Agenda

Page

[ C L I E N T N A M E ]

Presentation2

October 2013

Dominican Republic Investor

Presentation November, 2015

Dominican Republic

Investor Presentation

José Ramón Peralta

Administrative Minister of the Presidency

One of the six countries in the world with Free Trade Agreements with both the European Union and the United States…

Preferential Market Access to:

876 million Consumers

GROSS DOMESTIC PRODUCT(In billions of US$, 2015)

67.562.6

25.920.1

Dominican

Republic

Guatemala El Salvador Honduras

The largest economy in Central America and the Caribbean

AVERAGE ANNUAL GDP GROWTH(2010-2015)

5.4%

3.6% 3.4%

1.9%

Dominican

Republic

Guatemala Honduras El Salvador

The highest economic growth in Central America and the Caribbean and 2nd in Latin America after Panama…

GDP PER CAPITA(In PPP US$, 2014)

13,012

8,021 7,503

4,729

Dominican

Republic

El Salvador Guatemala Honduras

…with a GDP per capita twice as much as the average of El Salvador, Guatemala and Honduras.

AVERAGE ANNUAL INFLATION RATE(Dec-Dec, 2010- 2014)

5.6%

4.7% 4.5%

1.8%

Honduras Dominican

Republic

Guatemala El Salvador

Sustainable economic growth with low inflation,…

EXCHANGE RATE(DR$ per US$1.00)

20152014201320122011201025

30

35

40

45

50

…remarkable exchange rate stability…

UNEMPLOYMENT(% of labor force unemployed, 2014)

7.5%

6.0% 5.6%

4.0%

Honduras Dominican

Republic

El Salvador (2013) Guatemala

…and declining unemployment.

POVERTY(% of population living in poverty, 2013)

64.5%

53.7%

40.9%

32.1%

Honduras Guatemala El Salvador Dominican

Republic (2015)

Poverty is significant, but has been declining rapidly.

Among the Latin America countries with lower political risk. (Marsh-

Maplecroft Report 2014)

50 years of continuous democracy, peace and

institutional development: relatively low political risk

Free Trade Zones are “100% tax exemption zones”.

Corporate income TaxValue Added Tax on Goods and Services (Itbis)

Tariff and Import Duties; Construction, Loans, and

Real State Property Transfer Tax; Export and Re-Export Tax;

Property, Assets and Patent Tax;and Local Taxes

FREE TRADE ZONES EXPORTS BY PRODUCTS

MM US$

After the Great Recession of 2009, Free Trade Zones exports has been showing a sustained growth.

1st world’s cigar exporter, 2nd USA’s circuit breakers supplier, and 4th USA’s medical devices and leather footwear exporter

Leatherfootwear Silver jewelry

Medical Devices

Cigars

Knitted fabricsof cotton

Circuit Breaker

Woolen coats

Dental Floss

FREE TRADE ZONES OR MAQUILA EXPORTS(In millions of US$, 2014)

5,243

3,9783,481

1,024

DominicanRepublic

Honduras Guatemala El Salvador

DR is the most important free trade zone exporter in Latin

America, after Mexico.

Famous world brands has chosen DR ‘s Free Trade Parks

to manufacture its goods.

1,451product lines

exported in 2014

to 136 countries

in 5 continents

ACCUMULATED INVESTMENTS: US$3,795 MILLIONS(at the end of 2014)

1,034

589

311

197

129

511

841

183

Textiles & Apparel

Medical &PharmaceuthicalProductsTobaco & Cigars

Services

Shoes

Agri-industrials products

Electronics

Others

40% of total accumulated investments in Free Trade

Zones is Foreign Direct Investment (FDI)

FREE TRADE ZONES PARKS(2015)

2418 17

63

Dominican

Republic

Honduras Guatemala El Salvador

...higher than the sum of all parks in Honduras,

El Salvador and Guatemala.

*a Junio

NUMBER OF FIRMS IN INDUSTRIAL FREE TRADE ZONE PARKS

637 firms are operating in the Free Trade Zone Parks,…

NUMBER OF FIRMS IN FREE TRADE ZONES PARKS(2015)

637

320282

200

DominicanRepublic

Honduras Guatemala El Salvador

… almost doubling the 320 that operates in Honduras.

EMPLOYMENT IN FREE TRADE ZONES AND/OR MAQUILAS(2014, Jul 2015 for DR)

75,939

95,600106,673

124,941

159,000

El Salvador Guatemala Nicaragua Honduras DominicanRepublic

Source:

…the higher in the Free Trade Zones of Central America

and the Caribbean

MINIMUM WAGE IN FREE TRADE ZONES (In US$, 2015)

183

203

222

224

240

262

275

296

303

323

325

DR

Hainan

Hunan

Tibet

Sichuan

Inner Mongolia

Beijing

Tianjin

Guangdong

Shanghai

Shenzhen

…but also, more competitive that those paid in China.

REAL AVERAGE WAGE AND LABOR PRODUCTIVITY IN FREE TRADE ZONES

100.0

222.5

103.02

154.76

Average Labor Productivity Index(1993=100)

Real Montlhy Average Wage in1993 US$

1993 2014

122.5% 50.2%

Real average wage has increased at a lower pace than the

increase in labor productivity in Free Trade Zones.

% OF LABOR FORCE WITH SECONDARY & TERCIARY SCHOOL(2012)

55

3530

23

DominicanRepublic (2014)

Guatemala Honduras El Salvador

Firms have access to a labor market where qualified human capital

is more abundant than in Central America’s labor markets.

DR was the Latin America country with the higher advance

in the English Proficiency Index in 2014.

ENGLISH PROFICIENCY IMPROVEMENTS

Education First

ENGLISH PROFICIENCY INDEX (EPI)(2014, Education First)

43.70

45.77

46.12

48.53

48.54

48.75

49.61

49.83

49.96

51.05

51.46

53.66

59.02

Panama

Guatemala

Venezuela

Costa Rica

Colomnbia

Chile

Uruguay

Mexico

Brazil

Ecuador

Peru

Dominican Republic

Argentina

English Proficiency in the Dominican Republic is 2nd in Latin

America; only Argentina ranks above.

AVERAGE ELECTRICITY TARIFF FACED BY INDUSTRIES(US$ Cents per kWh, 2014)

0.11 0.12

0.15 0.16

0.190.21

Costa Rica DominicanRepublic

Honduras El Salvador Nicaragua Guatemala

UNRtariff

Free Trade Zones in the DR consume electricity under the Non-

Regulated Consumer Regime, facing a competitive tariff.

QUALITY OF ROADS(World Competitiveness Report 2015-16, World Economic Forum, Index & Country Position)

4.3 4.23.9

3.6

DominicanRepublic

El Salvador Honduras Guatemala

53 5772

87

More than 19,000 kilometers of roads provide easy access

of manufactured FTZ’s goods to maritime ports.

NUMBER OF MARITIME PORTS(2015)

12

6

32

DominicanRepublic

Honduras El Salvador Guatemala

12 maritime ports provide a competitive infrastructure for

shipping to the world markets.

AVERAGE TRANSIT TIME TO THE US EAST COAST FROM SELECTIVE COUNTRIES

(In days by ocean)

35

13 14

3235

38

Dominican

Republic

Guatemala Nicaragua El Salvador China Vietnam Indonesia

Competitive wages + geographical advantage for shipments to US East

Cost, makes DR the best option for manufacturing in the region.

NUMBER OF INTERNATIONAL AIRPORTS(2015)

8

4

2 2

DominicanRepublic

Honduras El Salvador Guatemala

8 International Airports makes the DR one of the region’s most

accessible countries; 130 flights depart daily from the DR’s airports.

HOMICIDES PER 100,000 INHABITANTS(2014)

68.6 66.0

31.0

15.3

El Salvador Honduras Guatemala Dominican

Republic (2015)

The Dominican Government has intensified its efforts to prevent crime;

the target is to reach a one digit index in the next three years.

Invest in the Dominican Republic and be part of the best success secret in Latin America

MANY THANKS!