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Caribbean Community Market Induction

Caribbean Community Market Induction

Latin America

Caribbean Hub (Dominican , + Caricom) The

– – 25 MM Population – Puerto Rico CARICOM Market Induction What is CARICOM?

Hispanic Caribbean = CARICOM CARICOM What is CARICOM?

• Caricom: 20 Caribbean Communities organized into a Common Market to promote . • Key elements of integration are Free movement (People, Services, Money, etc) and a Common Trade Policy. What is CARICOM?

–Caricom Markets (Members & Associates) • , , , , , Bahamas, St. Lucia, Antigua, , , , St. Kitts, St. Vincent, , , Cayman, Turk & Caicos, , & British

–Caricom Markets (Observers) • , Curacao, St. Maarten

–Key elements • Free movement • Common trade policy The Caribbean

Bermuda Islands ü Total markets: 20 - Caribbean (17) - (2) - (1)

TURK & CAICOS

CUBA

N CAYMAN D.R San Juan ST. MAARTEN

BARBUDA ST. KITTS J A M A I C A Kingston PUERTO RICO ANTIGUA

C A R I B B E A N S E A DOMINICA

ST.LUCIA BARBADOS

ST.VINCENT Belize CURACAO ARUBA GRENADA

TOBAGO

TRINIDAD

Guyana Suriname A Complex and Diverse Region

• Different Economies and Social environments

• Significant Cultural and historic differences

• High Risk and Highly Volatile Region CARICOM: Different Economies GDP SOB %

Bahamas 15% Jamaica 20% Others • Trinidad & 37% of 8% Caricom GDP

Barbados • Top 3 Countries: 72% of 7% Caricom GDP

Suriname 7%

Trinidad & Tobago 37% Guyana 3% Belize 3% CARICOM: Different Economies

GDP concentration (%)

Trinidad and Tobago Jamaica

Oil Sector, 35% , 30% Tourism, 50%

Remittances, 30% CARICOM: Different Economies

1.5% GDP Growth 1.4% 0.9% 1.0% 0.5%

Jamaica Trinidad Guyana Suriname Barbados Bahamas St. Lucia

-2.0% -2.5%

2012 2013 2014 2015E 2016E Jamaica 1.5 0.8 1.1 1.6 1.5 Trinidad & Tobago 1.3 1.6 1.6 0.8 -2.0 Guyana 4.8 5.2 3.9 3.6 0.9 Suriname 4.8 4.1 2.9 2.7 -2.5 Barbados 0.0 -0.3 -0.6 0.5 0.5 Bahamas 1.0 0.7 1.2 2.1 1.4 St. Lucia -1.3 -2.3 -1.1 1.4 1.0 CARICOM: Different Economies

Population (Millions) 2.81 Haiti: 11 mm

1.34 0.81 0.55 0.39 0.29 0.19

Jamaica Trinidad Guyana Suriname Bahamas Barbados St Lucia

Per Cap. Income/Year Haiti: $819

21,813 22,597 16,411

9,836 7,209 5,056 3,172

Jamaica Trinidad Guyana Suriname Bahamas Barbados St Lucia CARICOM: Different Economies

Unemployment % 20.0% 16.4% 15.2% 13.0% 11.0% 8.9%

4.1%

Jamaica Trinidad Guyana Suriname Barbados Bahamas St. Lucia

2012 2013 2014 2015 2016E Jamaica 13.0 13.0 13.0 14.9 13.5 Trinidad & Tobago 6.4 4.8 4.1 4.1 3.2 Guyana 11.0 11.0 11.0 N/A 11 Suriname 8.5 8.5 8.9 8.9 9.5 Barbados 10.0 10.5 10.5 12.3 11.3 Bahamas 14.7 16.2 16.4 N/A 15.9 St. Lucia 21 23 20.0 N/A N/A A Complex and Diverse Region

• Different Economies and Social environments

• Significant Cultural and historic differences

• High Risk and Highly Volatile Region CARICOM: Cultural Differences

Significant Cultural and historic differences:

• French, British, Influence

• 3 different

• 3 different

• Multi ethnic: Whites, Africans, , Chinese The South East Caribbean A Complex and Diverse Region

• Different Economies and Social environments

• Significant Cultural and historic differences

• High Risk and Highly Volatile Region $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 Trinidad & Tobago FX Evolution Evolution FX Tobago & Trinidad CARICOM:

Q1'13 2013 Q2'13 Q3'13 Q4'13 Q1'14 2014 Q2'14 Q3'14 Q4'14 Q1'15 2015 Q2'15 High Risk/ Volatile Region Q3'15 Q4'15 Q1'16 6.6 2016 Q2'16 7.0 Q3'16 7.3 Q4'16 7.5 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 Suriname FX Evolution

Q1'13 2013 Q2'13 Q3'13 Q4'13

Q1'14 2014 Q2'14 Q3'14 Q4'14 3.55 Q1'15 2015 Q2'15 Q3'15 Q4'15 4.00 2016 Q1'16 5.50 7.00 Q2'16 Q3'16 8.00 Q4'16 8.00

CARICOM: High Risk & Volatile CARICOM: Highly Risk & Volatile

Haiti, 2010 The Trade Trade Concentration

Haiti Jamaica Trinidad

10%

44% 83%

Modern Trade Traditional Trade Supermarkets

Guyana Haiti

Trinidad Jamaica Minisupers

Barbados Suriname Wholesalers

Haiti Jamaica

Jamaica Jamaica Mom & Pop’s

Jamaica

Guyana

Jamaica “Merchants” and Street Vendors

Haiti Guyana Pharmacies

Trinidad Super Pharm

- 8 Stores in Trinidad - Photo Service - Lab Testing Fontana Pharmacy

- 5 Stores in Jamaica - Services - Rewards Card Lowe’s Pharmacies Curacare

- 4 Store in the Bahamas - 3 Stores in Curacao - Lowe’s Wholesale Drug Retailers Growing in Caricom PriceSmart PriceSmart Massy Holdings LTD

• Listed on Trinidad & Tobago and Barbados stock exchanges.

• 2015: Revenue US$ 1.6 Billion / Op. Profit US$131 Million

• Operating through its subsidiaries with diversified activities in Trinidad & Tobago, Guyana, Jamaica, Barbados, St. Lucia, and USA.

• 10,000 employees most of whom are shareholders

Massy Business

• Largest Food Retail Network in • 47 Stores operating 5 Countries • + 13% Revenue Growth during 2015 • Largest pharmacy network 15 Outlets • Access to 3,000,000 consumers • Formats: Supermarkets, Pharmacies, Convenience Stores, Soft Discounters, Home Specialist and a Warehouse Club. Massy Retail Business PennyWise

• Unique Environment: Perfumery / Cosmetique • 8 Stores across • Large and Specialize Assortment ( > 16,000 Sku’s) • Family Own • Both “Over the counter” and Self Service Shelf

Summary

Caricom = Hispanic Caribbean

Complex and Diverse Region:

- Different Economic environments - Significant Social and Cultural differences - High Volatility - Challenging Trade

But still an attractive opportunity… Attractive market size

CARICOM: < 17MM

60% under age 30 Considerations

• Caricom is not homogenous market: Adaptability, Flexibility and Customization is Key

• Managing business by Clusters could be a way to go

• Things can change fast: Be Agile

• Low access to market information, syndicated data, etc. Considerations

• Be ready to evaluate and use different Go-to- Market solutions across the region

• Logistics Optimization is critical to succeed

• Understanding local “standards” is important

• If something works in “Latam”, not necessary will work in CARICOM Adaptability Adaptability Flexible Solutions

Price

Benefits Customization Customization Customization Social Responsibility Program “Bright Smiles, Bright Futures” Impacting 1,000,000 children across the Caribbean Region every year – Oral Hygiene – Brushing kits Caribbean Oral Health Initiative

Co-founded in 2013 by the University of Puerto Rico Dental School and Colgate A network of over 50 Oral Health professionals from 9 Caribbean countries – Government, Academia, Professional Organizations, NGOs – Cuba and Haiti joined in 2015

1st Summit – Nov 2013, San Juan 2nd Summit– Oct 2015, The Grenada Project: A Preventative Approach to Oral Health Care

A 2010 clinical study conducted by NYU in Grenada revealed caries prevalence of 83.4%

A multi-faceted 3-yr program targeted at preventing future oral disease of the 26,000 children living in Grenada was developed by NYU in collaboration with Colgate. Based on: 1. Oral health education for teachers, parents and children 2. School-based daily brushing 3. Fluoride varnish applied by trained nurses/teachers Impressive results! – 120,000 demineralized surfaces arrested = 80% reduction – Over 200,000 cavities prevented = 90% reduction Commitment

Bright Smiles, Bright Futures Hand Washing Campaign

Jamaica Trinidad

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