 million

Last year public offerings contributed to finance activities in diverse

economic sectors

Some companies financed their operations with very low interest rates

(from 2.3% to 5.0%) Three companies has raised capital through the issuance of shares in the market (IPO) by more

than US$ 150 million in the last five years

New flexible schemes to reduce the time of registration

Public Offerings: Main advances

E-prospectus Automatic registration of short-term

debt instruments (electronic prospectus and

issuance agreements)

Rule 144 A Automatic registration of international offers issued under the Rule 144 A and

partially placed within the national territory

Public offerings through Rule 144-A US$ 1,100 million in 2012

Public offerings through e-prospectus US$ 528 million in 2011

This year several companies has raised capital from international markets:

Volcan issued Senior Notes to raise US$ 600 million

COFIDE issued Senior Notes to raise US$ 500 million

Cementos Pacasmayo issued ADSs to raise US$ 256 million

The Peruvian Capital Market: Secondary Market

Lima Stock Exchange (BVL): Average annual rate of return in

the last 10 years = 32%

Market Capitalization has almost reached US$ 140,000 million

(>70% GDP)

BVL provides diversification benefits to investors coming from developed countries.

The BVL offers greater returns than other stock exchanges in the region

The solid fundamentals of the economy and the favorable outlook for Peruvian

companies generate good perspectives for the development of trading volumes in

the secondary market

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

-

5,000

10,000

15,000

20,000

25,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

US$

Millio

n

IGB

VL

(De

c 1

991

= 1

00)

Lima Stock Exchange

Market Cap

IGBVL

IGBVL (Peru)

IPSA (Chile)

BOVESPA (Brasil)

MERVAL (Argentina)

IPC (Mexico)

S&P 500 (USA)

19.8%

11.3%

13.2%

7.9%

4.8%

10.9%

Accumulated ReturnsJanuary - March 2012

0.0

3.0

6.0

9.0

Chile in Colombia

Chile in Peru

Colombia in Chile

Colombia in Peru

Peru in Chile

Peru in Colombia

US

$ M

illio

n

Traded amounts in MILAMay 2011 - February 2012

80

85

90

95

100

01/0

1/2

012

08/0

1/2

012

15/0

1/2

012

22/0

1/2

012

29/0

1/2

012

05/0

2/2

012

12/0

2/2

012

19/0

2/2

012

26/0

2/2

012

04/0

3/2

012

11/0

3/2

012

18/0

3/2

012

S&P

MIL

A 4

0 (3

0 M

ay =

10

0)

MILA Index

MILA Market

GREAT POTENTIAL FOR DEVELOPMENT

The MILA is the Latin America’s largest trading venue by numbers of listings

(550) and second largest by market cap (US$ 706 million)

The good performance of all the three markets that comprises the MILA has led to an increase of 18.5% in the S&P MILA 40, despite the global economic

uncertainty

Three Countries, One Market

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

jun

-08

ago

-08

oct

-08

dic

-08

feb

-09

abr-

09

jun

-09

ago

-09

oct

-09

dic

-09

feb

-10

abr-

10

jun

-10

ago

-10

oct

-10

dic

-10

feb

-11

abr-

11

jun

-11

ago

-11

oct

-11

dic

-11

feb

-12

IGBVL IBGC

Secondary Market: Main advances

The Office of the Investment

Ombudsman

Investors’ Complaints and

Claims

Responsibilities of the Market

Director

Market Abusive Practices

Build investors´ confidence to encourage liquidity and deepening

Percentage increase of the

Good Corporate Governance

Index (IBGC) versus IGBVL

(Base: June 2008)

As of march 2012, the IBGC has a spread of 21.2% over the IGBVL

Corporate

Governance

Code

The Peruvian Capital Market: Mutual Funds

Important investment option for retail investors

To date, 56 different mutual funds operate in our capital market.

These mutual funds offer different alternatives for investors according to

their risk profiles

0

50,000

100,000

150,000

200,000

250,000

300,000

0

1,000

2,000

3,000

4,000

5,000

6,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Nu

mb

er

of

un

it h

old

ers

Ne

t A

sse

t V

alu

e (

Mill

ion

US$

)

Mutual Funds

NAV Unit Holders

IMPRESSIVE GROWTH OF MUTUAL FUNDS

Total Net Asset Value exceeds US$ 5,300 million

More than 270,000 unit holders in December 2011

In the last 10 years, Mutual Funds has increased at an average annual growth rate of 16%

Mutual funds are primarily invested in debt instruments (almost 90%)

Short term46.3%

International0.3%

Debt39.5%

Mixed9.4%

Equity4.6%

Mutual Funds' PortfolioMarch 2012

-

1,000

2,000

3,000

4,000

5,000

6,000

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Nu

mb

er

of

Mem

ber

s (i

n t

ho

uns

and

s )

Pe

nsi

on

Fu

nd

s (I

n U

S$ M

illi

on)

Private Pension Funds

Fund Value

Members

The Peruvian Capital Market: Private Pension Funds

Average annual growth of Pension Funds reached 26% over the last decade

Major institutional investors in the Peruvian capital market

Pension Funds are primarily invested in securities issued by

the private sector (40%)

Net Asset Value surpasses US$ 30,000 million (8 times the amount registered

ten years ago) Almost 5 million members participate

in the Private Pension System

Public Sector, 17.0%

Financial System, 14.4%

Private Sector, 40.1%

Foreign securities,

28.5%

Pension Funds' PortfolioDecember 2011

A solid base of institutional investors, including Mutual Funds, Pension Funds, Banks and Insurances (more than 30% of GDP) has been the catalyst for the development of the

Peruvian capital market

The Peruvian Capital Market: Future actions by the SMV

“My first Public Offering” Program

Special regulation for Small and Medium Enterprises (SME) offerings

Listing of State-Owned Enterprises

Promoting e-prospectus for long-term debt instruments

Next steps in the Primary Market

Alternative trading market for securities issued by Small and Medium Enterprises

Direct Market Access

Strengthening of the MILA

On-line supervision of Broker-Dealers

Regulation of Takeovers

Regulation of short-term profits realized by Directors and Managers

Next steps in the Secondary Market

Final Remarks

Peru’s main macroeconomic indicators denote sound fundamentals.

The Peruvian capital market offers interesting investment opportunities

and financing alternatives.

Major local institutional investors play a fundamental role and provide for

stability in our market.

The SMV will continue to work on promoting public offerings as well as a

greater degree of liquidity and deepening in the secondary market.