CROSSROADS

P R E M I E R I S S U E :

FOCUS ON LATIN AMERICA

CROSS ROADS

THIS ISSUEFocus on Latin America 6

COVER STORY – Latin America: Economic Juggernaut 8

Crossroads magazine is published quarterly for employees of The Bank of Tokyo–Mitsubishi UFJ Americas Corporate Communications Group 1251 Avenue of the Americas, 15th Floor New York, NY 10020 © 2011 BTMUA

Editor: Andrew Rasanen, VPPhone: 212.782.4124Email: arasanen@us.mufg.jp

8Contributing Writers: Stacey Escoffery, Beth Gilroy, JJ Ko, Elizabeth Lyman, Ellen Zentner

CROSS ROADS

FEATURES

DEPARTMENTS

BTMU Americas Raise More than $660,000 for Japan 18

Shredding to Go Green and Protect Information 23

More Space to Help the Needy 26

Employee Engagement 31

Union Bank Exchange 33

Preparing for the Unexpected 35

PROFILES:Marceliana (Celia) Butardo: Diligence and Faith 37

Naoya Hiramatsu: Transparency and Accountability 39

Victor Torres: Company, Country, and Family 41

Send us your photos 43 1923: Magnitude 7.9+ on the Richter Scale 45

18

26

43

JUG GER NAUT

C o n t r i b u t o r s :

E l l e n Z e n t n e r, E c o n o m i c R e s e a rc h B T M U N Y M a s a r u N a k a y a s u , B T M U B r a z i l , E x e c u t i v e D i re c t o r, C h i e f E c o n o m i s t , a n d H e a d o f F u n d M a n g e m e n t

Latin America:

ECONOMIC

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BRA-ZIL

espite carrying a higher investment risk than their developed market counterparts,

emerging markets faired better over the Great Recession compared to the S&P 500.

And within the grouping of emerging markets, Latin America’s performance has

been exceptional.

The region’s growth comes on the back of its stronger internal markets, political

stability, and solid economic fundamentals. Latin American countries responded

promptly to the global financial crisis by implementing stimulus measures funded

by improved fiscal positions and build-up of international reserves. Growth forces

are now being driven by a rising domestic middle class, private investment, and

commodity exports.

BrazilBrazil is the world’s seventh-largest country and the largest in Latin America on a

purchasing power parity (PPP) basis. It enjoys a stable government with pro-growth

policies. In 2010, Brazil’s Gross Domestic Product (GDP) advanced by an eye-pop-

ping +7.5%, though growth is expected to slow to a more sustainable rate close to

+4.0% in 2011.

The country transitioned from being plagued by hyper-inflation and political prob-

lems from 1980 through mid-1994, to a “gold mine,” attracting investors from all

over the world. In 2003, foreign direct investment totaled $10.1 billion USD. By 2010,

it had grown nearly five times over, to $48.5 billion USD. And in a vote of confidence

in the country’s economy and policy management, Brazil was promoted to invest-

ment-grade status in 2008–09 by the three main ratings agencies.

Southeastern Brazil, the country’s most heavily populated region, includes the

metropolitan areas of São Paulo and Rio de Janeiro — both of which host offices

of BTMU Brazil — and Belo Horizonte. Brazil’s 190 million citizens have benefited

greatly from this growing giant. In 2002 per capita income sat at an average $2,000

USD, but by 2010 had grown to more than $10,800 USD. Since 2006, Brazil’s credit

to the private sector — growing from a low base — has expanded at 2.4 times the

pace of GDP.

Brazil is rich in commodities and has the eighth-largest crude oil reserve in the

world, making it energy self-sufficient. Much of Brazil’s energy consumption comes

from renewable sources such as ethanol and hydroelectricity. Brazil was known as a

“coffee economy” from 1840 to 1930, but has transitioned into a diverse economic

juggernaut, home to large multinational and domestic corporations dealing in agri-

culture, motor vehicles, petrochemicals, computers, aircraft, and durable consumer

products.

Fútbol (soccer) is the most popular sport in Brazil, and the country has won the

World Cup a record five times. In 2014, Brazil will host the FIFA World Cup. In 2016,

Brazil will be the first South American country to host the Olympic Games.

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COLO- MBIAMexicoMexico, which also benefits from a stable government and

policy framework, is the second-largest country in Latin

America (after Brazil) and has strong economic ties with the

United States given its close proximity. Mexico was the first

Latin American member of the Organisation for Economic

Cooperation and Development (OECD). Its population of

about 113 million ranks 11th in the world. Being closely

linked to the United States through trade, tourism, and

geography, Mexico has also been subject to the ups and

downs of the U.S. economy, but rebounded by 5.0% in

2010 as internal demand strengthened. According to the

IMF’s January 2010 World Economic Outlook Update,

Mexico is expected to grow by +4.2% in 2011. The 70 staff

members of BTMU México will contribute to that growth.

ColombiaColombia, located in the northwest of South America, has

the fourth-largest Latin American economy and is the third

most populous country, claiming Bogotá — where we have

a representative office — as its largest city with a popula-

tion of roughly eight million. With its history of internal

armed conflicts now largely under control, Colombia had

GDP growth of +4.7% in 2010. The country is once again

experiencing strong capital inflows to develop its natural

resources, particularly the hydrocarbons sector, as well

as to portfolio investments. Marking its progress through

political stability and market-oriented growth opportuni-

ties, after 11 years Colombia regained its investment-grade

status from Standard & Poor’s in mid-March 2011. Earlier

in the same month, CEO Masa Tanaka on behalf of BTMU

signed an agreement with Bancolombia, the country’s larg-

est commercial bank by assets, to develop opportunities

for business cooperation in Colombia.

Peru Peru, which held a first-round presidential election cycle in

April 2011, has sustained real GDP growth of 6% per year

in 2002–10 and recent strong inflows of foreign investment

amounting to $7.3 billion USD in 2010. Situated in western

South America, Peru is a leading producer of copper, zinc,

gold, and silver. The country also exports textiles and a

wide variety of agricultural and fishery products. Economic

growth has been solid over the past decade and has been

driven by strong domestic demand and the run-up in com-

modity prices. Like Brazil, Peru’s solid economy and policy

management positioned it to obtain investment-grade

status from the international ratings agencies in 2008–09.

Peru’s GDP grew at a rate of +8.3% in 2010, with a healthy

rate of inflation at +2.9%.

Peruvians take great pride in their culinary traditions, and

the country’s cuisine has gained international recognition

for its flavor and diversity. BTMUA opened a representative

office in Lima in February 2011.

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ChileChile has been the region’s most stable economy since

the 1980s and enjoys prudent policy making and a low

occurrence of corruption. It was the first South American

country to join the OECD and has the second-highest GDP

per capita in PPP terms in Latin America. Ever had Chilean

wine? Chile is the world’s fifth-largest exporter of wine and

the eighth-largest producer. Foreign direct investment

is strong, flowing mainly into the sectors of mining, gas,

water, and electricity. Since the late 1990s Chileans have

enjoyed access to home equity loans, debit cards, leasing,

and currency futures and options. Most of the population

resides in the greater Santiago area — more than 6 million

people, including the 41 who staff our branch office there.

Today, tourism remains strong in Chile, with the majority

of visitors coming from nearby Argentina, followed by the

United States

ArgentinaNot only is Argentina one of South America’s largest

economies, is also ranks as the world’s eighth-largest

country in terms of land mass. A member of the United

Nations and counted among the G-20, Argentina has the

highest GDP per capita in Latin America and the region’s

third-largest economy. Following its financial crisis that led

to a declaration of a sovereign debt default in December

2001, investor confidence has returned against a backdrop

of fast-paced economic growth and increasing trade with

neighboring Brazil. Agribusiness is an important sector,

dominated by the production of soy, wheat, and livestock.

Buenos Aires, the largest city in Argentina, is often referred

to as the “Paris of the Americas” and is the epicenter of

cultural activities and nightlife.

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ARGEN-TINA