PARANA STATE

LOCATION Strategic position in South America Easy access to Mercosur and to major markets in Brazil

PARANA STATE 4 th ECONOMY IN BRAZIL 3 rd MAJOR INDUSTRIAL CLUSTER IN THE COUNTRY 2 nd MOST COMPETITIVE STATE IN BRAZIL

GDP = US$ 135,3 BILLION (2014) 6,3% of N ATIONAL GDP GDP COMPOSITION Source: IPARDES, IMF and IBGE. Produced by IPARDES, Industry 26,2% Trade and Services 63,4% Agriculture 10,4% PARANA STATE ECONOMY M AJOR NATIONAL CHICKEN PRODUCER AND EXPORTER 2 nd NATIONAL AUTOMOTIVE CLUSTER ( ADDED VALUE ) 2 nd GRAIN PRODUCER OF THE COUNTRY HIGHER THAN THE BRAZILIAN AVERAGE (2,2%) IN THE SAME PERIOD A NNUAL GROWTH AVERAGE ,7%

US$ 1 ST AMONG THE STATES IN S OUTH B RAZIL 3 RD MOST PRODUCTIVE S TATE IN INDUSTRIAL MANUFACTURING IN THE COUNTRY Source: APD/PIA IBGE PARANA STATE ADDED VALUE – INDUSTRIAL SECTOR SOUTH BRAZIL

Main industrial sectors:  Automotive  Food & beverage  Oil & gas  Chemical products  Paper and cellulose ECONOMY PARANA STATE Strategic industrial sectors for new projects:  Automotive  Aerospace and defense  ITC  Electrical and electronics  Life Sciences  Agroindustry technologies  Renewable energies

EXPORTS DESTINATION COUNTRY EXPORTS US$ FOB (in million) % TOTAL16,300100% China3, % Argentina1,5009.2% USA7414.5% Saudi Arabia6193.7% Paraguay5633.4% Netherlands5503.3% PRODUCTS% Soy20% Poultry13% Soy bran9.9% Sugar6.4% Corn3.6% Cars2.6% PARANA STATE ECONOMY – INTERNATIONAL TRADE

IMPORTS ORIGIN COUNTRY IMPORTS US$ FOB (in million) % TOTAL17,300100% China 2, % Argentina 1, % Nigeria 1,1306.5% USA 1,1306.5% Germany % France % PARANA STATE ECONOMY – INTERNATIONAL TRADE PRODUCTS% Crude oil7.8% Fertilizers7.6% Autoparts7% Cars5.4% Refined oil3.4% Trucks3%

National ranking – based on industrial transformation value generation Source: IBGE/PIA, 2012 INDUSTRIAL STRENGTH In wood spliting In manufacturing of: − Food products − Paper and cellulose − Cars, vans and utilities − Medical and dental tools 2 nd In manufacturing of: - Furniture - Home appliances - Pharmaceutical and chemical products - Petroleum products 1 st 3 rd PARANA STATE

AGRIBUSINESS STRENGHT National ranking – based on 2012/2013 production (ton/liters) Source: DERAL/CONAB, 2013 Chicken 1 st Manioc Soy Wheat Corn 2 nd Milk Sugar 3 rd Ethanol 5º PARANA STATE

WORLD CLASS LABOR Literacy rate = 94% (Brazilian average = 91%) International and bilingual schools in major cities of the State Technical Education Institutions in 35 municipalities 2 federal universities, 7 state universities and 174 private higher education institutions 79 municipalities with public or private higher education institutions PARANA STATE

WORLD CLASS LABOR Available labor = 5,2% Proportion of people with higher education is greater in Paraná (12,7%) than in the rest of the country (11,3%) More than 8,000 students in Master courses and 4,000 in PhD courses Around 30 technological incubators distributed throughout 15 cities PARANA STATE

P RODUCTIVITY IN P ARANA IS HIGHER COMPARED TO THE NATIONAL AVERAGE IN MANY SECTORS OF THE TRANSFORMATION INDUSTRY Source: IBGE, 2011 WORKERS 2.5 TIMES MORE PRODUCTIVE THAN THE ONES FROM OTHER STATES WORLD CLASS LABOR PARANA STATE

Access to the consumer markets of Mercosur/LA Quick and direct access to the main consumer markets of the country Access to 4 strategical ports Access to the consumer markets of South Brazil LOGISTICAL ADVANTAGE PARANA STATE

Industrial gas covering: best gas supply in South Brazil Efficient and competitive industrial water supply guaranteed COPEL Paraná Power Company: the best power distributor of Brazil Tax incentives on industrial electricity costs POWER AND UTILITIES ADVANTAGES Electricity Investor support Quick installations and co- investiments in substantions and access to industrial gas PARANA STATE

QUALITY OF LIFE Cultural and religious diversity Efficient urban planning Rich and exuberant nature That attracts tourists, produces food and gives its inhabitants an excellent quality of life Resulting from the immigration of different people to the state Which has rendered the state many international awards PARANA STATE

PREPARED STAFF KNOWLEDGEINITIATIVEFOCUS PARANA DEVELOPMENT AGENCY Parana: the South American hub for business and investments SUPPORT MISSION Attraction of national and international investments Economic development of the state Support to companies already established in Parana aimed at further developing the state VISION

PARTNERS NETWORK UNIVERSITIESLABORATORIESASSOCIATIONS INDUSTRIAL RESEARCH & DEVELOPMENT INSTITUTIONS INDUSTRIESGOVERNMENTS

OUR SERVICES Strategic information about Parana Development and coordination of strategic projects for the state and its municipalities Information about financing and human resources Support to investors with the federal, state and local governments Advisory services and site location for new companies Demonstration of tax system and benefits Connection with institutions and business associations

“PARANÁ COMPETITIVE” PROGRAM Tax incentive program aimed at attracting investments to the state of Paraná - State Decrees Nº 630/2011 and 7291/2013 Objective To promote the attraction of new investments and the expansion of industrial activities already established in the state Benefits Postponement of the new ICMS Deferral of the ICMS on electricity supplied by energy companies located in Paraná and on natural gas supplied by Compagás

“PARANÁ COMPETITIVE” PROGRAM Investments realized in the 24 months prior to the request Investments under implementation Future investments (projected) Postponement of payment of the new ICMS (from 10% to 90%) Postponement period: from 2 to 8 years Postponement of the ICMS

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