The Latin American Corporate Governance Roundtable

26-28 April, 2000

The São Paulo Stock Exchange

São Paulo, Brazil

Mrs. Elvira SchamannFIABV Secretary General

WhyCorporate Governance

Now??

The Latin American Corporate Governance Roundtable

Globalization

• RISK–Macro

–Financial Systems

- Institutional components

The Latin American Corporate Governance Roundtable

Market Participants

- Institutional investors

- Financial intermediaries

- Analysts

The Latin American Corporate Governance Roundtable

- Privatizations

-Takeovers/mergers/combinations

The Latin American Corporate Governance Roundtable

STOCK EXCHANGES

- ACCESS TO CAPITAL

- LIQUIDITY

- VISIBILITY ---TRANSPARENCY

The Latin American Corporate Governance Roundtable

Market capitalization/GNP

0

10

20

30

40

50

60

70

80

90

AVERAGE ARGENTINA BRAZIL CHILE MEXICO PERU

%

The Latin American Corporate Governance Roundtable

Number of listed companies

02.0004.0006.0008.00010.00012.00014.00016.000

U.S. Europe Latinamerica

1994

1999

The Latin American Corporate Governance Roundtable

Stock indexesLATINAMERICAN PERFORMANCE, IBEX 35 AND DOW JONES

31/12/96 = 100

0

50

100

150

200

250

Dic

-96

Mar

-97

Jun

-97

Se

p-9

7

Dic

-97

Mar

-98

Jun

-98

Se

p-9

8

Dic

-98

Mar

-99

Jun

-99

Se

p-9

9

Dic

-99

Mar

-00

Latinoamericano

Dow J ones

Ibex 35

The Latin American Corporate Governance Roundtable

Compañía de Minas Buenaventura S.A.

The Latin American Corporate Governance Roundtable

• Company listed since 1971

• Changes in its capital structure in 1996

• Open to new international investors since 1996

• New changes to its capital structure - more shareholders

C. M. B. S.A.

The Latin American Corporate Governance Roundtable

• New Capital

• Shareholders

• Liquidity

• Visibility

FIABV- Update standards

- Review of Corporate Governance guidelines- for listed companies

- for stock exchanges

The Latin American Corporate Governance Roundtable