ordinary general assembly venamcham caracas, december 15, 2005

Ordinary General Assembly VenAmCham

Caracas, December 15, 2005

2Presentation

Ordinary General Assembly

SettingSetting

3Presentation

Actual economic growth: 9.1% Growth rate of the private sector:

10.9% Growth rate of the public sector: 3.4% Unemployment rate: 11.4% Informal economy rate: 45.9% Actual salary growth rate

Public sector: 27.5% Private sector: 16.6%

International reserves levels: US$ 29,104 million

Actual economic growth: 9.1% Growth rate of the private sector:

10.9% Growth rate of the public sector: 3.4% Unemployment rate: 11.4% Informal economy rate: 45.9% Actual salary growth rate

Public sector: 27.5% Private sector: 16.6%

International reserves levels: US$ 29,104 million

2004 and 2005 have been years marked by paradoxes that were difficult to manage: highly favorable economic indicators but also price and exchange controls, weak labor indicators, the fall of the capital market and the growth of the public debt.

1Ordinary General Assembly Setting

Annualized inflation rate: 15.3% Average oil basket price per year:

US$/b 45.17 Ordinary financial revenues: Bs.

63,755,251 M Total public spending: Bs. 55.4 B Liquidity: Bs. 66,478,998 M Interest rates (active: 15.07% and

passive: 10.82%) Internal demand: Bs. 35,709,466 M General BCV Index: 19.5 points

Annualized inflation rate: 15.3% Average oil basket price per year:

US$/b 45.17 Ordinary financial revenues: Bs.

63,755,251 M Total public spending: Bs. 55.4 B Liquidity: Bs. 66,478,998 M Interest rates (active: 15.07% and

passive: 10.82%) Internal demand: Bs. 35,709,466 M General BCV Index: 19.5 points

Source: BCV, INE, MEM, MF

4Presentation


2004-2005 Strategy2004-2005 Strategy

5Presentation

VenAmCham is a Venezuelan organization constituted by a Binational Chamber Mission:

“To promote trade and investment between the US and Venezuela and, while doing it, defending and promoting free enterprise, free trade and a free market, as well as the social action of companies to generate the environment in which member companies and the entire country can prosper.”

2004 – 2005 Strategy To promote the trade exchange and investment with the United States To promote and defend the free enterprise, free trade and free market system To support and protect the general interests of our members To concentrate our attention on initiatives and projects to confront and decrease

poverty levels To ensure the Chamber’s high performance levels

VenAmCham is a Venezuelan organization constituted by a Binational Chamber Mission:

“To promote trade and investment between the US and Venezuela and, while doing it, defending and promoting free enterprise, free trade and a free market, as well as the social action of companies to generate the environment in which member companies and the entire country can prosper.”

2004 – 2005 Strategy To promote the trade exchange and investment with the United States To promote and defend the free enterprise, free trade and free market system To support and protect the general interests of our members To concentrate our attention on initiatives and projects to confront and decrease

poverty levels To ensure the Chamber’s high performance levels

Faced with the described setting, in February 2004, during a strategic planning meeting, our mission was reaffirmed and we identified five action axes that were used as guiding for aligning VenAmCham’s efforts during 2004 and 2005.

Ordinary General Assembly 2004 - 2005 Strategy

VenAmCham promotes pluralistic debate and open dialogue and attends its members’ limitations with concrete and reasonable solutions.

6Presentation


Action axes

Promoting trade exchange and investments

Promoting trade exchange and investments

7Presentation

In 2005, the commercial exchange between Venezuela and the United States grew in relation with 2004, and represented 52% of Venezuela’s total trade exchange with the rest of the world.

Ordinary General Assembly Promoting trade exchange and investments

Total Trade Exchange VEN-US(Millions of Dollars)

8Presentation

In 2005, the commercial exchange between Venezuela and the United States grew in relation with 2004, and represented 52% of Venezuela’s total trade exchange with the rest of the world (Cont’d).


Oil Related Trade Exchange VEN-US (Millions of Dollars)

Destination of Venezuela’s Oil Exports to OECD Countries

(1) Germany, France, Italy, Great Britain, Austria, Belgium, Czech Republic, Scandinavia, Others

(2) Canada, Japan, Australia, Mexico, New Zeeland and other US territories

Venezuela’s oil exports to the US are 1.58 barrels per day, which represents a US$ 23,591 million revenue

Venezuela is the fourth largest exporter and provides 11.51% of the US oil imports

Venezuela’s oil exports to the US are 1.58 barrels per day, which represents a US$ 23,591 million revenue

Venezuela is the fourth largest exporter and provides 11.51% of the US oil imports

9Presentation

In 2005, the commercial exchange between Venezuela and the United States grew in relation with 2004, and represented 52% of Venezuela’s total trade exchange with the rest of the world (Cont’d).


Trade Exchange VEN-US Non-oil (Millions of Dollars)

There is a deficit non-oil trade balance of US$2,705 million during 2005 up till now

The participation of non-oil trade with the US during this year is of 30%

There is a deficit non-oil trade balance of US$2,705 million during 2005 up till now

The participation of non-oil trade with the US during this year is of 30%

By Country

By CountryNon-oil Imports1st Semester

2004-2005

Non-oil Exports1st Semester

2004-2005

754591 381

3834

1. 3041143

738

2475

Colombia Brazil Mé xico

200 4

200 5

754591 381

3834

1. 3041143

738

2475

US Colombia Mé xico

200 4

200 5

532

74225

2818

580

95263

1840

Colombia Brazil* México

200 4200 5

532

74225

2818

580

95263

1840

US Colombia M xico

200 4200 5

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Without counting CANTV’s investments, the variation in US investments in Venezuela in relation to 2004 was 49%. Thirty five percent (35%) of the Direct Foreign Investments (DFI) in the country come from this nation.


US Investments in Venezuela (Millions of Dollars)

1996-2004

DFI by Country of Origin (Millions of Dollars)

2002-2004

11Presentation


Action axes

Promoting and defending the free enterprise, trade

and market system

Promoting and defending the free enterprise, trade

and market system

12Presentation

Frank Amador Award for journalists

Web page: in 2005 more than 6,439 average daily hits Venezuela is News: 233 issues. 5,935 h/dp Economic Section: 1,606 h/dp Weekly Report: 46 weekly issues. 1,499 h/dp

10 issues of Business Venezuela

34 events with an approximate audience of 7,000 persons, on economic, legal and social matters

Frank Amador Award for journalists

Web page: in 2005 more than 6,439 average daily hits Venezuela is News: 233 issues. 5,935 h/dp Economic Section: 1,606 h/dp Weekly Report: 46 weekly issues. 1,499 h/dp

10 issues of Business Venezuela

34 events with an approximate audience of 7,000 persons, on economic, legal and social matters

Our events, publications, bulletins, interviews, web page, the recognition of journalistic work and meetings with the public and private sectors have served to promote and disseminate the respect to economic freedoms.

Ordinary General Assembly Promoting and defending the free enterprise, trade and market

13Presentation


Action axes

Supporting and protecting the general interests of

member companies

Supporting and protecting the general interests of

member companies

14Presentation

Seeking solutions based on dialogue, VenAmCham, through its Committees, constantly follows the decisions made by the government, parliament and the judicial power, both Venezuelan and American, that affect the competitiveness of its members.

Ordinary General Assembly Supporting and protecting the general interests of member companies

Processed Foods Foreign Trade Sales Directors E-Commerce Economic Energy Corporate Finance Engineering and Construction Real Estate Marketing

Processed Foods Foreign Trade Sales Directors E-Commerce Economic Energy Corporate Finance Engineering and Construction Real Estate Marketing

Arbitration Legal Matters Legal Directors Education Taxes Intellectual Property Human Resources Safety, Hygiene

and Environment

Arbitration Legal Matters Legal Directors Education Taxes Intellectual Property Human Resources Safety, Hygiene

and Environment

Legal Committees

Capital Markets Mining Outsourcing Prevention and Risk Control Mass Consumption Products Small & Medium Sized Companies Chemical and Petrochemical Information Technology Telecommunications Tourism

Economic Committees

Communication Media Social Alliance

Communication Media Social Alliance

Other Committees

Education Membership

Total: 32

Anzoátegui Central Central-Western

Anzoátegui Central Central-Western

Regional Committees

Monagas Nueva Esparta Zulia

15Presentation

Seeking solutions based on dialogue, VenAmCham, through its Committees, constantly follows the decisions made by the government, parliament and the judicial power, both Venezuelan and American, that affect the competitiveness of its members (Cont’d).


Number of Executives Participating per Committee

2534

2129

19

42

25

61 63

19 16

43

29

1015 17

25 2817 13

110

22

48

14 14

41

Total: 819 Executives

16Presentation



Number of Committee Meetings. July-November 2005

Total: 278 Meetings

1211

14

1011 11

10

12 12

1011 11 11

4

11

9

11

9

11 11

14

7

11

4

910

11

Alimento

s

Arbitr

aje

Asunt

os L

egales

Comerc

io Exte

rior

Directo

res L

egal

es

E-Com

merc

e

Econó

mico

Energía

Finan

zas C

orpor

ativas

Impues

tos

Inge

niería

y C

onstr

ucció

n

Inm

obiliario

Mer

cadeo

Mer

cado d

e Capita

les

Mine

ría

Outsourc

ing

Preve

nción y

Control d

e Pér

dida

s

Produ

ctos d

e Con

sum

o

Propie

dad In

tele

ctual

Pyme

Química

y Petro

quím

ica

RRHH

Segurid

ad, Hig

iene y A

mbien

te

Tecnolo

gía

de la

info

rmac

ión

Telecom

unica

cione

s

Turism

o

Ventas

17Presentation



Number of Speakers in Committee Meetings

11

8

1312

11 11

16

11 1214

11 1013

11

5

13

6

119

12

25

5

15

1

13

9

Aliment

os

Arbitr

aje

Asunt

os L

egal

es

Comer

cio E

xterio

r

Direct

ores

Lega

les

E-Com

merc

e

Energ

ía

Finanza

s Cor

pora

tivas

Impu

esto

s

Inge

niería

y C

onstr

ucció

n

Inm

obiliar

io

Mer

cade

o

Mer

cado

de

Capita

les

Min

eria

Out

sourc

ing

Preve

nció

n y

Contro

l de P

érdid

as

Produ

ctos

de

Consu

mo

Propi

edad

Inte

lectu

al

Pyme

Quí

mica

y P

etro

quím

ica

RRHH

Segur

idad

, Hig

iene

y Am

biente

Tecnolo

gía d

e la

infor

mac

ión

Teleco

mun

icacio

nes

Turism

o

Venta

s

Total: 289 Speakers

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Distribution of Companies/Organisms and Institutions as Speakers in Committee Meetings by Sector

NOTE: Many other speakers from the public sector have been invited, but their participation was never confirmed.

Private 65,63

Public34,37

19Presentation


Action axes

Commitment in focusing attention on initiatives and

projects to confront and decrease poverty levels

Commitment in focusing attention on initiatives and

projects to confront and decrease poverty levels

20Presentation

Convinced of how difficult it is to have a developed society with vulnerable companies, like successful companies in societies plagued by inequity and injustice, the Social Alliance promotes social responsibility actions among VenAmCham’s members.

Ordinary General Assembly Commitment in focusing attention on initiatives and projects to confront and decrease poverty levels

In 2005, the PNUD and VenAmCham signed a Memorandum of Agreement to promote projects and programs in the area of human development through corporate social responsibility in companies that are members of the Chamber, to extend the adherence of the Venezuelan business sector to the world pact and the millennium development objectives promoted by the United Nations

Publications Measuring the results of corporate social investment: a tool box 4th Directory of the Social Alliance

Events 2003 Social perspectives 5th Symposium on Corporate Social Responsibility: a business strategy Ethics and social responsibility

110 institutional columns and special insert in the print media Strengthening of NGO networks

23 workshops that provided training for 568 persons at the national level Active presence in the Regional Committees

In 2005, the PNUD and VenAmCham signed a Memorandum of Agreement to promote projects and programs in the area of human development through corporate social responsibility in companies that are members of the Chamber, to extend the adherence of the Venezuelan business sector to the world pact and the millennium development objectives promoted by the United Nations

Publications Measuring the results of corporate social investment: a tool box 4th Directory of the Social Alliance

Events 2003 Social perspectives 5th Symposium on Corporate Social Responsibility: a business strategy Ethics and social responsibility

110 institutional columns and special insert in the print media Strengthening of NGO networks

23 workshops that provided training for 568 persons at the national level Active presence in the Regional Committees

21Presentation


Action axes

Ensuring high performance levels

Ensuring high performance levels

22Presentation

Finally, in order to ensure the quality of the actions planned in the vision, the organization, processes and structure of the Chamber’s human resources were strengthened.

Ordinary General Assembly Ensuring high performance levels

New Organization Chart

Junta Directiva

Consultor Jurídico

Auditores Externos

ComitéEjecutivo

Vice-Presidente

Gerente General

Auditor Interno

Director Alianza Social

Director Relaciones

con el Afiliado

Director Administración

y Finanzas

Director Operaciones

Director Comunica-ciones y Medios

Director Análisis e

Información

Asistente al Director

Asistencia Social

Gerente Atención al

Afiliado

Gerente Visas

Gerente Infocenter/ Biblioteca

Asistente Ejecutivo

Gerente Administra-

ción

Gerente Sistemas

Gerente Recursos Humanos

Gerente Mercadeo

Gerente Logística

Publica-ciones

(Outsourcing)

Gerente Regional

Maracaibo

Gerente Regional

Barquisimeto

Gerente Regional Valencia

Coordinador Regional

Pto. La Cruz

Gerente Regional Maturín

Gerente Regional Porlamar


Comunica-ciones y Medios


Análisis e Información

Board of Directors

LegalConsultant í

ExternalAuditors

ExecutiveCommittee

Vice-President

General Manager

InternalAuditor

Director SocialAlliance

Director MemberRelations

Director Administration& Finance

Director Operations

Director Communi-cations & Media

- Director Analysis

Information

Assistant to Director

Social Alliance

Manager MemberServices

Manager Visas

Manager Infocenter/ Library

ExecutiveAssistant

Manager Administra-

tion

Manager Systems

Manager Human Resources

Manager Marketing

Manager Logisticsí

Publica-tions

(Outsourcing)

RegionalManager

Maracaibo

RegionalManager

Barquisimeto

RegionalManager Valencia

RegionalCoordinator Pto. La Cruz

RegionalManager Maturín

RegionalManager Porlamar


Comunica-tions & Media


Analysis &Information

23Presentation

Ordinary General Assembly VenAmCham

Caracas, December 15, 2005

ordinary general assembly venamcham caracas, december 15, 2005

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