Targeting the Global Investment Community

Targeting the Global Investment Community - ABRASCA Associação Abrasileira das Companhias Abertas and Instituto Brasileiro Relações com Investidores. Conference de Sao Paulo, Brazil June 20 -21, 2001

T able of Contents F Overview of global investment trends F Depositary Receipt (DR) market update F Tools & Strategies for reaching Global Investors

W hat’s Fueling the Growth in Global Equities Positive Long-term Trends: F U. S. Investors Continue to Increase Foreign Composition of Portfolios F Development of Free Market Economies F Globalization/De-regulation of Markets F Global Mergers, Acquisitions, and Consolidations

T rends in Global Equity Markets Equity Market Capitalization U. S. 66% Non-U. S. 34% Non-U. S. 51% U. S. 49% 1970 HALF OF THE WORLD’S INVESTMENT OPPORTUNITIES LIE OVERSEAS 2000

U S Investment in Foreign Equities U. S. Investment in Foreign Equities (US$ Billions) Individual and Institutional Investors/1996 - 2001 E 1, 569 1, 378 877 1, 001 1, 099 Total Individual Investment Source: 2000 Federal Reserve Flow of Funds Accounts 1, 210 Total Institutional Investment

U . S. Institutional Investors - DR vs. Local Shares By Number of Institutions Close to Three-Quarters of U. S. Institutional Investors that Invest in Non-U. S. Companies Hold Depositary Receipts Invest in DRs 1, 839 74% *The above data was derived from an analysis of a proprietary institutional database developed by Vickers Stock Research Corp. This analysis reflects the United States Securities and Exchange Commission reported holdings of 2, 469 institutions with approximately $9. 525 trillion in assets under management. No Investment in DRs 630 26%

U . S. Institutional Investors - DR vs. Local Shares By Value of Portfolios Where a Depositary Receipt Program is Available, U. S. Institutional Investors Prefer Holding Depositary Receipts Instead of Local Shares in the Home Market Value held in DRs $373 Billion 93% *The above data was derived from an analysis of a proprietary institutional database developed by Vickers Stock Research Corp. This analysis reflects the United States Securities and Exchange Commission reported holdings of 2, 469 institutions with approximately $9. 525 trillion in assets under management. Value held in Local Shares $26 Billion 7%

W hat are Depositary Receipts? How Do They work? u Developed u Certificates u Treated u Trade in 1920’s representing home-market securities as U. S. securities freely in the Global Capital Markets u Can be used to expand secondary market trading or to raise capital in the U. S. or globally NO DIFFERENCE BETWEEN ADRs AND GDRs

T op 10 Institutional Holders of DRs Janus Capital Corporation Fidelity Management and Research Brandes Investment Partners, L. P. Capital Research and Management Alliance Capital Management L. P. Lazard Asset Management Ltd. Smith Barney Asset Management Investor AB State Street Global Advisors Barclays Global Investors Source: CDA Spectrum Based on most recent 13 -F public disclosure filings available $MM 20, 430 14, 776 13, 229 12, 448 10, 980 10, 015 8, 778 6, 795 6, 476 5, 687

G rowth of Depositary Receipt Market Number of DR Programs in Latin America 400 303 300 314 317 1999 2000 1 Q 01 273 235 186 200 120 100 139 57 27 0 1992 1993 1994 1995 1996 1997 1998

G rowth of Depositary Receipt Market Latin American ADR Trading Volume (in Billions of Shares) 5 4. 3 4. 1 4. 4 4. 5 3. 9 4 3. 2 3 2. 7 2 1 1. 5 1. 1 1 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 1 Q 01

G eographic Analysis of Depositary Receipt Market Geographic Analysis As of March 31, 2001 Global Latin America U. K. 11% Colombia 4% Singapore 1% Chile 9% Japan 7% Other 30% Mexico 30% Sweden 2% Australia 8% Ireland 2% Brazil Honk Kong 5% India 5% Italy 2% South Africa 4% Germay 3% I Netherlands 3% Mexico 5% Brazil 5% France 3% Russia 4% Peru 4% Venezuela 7% Other 7% Argentina 9% 30%

G rowth of Depositary Receipt Market Program Type Analysis (Measured by # of programs) As of March 31, 2001

S uccess Factors Provide a user-friendly instrument Set customized goals and objectives F Competing with U. S. and non-U. S. companies for investors F Must attract global investors and, more importantly, “true U. S. domestic investors” F F l l Taft Hartley, public funds, trust banks, pension funds, insurance companies, and domestic oriented mutual funds Exchange Traded and Index funds Retail and regional brokerage firms Convert global investors who prefer Depositary Receipts F Must offer the same range of services that U. S. companies offer their investors. l “Americanize” services to obtain domestic U. S. investors Research by major and regional brokers (sellside) is essential F Develop a broad institutional and retail investor base F Follow-up and be visible F VISIBILITY AND INVESTOR SERVICE ARE CRITICAL

P romotional and Investor Relations Services Activities Launch l l l Analysis of potential investors Announcement fact sheet Corporate Action E-mail Program Market maker solicitation Report mailing to analysts Broker notification Tombstone advertisement Press release Research magazine The ADR Investor newsletter Promote to regional networks Ongoing l l l Analysis of investor base Corporate information update Corporate Action E-mail Program (DR Daily) Annual/Interim reports distributed Research magazine The ADR Investor newsletter Presentation kit Retail Broker Marketing Bloomberg Forum NYSSA presentations Targeted mailings CONSISTENT AND PROACTIVE WITHOUT CONFLICTS

C orporate Website (adrbny. com) F Global on-line visibility F Local language and English F Updated corporate information F Updated share information F How to buy securities l On-line direct purchase application F Links to key industry sites F Highlight Local & U. S. contacts

O n-Line Shareholder ID Services F Internet-based products F Supports Institutional shareholder ID l l U. S. Europe F Supports Peer Group Analysis F Weekly information updates F Access to over 6000 Institutional Investor profiles F Supports hyper-text links, on-line sorting & Excel download capabilities

S econdary Market Support Networks Benefits: F F Features: Networks enable issues to raise visibility/profile with potential retail and institutional U. S. investors Established four specialized nationwide networks: l l Regional Brokers Trust Banks Insurance Companies On-line Brokers F Common features of each group: l l Traditionally purchase U. S. securities Investment decisions performed internally Growing interest in non-U. S. equities Long term investors PROVIDES ACCESS TO “TRUE U. S. DOMESTIC INVESTORS”

R egional Broker Network Regional Broker Network F F 50, 000 sales reps rely on Depositary Receipts to accommodate their clients’ 10 -20% international equity allocation Network is accessible through: l On-site visits/presentations l Financial mailings l Conference calls New York, NY Philadelphia, PA Baltimore, MD Omaha, NE San Francisco, CA Denver, CO Regional Brokers represent investors holding 40% of all U. S. equities F Helena, MT Los Angeles, CA F Minneapolis, MN Milwaukee, WI Chicago, IL Seattle, WA Access to “true US Domestic Investors” - retail and institutional St. Louis, MO Louisville, KY Phoenix, AZ Charlotte, NC Memphis, TN San Diego, CA Dallas, TX Houston, TX St. Petersburg, FL Fort Lauderdale, FL CREATES VISIBILITY AND GENERATES DEMAND

U. S. Trust Bank and Insurance Company Networks U. S. Bank and Insurance Company Networks F Access to Chief Investment Officers, Portfolio Managers, Research Analysts, and Traders F Nationwide F Over network $4 trillion in managed assets F Underweight in non-U. S. equities F Rely mainly or solely on Depositary Receipts to invest globally F Network l l l is accessible through: On-site meetings/presentations Financial mailings Conference calls F Long term investors MAJORITY REQUIRE DEPOSITARY RECEIPTS

D irect Purchase & Dividend Reinvestment Plans Plan Benefits For Issuer F F F F Used to build retail and employee ownership Stimulate demand Easy to establish Company-specific plan features stable ownership Enhance attractiveness of Depositary Receipts Ability to issue shares from treasury Affiliation solicitation Customized reporting For Investor F F F F Cost-effective alternative to discount brokers Ongoing optional cash contributions Enables dollar averaging investment strategy Timely investments and sales Multiple reinvestment options No safekeeping cost Toll-free telephone number 24 hour Interactive Voice Response System IDENTICAL TO PLANS OFFERED BY U. S. COMPANIES

C onclusion F Global Portfolio diversification continues to grow F Mexico & Brazil represent more than 65% of investment activity in Latin America F New tools and strategies are available to Global issuers

Targeting the Global Investment Community — ABRASCA Associação