Opportunity. Historical & Cultural Ties

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2 WHY CUBA?

3 Opportunity Historical & Cultural Ties

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5 Opportunity Historical & Cultural Ties Largest Island in the Caribbean

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7 Opportunity Historical & Cultural Ties Largest Island in the Caribbean 600 Miles from Mobile

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9 Opportunity Historical & Cultural Ties Largest Island in the Caribbean 600 Miles from Mobile 11.4 Million People

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11 Opportunity Historical & Cultural Ties Largest Island in the Caribbean 600 Miles from Mobile 11.4 Million People Highly Educated 99% Literacy Rate

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13 Opportunity Historical & Cultural Ties Largest Island in the Caribbean 600 Miles from Mobile 11.4 Million People Highly Educated 99% Literacy Rate Natural Beauty

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15 Opportunity Historical & Cultural Ties Largest Island in the Caribbean 600 Miles from Mobile 11.4 Million People Highly Educated 99% Literacy Rate Natural Beauty Forbidden Fruit for 60 Years Tremendous Needs

16 Impediments U.S. Trade Restrictions -Embargo Remains in Place Cuban Investment Laws -Different than Free Market -Do Business with Government -Tightly Controlled, Centrally Planned Economy -Barriers to Entry Low Gross Domestic Product -Limited Available Cash Low Per Capita Income Weak Infrastructure Bottom Line Not for Faint of Heart

17 Recent Changes in U.S.-Cuba Policy December 17, President Barack Obama Announces Policy to Normalize Relations with Cuba January 15, First Steps by Treasury & Commerce Departments are Taken to Change Regulations to Implement the Easing of Restrictions

18 Diplomatic Initiatives Cuban Embassy Reopened July 20, 2015 in Washington, D.C.

19 U.S. Embassy Reopens in Havana, Cuba on August 14, 2015

20 U.S. Policy Objectives Chart A New Course For Relations With Cuba Engage With The Cuban People Facilitate Travel Improve Telecommunication s Services Facilitate Financial Transactions Stimulate Small Business Growth Reset Relations With A Close Neighbor

21 U.S. Regulatory Changes to Accomplish These Objectives General Licenses for 12 Categories of Travel, Including Family Visits Journalistic Activity Professional Meetings Educational Activities ( People-To-People ) Religious Activities Travel Associated with Authorized Export Transactions However Travel for Tourism is Not Permitted

22 Practical Effects of These Changes U.S. companies may have an administrative & warehousing presence Cruise lines are authorized -Carnival has begun cruises Limits on remittances By family member lifted U.S. credit cards can be used -One Florida bank has established a correspondent relationship Sale of certain U.S. products can be financed Telecommunication providers have entered into roaming agreements Scheduled airline service Increase in official contacts Congressional delegations, state and local officials

23 Cuba s Strategic Location Jimmy Lyons

24 Doing Business in Cuba Honorable Ruben Ramos Arrieta

25 CUBA-U.S. RELATIONS Sept. 2016

26 CUBA-U.S. RELATIONS Dic.17, 2014 Ap.10, 2015 May.29, 2015 Aug.14, 2015 Sep.29, 2015 Oct. 6, 2015 Nov.14, 2015 Feb.16, 2016 Mar.16, 2016 Mar.20, 2016

27 BILATERAL AGREEMENTS Memorandum of Understanding (MOU) on Conservation and Management of Marine Protected Areas. Nov.18, 2015 Joint Statement on Environmental Cooperation. Nov.24, 2015 Understanding to re-establish direct postal services through a pilot plan for the transportation of mail. Dec.10, 2015 MOU on Civil Aviation. Arrangement for the reestablishment of scheduled air services. Feb.16, 2016 Evaluation of Port Facilities Security. Removal of Conditions of Entry on vessels arriving from Cuba. Mar.17, 2016 MOU on bilateral cooperation in agriculture, recognizing mutual interests in advancing agricultural technologies, agricultural productivity, food security, and sustainable natural resource management. Mar. 21, 2016 MOU to improve maritime navigation safety and related areas of mutual interest to protect lives and property at sea. Mar.21, 2016

28 Joint oilspill-response strategy Migration Drug trafficking Law enforcement Telecommunications Bilateral Steering Committee Air and maritime navigation Health and disease control Science and universities Next Meeting May.16, nd Meeting Nov.10, st Meeting Sept.11, 2015 Financial claims Human rights

29 CUBA ENVISIONS NORMALIZATION = PROCESS

30 Amendments to Cuba Sanctions since Dec.17, 2014 Travel Telecommunications Financial services Remittances Export licenses & financing Small business promotion Support for Cubans Legal services Aviation Educational activities

31 COMMERCIAL AGREEMENTS AND BUSINESS ARRANGEMENTS Telecommunication carriers such as IDT, Sprint, AT&T and Verizon signed deals. Starwood Hotels signed deals to operate luxury hotels in Havana. Stonegate Bank signed an agreement for financial operations. Western Union will launch remittance services into Cuba. General Electric signed three MOU with Cuban enterprises. Re-establishment of regular, direct flights Carnival Corp. cruise ships are allowed to dock in Cuba

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34 US Treasury & Commerce Regulations Alan Enslen

35 Cuba Sanctions/Export Update Alan F. Enslen International Trade Government Solutions 15 September 2016

36 Agenda U.S.-Cuba Background/Developments U.S.-Cuba International Trade Framework Economic Sanctions (Cuba) Export Controls (Cuba) U.S.-Cuba International Trade (Takeaways) Key International Trade Compliance Concepts

37 U.S.-Cuba Background/Developments President Obama announces change in U.S.-Cuba Policy 17 December 2014 Actions Cuba removed from State Sponsor of Terrorism List U.S.-Cuban Diplomatic Relations restored Incremental Sanctions Relief since December 2014 Issues/Limitations Cuban sanctions relief to date = achieved via Executive Order Core sanctions against Cuba are rooted in statutes Requires Congressional action to alter/amend

38 U.S.-Cuba International Trade Framework U.S. Economic Sanctions Cuban Assets Control Regulations (CACR) 31 CFR Part 515 Targeted Sanctions Programs U.S. Export Controls Defense Trade: International Traffic in Arms Regulations (ITAR) Cuba = ITAR 126.1(a) Country Dual-Use Trade: Export Administration Regulations (EAR) Cuba = EAR Restrictions

39 Economic Sanctions (Cuba) U.S. Department of the Treasury regulates Cuba trade through the Office of Foreign Assets Control (OFAC) Trading with the Enemy Act of 1917 (TWEA) Cuban Assets Control Regulations (CACR) 31 CFR Part 515 Targeted Sanctions Programs (e.g., SDNT) U.S. Department of State s Office of Sanctions Policy and Implementation also influences Cuba trade issues Extra-Territorial Jurisdiction asserted by the U.S.

40 Economic Sanctions (Cuba) Targets activities that threaten the national security, foreign policy, and economic stability of the U.S. U.S. Persons are prohibited from facilitating transactions that are otherwise unlawful under the CACR. Attempts to circumvent the CACR are prohibited and aggressively enforced. Specially Designated Nationals (SDN) List Penalties = Significant Range = OFAC Civil Fines to DOJ Criminal Prosecution

41 Economic Sanctions (Cuba) Key Amendments to the CACR 16 JAN 2015 (80 FR ) 21 SEP 2015 (80 FR ) 27 JAN 2016 (81 FR ) 16 MAR 2016 (81 FR ) Helpful OFAC Resources Frequently Asked Questions Related to Cuba Good Resource - OFAC Guidance is otherwise scarce Last Updated 25 JUL 2016 (99 FAQs) Treasury Fact Sheets related to Key Amendments

42 Economic Sanctions (Cuba) Travel to Cuba authorized via General License provided it falls within one of the 12 categories (but not tourism): Family Visits Official Business of the USG, Foreign Governments, and certain IGOs Journalistic Activity Professional Research and Professional Meetings Educational Activities Religious Activities Public Performances, Clinics, Workshops, Athletic and other Competitions, and Exhibitions Support for the Cuban People Humanitarian Projects Activities of Private Foundations or Research or Educational Institutes Exportation, Importation, or Transmission of Information or Informational Materials Certain Export Transactions

43 Travel (continued) Economic Sanctions (Cuba) Authorization of Travel and Carrier Services Authorization of activities incident to authorized travel Gradual expansion of the 12 categories Financial Services U.S. Banks can open/maintain correspondent accounts with Cuban banks to facilitate processing of authorized transactions Credit and Debit Card use for authorized activities Export Finance Restrictions removed for most transactions U.S. Banks can open/maintain bank accounts for Cuban nationals Establishing Physical Business Presence in Cuba Subject to authorized categories/activities Supporting Diplomatic Relations and USG Business Related to re-establishment of U.S. diplomatic relations with Cuba

44 Export Controls (Cuba) U.S. Department of Commerce regulates Cuba trade in dual-use goods through the Bureau of Industry and Security (BIS) Export Administration Act (EAA) (via IEEPA) Export Administration Regulations (EAR) 15 CFR Parts Export Controls overlap with (and pragmatically defer to) OFAC/CACR Requirements Key Cuba-related provisions in the EAR EAR 736.2(b)(5)-(6) (General Prohibitions 5 and 6) EAR 744 (Prohibited End-Uses/Prohibited End-Users) EAR (Cuba Embargo Controls) EAR (License Exception Support for the Cuban People (SCP))

45 Export Controls (Cuba) Exports to Cuba of all items on the Commerce Control List and EAR-99 items prohibited, subject to 14 enumerated license exceptions and other carve-outs e.g., Release of EAR-99 Technology or source code to a Cuban national in the U.S. or a third-country does not require a license Cuba license requests are subject to General Policy of Denial, except (generally approved): Medicines and Medical Devices Telecommunications Items Commodities/Software to HROs and NGOs promoting independent activity intended to strengthen civil society in Cuba Commodities/Software to U.S. news bureaus in Cuba Agricultural Items Items to ensure safety of civil aviation/commercial aircraft Items for environmental protection

46 Export Controls (Cuba) Cuba license requests are subject to General Policy of Denial, except (approved on case-by-case basis): Items to meet the needs of the Cuban people agricultural production artistic endeavors education food processing disaster preparedness relief and response public health and sanitation residential construction and renovation public transportation Aircraft/Vessels on temporary sojourn to Cuba to: deliver humanitarian goods or services consistent with the foreign policy interest of the U.S.

47 U.S.-Cuba International Trade (Takeaways) Obama administration pushing to do as much as it can via Executive Order and implementation Remember Cuba embargo remains in effect via statutory authority Congressional response? Election impacts? Respect overlapping jurisdiction of Commerce/BIS and Treasury/OFAC regarding Cuba trade BIS: Exporters should consult with OFAC. OFAC: For additional information, see BIS s Cuba webpage Revisions of EAR and CACR are intended to be synchronized, but gradual nature of liberalization can create regulatory gaps Double check authorization decisions Document getting to yes rationale If in doubt, seek guidance/authorization

48 Key International Trade Compliance Concepts International Trade Compliance should be conducted comprehensively across the full spectrum of trade-relevant areas International Trade Compliance is a continuing requirement Compliance Mindset - Diligence to Prevent Violations Preparation to Defend Actions International Trade Compliance = Business Decision Balance Business Operations and Compliance Risk Understand and capitalize on opportunities from U.S. Sanctions Relief and Export Control Reform

49 Questions?

50 Cuba Sanctions/Export Update Alan F. Enslen International Trade Government Solutions 15 September 2016

51 Cuban Investment Laws Honorable Ruben Ramos Arrieta

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86 Export Financing & Forecasting Mike Granger & Emilio Giliberto

87 Trade and Trade Finance with Cuba.Preparing For The Future 44

88 45 What Lies Ahead? Political and economic uncertainties exist both in the U.S. as well as in Cuba Embargo remains firmly in place Despite the history of strained relations with the U.S., trade with Cuba will face headwinds for years Economically developing nation Size of economy is smaller than many U.S. states State controlled country without the potential for near term growth (not another China!) 45

89 Texas in Perspective Markets In Perspective CUBA ALABAMA UNITED STATES Land (thousands sq. miles) ,796.7 GDP (US$ billion, est. 2015) 80.6 (2014 est.) ,047 Population (mm, est. 2015) GDP Per Capita (US$, est. 2015) Trade Flow (goods, US$ billion, 2015) 5,351 (2010 est.) 37,597 55, (2014) ,746 Source: IMF, WTO, US Census Bureau 46

90 47 Political Realities The press surrounding President Obama s announcement of changes to the Cuba policy has been a lot more dramatic than the changes themselves. The embargo remains A huge number of restrictions still exist on US corporates and banks who want to do business in Cuba In addition to concerns about violating sanctions, there are also concerns about the durability of the new US/Cuba relations, with an opposition-led Congress that has so far refused to lift the embargo Cuba keeps interesting company among countries with full embargo: Iran Sudan Syria Crimea 47

91 Banking Realities 48 Few banks have moved since the easing of restrictions Risk of significant U.S. sanctions remain bank legal departments will remain cautious because of the potential for penalties and other downside risks for their institutions Compliance challenges for banks will be more complex than in normal foreign trade Correspondent banking relationships with Cuban banks will need to be established to facilitate financial transactions The Cuban market will pose major challenges: Very slow decision-making, with most important business decisions being referred to high level government All sales in Cuba are public sales, controlled by heavy regulation Payment delays are common Standard practice for the Cuban state to expect to buy on credit terms of 1 to 2 years Potentially major changes in market competition due to easing of US sanctions 48

92 49 U.S. - Cuba Financial Sector Outlook Although US banks are now able to interact directly with Cuban financial institutions, there will be limited benefits: First and foremost, the embargo remains, prohibiting most financial transactions between the US and Cuba. US banks will most likely be reluctant to take full advantage of the changes until the embargo is formally lifted by the US congress Republicans will now control both houses and will surely not vote for such a move any time soon Even once the embargo is lifted, Cuban banks will remain unattractive to many foreign banks due to tight state control of the banking system and its lack of transparency Current banking regulations heavily restricted with the government in control of lending and deposit rates, and with restricted opportunities to finance the private sector Finally, Cuban banking regulation remains dubious and relatively untested. Capital, asset quality and liquidity guidance, created in the mid-to-late 2000s, failed to prevent a Cuban banking liquidity crisis in 2008 brought on by the global financial crisis. BBVA In Cuba While most U.S. financial institutions have not been able to conduct business in Cuba for decades, BBVA never stopped financing flows with Cuba, although this was reduced drastically when the embargo was imposed. BBVA established a representative office in Havana in 1995 and has correspondent bank relationships with the Cuban banks most active in managing international trade flows BBVA Compass can work with BBVA to facilitate contact with the Cuban rep office 49

93 50 Banks Have Millions of Reasons to Remain Wary Of OFAC Risks OFAC compliance can be strenuous Reputational harm High profile administrative fines for prohibited transactions have been significant: BNP Paribas 2014 = $8.9 billion Standard Chartered $667 million ING $619 million 50

94 Emilio Giliberto Director of Structured Trade Finance BBVA Compass 51

95 Cross Border Trade Payment Currency Taxes Commercial Risks (Insolvency, Bankruptcy, Breach of Contract) Country / political risks Before Exporting Transportation Arrival to Destination Controlled / forbidden exports (strategic, military, etc.) Infrastructure for foreign sales (internal / bank) Expectations Pricing (Incoterms) Who arranges for the transportation from my warehouse to destination (Freight Forwarders) Preservation Insurance Special documentation Customs (documentation) Tariffs / Import Taxes National standards Regulation 52

96 Primary Methods of Payment for International Transactions Key Points International trade presents a spectrum of risk, which causes uncertainty over the timing of payments between the exporter (seller) and importer (foreign buyer) For exporters, any sale is a gift until payment is received. Therefore, exporters want to receive payment as soon as possible, preferably as soon as an order is placed or before the goods are sent to the importer For importers, any payment is a donation until the goods are received Therefore, importers want to receive the goods as soon as possible but to delay payment as long as possible, preferably until after the goods are resold to generate enough income to pay the exporter 53

97 Foreign Trade Financial Risks Commercial Risk Political Risks Others Insolvency Bankruptcy Breach of Contract if private counterparty Transfer & Convertibility Expropriation Political Violence Breach of Contract if public counterparty Force Majeur Acts of Terrorism Currency & Interest Rate Risk Documentation Risk Liquidity Risk Transport Risk 54

98 Views of a European ECA Coface: Cuba Country Risk Country Risk: E Business Climate: D Source: w ww.coface.com 55

99 Understanding the Risks Source: University of Michigan and w ww.eulerhermes.com 56

100 Understanding the Risks Cuba Country Risk Cuba Business Climate Rating Página 57 Source: w ww.eulerhermes.com 57

101 Cuba: Critical Facts Economic System Largely state owned, but private sector activity is growing Small market economy with lackluster demand Financial Condition Creditworthiness a concern Restructured debts with China, Japan, Mexico and Russia Paris Club (Bilateral) Lenders and London Club (Private) preparing to negotiate debts Loosening of US restrictions may have positive impact on Country s credit rating 58

102 Cuba: Critical Facts Banking system Financial is largely state run. Severely limited and unable to provide substantial credit to the private sector Limited number of financial institutions 5 Retail Banks 1 Investment Bank 3 General Banks No Formal barriers to entry for Foreign Banks, but has been largely closed to foreign providers. 9 Foreign Banks with representative offices 2 Foreign non-bank financial companies 59

103 Cuba: Country Facts Regulatory System Currency Confusion Dual currency system needs to be corrected Cuban Central Bank s liquidity management system Imposition of restrictions to access business accounts. Legal System Development of a Uniform Commercial Code is necessary Legal system offers limited protection to foreign investors Some disputes have been settled by international arbitration 60

104 Cuba: Trade Finance Future Opportunities exist if Governmental policies on both sides are tempered US trade embargo must be lifted and restrictions on financing exports must be removed. Cuba must continue to push toward international openness and allow for participation of foreign banks. Exim Bank must be open for Cuba trade coverage Private insurers offer export credit insurance protection 61

105 Global Trade Finance Products Standard Product Specialized Product Documentary Business Forfaiting Export Credit Agencies Multilateral Agencies Documentary Collections Letters of Credit o Import o Export o Stand-by Standard & structured Export and Import Insured or Uninsured Guarantees Insurance Direct Loans Alternative financing structures Project and structured trade finance Banks act as Safe payment intermediaries in method collections, for importer; providing a excellent service and fee offering risk generator. reduction Creative, flexible alternative for exporters; opportunities in highly active secondary market Expands collateral base for borrowing and allows for more accommodating in-market financing terms Provides flexible and accommodating financing structures. 62

106 Main ECA s Worldwide Spain CESCE Finland Finnvera Italy SACE USA Eximbank France COFACE Canada EDC Portugal COSEC Brazil BNDES Germany Euler Hermes Japan NEXI/ JBIC Austria OËKB Netherlands Atradius Sw eden EKN Sw itzerland SERV U.K. ECGD China Sinosure South Korea KEXIM/ KEIC Belgium ONDD 63

107 BBVA Compass Financial Support and Banking Services to Foreign-Owned Companies Expanding into the US 64

108 BBVA Compass Industry Specialization Healthcare Transportation Food and Beverage Agri-Business Public Finance Franchisees Technology International 65

109 A Global Financial Services Group $758 Billion Assets 65 Million Clients 31 Countries 9,250 Branches 137,904 Employees Data as of 12/31/

110 A Strong partner In The USA Among the top 25 largest banks in the Nation Largest regional bank in Texas, ranked 4 th Top 4 in Houston Branches Commercial Office Commercial/ Private Client Office $ ,454 Billion Assets States Million Clients Branches Employees 67

111 Why Trade Finance With BBVA? Synergies Trade Finance World Leader Local Service Multisource and Mix Transaction Specialized Units in TF Complementary Financing Client Oriented Global Products Global Service Global Network 68

112 Dedicated teams around the world North America Europe Spain UK Germany Italy France New York Houston Latin America Mexico Brazil Colombia Argentina Asia Hong Kong Singapore Tokyo Beijing 69

113 Leadership with Corporations in our Core Markets Spain Rank: 1st 97% of Spanish Corporations work with BBVA 78% consider BBVA as their main Bank (1 St or 2 nd ) Mexico Rank: 1st Payment Instructions 94% of Mexican Large Corporations work with BBVA More than 60% consider BBVA as their 1 st or 2 nd Bank LATAM Rank: 2nd 50% of Latin American Corporations work with BBVA 24% consider BBVA as their 1 st or 2 nd Bank **Results based on an international consulting firm survey 70

114 #1 in 2014 American Bankers Annual Survey 71

115 Trade Finance Products and Services Trade Finance Leasing To finance export and import activities Issuance and receipt of Letters of Credit (commercial and standby LCs) Forfaiting and Supply Chain Financing ExIm Bank - Working Capital and term loans for exporters backed by guarantees of the Export Import Bank of the U.S. Off-balance sheet structures for rental of machinery and equipment Factoring and Forfaiting Sale of accounts receivable with or without recourse against the Seller Foreign receivables with credit insurance enhancements 72

116 BBVA Group Global Trade Finance Resources: Commercial Banking, Mobile Tyrone Fenderson Senior Vice President Mobile, Alabama Commercial Banking U.S. Michael C. Granger Director of Global Trade Finance and International Commercial Banking Houston, Texas International Commercial Banking Laerte Barros, Director of International Commercial Banking Houston, Texas P.C. Zotos, East Region International Specialist Miami, Florida Global Trade Finance Emilio Giliberto, Director of Structure and Execution Houston, Texas BBVA, S.A. - CUBA Eduardo Pellicer Cuba Representative Office Havana, Cuba eduardo.pellicer@bbva.com 73

117 Appendix 74

118 ECAs Definition ECA s are usually public (though sometimes private) or quasi-governmental institutions, that have the full weight of the government behind them, and act as intermediaries between national governments and exporters to support export financing The financing can take the form of loans or insurance and guarantees What can be financed? Exporting of national goods and services (engineering, assembly, etc) Turn-key projects Ships Aircrafts Nuclear power plants, electric power plants, wind farms Telecommunication stations 75 Page 75

119 ECA Products Short Term Long Term Export Credit Insurance - Single Buyer/ Multi-buyer Working Capital - WC Delegated Authority Supply Chain Finance Buyer s Credit: Medium Term /Long Term Floating/Fixed interest rates Local currency financing available Project and Structured Finance Leasing Cover Loan Guarantees - Medium Term Delegated Authority - Credit Guaranteed Facility 76

120 ECA - Basic Policies Basic Considerations Special Policies for some sectors Amount (Down Payment, Local Content) Disbursement Period (Starting Point) Repayment Period Repayment Profile Premium (Minimum Benchmark Premium) Tied Aid and Partially Untied Aid CIRR Environmental Impact Study Anti Corruption Declaration Ships Nuclear Power Civil Aircraft Renewable Energy + Water Projects Project Finance Medical Equipment* Transportation* Small Business* * US Exim Bank specific policies Does not apply to: Transactions with tenors below 24 months Excluded Military Products (Double Use) and Agricultural Products 77

121 US Exim WCG Product Characteristics Basic parameters Eligibility Delegated Authority Advance rates Advance are up rates to 90% are up to 90% against export against accounts export accounts receivable receivable and 75% against and 75% against inventory inventory Tenor: Generally Tenor: one Generally year or one year or less less Must be fully collateralized with export-related Must inventory be fully collateralized and with export-related inventory and accounts receivable accounts receivable Loans can be transactionspecific or Loans revolving can be transactionspecific performance revolving Covers exporter risk (Provides no protection to exporter against Covers foreign exporter buyer performance non-payment) risk (Provides no protection to exporter against foreign buyer non-payment) Exporter: 1. Must have a positive net worth 2. At least a one-year operating history 3. Business operations in U.S. 4. Products must be shipped from US port 5. Min 50% US content Collateral: 1. Export-related account receivable and inventory 2. A/R Ineligible if > 60 days past due, 90 days w/ insurance 3. Sales on terms not to exceed 180 day Delegated authority, according to each banks track record and monitoring infrastructure Swift approval process, within specified parameters. Does not exclude ad-hoc approval by US-Exim of transactions that fall outside the delegated limits 78 Page 78

122 Importing From Cuba Mike Lee

123 Practical Experience for Doing Business in Cuba

124 GulfWise Commerce uniting two neighboring countries with agriculture November 2015 Trip Shown above - Private Cooperative Cuba Farmers

125 For more than 100 years of farming in Baldwin County, the Woerner Family has endured droughts, floods, hurricanes, market fluctuations and many other farming experiences while relying upon a livelihood from the agriculture industry. It all began in 1906 and we are now entering the fourth generation with a strong commitment to providing quality agriculture products from farmers to families. Farming is the backbone to our economy and health. As we look into the future of farming, dehydration is a critical component to helping farmers minimize the waste of unused agriculture products and deliver nutritious, all-natural food items to places all over the world. George Woerner, CEO Bon Secour Valley Ingredients

126 Practical Experience in Doing business with Cuba Havana, Cuba is a sister city to Mobile, Alabama. Logistics of Havana and Mobile Ports-about 600 miles apart. Embargo has allowed for development of completely different ways of living. Joined by Agriculture- Cuba is the size of California and the soil is a red, rich nutrient soil in a tropical environment. Two different climates allow for different varieties of agriculture produce with different growing and harvesting schedules.

127 Indio Hatuey Agriculture Research Center

128 Sharing and collaborating sod details and growth strategies.

129 Indio Hatuey Agriculture Research Center - Sod Division

130 Maria - Director of Import and Exports Ministry of Foreign Trade and Investment Ms. Maria de la Luz B Hamel Ramirez

131 Minister of Higher Education Lic. Raul Hernandez Perez Lic. Raul Hernandez Perez We are encouraging academic institutions such as Auburn University and Indio Hatuey to facilitate continuing education courses and collaborative internships. Education programs and academic institutions will allow for development of further turf grass studies and practical implementation.

132 Biggest discussion point is the concern for water supply and shortage. Cuban official estimate at least 50% of all the water in Cuba is wasted by malfunctioning water utility lines. The water supply basins are on low capacity. Tatiana Nodal Navarro Ministry of Foreign Trade & Investment

133 Matanzas Private Farmer Cooperative

134 The farmers gave us a presentation of their history, crops under production and other details. We were able to then visit 3 different farms from dairy, chicken, fruits & vegetable to coffee. We look forward to the opportunity of importing their ag products into the USA. Cuba imports 85% of their food supply.

135 Various Agriculture products that are unique to USA - Yucca, Mamey and many others.

136 Coffee Farms Amazing Coffee Farming Cooperatives that use integrated farming techniques to provide the best nutrients for the coffee plants.

137 Bon Secour Valley Ingredients (BSVI) The Woerner AgriBusiness affiliate division, BSVI, is a 40,000 sq.ft. Dehydration & Ingredients Plant that is opening 2016 to produce fresh dried agriculture products into food such as powders, granules, particulates, and extracts.

138 Current focus and status of BSVI-using local produce to supply client needs: Dehydrated fruit and vegetable powders, granules and particulates Ingredients for Food Industry Pet Food Ingredients & Treats Examples: roasted chicory additives for coffee, smoothie mixes, dog treats, probiotics, tropical fruit snacks, functional ingredients, etc * Global Food Safety Initiative (GFSI) compliant Chicory Powder Kale Powder Sweet Potato Powder

139 BSVI Potential Commerce Opportunities: Import Tropical Fruit Products As we are developing clients, we now have requests for speciality tropical fruit products that we can not produce locally. We would like to discuss the possible importation of Mango, Papaya, Coffee, Mamey, and Yucca and many others.

140 Christina Woerner McInnis Marketing BSVI and GulfWise Commerce Member George Woerner CFO Woerner AgriBusiness and GulfWise Commerce Member

141 Thank you!