Bravo Business Awards 2019

Home , Bravo (Spanish group)

BRAVO BUSINESS AWARDS 2019

SUSTAINABILITY Cars: An electrifying future

LEADERSHIP Soft skills gain ground

CORPORATE The multilatina of the future

GROUNDBREAKERS Recognizing 25 architects of change in Latin America over the past 25 years HONORIS LATAM25

YOUR BUSINESS SOURCE FOR LATIN AMERICA » WWW.LATINTRADE.COM » THIRD QUARTER 2019

CONTENTS

THIRD QUARTER 2019 / VOL. 29 / No. 3

Cover: Shutterstock

Letter from the Editor Honoris Latam 25 Pure transformational action The groundbreakers By Santiago Gutiérrez Recognizing 25 architecs of change in Latin America over the past 25 years.

The Scene Science and Education: Steel consumption declines Rodrigo Galindo, CEO, Kroton Educacional, Brazil Mario Molina, Chemistry Nobel Prize, Mexico Increased movement in Ruth Shady, archaeologist, Peru Latin American ports Technology: Óscar Salazar, cofounder Uber, Mexico Opinion > The Contrarian Marcos Galperín, Mexico: recession or growth? CEO, Mercado Libre, Argentina Brian Acton y Jan Koum, founders, WhastApp By John Price Frederico Fleury Curado, former Embraer

LT.COM Social: Environtment: The air we breathe Gastón Acurio, cheff, Peru Education: Top law schools José Marcos Camargo, economist, Brazil Corporative Multilatinas Pedro Heilbron (CEO, Copa) and The Multilatina of the future: Enrique Cueto Plaza (CEO, LATAM Airlines) Multilatinas have progressed substantially Thilo Mannhardt, former McKinsey since the year 2000. A few new ones emerged, Daniel Servitje, CEO, Grupo Bimbo many others increased their regional presence, Jorge Paulo Lemann, businessman, AB Inbev and and some consolidated their global status. This other companies. article explores challenges and opportunities Antônio Luiz Seabra, founder and co-chairman, for the multilatinas of the future Natura Carlo Solari, chairman, Falabella Opinion > Multilatinas Juan Pablo del Valle Perochena, chairman, Orbia. 2 34 Are Latin American companies too focused on domestic markets? Public service: By Lourdes Casanova Alberto Alemán, former Administrator Panama Canal.

COVER Sergio Moro, Brazil Justice minister Leadership Zheng Shijie, CEO, China Development Bank Leaders who inspire Mauricio Tolmasquim, engineer, Brazil Today, their best asset is soft skills: Elsa Carbonell, biologist, Peru communication, openness, and a focus on client Jaime Lerner, former mayor Curitiba, Brazil. and employee experience. Angel Gurría, economist, México, . General Secretary OECD Opinion 33 Walking the line between creativity

and chaos Latin Trade is printed with paper certiﬁed by FSC and PEFC. By Deborah Ancona and Kate Isaac That paper is produced 100% from non-native forest.

LATIN TRADE THIRD QUARTER 2019 LATIN TRADE magazine BOARD OF ADVISORS Jorge Becerra, Richard Burns, Raúl Katz, Thilo Mannhardt CEO/EXECUTIVE EDITOR Santiago Gutiérrez MANAGING EDITOR Élida Bustos COLUMNISTS John Price, Lourdes Casanova, Deborah Ancona

Multilatinas CORRESPONDENTS LATIN TRADE / LATINTRADE.COM Argentina Charles Newbery, Diego Llumá BRAVO Business Awards 2019 Brazil Thierry Ogier (São Paulo) Awarded by the Council of the Americas to: Chile Emily Russell Colombia Alejandro González, Pilar Vargas Luis Alberto Moreno, U.S. David Ramírez (Miami); José Luis de Haro (NY) President, Inter-American Development Bank Mexico Daniela Clavijo (Mexico City), Nancy Ibarra (Monterrey) Peru Simeon Tegel Joao Miranda, Uruguay Diego Stewart CEO,Votorantim CONTRIBUTING EDITOR María Fernanda Rodríguez (Lead Researcher) TRANSLATION Ken Emmond André El-Mann, PROOF READING Rick Jarvie (English), Élida Bustos (Spanish) CEO, FUNO (Fibra Uno) COPY EDITING Rochelle Broder-Singer

Claudio Muruzábal, ART DIRECTOR Camilo Jaramillo :: studiovisual.co CEO, SAP Latin America and Caribbean Editorial Design Jolly Alexandra Carvajal

Carlos Vives, LATINTRADE.COM David Buchanan Singer, songwriter, founder Tras la Perla Initiative DEPUTY EDITOR María Fernanda Rodríguez Cristina Junqueira, RESEARCH Cynthia Arnson (The Wilson Center), COLUMNISTS Arturo Franco (The Atlantic Council) Co-founder, Nubank Margaret Myers (The Inter-American Dialogue), Susana Balbo, The Inter-American Development Bank, OECD Dan Restrepo, Senior Fellow, Center for American founder and president, Susana Balbo Wines Progress, former advisor to The White House. SPECIAL GUEST COLUMNISTS Deborah Ancona (MIT), Felipe Barrera (Harvard University), Harold Trinkunas (The Brookings Institution), The World Bank LAC Department Sustainable mobility BOARD OF ECONOMISTS Andrés Neumeyer (Universidad Torcuato Di Tella), Roberto Rigobón (MIT), Esteban Rossi-Hansberg (Princeton An electrifying future University), Andrés Velasco (Columbia University), Alejandro Werner (IMF) Electric cars are already travelling the roads of Latin America. LATIN BUSINESS TRAVELER EDITOR Rochelle Broder-Singer TRANSLATION Aimara Farhat

SALES VICE PRESIDENT María Cristina Restrepo • SALES MANAGER SOUTHERN CONE Mariano Vergara-Hegi ADMINISTRATIVE ASSISTANT Isabella Vásquez 3 EVENTS Associated Executives Vanesa López Melisa Triana

ADMINISTRATION AND FINANCE DIRECTOR Claudia Banegas

Accountant William F. Novoa M. IT Dallas R. Cobb FOR ADVERTISING/SPONSORSHIP OPPORTUNITIES [email protected] LATINTRADE.COM SENIOR MARKETING ASSOCIATE Rosemary Begg

Editora Latin Trade LTD y Editora Latin Trade Colombia SAS CUSTOMER SERVICE AND SUBSCRIPTIONS: Please visit www.latintrade. Economy com to order online or call 1-305-749-0888 /1-786-499-9725. Latin Trade Controlling inﬂation (ISSN 1087-0857, USPS 016715) is published in editions in English and Spanish by Editora Latin Trade Colombia SAS, under license from will be harder in future Manhattan Media LLC. All rights reserved. Reproduction in whole or in part of any text, photograph or illustration without written permission of the Publisher is strictly prohibited.

PRINT BY: EDITORA GÉMINIS S.A.S. Visit Latin Trade online @www.latintrade.com

THIRD QUARTER 2019 LATIN TRADE 4 LATIN TRADE LETTER FROM THE EDITOR Pure T do nothave tobe paved with bribes. perhaps openedways to show ushow new highways to governments andcompaniesin14countries, on corruptionthatnow are showing results respect infrastructure, andSergio Moro, withinvestigations China Development Bankintegrated usby building and ideasinthe Americas. Alberto Alemán andthe androadsbuild bridges tomove goods, people, exchange diplomaticnotes, approve treaties, or didn’t sitaround hopingthatgovernments would Galperin madeeconomicintegration areality. They that would create asource ofwealth forall. instead created budgets, goals, andresults fortasks resources. They stoppedrepeating tired slogans and being leftbehind, andofthesustainable useofnatural importance ofincludingpartssocietythatwere and Seabra,Antônio understoodtheenormous into actionsandresults. converted abstract ideasandplans bureaucratic governments, orthey make themselves heard by slow and Gastón Acurio. They were able to Márcio Camargo, ElsaCarbonell, and like Mauricio Tolmasquim, José political partiesormultitudes. Individuals. People or ledmany ofthesetranscendental changes. Not human lives intheprocess. without losingyears, valuable resources, or, worse, to advance withoutleaving socialgroups behind, rules andinstitutions. They showed itwas posible Condemned tohave themostunstable andweak the leastrespect forhumanlifeontheplanet. to beunequal. Condemnedtobetheplacewith world. Condemnedtobelessproductive. Condemned rates of2%lessthantheaverage oftheemerging region isnotirredeemably condemnedtogrow at BySantiago Gutiérrez Pedro Heilbron, EnriqueCueto, andMarcos Others, likeRodrigo Galindo It was peoplewhobrought about, facilitated, THIRD QUARTER 2019 quarter century. They showed usthatthe that tookplaceinLatin America inthelast the mostfar-reaching virtuouschanges wenty-five peoplehave helpedshow us transformational brought about, facilitated, transcendental changes. or ledmany ofthese It was peoplewho different. and repeat. With peoplelikethis, thefuture canbe years tocome. species onthefaceofplanetforthousands revolutions inhistory, willmaintainthehuman precursor of oneofthefirstconcertedenvironmental of Caral, andNobel Prize winnerMarioMolina, American calendarofcivilization withherdiscovery companies andcities. governments toprogress atthesamerate as Gurría recommended practices toenable national innovators parexcellence. At thesametime, Ángel and notthenationalstates, thatare thesocial from thefirstworld tolocalbusinessmenredesign agribusinesses. will modernizecommerce, payments, health, and After themcame, andwillcome, many more who social problems ofmobilityandcommunication. Salazar andBrian Acton usedtechnology toresolve companies likethem. Within thoseareas, Óscar advancement ofknowledge ifthere were more to formalemployment, managerial skills, and the per year. It’s whatwould easytoimagine happen Embraer, Orbia, and AB InBev were growing by 12.5% 1994, thereal combinedsalesofBimbo, Falabella, growing atanaverage rate of2.7%peryear since GDP ofLatin American andtheCaribbeanhasbeen tools fortransforming theregion. While thereal EXECUTIVE EDITOR EXECUTIVEEDITOR [email protected] The examples are there forustounderstand Lastly, RuthShady addedalmost2,000years tothe At thesametime, McKinsey ideas was bringing Private companiesproved tobethemostpowerful LT that it’s thecities, 2000s. revolution arrived inthe and whenthedigital disappeared inthe1990s, when protectionism their businesses action Jaime Lernershowed Today’s Energy Storage is Tomorrow’s Green Power

The promise of a greener energy future with renewable power has never been closer than it is today. Andrés Gluski With so much potential in renewables, there is one fundamental challenge that is often overlooked. AES President and CEO Renewables only provide intermittent energy, meaning the sun doesn’t always shine and the wind doesn’t always blow.

That’s why the need to store energy has never been more critical.

Power must be reliable and delivered on demand 24x7, throughout the year. This is where energy storage comes in and how AES has been helping customers with the green transition for more than 12 years—building and operating lithium-ion-based, grid-scale energy storage systems.

The integration of renewables with energy storage increases the stability of the grid. It enables services to be delivered at a lower cost, with zero emissions, much faster construction times, and with fewer permitting requirements than either renewable or thermal generation.

The greener energy future depends on energy storage and we’re leading that transition now.

Andrés Gluski AES President and CEO

Energy Storage in Action

AES made history bringing the world’s largest operational solar-plus-storage system online. Winner of the 2019 U.S. Edison Award, the Kaua‘i Island Utility Cooperative project will deliver nearly 11 percent of the island’s power. The project brings Hawaii another step closer to its goal of 100 percent renewable energy by 2045.

In Chile, AES is bypassing the expense and headache of traditional infrastructure using energy storage to make a “virtual dam.” The construction of a battery project is part of its 750 MW Alto Maipo hydropower plant near Santiago—the first power plant of its kind. Initially, it will deliver 10 MW, 50 MWh of energy storage, with plans to scale up to 250 MW, 1,250 MWh once the facility comes online after 2020. 6 THE SCENE LATIN TRADE The dataincludesdomesticproduction andimports. consumption shrunkmostwere Mexico and Argentina, according totheLatin American Steel Association (ALACERO). Latin America usedlesssteelduringthefirsthalfof2019compared withthesame periodlastyear. The countrieswhere Source Note: +/- change inthousandoftonsSource Note: 15 14 13 12 11 10 Thousand tons 7 6 5 4 3 9 2 8 1 -1,000 -900 -800 -700 -600 -500 -400 -300 -200 -100 100 200 300 THIRD QUARTER 2019 : cao Guayaquil Ecuador Costa Rica Peru Mexico aaaPnm-aic 2.520.587 Panama-Pacifico Panama Dominican Rep. Colombia oobaBeaetr 1.369.139 Buenaventura Colombia Mexico uroRc SanJuan Puerto Rico Argentina Brazil aac Kingston Jamaica Chile Panama 0 ECLAC, Port activityreportofLatin America and theCaribbean2018 Country INCREASED MOVEMENT INLATIN AMERICAN PORTS 234

Brazil STEEL CONSUMPTION 157 Colombia 121 io-on 1.187.760 Limon-Moin El Callao Lázaro Cárdenas. Michoacan Caucedo Bahía deCartagena Manzanillo. Colima Buenos Aires Santos portarea San Antonio Colon (MIT. Evergreen. Panama Port) Peru 71 Guatemala Port andportzone (APGandprivate terminals) (Puerto Nuevo. Dock Sud) 37 : Alacero El Salvador

Dominican 29

Republic (Jan.–June 2019 Laminated steel Laminated steel -2.5 Honduras -2.6 Bolivia Throughput -21 (TEU) 2018 vs 2.340.657 1.314.798 1.331.907 2.862.787 3.078.505 3.836.487 1.660.832 1.833.053 4.324.478 1.797.955 2.064.281 Uruguay .0.4 1.199.157 1.405.348 Jan.–Jun 2018) -44 Ecuador 920.000 -48 1.199.628 2.250.224 1.149.079 2.986.617 1.235.801 2.678.005 2.830.370 3.578.192 1.296.890 1.560.000 3.891.209 1.468.960 1.871.591

Throughput Costa Rica (TEU) 2017

-50

Chile DECLINES -50 Venezuela 6.6% theprevious year. worldwide operations versus which represented 7.1%of 53.2 million TEU were handled, of totalthroughput. In2018, est volume represented 84.1% The 10countrieswiththelarg with theprevious year. their performancecompared (66) in31countriesimproved of the118portsandportzones Caribbean (ECLAC). Almost half sion forLatin America andthe from theEconomicCommis 2017, according toareport increased by 7.7%in2018from America andtheCaribbean ports andportzonesofLatin Container cargo movements in -67 Panama -84 Paraguay

Argentina -654

Mexico -797

- Latin America -1,171

THE CONTRARIAN OPINION

MEXICO: RECESSION OR GROWTH?

By John Price

s Mexico in a recession? Well, yes … and no. Ever capture manufacturing orders previously sent to since joining NAFTA, Mexico has operated two China, a trend that may grow in time. In recent years, Ieconomies. Sometimes, the two economies walk in Mexico has eclipsed Canada as the world’s second- lock-step, but most of the time they are somewhat out largest supplier to the U.S. market and may overtake of sync, which has proven to be a comforting source of China if the Trump-Xi showdown becomes more diversification and stability. conflictive. The domestic economy, roughly 60% of the total, is driven by consumption, national government LOOKING AHEAD spending, and private investment, led by Mexico’s In a recent Americas Market Intelligence survey of powerful industrial grupos. Consumer and government Latin American divisional heads, Mexico was named spending are both tied to Mexican oil production and as the second most likely market to disappoint in global prices, both of which are soft at present. 2020 (after Argentina). Mexico’s trade economy is Mexico’s domestic economy is in recession. Some vulnerable to: i) a lengthy debate of the USMCA of its demise is owed to external factors, others to (United States-Mexico-Canada Agreement) by the a predictable sexenio lull in investment, but also to U.S. Congress; ii) a slowing of U.S. manufacturing (and Mexican investor fear of President López Obrador’s thus outsourcing); iii) continued weak oil prices. administration. As of May 2019, gross fixed investment Mexico’s elites are worried by what they perceive in Mexico was down 7.4% y-o-y and dropped 3.2% from to be the gradual dismantling of Mexico’s institutions. January to May, according to INEGI (as per Spanish Critics worry that AMLO’s infrastructure projects are Instituto Nacional de Estadística y Geografía). money misspent. His cabinet may boast academic Even if López Obrador, widely known by the credentials, but many lack governing experience. acronym AMLO, would like to pursue his most Proposed state-level delegates may undermine ambitious projects (a high-speed train network, new Mexico’s nascent democracy. Rumored plans to refineries, government decentralization, an alternative spend less on political parties and lower funding of 8 Mexico city airport), he lacks the tax revenue to do the INE (Mexico’s electoral authority) could weaken so. Furthermore, he is at odds with the Central Bank, political opposition. Senior Morena Senator Ricardo which has proudly defended its hawkish reputation in Monreal called for expanding the Supreme Court spite of AMLO’s desire for looser policy. No time soon from 11 to 16 justices to help his party influence the can the national government be a significant economic highest court. lever of growth, fiscally or monetarily, in Mexico. Since Mexico first embraced globalization with Cheap oil has been hard on the Mexican peso, but NAFTA, it has gradually constructed enviable many also speculate that capital flight has weakened institutions and laws that created Latin America’s the currency. The peso is one of the most liquid most competitive export economy. The question currencies in the world, with $90 billion worth traded facing investors today is whether Mexico’s economic each day. Thus, it is hard to detect when capital is sent growth can withstand six years of populist politics abroad, as allegedly many wealthy families have done and soft oil prices. LT since AMLO was elected. The sole shining light in Mexico’s economic make- up is trade. Exports will grow almost 9% in 2019, JOHN PRICE, managing director of Americas Market Intelligence and a 27-year veteran of Latin American competitive intelligence and strategy thanks to strong U.S. demand and Mexico’s ability to consulting. [email protected] Photo: Courtesy of Americas Market Intelligence Americas Market Photo: Courtesy of

LATIN TRADE THIRD QUARTER 2019 SURA, 9 AÑOS CONSECUTIVOS EN EL ÍNDICE MUNDIAL DE SOSTENIBILIDAD DOW JONES

Gestión de impuestosde Gestión Ciberseguridad

te Inversión Responsable n e a i t c cl u n d

Incidencia en co on

c n e ó i d Política anticrimen n dinámicas públicas go ó lac i ti e es R g Cód y s o de crisis g ies Estabilidad financiera y siióónn e eccoonnóm R meenns ómiciac riesgo sistémico Diim a ad SURA, 9 añosD consecutivos en el lid eria Índice Mundial de Sostenibilidad Dow Jones. Mat

Protección de privacidad tiv o pora o co r Gob iern

D D

i i mm

e e n n s Incl is usi ó ói n fin nó an cie Reporte ambiental an ra m a bm i eb ni tea l Sal nl ial u t a cia d y seg l oc en el trabajo s so ur n C idad ióón iu nssi d Ecoeficiencia mmeen ada Dii n ía A c t o r rp a o D c r e del talentoc humano at s ión i Derec v Estrategia de cambio a a r r y f climático ol i l de h o

os humano os l del iza c

humano t ió a n len

t o

Reporte social Indicadores laborales

SI MIRAS CON CUIDADO, VERÁS QUE TODO ESTÁ CONECTADO. Año a año evaluamos nuestra gestión y nos hacemos nuevas preguntas para encontrar respuestas Que al observar el entorno, identificamos riesgos y oportunidades, que nos permitan permanecer en el tiempo. que crecemos, cuando los demás también crecen, Ser sostenibles, nuestro compromiso con la sociedad. que al hacer las cosas bien hoy, el mañana es para siempre.

SEGUROS | PENSIONES | AHORRO | INVERSIÓN gruposura.com

Argentina •••••••• Brasil Chile Colombia El Salvador México Panamá Perú República Dominicana• Uruguay 10 LT.COM LATIN TRADE articles. Readthe completeranking atwww.latintrade.com blocks of50. The LT analysis indicates thatthemainweaknesses ofschools intheregion are research andtherelevance ofpublished Latin America (51worldwide), theclassificationdoesnotspecifically identifytheranki measurement is based on QS World University Rankings, which evaluates the best universities in the world. From the fifth position in Latin Trade TOP LAW SCHOOLS 15 14 13 12 11 10 6 5 4 3 2 1 9 8 7 © Copyright Editora Latin Trade eeul 0.09.3-.72.51.1-19.94 17.01 21.25 -0.07 99.93 100.00 Venezuela rga 05 23 103 05 .7-12.23 9.27 10.57 -170.30 22.39 60.51 Uruguay aauy100 90 09 39 19 -14.62 11.91 13.95 -0.95 99.06 100.00 Paraguay uroRc 58 .7-1099 .5-16.23 8.35 9.97 -1150 3.67 45.87 Puerto Rico eu100 99 00 04 47 -18.72 24.79 30.49 -0.04 99.96 100.00 Peru aaa9.17.4-48 39 14 -18.41 11.40 13.97 -34.87 71.64 96.61 Panama iaau 99 99 00 23 76 -21.20 17.61 22.35 -0.04 99.90 99.94 Nicaragua eio9.39.6-.82.82.2-19.48 20.92 25.98 -0.28 99.66 99.93 Mexico odrs100 99 00 74 06 -24.84 20.63 27.45 -0.02 99.98 100.00 Honduras utml 0.0100 98 40 -19.46 24.07 29.89 0 100.00 100.00 Guatemala cao 0.09.2-.11.61.9-23.89 14.89 19.56 -1.71 98.32 100.00 Ecuador oiia e.100 99 00 61 37 -15.02 13.73 16.15 -0.09 99.91 100.00 Dominican Rep. ot ia100 96 03 93 57 -18.67 15.73 19.34 -0.31 99.69 100.00 Costa Rica ooba9.69.0-.22.41.3-19.52 16.53 20.54 -8.42 92.10 99.86 Colombia hl 93 76 16 50 10 -16.01 21.04 25.05 -1.68 97.66 99.30 Chile rzl8.36.4-74 52 27 -16.87 -18.27 12.71 21.57 15.29 26.39 -27.44 0.00 68.14 100.00 86.83 100.00 Brazil Bolivia retn 92 38 57 61 33 -17.50 13.31 16.13 -5.72 93.85 99.22 Argentina nvria elsAds Clmi 1107. 9873.32 75.15 74.07 79.8 83.5 80.8 74.3 76.25 74.3 74.71 76.8 51-100 83.2 45 83.7 5 50 76.9 78.4 2 Colombia 40 4 48 Brazil Argentina 1 3 Universidad deChile Chile Universidad delos Andes Mexico Universidad deBuenos Aires (UBA) Universidad Nacional Autónoma deMexico (UNAM) Universidade deSãoPaulo Pontificia Universidad CatólicadeChile nvria e oai ooba1 5-0 256. 62.00 68.0 62.98 63.67 62.90 62.5 65.7 68.4 66.2 151-200 64.55 63.71 61.7 64.58 62.3 62.7 65.51 13 78.6 67.8 151-200 101-150 151-200 73.5 65.80 75.7 Colombia 65.8 13 64.5 13 7 72.0 67.2 67.2 101-150 101-150 Chile 101-150 Brazil Brazil 72.9 101-150 7 7 7 101-150 7 Universidad del Rosario Colombia Chile Universidade Federal doRíodeJaneiro 7 Colombia Peru Universidad Diego Portales (UDP) Fundação Getulio Vargas (FGV) Colombia Pontificia Universidad Católicade Valparaíso Universidad NacionaldeColombia Pontificia Universidad CatólicadelPerú Pontificia Universidad Javeriana Universidad ExternadodeColombia Country THIRD QUARTER 2019 created theranking ofLatin America’s Top Law Schools toidentifythebestinstitutionsthatteach law inLatin America. The exceeding levels ofpollution a colCountry Law School THE AIR WE BREATHE 022017 2012 People exposedto (% oftotal) ENVIRONMENT EDUCATION % ch. hl 1106. 9168.62 79.1 65.8 51-100 5 Chile Mean anualexposure(mi crograms percubicmeter)

022017 2012

IN LATININ AMERICA America Latin

QS Ranking2019 - Global % ch. g oftheuniversities but rather theirlocationin (2019) Reputation unhealthy forhumanbeings. by the WHO. Anything above thatis the maximum level recommended In thetableonleft, 10indicates levels ofPM2.5 have thecleanestairandlowest years. PuertoRicoandUruguay has improved over thepastﬁve for decades, thoughthesituation severely exposedtopoorairquality Latin America’s populationhasbeen meter. air exceeds10micrograms percubic average annual concentration inthe start tobeharmfulwhenthe (WHO) statesthattheparticulates The World HealthOrganization EnvironmentEuropean Agency. in termsofhealth, according tothe PM2.5, represent theworst pollution Suspended particulates, called Database 2019 Source: Academic Research World Bank’s Environmental : MaríaFernanda Rodríguez Reputation Employer Score

Source: QS World University Rankings 2019 Los protagonistas de nuestro negocio hoy, son los protagonistas del mundo mañana.

Somos uno de los principales empleadores de jóvenes de América Latina. Creemos en la importancia de brindar herramientas que les permitan desarrollar su futuro. Conoce más en www.arcosdorados.com 12 MULTILATINAS Ilustración: Shutterstock LATIN TRADE The multilatina The multilatina discuss theissue. Latin Trade the multilatinas ofthefuture. new challenges andopportunitiesfor realities oftheEconomy 4.0, have set favorable thaninthepast, andthe The international situation, now less some consolidated theirglobalstatus. increased theirregionalpresence, and A few new onesemerged, many others substantially sincetheyear 2000. Multilatinas have progressed of thefuture THIRD QUARTER 2019 consultedexpertsto

Foto: Cortesía de Nutresa he region’s 100 largest nonfinancial multilatinas with stock exchange listings generated $1.05 trillion revenue in 2018, according to an analysis by Latin Trade economists. Three quarters of this came from the oil and gas sectors (27% of the total), retail (15%), food and beverages (15%), energy generation (9%), and Ttelecommunications (9%). While these five sectors also represented about three-quarters of total revenues of multilatinas in 2009, it is noteworthy that the retail and food and beverages sectors were able to increase their participation over the past 10 years while others, such as telecommunications, shrinked. The trend reflects the merger and acquisitions activity in the industry, while the expansion of sectors such as food and beverages and retail were related to the boom in mass consumption. In addition, figures show the growth of activities such as software and agribusiness, which were not even on the chart 10 years ago. Geographically, the Latin Trade analysis shows the number of multilatinas headquartered in Brazil declined by 11 between 2009 and 2018, basically as a result of mergers and acquisitions. At the same time, the number from Mexico increased by four, from Colombia and Peru by three each, and from Chile by one. Argentine companies remained unchanged at six. At the close of 2018, Mexico, Brazil, and Chile were still dominant, albeit with a reduced combined share, with 82% of the total of multilatinas compared with 88% in 2009. A study published in early 2018 by The Boston Consulting Group (BCG) confirmed the dynamism of multilatinas in recent years. It found that the revenues of the 100 largest, including financial companies and some that are family owned, grew at an annual average rate of 5.2% in dollars between 2008 and 2016. That was three times faster than the average for the largest companies in Latin America and the Caribbean.

The success of multilatinas is based on their ability to overcome a wide range 13 of obstacles – including regulatory, institutional, and logistical. But it also reﬂects strategic initiatives, such as moving closer to consumers, increasing brand value, and innovation, according to BCG. Specialists at Deloitte Consulting said the expansion of multilatinas was based on strategic factors such as the talent of C-suite executives, leadership positions in their domestic markets, internationalization strategies, access to capital, standards of governance, and the political and economic stability of countries in the region. The conclusions come from their study; “Becoming a Multilatina - Key factors to regionalizing in Latin America,” published in 2015.

A NEW OPERATING ENVIRONMENT Today, multilatinas face a changing situation. “We are at an inﬂection point,” said Omar Aguilar, strategy and operations principal at Deloitte Consulting. Challenges such as slower global growth and the Economy 4.0, which involves the incorporation of new technologies and artiﬁcial intelligence, carry with them risks that range from

THIRD QUARTER 2019 LATIN TRADE 14 MULTILATINAS Fotos: Cortesía de Deloitte LLC y BCG LATIN TRADE

Libre, Globant, Despegar, Totvs, andOLXinthe2000s. generation thatare following pioneerslikeMercado as well asRappiinColombia, are partofanew told traditional businessesandreach more segments,” he models andanattack mentalitythatwants tobreak at BCG. “They are new companies motivated by new Jorge Becerra, managing director andseniorpartner generation oftechnological multilatinas, according to disruption amongtheirmainpriorities. region’s companiesdonotincludetechnology term. thereby ensuringmarketleadershipover thelong transformation toimprove productivity andefficiency, for company differentiation, butalsoabroader technology.” infrastructure ofthecompany andembeddingdigital Aguilar. “They shouldbechanging thetechnological in cybersecurity transformation,” anddigital said what othercompaniesintheworld are doing:invest TALENTGOVERNANCE AND told disruptive companies, theco-authorof2015study in accesstocapital–andeven theemergence of macroeconomic instability topossible restrictions determining factor, Deloitte’s Aguilar stressed than before. Although talentcontinues tobethe Today, multilatinas face awidersetoftasks Unicorns such asBrazil’s Nubankand99 Taxis, Even so, there hasbeenanemergence ofanew However, arecent study by Deloitteshows the Aguilar saidthisstrategy notonly allows “At thistime, companiesshouldbefocusingon THIRD QUARTER 2019 Omar Aguilar, Deloitte Consulting. Latin Trade Latin Trade . . principal, strategy andoperations, changes rapidly,” Oswald Mata, Americas regional capabilities todifferentiate inanenvironment that new opportunities. “The challenge ishow tobuild facedbyChanges multilatinas are alsocreating ARE THERE OPPORTUNITIES THE interviewed by essentially family-owned businesses, thespecialists that iscapable ofrelating totheecosystem.’’ the businessmodel, whilemaintainingamentality necessary todevelop theleadershipmodel, andthen as millennialsandnew generations do. It isfirst challenge forcurrent leadershipistolearnby doing, having everything right thefirsttime,” hesaid. “The in ahierarchical structure, andwhoare usedto who are now intheir40sand50s, whohave grown of traditional companies. They are ledby people this pointofview, “I worry more about the leadership education alone,” Aguilar said. about new, different things, about basic andnolonger are more differentiated, technology-enabled, and employees. educational needsofmiddle-andlower-level case, butalsotakingaccount ofthetraining and management positions, aswas previously the the importanceofnotonly focusingonsenior access tocapital, according toDeloitte’s Aguilar. economic activity couldleadtoamore restricted financing, especially whenarelative declineinglobal would helpgive themeasieraccess tonew sources of adopt much stricter standards ofgovernance. That

Given thatmany multilatinas continue tobe BCG’s Becerra saidwhileheagrees ingeneral with In addition, the “talent andcapabilities we need

Oswald Mata, Deloitte Consulting. Latin Trade Americas agreed that they should

regional consulting leader, COUNTRY MULTILATINAS 2009 Argentina 6 Brazil 51 Chile 12 Colombia 2 Mexico 25 Peru 2

COUNTRY MULTILATINAS 2018 Argentina 6 Brazil 40 Chile 13 Colombia 5 Mexico 28 Jorge Becerra, managing director and senior partner, Peru 6 BCG. Sources: LatinTrade

consulting leader for Deloitte, told Latin Trade. and industry, and even in technology, according to Companies should learn how to react to events Deloitte’s Aguilar. such as recent changes of government in several of While Becerra agreed, he emphasized the potential the region’s countries and the trade war between for applying technologies, for example in laboratory- the United States and China, he said. Phenomena created foods and in digital factoring in the trade like a trade war can also create opportunities for sector. the multilatinas in sectors like commodities and “Opportunities are open, and those ﬁrms that have agroindustry, Mata said. the ability to scale, execute, and align strategies will As well as this, multilatinas also have potential in take advantage and ﬂourish,” said Mata. LT sectors such as mass consumption, manufacturing DAVID RAMÍREZ REPORTED FROM MIAMI

TRADE, OIL, AND FOOD – THE VANGUARD OF MULTILATINAS (TOP100 companies by revenues, in billion US dollars)

300.000 2009 2018 250.000 15 251.86 285.57 200.000

150.000 Latin Trade

100.000 Source: 89.51 153.64 81.61 96.31 127.71 96.80 96.25 159.75 58.67 73.95

50.000 49.77 62.54 48.18 15.98 15.68 18.32 15.13 14.08 11.10 29.01 4.71 6.57 16.94 6,21 9.42 3.10 3.01 3.83 3.03 4.02 0 2.41 3.08 Trade Other Funds Mining Chemical Oil & Gas Construction Pulp & Paper Electric Power Vehicle & Parts Vehicle Agri & Fisheries Electric Electron Industrial Mach. Software & Data Nonmetallic Min. Transportat Serv. Transportat Food & Beverages Telecommunication Basic & Fab. Metal.

Research: María Fernanda Rodríguez

THIRD QUARTER 2019 LATIN TRADE 16 OPINION LATIN TRADE L investments. InMexico, América Móvil represented 45% México – concentrate alarge partoftheinternational of theregion – Vale inBrazil or América Móvil in sums ofcapitalare investing internationally. find thatonly large organizations withaccesstolarge of theleadinginvestors behindtheabove numbers. We data about mergers andacquisitions, asagoodindicator opening anew factory oranew project) andexcludes which traces greenfield investments (i.e., companies Chile comesthird with20%, andColombia9%. these fourcountries, whileMexico accountsfor27%, abroad. Brazil represents 31%ofaccumulated stock from Chile, andColombia–are investors alsothebiggest economiesoftheregionof thebiggest –Mexico, Brazil, 2010 andhave beensurpassedby thoseofChina. Most from emerging markets, itsflows have declinedsince are below. competitiveness oftheregion. Someofthefindings domestic focusdoesnotbodewell forthefuture range ofcompaniestoinvest abroad, acontinued of large companies. these investments are concentrated inasmallnumber reduced theiroverall investments abroad, andtwo, of my worries: one, Latin American companieshave Our dataanalysis shows thatthebigcompanies My research teamhasuseddatafrom fDI Markets, While Latin America previously ledtheinvestments If Latin America isnotable toencourage abroader It was aninteresting exercise anditconfirmedsome THIRD QUARTER 2019 MULTILATINAS investments. series about Latin America’s international to writeachapter intheir GlobalLATAM investment promotion agency, invited me ast year, my friendsatICEX, theSpanish If thatisthesituation, itdoesnotbodewellfor DOMESTIC MARKETS? ARE LATINARE AMERICAN the future competitiveness oftheregion. TOO FOCUSED ON TOO FOCUSEDON follow. behindthatandanexample to is oneoftheengines practices thatcreate opportunitiesforall. expansion. Countriesshouldprovide examples andbest more conducive tocompetitionandtheinternational sized firmstogoabroad andprovide anecosystem should encourage bigcompaniestohelpmedium- competitiveness. American firmstoinnovate andcanconstrain their domestic focuscanreduce thepressures ontheLatin caused to Vale by theBrumadinhodamtragedy. A strong scandal ofOdebrecht orthereputational damage top companiessuffersasithappenedinthecorruption investments abroad ofacountry willslow ifoneofthese Still, theconcentration persistseven inChile. Koppers Group with9%representing 33%ofthetotal. Airlines with14%, retailer Falabella with10%, andSiglo from companies:LATAM Chilewiththethree biggest investments abroad. A more balancedpicture emerges three ofthemrepresent almost50%oftotalBrazilian by Votorantim with13%, andOdebrecht with9%. The in Mexico. Still, Vale represents 23%ofthetotal, followed investments. of thesetwo titansrepresents more thanhalfofall 2009 and2017. Ifwe addCemex with11%, themight of allgreenfield Mexican investments abroad between LOURDES CASANOVA, LOURDES University. Markets Institute, CornellS.C. Johnson College ofBusiness, Cornell Chilean firmsthrive intheregion. Itsagency, Prochile, To prepare forthefuture, Latin American countries As aresult ofthisconcentration ofpower, theoverall In Brazil, the investments are lessconcentrated than LT [email protected] COMPANIES senior lecturer ofmanagement, director Emerging

By Lourdes Casanova

Photo: Courtesy of Cornell University “We dream, we surprise Together, today we make it possible and we innovate to be No. 1” We were born in 2012 and since then we have dreamed, innovated, startled our peers Issuing loans to a segment of the population that’s been and enjoyed pulling apart paradigms in the unattended by traditional banking in the safest consumption credit Colombian ﬁnancial industry. class to be found in Colombia (government payroll deducted payments).

Captivating the heart and soul of Becoming the ﬁrst in our niche to have been assessed by international credit rating agencies: 19.000 Finsocial: “Institution that has exhibited a HIGH clients in 27 cities performance in general functions as an all over the country. administrator.”

Earning the trust of investors (Kandeo, I Medici) of multiple sources of With full commitment to the institutional funding (Bancoomeva, Bancolombia, Banco de environment and our community. Occidente, Colteﬁnanciera) and of great allies who endorse all the loans we issue (Suramericana Group and Mundial Insurance).

Growing into one of the biggest and most solid FundaciónFinsocial non - banking lenders of our country. And we’ll keep on thriving while transiting into an oﬃcially supervised and regulated lender in Colombia, after which our value will double… Obtaining as well the IADB’s recognition as While that of every new investor a Fintech Latam company. will be quadrupled.

August 2019 Loan Issued per year ⁽¹⁾ Equity ⁽¹⁾

US$ million US$ million

US$ 40 mill cash - in US$ 118.0 mill Outstanding loans portfolio 389 151 313 111 234 82 ROE > 20% 150 63 86 58 24 27 22 10 US$ 32.5 mill 2017 2018 2019F 202OE 2021E 2022E 2023E 2017 2018 2019F 202OE 2021E 2022E 2023E Loans issued ytd Together, today we make it possible today we make Together, Proﬁts (after tax) ⁽¹⁾ Loans portfolio ⁽¹⁾ ⁽²⁾ US$ 55.0 mill US$ million US$ million Future income from loans 676 to be issued in 5 yr horizon US$ 40 mill cash - in 513 % 40 0.31 354 Portfolio quality index of 29 218 government payroll deducted payments 139 19 91 45 10 EBITDA 0 2 4 US$ 10.5 mill 2017 2018 2019F 202OE 2021E 2022E 2023E 2017 2018 2019F 202OE 2021E 2022E 2023E Estimate 12/19

⁽¹⁾ FX COP/USD = $ 3,200 Profits ⁽²⁾ Outstanding loans portfolio in 2023 represents 5% of total market US$ 3.6 mill After tax investor@finsocial.co fin social fins ocial finsocial_sas www.finsocial.co HOMAGE

RECOGNITION OF 25 INDIVIDUALS WHO HAVE HELPED TRANSFORM LATIN AMERICA OVER THE PAST 25 YEARS THE GROUND BREAKERS

hey are rule-breakers, non- EDUCATION AND SCIENCE conformists, curious, and never T give up when things aren’t RODRIGO GALINDO working out. They are always trying to go He leads Kroton Educacional, the largest private the extra mile. They overcome challenges education company in the world. Based in Brazil, by leaping over barriers that others never Kroton’s university programs have expanded the dare to cross or even imagine can be career horizons of millions of people, especially those with low incomes. surmounted. MARIO MOLINA Each one of them leaves a footprint in The 1995 Nobel Laureate in Chemistry. He was one their ﬁeld. Some, in education or science, of the ﬁrst researchers of atmospheric chemistry others in business or public affairs. They and the thinning of the ozone layer, an early war- have transcended, not by words but by ning on global warming issues. He graduated from deeds, when they tried new ways and put the National Autonomous University of Mexico and forward their ideas even when the world earned a doctorate in California. was against them. With all that passion and hard workt hey have made their RUTH SHADY Peruvian Archaeologist. Discovered the ruins of the contribution toward transforming and oldest civilization in Latin America. The people of improving Latin America. Caral, north of Lima, lived around 2900 BC and Today, Latin Trade’s editorial board honors were contemporaries of the Sumer and Egyptian 18 these 25 disruptive leaders who opened up civilizations. unimaginable paths in our region. We will celebrate their achievements at a dinner in their honor on October 15 at the JW Marriot Brickell Hotel in Miami.

Below you will ﬁnd a brief summary of the 25 people who were selected by Latin Trade to commemorate its 25 years.

LATIN TRADE THIRD QUARTER 2019 Photos: Pixabay

THE GROUND BREAKERS

TECHNOLOGY

BRIAN ACTON AND JAN KOUM MARCOS GALPERIN Creators of WhatsApp, the application Founder of Mercado Libre in 1999, that radically transformed how people the ﬁrst of the 19 Latin American communicatie in Latin America, where unicorns. The Argentine e-commerce it is used by 60% of the population. In company is a symbol of Latin Brazil it has more than 95% of the America’s transition to technology. market and about 70% in Uruguay, Argentina and Chile. FREDERICO FLEURY CURADO Engineer. Converted ÓSCAR SALAZAR Embraer into the world’s third Mexican engineer. One of three largest aircraft manufacturer. founders of the Uber platform that The company is particularly transformed mobility across the world, strong in the regional jets market. creating thousands of jobs. 19

SOCIAL

GASTÓN ACURIO Leader of the gastronomic revolution in Peru. Taking advantage of the treasure trove of biodiversity of 60 JOSÉ MÁRCIO CAMARGO microclimates and 25,000 types Economist. Created the conditional transfer of food he put ceviche and causas mechanisms that lifted millions of Latin on the map of global cuisine. The Americans out of poverty. The system, which gastronomic cluster generates $500 links subsidies to obligations such as attending million annually in revenues from school or undertaking medical controls, helped tourism, and has changed the culture the generation that grew up during the 1990s. and promoted social inclusion.

THIRD QUARTER 2019 LATIN TRADE HOMAGE CORPORATE PEDRO HEILBRON AND ENRIQUE CUETO PLAZA The integrators. Airways, not highways, have united Latin America over the past 25 years. LATAM and Copa have both shown momentous growth during that period. In 1998, under Pedro Heilbron’s leadership Copa closed a deal with Continental and later widen its ﬂeet and destinations. Enrique Cueto became general manager at LATAM in 1994. The merger with TAM and the new association with DELTA will consolidate even more its position.

THILO MANNHARDT Engineer, Ph.D. One of three executives who, in the 1980s, opened the ofﬁces of McKinsey in Brazil and from there expanded across Latin America. He was director & senior partner. The consultancy has transformed the way large companies in the region operate.

JORGE PAULO LEMANN Businessman. Converted Brazil’s Brahma and Companhia Antarctica Paulista into the giant AmBev, which years later would merge with InBev of Belgium. The company, now known as AB InBev, is the world’s largest brewer.

ANTÔNIO LUIZ SEABRA Founder and co-chairman of Natura. The Brazilian cosmetics company is among the 100 most sustainable corporations in the world. Natura has developed a phenomenal sustainability program in the Amazon region. This year’s acquisition of Avon turned it into the world’s fourth largest cosmetics company.

CARLO SOLARI DANIEL SERVITJE Chairman of Falabella. Under the leadership CEO of Grupo Bimbo, of the Solari family, the company adapted the largest bakers in the concept of the department store to make

20 the world. Under his it successful in Latin America. In 25 years, management, the Solari has transformed the business, creating company expanded a bank and introducing sales formats that its market beyond enabled Falabella to become South America’s Mexico to India, biggest retailer. China, the United States, Europe JUAN PABLO DEL VALLE PEROCHENA and most of Latin President of Orbia. A groundbreaking com- America. It produces pany that grew from a basic chemical bu- 13,000 products and siness into a global, diversiﬁed corporation. has annual revenues With interests in irrigation, infrastructure, of $15 billion. ﬂuoride and telecommunications, Orbia sets the standards for other companies and has a clear commitment to sustainability.

LATIN TRADE THIRD QUARTER 2019 PUBLIC SERVICE Pixabay Fotos:

ALBERTO ALEMÁN MAURICIO TOLMASQUIM Engineer, administrator of the Panama Canal for Brazilian engineer specializing in energy. He worked on the 16 years. He led the transition from American to teams that designed a new energy plan for his country. Panamanian administration in 1999 and later He prepared the contracts that enabled the installation of carried out the megaproject of broadening the solar and wind energy generating plants, models that were canal. adopted by Chile and Mexico.

JAIME LERNER ELSA CARBONELL Former mayor of Curitiba, Brazil. He was the Peruvian biologist and researcher. She led the agriculture driving force behind Latin America’s ﬁrst fast and negotiations of the Free Trade Agreement with the United efﬁcient public transport system. The model was States. As head of the Agrarian Health Service, she subsequently adopted by Bogota and other cities expanded the country’s international markets, leading to in the region. the creation of Peru’s agro-exporting miracle.

SERGIO MORO ÁNGEL GURRÍA The judge in the Car Wash scandal. He spearheaded Mexican economist and current secretary general of the one of the deepoest anti-corruption drives in the Organization for Economic Cooperation and Development history of Brazil. Revelations about the giant money- (OECD). He brought about the expansion of the laundering scheme shook the countyr’s political organization so that it includes more countries, including structure and led to the imprisonment of dozens of some in Latin America. He has also transformed it into the ofﬁcials organization that guides countries in the best practices of public administration.

ZHENG SHIJIE President of the China Development Bank. Under his management the bank became the largest lender to Latin America. Its Long-term loans, which carry no political conditions, are larger than those granted in recent years by the World Bank, the InterAmerican Development Bank and the Latin American Development Bank (CAF) combined. 21

THIRD QUARTER 2019 LATIN TRADE 22 LEADERSHIP Staircase photo: Samuel Zeller / Unsplash LATIN TRADE THIRD QUARTER 2019 Leaders Leaders Today, theirbestassetissoftskills: A “A great leaderisonewhocreates andstimulates appropriate. Today, collective leadershipisrequired. leadership ofexecutives inthepast isnolonger them.” inspiring theirpeoplewithapurposethatmobilizes said. ability“Their strongest hastobepersuadingand to motivate andcreate changes very huge quickly,” he place, today’s leadershave tobetransformational, able (HIEC), anexecutive headhunter. partnerofHIExecutiveglobal managing Consulting the ability toadaptchange, according to Tim Robson, worlds apartfrom thoseof10years ago. is commonplace, theabilities thatdeﬁnealeaderare complexity, andambiguity–known asthe VUCA factor– the only constantischange andvolatility, uncertainty, might have putanendtohiscareer. employees ascolleagues rather thansubordinates, it a focusonclientandemployee communication, opennessand In otherwords, theindividual andhierarchical “With thespeedatwhich seriouschanges are taking The ﬁrstindispensable qualityintoday’s leaderis Nowadays, thingsare very different. Inaworld where inspire at listeningtoothers, orifhehadtreated admitted tohisstaff a questionfrom aboard member, ifhehad answered withanhonest “I don’t know” to decade ago, ifacompany’s president had who who that he wasn’t good that hewasn’t good experience experience Egon Zehnder

Photos: Courtesy of HI Executive Consulting and Photos: Courtesy of HI Executive

Tim Robson, managing partner, Carlos Rodríguez, director for the Andean region, HI Executive Consulting. Egon Zehnder headhunters.

leadership among people,” said Mauricio longer enough to answer to the stockholders. Rodríguez, professor of leadership at the It’s indispensable to also answer to the University of the Andes and University stakeholders.That is a dramatic change,” Externado of Colombia in Bogota. said Carlos Rodríguez. “For the CEO, it used “A leader (today) is an inspirer, a coach, to be that the only measure was return on an advisor, an ally; not the boss who gives investment. Now, he is also measured by the orders and is omnipotent, omniscient, and impact on society.” omnipresent. Leaders today are able to Egon Zehnder, in partnership with surround themselves with people who are Harvard Business School, has identiﬁed better than they are and share their power the four most important variables for

with whoever has the best knowledge of predicting a person’s potential for leadership: 23 the issue,” said Mauricio Rodríguez, who has determination, curiosity, insight, and written several books on leadership. engagement – where the ability to bring One of the most far-reaching changes together and mobilize people toward a single facing today’s CEOs is the way that talented purpose is fundamental. “In English it is young people view their professional lives. called ‘followership,’ the ability to convince “The dream of millennials is not to work people to follow you, to reach their hearts for a company; it is to do something that will and minds,” said Rodríguez. have an impact, that makes a difference, so This change of parameters has given that their lives have a purpose,’’ said Carlos rise to the so-called “soft skills,” leading to Rodríguez, director for the Andean region at the creation of terms such as CBO (chief the headhunter firm Egon Zehnder. behavioral officer) and behavioral fitness, “It’s not only about doing well. It’s also which are increasingly being applied in about doing good. That means the challenge business. for CEOs is how to make work interesting “Performance is pure behavior, and it’s enough to attract and hold that talent. It’s no what produces results,” said Lee Newman,

THIRD QUARTER 2019 LATIN TRADE 24 LEADERSHIP LATIN TRADE THIRD QUARTER 2019

Human Sciencesand Technology, Madrid. Lee Newman, performance. feedback from subordinates about theirown them; they talkabout emotions andseek for someonewhocancompensate for own weaknesses andlooktotheirteam being infallible, they recognize their are more “ﬂesh andbone.” Far from perform better,” Newman said. feel comfortable andcommitted, andcan the strengths ofeach ofthemsothatthey for theiremployees, “taking advantage of experiences bothfortheircustomersand It isexpected thattheCEOisadesignerof the employee (EX, employee experience). the customerexperience, butalsothatof between thatandtheirperformance,” hesaid. work environment andtherelationship understand thebehavior ofpeopleinthe hour tohour.” is happeningwithhisteamday today and to beaCBOandmust beconnectedtowhat Technology inMadrid. “Thus, every CEOhas dean oftheIESchool ofHumanSciencesand Today’s leaders, unliketheirpredecessors, What isimportantnotonly CX, or “A great CEOisagreat CBO, able to dean oftheIESchool of

Mauricio Rodríguez. dispersing leadershipcollectively,” added in themselves; they setanexample by said Newman. “when theleaderleaves, theculture stays,” business oncourseintheirabsence andthat from theirteamtobecapable ofkeeping the indispensable. Instead, they train someone makethemselves good leadersnolonger unthinkable,” saidCarlosRodríguez. – “something thatusedtobeexotic and their vulnerabilities andtalkabout feelings all theanswers. They shouldrecognize to organize theirteamssothatthey have complements andsupportshimorher.” with diverse viewpoints andknowledge that everything, andsoit‘scrucialtohave ateam Today, themostsuccessfulonesdon’t know knew everything andhadalltheanswers. Superman,” saidCarlosRodríguez. “He PILAR CALDERÓN REPORTED FROM BOGOTA. at theUniversity ofthe Andes, Bogota. Mauricio Rodríguez, “Good leadersdonotconcentrate power In thecurrent businessenvironment, The mainrole forcompany leadersis “Ten or15years ago, the idealCEOwas professor ofleadership LT

Photos: Courtesy of IE School of Human Sciences and Technology and University of the Andes. Descarga la App y viaja fácil

Descárgala en:

Términos y Condiciones en aeromexico.com

AE_BRAND_APP_AGO19_20-64X27-62_LATINTRADE.indd 1 8/9/19 1:13 PM Council of the Americas would like to thank all of our dedicated partners & sponsors for making this event the foremost gathering on Latin America in the Western Hemisphere.

A SPECIAL THANKS TO OUR PARTNERS & SPONSORS

COUNCIL OF THE AMERICAS SYMPOSIUM IN PARTNERSHIP WITH:

PLATINUM SPONSORS: Founding Partner:

GOLD SPONSORS:

SILVER SPONSORS:

SUPPORTING MEDIA PARTNERS: ORGANIZATION:

WWW.AS-COA.ORG/BRAVOBIZ th 25 EDITION COUNCIL OF THE AMERICAS

LUIS ALBERTO MORENO, IDB Legacy Award

JOÃO MIRANDA, VOTORANTIM CEO of the Year

ANDRÉ EL-MANN, FUNO (FIBRA UNO) Investor of the Year

CLAUDIO MURUZÁBAL, SAP LATIN AMERICA AND CARIBBEAN Technology Leader of the Year

CARLOS VIVES, TRAS LA PERLA INITIATIVE Social Impact Leadership Award

CRISTINA JUNQUEIRA, NUBANK Visionary Entrepreneur of the Year

SUSANA BALBO, SUSANA BALBO WINES Lifetime Achievement BRAVO 27 BUSINESS AWARDS

2019 THIRD QUARTER 2019 LATIN TRADE

BRAVO BUSINESS AWARDS 2019 LEGACY AWARD LUIS ALBERTO MORENO P, I-A D B

hen he launched his bid to become president Multilateral Investment Fund and IDB Invest. The of the Inter-American Development Bank biggest error of the private sector in the region has been W(IDB), Luis Alberto Moreno consulted his its failure to assume the challenges of development, he friend and former Bank of Israel Governor Stanley said. “It’s not enough that the economies grow if there Fischer. He told Fischer he was concerned that he isn’t prosperity among the people.” wasn’t an economist, but had graduated with an MBA. Social responsibility programs aren’t enough “That’s perfect,” replied Fischer. To fit in with a tribe of to resolve that, and today’s companies must try economists by taking part in their discussions, though harder than ever, Moreno said. At the same time, sophisticated, wouldn’t help solve the problems of the worst error of governments has been their running a development bank. “If you get involved in failure to understand the potential of public-private that, you’ll never get out of it,” he said. agreements to accelerate investment. “There should Moreno, elected for the first time in 2005, has be officials who understand that without hobbling it demonstrated his managerial skills. He focused with regulation,” he said. “They should attract private on being a manager and coach, and surrounded interests and offer them legal safeguards.’’ himself with people with such capabilities. “That is Under his leadership, the bank has set an agenda fundamental,” he said in an interview with Latin Trade. for building infrastructure, adopting technology, “I spend half of the time talking with people.” and introducing digital connectivity. “Latin America Moreno described his team as “educated people, and the Caribbean missed out on the Industrial smarter than I am.” He also drew up a small but Revolution,’’ Moreno said. “They cannot miss the effective list of practices that enabled him to run the digital revolution.” IDB better. You have to put together a team, delegate, He also involved the bank in such crucial issues as learn to listen, respect disagreement, and promote and climate change and the inclusion of women and the not distract, he said. disabled. “We have 8% of the world’s land and 43% Intelligent, decisive, clear, straightforward, and of its biodiversity,” he said. Physically and mentally deeply pragmatic, Moreno gets to the heart of issues disabled people comprise about 10% of Latin America’s at lightning speed and implements actions just as population. fast. Maybe these attributions contributed to his being Moreno has built up an incomparable trust reelected twice, with his present term ending in 2020. between his institution and national governments. He He is proud of having doubled the size of the bank, understands how Latin American bureaucracies work

28 and of having concentrated the new resources on the and offers them financial services and, above all, the poorest 25% of the region. leading-edge knowledge that has been accumulated He highlights the financing of projects of nutrition, by the bank. Also, his experience as ambassador of maternal and child health, and of conditional cash Colombia to the White House means he knows the transfers, such as those for parents who send their ins and outs of high politics in the United States, children to school or to be vaccinated, which have the bank’s partner and host country. He’s aware pulled millions out of poverty. Also important is his that Washington speaks with many voices and contribution to creating strong institutions. “Without understands and handles this like few other Latin them, there is no development,” he said. Americans. Moreno brought new talent and technologies to At the age of 66, Moreno declines to talk about plans the IDB. His strategy prepared the agency to better for his future. He has repeatedly denied that he wants confront competition, which in the future he sees to be resident of Colombia. He has a passion for horses, coming from private banks and not just other is a keen tennis player, and an occasional cyclist. That multilaterals. “JP Morgan is setting up a development may stand him in good stead to head the International bank,” he noted. Olympic Committee, of which he is already a director. Moreno has strengthened the IDB’s relationship For the time being, he insists that he just wants to with the private sector in order to bring it closer to finish his current term successfully. the problem of development, to reduce poverty, and Judging by results, he’s well on the way to achieving to help vulnerable groups. That’s why he created the that. LT

LATIN TRADE THIRD QUARTER 2019 SANTIAGO GUTIÉRREZ REPORTED FROM BOGOTA.

Intelligent, decisive, clear, straightforward, Photo: Courtesy IDB and deeply pragmatic, Moreno gets to the heart of issues at lightning speed. 29

Luis Alberto Moreno, president, Inter-American Development Bank.

THIRD QUARTER 2019 LATIN TRADE

BRAVO BUSINESS AWARDS 2019 CEO OF THE YEAR

JOÃO MIRANDA CEO, V

oão Miranda is leading the transformation He has a degree in economics from the Pontificia at Votorantim S.A., one of Brazil’s largest Universidade Católica de Rio de Janeiro and an MBA conglomerates with major stakes in cement, zinc, from Universidade do Rio de Janeiro. Jaluminum, energy, steel, and banking. Taking charge of Votorantim’s finances at a time of Since becoming CEO in 2014, he has presided over economic instability gave him invaluable experience strategic changes and achievements, most importantly, for when he came to manage the conglomerate. “The a corporate restructuring and, more recently, the challenge back then required a great deal of resilience, reduction of debt ratios. organization, as well as the ability to communicate The restructuring was largely prompted by effectively with multiple audiences and translate our the effects recession in Brazil and a challenging business strategy into finance strategies,” he said. international environment had on the group. That crisis also taught him that challenging times, Votorantim, however, is no stranger to change, said such as those Brazil is still enduring after its biggest Miranda. recession in years, require “persistence, determination, “During its history, the company has transformed planning, and the right people,” he said. itself several times and has demonstrated a great These principles gave Miranda the conviction to capacity to adapt and thrive,’’ he told Latin Trade. take measures to improve the firm’s balance sheet Reorganization has led to stronger governance and optimize its portfolio, while ensuring the group and autonomy for the companies that make up the maintains significant investment in growth and conglomerate, while the holding acts more like a modernization. portfolio investor. “Conducting a business and investing in a The investment portfolio has been significantly downturn requires a long-term view, conviction that recomposed under Miranda’s watch. This includes you have capabilities to execute and manage risks, and the widening of the energy business (including the ability to create consensus around capital allocation,” acquisition of Companhia Energética de São Paulo – he said. CESP– and ventures in windfarms), and, more recently, He defined his leadership style as “a very the sales of Brazilian long-steel Votorantim Siderurgia transparent one,” adding: “I like in-depth discussions, to ArcelorMittal and pulp-producer Fibria to Brazil’s and I value interacting with people all the time.” Suzano Pulp and Paper. He also believes in empowering employees so Miranda has also reduced the conglomerate’s debt that they are “responsible for their own personal

30 to EBITDA ratio from more than 3.0 times in 2015 to 1.9 development and the development of the company.” times at end-2018. Furthermore, proceeds from Fibria’s Outside the corporate field, Miranda is a champion sale were used to pay off more debt, cutting the ratio of education. He is actively involved in initiatives such to 1.56 times by June 2019. as Parceiros da Educação (Partners for Education), a Revenue and profitability have risen under Brazilian nonprofit organization that aims to improve Miranda’s tenure, helped in part by a relative academic performance of public-school students. “It improvement in Brazil’s economy. has been a life-changing, humbling experience for me, In 2018, Votorantim posted consolidated net revenue bringing out a high sense of fulfillment,” he said in the of R31.9 billion ($7.7 billion at end-2018 exchange rates), interview with Latin Trade. 19% more than the previous year; EBITDA of R6.9 billion Miranda said his leadership has been inspired by the ($1.7 billion), 47% higher than in 2017; and a 141% history of Votorantim and the legacy of its owners. increase in net income to R1.9 billion ($458 million). “Since its foundation, Votorantim has always Miranda’s achievements show how the Ermírio de carried the family values of integrity, respect, and Moraes family, which owns Votorantim, made the entrepreneurship, taking a long-term view towards right choice when they appointed him CEO. It was a investments,” he said. calculated decision; he had shown his worth since “As such, I feel a strong sense of responsibility as a joining the company as CFO in 2009 after a career in CEO and a steward of this great company. I think of international banking at Citibank. that every day and in everything I do.” LT

LATIN TRADE THIRD QUARTER 2019 DAVID RAMÍREZ REPORTED FROM MIAMI.

“Since its foundation, Votorantim has always carried the family values Photo: Courtesy Votorantim of integrity, respect, and entrepreneurship. As such, I feel a strong sense of responsibility as a CEO of this great company.” 31

João Miranda, CEO, Votorantim.

THIRD QUARTER 2019 LATIN TRADE

BRAVO BUSINESS AWARDS 2019 INVESTOR OF THE YEAR 2019 ANDRÉ EL-MANN CEO, FUNO (F U)

n just under nine years, FUNO (Fibra Uno) has bad in 1995, the family decided to give it all it had, emerged as the leading and most diversified Real said El-Mann. “That year, we acquired some very good Estate Investment Trust (REIT) in Mexico and Latin properties; we developed our projects faster than usual. IAmerica, with revenue growing at an annual pace While everyone else was stalled or thinking about of 11.5%. selling what they had, we were working full steam.” The company owns some of the most recognizable When looking for potential investments, El-Mann buildings of Mexico City’s skyline, including the and the FUNO team abide by the tried-and-true real environmentally friendly Torre Mayor and Torre Diana, estate mantra: location, location, location. and has a portfolio of 537 properties spread across “When we decide to acquire a property or a portfolio Mexico. of properties, the first thing we look at is location,” Recent milestones include the signing of Latin he said. “For example, in the U.S. it’s normal to have America’s first sustainability-linked credit line with a contract, and that contract lasts for 20 years and BBVA. nothing much happens in that time. Behind such impressive growth is CEO André El- “But in Mexico, contracts can be hit by several Mann, who has been chosen as winner of the BRAVO things. We always think, what would happen if the Investor of the Year 2019 award. contract ceases to work? Maybe the tenant wants to El-Mann began his career in the 1980s. As with all leave, maybe they go broke, or perhaps even we offer notable business leaders, El-Mann and his family the tenant another option. What would happen if the were able to successfully shake up their sector with property was left without tenants? I have to be ready innovation. “We changed the Mexican real estate to fill it again. And if that property doesn’t have a wide market,” El-Mann told Latin Trade. “First, the industrial range of possible tenants, due to its location or other warehouse sector, especially in terms of logistics and characteristics, we’d rather not buy it.” distribution. We began to incorporate state-of-the-art For El-Mann, the main lesson learned during his technology into the warehouses. The technology was decades of experience is the importance of always very advanced compared to what was available at the fulfilling obligations. No matter what causes a time in Mexico.” difficulty, FUNO has a reputation for always meeting its Fibra Uno is a continuation of the family success commitments on time. story. “Fibra Uno’s portfolio is just as diversified as the “Back in the late ‘90s, there was a shortage of raw

32 one we had before – diversified in terms of geography, materials,’’ El-Mann said. “China was growing and it sectors, and clients,” El-Mann said. was buying up steel from all over the world, and we Given the risks inherent in the real estate sector, were left with nothing. Mexico was in the process of having a diverse portfolio enables the company to growing, and so were our clients such as Walmart, cushion potential upsets by not depending on a single Procter & Gamble, and Nestlé, who all needed more location, client, or sector. “When the inevitable crisis warehouses or stores, and if we committed, we had to comes again, we will be well prepared and will be the fulfill.” last to fall,’’ El-Mann said. “And we will be the first to As a result, the company adopted the policy that, get back up on our feet.” each January, it buys all the steel it’s going to need that El-Mann speaks from experience, having navigated year, El-Mann said. “Not because we can’t get it at a through some of Mexico’s worst crises. One of the most better price, we could, but that’s not the driver,” he said. challenging was the December 1994 peso crash, which “The driver is having the material available to deliver became known as the Tequila Crisis. projects. That’s more important than price. If I sign a “When that crisis hit, my brothers and I got together deal with Walmart where the deadline is March, we and made a decision that marked our lives. My older will deliver in March. If I sign a deal, I’m ready with the brother said, ‘Gentlemen, we either sell what we have material and financing to deliver, otherwise, I don’t sign and see where each of us goes from here, or we stop the deal. This has helped us a great deal, because it’s playing dumb and we give it 100 percent.’’’ given us a good reputation. That’s what I learned since Though the business climate in Mexico was very the beginning.” LT

LATIN TRADE THIRD QUARTER 2019 DAVID BUCHANAN REPORTED FROM MEXICO CITY.

“If I sign a deal, I’m ready with the material and ﬁnancing to deliver, Uno Photo: Courtesy Fibra otherwise, I don’t sign the deal. This has helped us a great deal, because it’s given us a good reputation. That’s what I learned since the beginning.” 33

André El-Mann, CEO, FUNO (FIBRA UNO)

THIRD QUARTER 2019 LATIN TRADE

BRAVO BUSINESS AWARDS 2019 TECHNOLOGY LEADER OF THE YEAR CLAUDIO MURUZÁBAL CEO, SAP L A C

n a recent trip to Buenos Aires, Claudio customers,” Muruzábal said. He has honed these Muruzábal hit as many bookstores as he skills by running businesses himself. could. “I have two hobbies. One is buying After studying accounting and business books, and the other one is reading them,” administration in his native Buenos Aires, Muruzábal Ohe said. “I tend to buy more than I read.” took his first managerial post at the age of 26. Six This affinity for reading everything from fiction to years later he was the general manager of a $100 history to books on faith, evolution, and anthropology, million firm, and later, with an MBA from Duke plus the odd title on management, may seem unlikely University, he ran NEORIS, a Miami-based global IT for a 59-year-old who since August 2015 has been consulting business that posted 20% annual growth leading SAP Latin America and Caribbean, a Miami- during his tenure. based division of the German software developer. At SAP, he covers a market where political His voracious appetite for reading has improved his leadership tends to swing between left and right, and performance in business by exposing him to different economies from boom to bust. In the throes of this, or views and perspectives. “It provides context, and the when faced with a challenge at work, Muruzábal said more context you have to any conversation or any he tries to stay cool so he – and his team – can think issue you need to deal with, the better,” Muruzábal through the options to fix the issue. said. “There is nothing worse than a one-dimensional This calm-under-pressure trait, he said, comes approach to an issue.” from growing up in Argentina, where, after nearly 80 His way is helping SAP grow in Latin America faster years of economic volatility, people have learned to be than other regions. Sales of its cloud-based solutions, creative, resilient, and resourceful. “You just have to which help businesses reduce costs, widen their learn very fast how to deal with issues because they reach, and improve efficiency and productivity, have come to you every day,” he said. been growing at double digits for 17 quarters in a row, As co-chair of Junior Achievement Americas, he led by triple-digit growth in products for managing is passionate about improving education in Latin customer experience and e-commerce. America. For long, he has been involved in education SAP has customers in more than 180 countries and for young people, in particular the teaching of critical offices in 82. Global revenue rose to $24.7 billion in thinking, the development of an entrepreneurial 2018 from $23.5 billion the previous year. mindset, and ways to build so-called soft skills, Muruzábal is quick to point out that it is not such as effective communication, flexibility, and

34 necessarily the technology that is driving sales conflict resolution. He enthusiastically promotes his growth, but how it is used by businesses. Blockchain, company’s Corporate Social Responsibility programs for example, can improve the efficiency and in the region, which help the young learn these types transparency of supply chains, from warehousing to of skills. delivery and payment. Machine learning can provide Muruzábal thinks “technology is helping a faster and more accurate diagnosis of cancer. organizations find new ways to be more efficient To find out what a company needs, he said, it is and profitable while becoming more sustainable and important to listen. That allows him and his 5,000- capable of creating long-lasting positive impact on plus team to understand what customers really need. society and the environment”. Take a retailer entering e-commerce, for example. As an example of the effective use of technology, Many focus on the look and feel of their website, Muruzábal cited Stara, a Brazilian company that has when what customers really want is easy ordering equipped its agricultural machinery with internet-of- and timely delivery, he said. things technology. This enables farmers to monitor And that comes from integrating the back office, planting, soil preparation, fertilizing, harvesting, and logistics, and the front office in order to avoid late other key processes to better manage their crops. (and sometimes unexplained) deliveries or situations “This results in increased productivity and that sour the client experience and brand image. sustainable farming to feed the increasing population “We spend a lot of time trying to help people fix around the world,” Muruzábal said. “Doing good is those issues and have a better approach in serving good for business. There is no doubt about that”. LT

LATIN TRADE THIRD QUARTER 2019 CHARLES NEWBERY REPORTED FROM BUENOS AIRES.

“There is nothing worse than an one- Photo: Courtesy SAP dimensional approach to an issue,” said Muruzábal, explaining his passion for reading. 35

Claudio Muruzábal, CEO, SAP Latin America and Caribbean.

THIRD QUARTER 2019 LATIN TRADE

BRAVO BUSINESS AWARDS 2019 SOCIAL IMPACT LEADERSHIP CARLOS VIVES S , , F T P I

n his native Colombia, Carlos Vives is much more Palodeagua, Fonseca, and, of course, Juanes. than a music star. He is, as one journalist put it, a While most artists wanted to travel and learn about kind of priceless heritage for all Colombians. music created in other countries, Vives gambled on Ever since he started to work in children’s TV staying in Colombia and changing the music from Iprograms, the young man with curly hair, a dazzling within. “I have always been in touch with Colombia, smile, and infectious happiness has captivated fellow and it has led me to have a deep relationship with my Colombians. He originally wanted to be a doctor like country and to be recognized for this,” he said. “We look his father, but he was destined for something very inside ourselves and change many things from within different. It would be music – inherited from his our own hearts. This has been the most important grandmother, who taught him to play the piano when thing for me as an artist.” he was ﬁve years old – that would not only become his It was that profound sense of belonging to his land reason for being, but would also make it possible for that led Vives to transfer his inexhaustible energy and him to work for the people of his hometown and help charisma for transforming music to transforming the transform the region of his birth. land where he was born. From a middle-class family in Santa Marta, the “I felt that I had been distancing myself from my oldest city in Colombia and where the country’s roots and needed to return,’’ he said. “Santa Marta is a highest mountain drops steeply to the waters of the forgotten land. I too had been forgetting about it. And Caribbean, Vives was born to sing. He sang in his house, when I returned after traveling, I was always thinking at school, at parties, and, when he was a bit older, in about what I could do to help it – to not be part of the bars. It was in one of those where he was discovered by problem but part of the solution.” And this was how the a television producer. initiative Tras La Perla (Looking for the Pearl) was born That was the start of more than a 20-year artistic in 2015. career. In those television roles there was always music, His wife, Claudia Elena Vásquez, was key to achieving and he played a singer more than once. It was one of that. “I found the ideal person to help me carry out my those roles, that of Rafael Escalona, a folk singer and dreams,” he said. “With her organizational knowledge a renowned composer of a genre known as vallenato, and with her commitment, she has helped me move that stirred his passion to rediscover the music of his forward, looking for allies who feel the same for the country, the music he had sung as a child. city as we do.’’ The series about Escalona became one of the With the same vitality and openness with which country’s most popular TV programs. It also led he conquered the hearts of millions (he has sold more

36 vallenato, which until then had been mostly restricted than 20 million albums and won two Grammys, 12 to coastal communities, to sweep across the country. Latin Grammys, and dozens of other awards), Vives has Vives did not stop there. He knew deep down that placed his city and his zone of inﬂuence – one of the folk songs were the soul of all music, and that they prettiest and richest in biodiversity in the Caribbean gave birth to all modern and contemporary styles. – in the spotlight of a number of international He decided to create something new, something that organizations. For example, the Inter-American would revive Colombian music. Development Bank, which included it in its program of “I created a new way of interpreting our tropicality sustainable cities, The Nature Conservancy, and Grupo from the deepest of the sounds and musical patterns,’’ BFPS (Boston Premier Services) have supported Tras Vives told Latin Trade. “I industrialized Colombian la Perla in restoring Santa Marta and its surrounding folkloric songs and converted them into a kind of areas, and help resolve the problems affecting them. Colombian rock ‘n’ roll.” “We are working from the heart, seeking to forget With this, Vives and his group, La Provincia, touched the bad and bring back the good, to help many who the hearts of a new generation and created a movement are forgotten and poor to dream again,’’ he said. “The called tropi-pop, a sound that revived the folk songs of challenge now is to make ourselves sustainable and the different regions of Colombia, from the Paciﬁc to the create awareness of the need to take care of our city Caribbean, a fountain from which a whole generation of and our people, so that it can be the community itself Latin musicians would drink. Today many have achieved that takes care of what we have achieved.” LT international fame, including Maía, Bacilos, Mauricio

LATIN TRADE THIRD QUARTER 2019 PILAR CALDERÓN REPORTED FROM BOGOTA.

With the same charisma that enabled him to sell 20 million

albums and Vives Photo: Courtesy Carlos win multiple Grammy awards, Carlos Vives is working in his Tras la Perla initiative to restore one of the most beautiful spots in the Caribbean. 37

Carlos Vives, singer, songwriter, founder Tras la Perla Initiative.

THIRD QUARTER 2019 LATIN TRADE

BRAVO BUSINESS AWARDS 2019 VISIONARY ENTREPRENEUR CRISTINA JUNQUEIRA C- , N

hen Cristina Junqueira runs into loan product and took its first steps to expand former colleagues from Itaú abroad, opening offices in Argentina and Mexico. Unibanco, where she worked for five It is testing an investment product and small years in consumer loans and credit business accounts, a strategy that Junqueira says is Wcards, few are surprised that she left Brazil’s biggest methodical. When one product works, they move on bank to co-found Nubank, a competitor. to the next, she said. “Most of them tell me, ‘I knew you were going to “We work backwards from what people need and do something very different,’” she told Latin Trade. the problems that they are facing, and we try to fix After receiving a bonus in March 2013, the São that for them,” she said. “We are not just creating Paulo native quit the bank and busied herself read- products to make us money.” ing articles and books, and watching TED Talks. Nubank has attracted the attention of venture But not for long. After two months, she met Da- capital funds like United States-based Sequoia vid Vélez, a Colombian who after several years in Capital and Chinese internet giant Tencent investment banking and venture capital in New Holdings, which have put in a combined $820 York and São Paulo, told her he wanted to use million. technology to improve efficiency and the customer To keep pace with growth, the founders have experience in the Brazilian financial system. built a team of more than 2,000 people, making Junqueira jumped at the opportunity to do what leadership a key for them, said Junqueira, who she hadn’t been able to do within the system: to studied industrial engineering and business. “A big create a financial institution that people could piece of leadership for me is to be able to read the “actually love,” even fanatically so, she said. context, read the teams, and read the problems that Edward Wible, an American computer scientist, you are trying to solve, and adjust your style to the joined them to create Nubank in May 2013. The situation,” she said. “Some people are going to need three founders (Vélez as CEO, Wible as CTO, and more contact and more hand-holding, and some Junqueira in charge of branding and business other people are going to prefer that you are more development) soon raised $2 million in seed money. straightforward and give them more room to work.” A little over a year later, they had their first product: Through all of this, she makes an effort to be a no-fee credit card fully managed by a mobile app. available, objective, supportive, and a good listener,

38 It caught on. More than 30 million people have as well as demanding. applied. That’s nearly a fifth of Brazil’s 152 million “I have a very high bar, not just for the results people aged over 15, according to data from the but the process they take to get there,” she said of World Bank. her staff. “I tell people that as long as we are making Still, only 12 million have been accepted for the good decisions based on the information we have, I card. While that number is huge, it could have been don’t really care about the outcome. But I care that bigger, Junqueira said. The setback? Not enough people thought through the process.” Brazilians have a credit history. That drove Nubank’s She thinks a lot about the business, which, along founders, now aged between 36 and 38, to create a with a young daughter and a second on the way, digital bank account with a debit card in 2017. leaves her little time for anything else. “I have only The product provides money movement data one sport: I’m a mom,” she said. that the bank can use to decide whether customers This has taught her a lot about business. “Being a qualify for a credit card, she said. Ten million mom, you learn about how to develop people and how such accounts have been opened, making it the to let go, and understand that you are not going to be fifth-largest bank in terms of customers in Brazil, in control of every situation,” she said. “There is a lot according to Junqueira. of personal growth that comes with parenthood, and This year, Nubank started testing a personal that can definitely be leveraged in leadership.” LT

LATIN TRADE THIRD QUARTER 2019 CHARLES NEWBERY REPORTED FROM BUENOS AIRES.

“We work backwards from what people need

and the problems Photo: Courtesy Nubank that they are facing, and we try to ﬁx that for them.” 39

Cristina Junqueira, co-founder, Nubank.

THIRD QUARTER 2019 LATIN TRADE

BRAVO BUSINESS AWARDS 2019 LIFETIME ACHIEVEMENT SUSANA BALBO F P, S B W

uch time has passed since Susana latest research and development in the world wine Balbo abandoned plans to study industry. nuclear physics and instead dedicate Throughout her life, that interest and curiosity for her life to wine. After becoming research translated into a willingness to innovate, Mthe ﬁrst Argentine woman to become a qualiﬁed both to continue to attract existing clients and enologist in 1981, she helped create wines for to be able to enter new markets. At present, the producers around the world before founding her company is conducting studies to determine what own winery two decades ago. characteristics its wines will need to successfully Susana Balbo Wines (SBW), based in her home enter the Chinese market in 2020. province of Mendoza, now exports to 35 countries. The launch in China will be through a digital “I never imagined I would get to this point,” the marketing campaign and based on electronic winemaker told Latin Trade. commerce. “I am a technology fanatic,’’ Balbo said. SBW stands out for its top-of-the-line wines. “It is an indispensable [business] tool.’’ In 2018, it logged the second-highest average sale Asked to describe her leadership style, Balbo prices among all of Argentina’s exporting wineries. replied, “Above all, I am a leader who shares “The clients come to us,” said Balbo, whose products knowledge. With my team, but also with other are frequently recognized by international specialty companies.” Her response not only underlines the publications. importance she gives to knowledge, but also her Focus, honesty, persistence, quality, and service spirit of service to the community. Three times to clients and to the community are the factors that since 2006 she has headed Wines of Argentina, the Balbo considers to be the keys to her success. Those country’s wine exporters’ association, and she has are the principles that have guided SBW in good also made a foray into politics as a deputy in the times, and, above all, in times of adversity, she said. party that is currently in power. SBW went through some hard times soon after Her management style, which she described as its beginning in 1999, when it almost went under “open-door,” encourages employees – including her after a major customer failed to pay for deliveries. It son and daughter – to experiment and learn from was a particularly tough period for Argentina as the mistakes. “I also learn from my team,” she said. country spiralled toward the economic and social Balbo is in frequent and close communication

40 crisis that engulfed it in 2001. with SBW’s 90 employees, knowing their families Balbo said it was her resilience that saved the day. and backgrounds. “The face-to-face with my team “In hard times you have to take crucial decisions creates commitment, conviction, and empathy,” she very quickly, but you can’t abandon the long-term said. For her company, “the greatest corporate social plans,” she said. To survive, her company adopted a responsibility is with its employees.” strategy of focusing on the external market. SBW also carries out nutritional training and The change yielded results and, today, the winery vaccination programs in communities near where sells 95% of its production in international markets, the business is based. with 215,000 cases exported in 2018. In response to being asked how she would like to From the time she was studying physics, Balbo be remembered in posterity, Balbo said, “Above all has always been attracted to academic research and, as a mother who is a fighter; as a business woman more recently, to technology. She told Latin Trade because of the need to find my independence; and that she was the first Argentine winemaker to be as an enterprising woman capable of creating and admitted to the Australian Wine Research Institute showing that it is possible to get where you want (AWRI), which allowed her firsthand access to the to go.” LT

LATIN TRADE THIRD QUARTER 2019 DAVID RAMÍREZ REPORTED FROM MIAMI.

“The face-to- face with my team creates commitment, Photo: Courtesy SBW conviction, and empathy.” 41

Susana Balbo, founder and president, Susana Balbo Wines.

THIRD QUARTER 2019 LATIN TRADE LEADERSHIP OPINION

WALKING THE LINE BETWEEN CREATIVITY AND CHAOS

By Deborah Ancona & Kate Isaacs

any leaders want to empower Enabling leaders function as a guardrail because autonomous teams and free the their experience and relationships help innovators frontline to innovate, yet they are identify challenges and improve strategic afraid to let go. What will their role be alignment early in the process. Mif they lose power? Will chaos ensue if they loosen Architecting leaders create the “game board” that the reins? These fears often result in inertia, with enables entrepreneurial and enabling leaders to leaders retaining a command-and-control structure do their jobs well. This might involve providing instead of leadership at all levels. new leaders with the training they need to work The reality is that it’s less about letting go than autonomously or creating simple rules to guide changing our mental models about leadership to innovation efforts. For example, a simple rule could adapt to changing times. Nimble organizations are be that new products must make at least $500,000 fueled by three types of leaders: entrepreneurial, in revenues. Architecting leaders also knit together enabling, and architecting. the many ideas emerging from below with their Entrepreneurial leaders fuel a company’s understanding of strategic imperatives. They shape innovation engine. They use “sensemaking” organizational culture, structure, and process to understand external market needs, new guardrails, and they constantly ﬁnd ways to build technologies, and the competitive landscape – solutions that enhance innovation into the very and dream up innovative products and services. fabric of the organization. They are skillful at selling their idea to others and With these three types of leaders, organizations 42 convincing them to join the effort. The guardrail can shift mindsets and move from a bureaucratic, that keeps chaos at bay is these leaders’ strategic formal structure to become a team-based, nimble mindset: their grasp of how their innovation could organization. Leaders no longer command and align with the company’s business model, strategic control, but rather they innovate, coach, collaborate, plans, and unique capabilities. Thus, innovation and architect the system of both freedom and can align with both external trends as well as control. These three types of leaders provide a internal controls. checks-and-balances structure, which mitigates the Enabling leaders help to guide and focus risk of chaos if leaders let go and facilitates an agile entrepreneurial leaders. They coach not by telling and innovative culture. people what to do, but by asking questions that By changing your mental model of what leadership encourage entrepreneurial leaders to think is, you’ll be able to transform your organization into strategically about innovation while also learning a workplace of the future. LT and developing as people. These leaders often have broad networks and create synergies by DEBORAH ANCONA, Seley distinguished professor of management, a pointing entrepreneurial leaders to teams working professor of work and organization studies, and founder of the MIT on similar projects, as well as individuals who Leadership Center at the MIT Sloan School of Management. can provide targeted expertise and assistance. KATE ISAACS is an MIT Sloan research scientist. Photo: Courtesy of MIT Sloan School of Management Photo: Courtesy of MIT Sloan School

LATIN TRADE THIRD QUARTER 2019 MONDAY THROUGH PM FRIDAY 2 ET 44 SUSTAINABLE MOBILITY Photo: Courtesy BMW LATIN TRADE future future electrifying An THIRD QUARTER 2019 the highways ofLatin America Electric carsare already traveling

MINI CooperSECountryman ALL4 specialists from the 100 companies specialists from the100companies transportation represents aburden Development Bank(IDB)published of theLatin American Sustainable transportation hasalsoincreased challenges. Another isplanningforanenergy gridthat from 10 countries that form part from 10countriesthatformpart congestion, noise, pollution, and a hybrid Hiluxin Argentina in2025. Renault has been selling electriccarsintheregion since2015,” Mariano the 10 cities where 30% of Latin the 10citieswhere 30%ofLatin Paraguay, CostaRica, Uruguay … Toyota willproduce Such negative factors, however, America’s GDPisconcentrated. their destinations, according to vehicles inLatin America becausetheir initialcostis for the business ecosystems of for thebusinessecosystemsof emission ofgreenhouse gases. a study by theInter-American in Uruguay, charging stationson ‘electric routes’ in Jimena emphasizedthat “a literoffossilfuelisput “There isaﬂeetof200electricbusesinChile, taxis makes itviabletocharge thenew electricvehicles to betterusewhenusedgenerate energy foran more thananhourtoreach For Jimena, automakers “do notsellmore electric Each day, theircitizenslose opportunities, according to Financing thepurchase ofvehicles isoneofthe without affectingsuppliestoexisting networks. present attractive market The growth ofmotorized Jimena, president of ALAMOS, told T at theendof August. he poor quality of he poorqualityof higher than that of cars with internal higher thanthatofcarswithinternal Mobility Association (ALAMOS). Mobility Association combustion engines (ICE).”combustion engines Argentina, Scania ELECTRIFICATION." GOING FOR AMERICA IS "ALL LATIN Alejandro Pazos, communications manager for Latin Trade . marketing and marketing and 43 miles. Paraguay isalsocompletinga186-mile “green Chuy ElectricCorridor, with21recharging pointsevery the state-owned utilityUTEwillcompletetheColonia- electricity company, Grupo ICE. InUruguay thisyear, charging corridors forelectricvehicles forthenational transportation withcleanenergy,” hesaid. electricity companiesthinkthere isanopportunityin operate buslinesandinstallcharging stations. “The companies inSouthandCentral America startingto industry willbeready tostartcompeting,” hesaid. $80 from thecurrent level of$176, theLatin American the costperkilowatt generated inelectricmotorsto reduction incostsof20%. “If we would be abletoreduce third ofthecostcaritself, isstillfalling.” as much as50%less. The priceofbatteries, which are a In CostaRica, theIDBhasﬁnanceddesignof That’s why heissooptimisticwhenseeselectricity These technologies are experiencingayear-to-year

operating cost(ofelectricvehicles) is leading energy specialist, said “the environmental objectives converge. which electricaltransportation and an “electric motorizingplatform” on the region, the IDBhasestablished government programs.” international financingfor makes itpossibletoachieve program ofelectrical mobility said thatforthisreason “a good headquartered inQuito, Ecuador, Energy Efficiency Forum, member oftheLatin American he said. lost inthetransmision process,” autos alarge partofthatenergy is their motorsisabout95%. InICE electric vehicle. The efficiency of Marcelino Madrigal, theIDB’s At therequest ofgovernments in Claudio Damiano, afounding THIRD QUARTER 2019 LATIN TRADE

Photo: Courtesy Scania. 45 46 SUSTAINABLE MOBILITY LATIN TRADE

Photo: Pixabay to besolved. among thetechnical problems still question oftheirﬁnaldisposalare house,” saidDamiano), andthe car couldendupsupplying your domestic reuse (“your electric chain oflithiumforbatteries, their the recharging time, thevalue points incitiesandonhighways, manufacturers,” says Madrigal. which are themainautomobile Argentina, Brazil, andMexico, from theindustry. Above all, from from thestartandinvolvement “They require publicpoliciesright pose challenges ofalarger scale. in otherLatin American countries energy –andwithsolarpanels. of theirexcesshydroelectric with electricity–takingadvantage Este. The refueling pointswillwork between Asunción andCiudaddel that existinthecountrytorefuel” 600 electricandhybrid vehicles solar corridor” thatwillenable “the The availability ofrefueling The longdistancesthatexist THIRD QUARTER 2019 A LATIN AMERICAN E-AUTO vehicle iswhatwillchange.” said. “It notjustreplacing ICEwith carswithelectricmotors. The socialuseofthe in at home. “Electromobility is a concept of ecosystem, not just mechanism,’’ Moyano prizes attheGeneva autoshow.” panies. IfImake acarand can’t sellittoanybody, itdoesn’t make sense, even ifitwins a Latin American country that willnotbeacompetitorforChineseorJapanese com neering was developed in Argentina. with arange ofasmuch as93milesonacharge thatlastsuptoﬁve hours. The engi tory concept,” hesaid. “You buythemdirectly from thewebpage.” that manufactures andmarkets three modelsofelectriccarson anindustrialscale. knowledge andexperienceisbrought togetherat Volt Motors, anautomobilecompany and thenwent ontodevelop ultralight aircraft andtoresearch new materials. This own electriccar. Hewas project director of fortheengine Argentina’s Cóndormissile Volt carshave apriceadvantage ($20,000), andcanbecharged by beingplugged “We are developing acararound aperson,” Moyano said. “The rightelectriccarfor The latestmodel, the “We have a production planfor 3,500 vehicles per year based on the network fac In hiscareer asanengineer, Javier Moyano acquired theskillsneededtodevelop his COMPANIES THINK "THE ELECTRICITY "THE ELECTRICITY TRANSPORTATION OPPORTUNITY IN Marcelino Madrigal, leading energy specialist WITH CLEAN WITH CLEAN THERE IS AN IS AN THERE ENERGY." e1 , fortwo adults, canreach aspeedof68milesperhour theIDB’s

Indias andBogotainColombia, as company hasfleetsinCartagena de collecting waste,” Pazos said. The ideal forcarryingpassengersand miles onatankofLNG. “They are enable itstrucks totravel upto680 specifically foroperating withgas in theregion. Motorsdesigned launched experimentalprograms he said. matter inthecity, andit’s quiet,” is available, itreduces particulate should bemadeby usinggas. “It America isgoingforelectrification.” Argentina, explainedthat “all Latin communications manager for Alejandro Pazos, marketing and Brazil and Argentina, seesthings. truck manufacturer withplantsin That’s theway Scania, aSwedish gas, biodiesel, andhydrogen. those with “decarbonizing” fuel: of coexistenceICEmotorsand to electricitywillresult inastage With thatinmind, Scaniahas In themeantime, thetransition In theshortterm, thetransition

- - - Photo: Courtesy BMW CO years ago. As aresult, itsplantswere abletoreduce its for significantslicesoftheregional market. with itsE-Pace, intheupperpricerange, are competing LOOKING FOR A MARKETSHARE improve it.” to emission-free technology,” Vladimir Mello, director conception they were thoughtofastheprecursors a central (company) value andso, rightfrom their in each countrytheofferisdifferent. i3 andBMWREX)eightconnectablehybrids, but sales inEurope. world, anditistheNo. 1autocompany by electriccar 500,000 electricvehicles ontheroad throughout the By theendofyear, thecompany willhave more than circle inoperating costsandlowers CO lowers consumption,” Pazos said. “This makes avirtuous according todifferent driving styles. “A gooddriver for performanceandemissions. well astwo vehicles inBuenos Aires, thatare monitored BMW has been focusing on sustainability since many BMW hasbeenfocusingonsustainabilitysincemany Renault, Nissan, Toyota, Audi, BMW, andeven Jaguar His leitmotifis: “If you can’t measure it, you won’t The BMWiseries “emphasizes sustainabilityas In Latin America, they selltwo electricmodels(BMW The systemcanidentifydifferences inconsumption 2 emissionsby more than42%inEurope since1995. Technology isbecoming20%cheaper every year, making salesofelectricvehicles orhybrids 2 emissions.’’ more attractive inLatin America. Latinomérica, told of corporate communications forBMWGroup subregion. on theenvironment, adjustingtothe energy mixofeach will have tokeep oneeye onthemarket and theother far beyond sellingvehicles. depends ontheconstructionofanecosystemthatgoes the successofsustainablemobilityinLatin America in theregion. electric, thoughithasn’t announcedwhich will besold now and2023, ofwhich atleast12willbetotally technology inelectrification.” range, connectiblehybrid vehicles, withthelatest BMW series, which gave risetotheBMWiPerformance i’s eDrive technology hasgonebeyond thetraditional said. “BMW i3is95%recyclable,” Mellosaid. “The BMW used inmanufacturing –forexample, carbonfiber, he and theBMWi8, itsfirstconnectiblehybrid vehicle. the BMWi3, itsfirstfully electricproduction-line vehicle, years ofexperienceinelectro-mobility issummedupin DIEGO LLUMÁREPORTED FROM BUENOS AIRES. It impliesacollective effortinwhich thepublicsector Finally, incontextandlookingatthewholepicture, The company willlaunch 25new modelsbetween Sustainability isalsopresent intheraw materials Mello saidtheGermancompany’s more than45

LT Latin Trade

New modelsfrom the BMWhybrid connectableﬂeet. . THIRD QUARTER 2019 LATIN TRADE

Photo: Courtesy IDB 47 48A ECONOMY LATIN TRADE price management: environment hasbeenbenignfor The worldwide deﬂationary future harder in will be inﬂation Controlling THIRD QUARTER 2019 memberof Roberto Rigobón, professor MIT and Roberto Rigobón, professor MITand Latin Trade's

Roberto Rigobón. board ofeconomists I consuming,” hesaid. “You basketsofgoodsthatare closertowhatpeopleare get A mixedmodelofonlineandofflinepricesismore precise. 40% oftheConsumerPriceIndex in Latin America. furniture andhomeproducts. Together, thesecomprise30%to inflation, which affectssectorssuch asfood, clothing, travel, Conventional calculations, hesaid, do notcapture online hybrid modeloftraditional surveys andbigdata. has cometochange themethodofmeasuringinflation, usinga where there are noreliable statisticsatall. react to, andeven anticipate, demand. physical world. Cyberpricesare adjustedwithalgorithmsthat prices intheonlineworld sometimesdiverge from thoseofthe adulterated, butbecause numbers mighthave been countries. Notbecause their statistics agencies inother the accuracy ofdatafrom Fernández deKirchner hadmanipulatedthedata. which timetheadministration offormer president Cristina inflation in Argentina between 2007and2016, duringmostof enormous amountsofdatafrom theinternet. Cavallo have beenbuildinginflationindicators, drawing on rates of8%to10%willstillberare, butnotthoseof5%.” the future.” With fewer deflationary pressures, “it may bethat he said. “Keeping inflationdown toabout 2%willbeharder in had theirbaptismoffire. “We have notreally testedthe system,” increased competition, resulting indeflation. technology andlogistics, have cutcosts. Onlinebusinesseshave monetary policy. Globalization, alongwithimproved production powerful deflationary force intheworld.” take allthecredit. “We have beenlucky becausethere isa Latin Trade with thecentral bankandthe financialsystem,” Rigobón told worse thanbefore. Roberto Rigobónsays future boutsofpriceincreases couldbe Source: 2018 2017 Based ontheirexperience, Rigobónsaidhebelieves thetime Today, they are calculatinganinflationindex for Venezuela, They also lookedat With their “The BillionPricesProject’’ they calculatedtrue Over thepast13years, Rigobónandhiscolleague Alberto Rigobón saidhethinksthatmonetary have managers notyet Given thebenign environment, ithasbeeneasytodevise “We understandinflationbettertoday. We have managed it professor, andmemberof with avengeance. What’s more, inflationexpert, MIT erradicated from theplanet. However, ithasreappeared nflation, likemeasles, appeared tobeundercontrol and EFE/ LT calculations. Venezuela: National Assembly's data. eeul r.Uu e.Hn.Nc.Ba aa.Col. Parag. Braz Nica. Hond. Mex. Uru. Arg. Venezuela 9 4 7679 .342 .937 . 3.18 3.2 3.75 3.89 4.22 4.83 7.96 47.6 1 698844 . However, expertise shouldn’t andgoodmanagement 1 4865 .74156 .540 4.09 4.05 2.95 5.68 4.1 6.77 6.55 24.8 2 616 LT SANTIAGO GUTIÉRREZREPORTED FROM BOGOTA Latin Trade measuring inflation. change themethodof The timehascometo ’s board ofeconomists Note: Figures

are %

CYNTHIA HUDSON

“CNN en Español tiene un rol importante que cumplir en la sociedad: unir voces, y unir a todos los hispanoparlantes donde quiera que estén. Nuestro papel es defender nuestro lugar en la comunidad global y nuestro derecho a realizarnos, construir sociedades justas y a crecer defendiendo los derechos de cada persona eliminando prejuicios históricos.

Esta es nuestra visión, que ha sido desarrollada para múltiples plataformas con segmentos semanales y programas especiales que arrojaran luz sobre la discriminación y cómo superar este flagelo.”

Cynthia Hudson Vicepresidenta sénior y directora gerente de CNN en Español y estrategia hispana

/serhumanocnn @serhumanocnn @serhumanocnn

#serhumanocnn cnne.com/serhumanocnn Creating opportunities in an interconnected world

With experts in Latin America and around the globe, HSBC can help your business grow across borders.

Visit gbm.hsbc.com

Together we thrive