0

Presentation Regional Analysis:Latin American Cable Markets

Philip RadbourneDirector – Research, Wire & Cable Team

Integer Research Ltd, London Office

International Cablemakers Federation Congress 2012, Rio de Janeiro

2-6 October 2012

• Introduction• Global Wire & Cable industry• Overview of Latin America cable markets• Leading suppliers• Conclusions – questions & answer session

Latin American Cable Markets

1

• 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 2009.

• Opened up offices in Beijing and Tokyo in 2011

• Running Advanced Cable Asia Conference in

Shanghai in November 2012

Integer Research Ltd – London office

2

Our Experts & Authors of the ICF SurveyPhilip 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.

3

• Introduction• Global Wire & Cable industry• Overview of Latin America cable markets• Leading cable suppliers and manufacturing clusters• Conclusions & questions

Latin American Cable Markets

4

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

5

Puerto Madero, Buenos Aires

Berrini, Sao Paulo,

Economist cover from 2008

Brazil overtook the UK, to become the 6th largest economy in the world in 2011

6

0

2000

4000

6000

8000

10000

12000

14000

16000 GDP, US$ billion

Source: IMF, EIU

Global GDP collapsed in 2009…

7

-1

0

1

2

3

4

5

6

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GDP, constant prices, Yr-on-Yr % change

Source: IMF, EIU

...led to largest decline in world cable market for 30 years

8

-8-6-4-202468

101214

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

% change in cable volume

Source: Eurostat, Integer, Industry sources

Brazil dominates Latin American economic output and cable demand

9

0

500

1000

1500

2000

2500

3000

3500

Cable demand in 2011, US$ million

GDP, US$ billion

Source: IMF, IBGE, ECLAC, Integer, Industry sources

Brazil dominates Latin American market cable demand

10

0500

100015002000250030003500400045005000

2003 2004 2005 2006 2007 2008 2009 2010 2011

BoliviaUruguayParaguayEcuadorVenezuelaPeruChileColombiaArgentinaBrazil

Insulated cable demand, US$ million

Source: Integer, SINDICEL, IBGE, Industry sources

Brazilian cable imports reached US$861 million in 2011, China leading supplier

11

Insulated cable imports, US$ million

Source: UNComtrade, GTIS, Integer, SINDICEL

0100200300400500600700800900

1000

2003 2004 2005 2006 2007 2008 2009 2010 2011

Telecom/Data/Signal CablesSignal & Control CablePower Cable - >1kV, MV, HV, EHVLow Voltage Energy

• Introduction• Global Wire & Cable industry• Overview of Latin America cable markets• Cable suppliers and manufacturing clusters• Conclusions & questions

Latin American Cable Markets

12

Cable production and demand dominated by São Paulo state

13

Lima

SantiagoSão Paulo

Cali

Buenos Aires

Barranquilla Size of green circle related to number of cable plants

São Paulo state is dominant cable producing region in Latin America

14

0 500 1000 1500 2000 2500 3000

São Paulo

Buenos Aires

Minas Gerais

Santiago

Rio de Janeiro

Cali

Lima

Paraná

Carabobo

Cundinamarca Cable production in 2011, US$ million

A sample of leading Brazilian cable producers in 2012

15

A snapshot of cable producers in rest of Latin America

16

Nexans leads Latin American market in terms of insulated cable production

17

050

100150200250300350400450500

VenezuelaUruguayPeruColombiaChileBrazilArgentina

US$ million

A review of the leading Brazilian insulated cable producers

18

Production revenues of Top 15 cablemakers in Brazil in 2011, US$ million

Source: Integer, IBGE, Sindicel, Data excludes ACSR and bare conductor

Insulated cable revenues in 2011, US$ million

Condupasqua

Corfio

IPCE

0

0

0

0

0

0

0

0

0

PPE Nexans

Cordeiro

Nambei

Prysmian

Furukawa

Wirex

General Cable

Induscabos

Condumax

Sao Marco

SILAuto WireBuilding WireFlexible & Cords (cable)

Fibre optic cable

Power Infrastucture

Magnet Wire

LAN cableCopper Telecom

Energy Industrial & Special

Magnet Strip

Electronic & Coaxial CableOEM CableSignal & Control

A review of the leading Argentine cable producers

19

Argentina has a deep cluster of cable makers that have all expanded through the recovery in demand over the last 5 years

Source: Integer, ICF, Industry Sources

0

0

0

0

0

0 Plásticos Centurión

Conducom SA

Furukawa

Nasello

Tecno Indusil

CEDAM

Felrro

AC Argentina

Cetya S.A.

Conductores RG

American Dulah

Indecable S.A.

0

Prysmian

0

0

CIMET

Marlew

CEARCA

Nexans

IMSA

Epuyen

Argenplas

CyA Fonseca

Cableplast

CIBASA SA

Erpla

LVH SA

Anicor

Derluz

Conduplast

Cademsa/Cobrhil

Fibre Optic CableLAN cableCopper TelecomElectronic & Coaxial CableOEM CableSignal & ControlEnergy Industrial & SpecialPower InfrastuctureMagnet StripFlexible & Cords (cable)Building WireAuto WireMagnet Wire

Insulated wire and cable production in 2011, US$ million

Argentina has a deep cluster of cable makers that have all expanded through the recovery in demand over the last 5 years

Source: Integer, ICF, Industry Sources

50

40

30

20

10

0

Plásticos Centurión

Conducom SA

Furukawa

Nasello

Tecno Indusil

CEDAM

Felrro

AC Argentina

Cetya S.A.

Conductores RG

American Dulah

Indecable S.A.

60

Prysmian

70

80

CIMET

Marlew

CEARCA

Nexans

IMSA

Epuyen

Argenplas

CyA

Fonseca

Cableplast

CIBASA SA

Erpla

LVH SA

Anicor

Derluz

Conduplast

Cademsa/Cobrhil

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

Insulated wire and cable production in 2011, US$ million

• Introduction• Global Wire & Cable industry• Overview of Latin America cable markets• Cable suppliers and manufacturing clusters• Conclusions & questions

Latin American Cable Markets

20

Chinese exports of cable to Latin America have overtaken those of the US

in 2011

21

For further information and questions on the survey, please contact

22

Josie ArmstrongBusiness Manager – Wire & Cable

josie.armstrong@integer-research.com

Philip RadbourneDirector – Research

philip.radbourne@integer-research.com

Tel: +44 20 7503 1265Fax: +44 20 7503 1266Integer Research Ltd

London office, Invicta House108-114 Golden Lane

London, EC1Y 0TL, UK

Presentation Regional Analysis:�Latin American Cable MarketsLatin American Cable MarketsInteger Research Ltd – London officeOur Experts & Authors of the ICF SurveyLatin American Cable MarketsLatin American was steaming ahead in 2008, but will growth rates continue?Brazil overtook the UK, to become the 6th largest economy in the world in 2011Foliennummer 8Foliennummer 9Brazil dominates Latin American economic output and cable demand Brazil dominates Latin American market cable demandBrazilian cable imports reached US$861 million in 2011, China leading supplierLatin American Cable MarketsCable production and demand dominated by São Paulo stateSão Paulo state is dominant cable producing region in Latin AmericaA sample of leading Brazilian cable producers in 2012A snapshot of cable producers in rest of Latin AmericaNexans leads Latin American market in terms of insulated cable productionA review of the leading Brazilian insulated cable producersA review of the leading Argentine cable producersLatin American Cable MarketsFoliennummer 22For further information and questions on the survey, please contact