INTERNATIONAL CREDIT AND TRADE FINANCE - SYMPOSIUM NOV 12 FABIO YUKIO YAMADA FABIO YAMADA NOVEMBER 2012

INTELIGENCIA CORPORATIVA IN BRAZIL – IBG GLOBAL 10+ YEARS IN TRADE FINANCE FROM CREDIT ANALYST TO SALES ZERO DEFAULT RECORD

BRAZIL IS GROWING!

195 MM PEOPLE 6TH. ECONOMY WW BR = 50% LATAM GDP GDP – SUSTAINABLE 3.5% FDI US$163Bi (2005) to US$660 Bi (2011) UNEMPLOYMENT-LOW INFLATION - LOW

REGIONAL ECONOMIC DISTRIBUTION Northeast 12 % North 2% Center-West 8 % Southeast 58.5 % South 16.5 % % of National GDP; Source:IBG, 2010

12 BRAZILIAN CITIES WILL HOST WORLD CUP GAMES – JUN/JUL 2014 RIO WILL HOST SOUTH AMERICA’S FIRST OLYMPIC GAMES AUG/SEP 2016 ESTIMATED INVESTMENT – US$50 BI INFRASTRUCTURE, CONSTRUCTION, TRANSPORTATION, PUBLIC SECURITY, EDUCATION & TRAINING, AMONG OTHERS. MOST VIA PUBLIC- PRIVATE PARTNERSHIPS UNDER BRAZIL’S GROWTH ACCELERATION PLAN (PAC)

REASONS TO DO BUSINESS IN BRAZIL - REAL (R$) X OTHER CURRENCIES - RISING COST OF LABOR - DEMAND

BRAZIL IS LIQUID !!

aloshbennett via Flickr

BOLD SUPREME COURT

MAJOR DIFFERENCE!

COMPETITION TO INTL TRADE FINANCE BNDES FEDERAL BANKS

LOCAL ENVIRONMENT TO TF EVER CHANGING - TAXES AND LAWS FINANCIALS DRIVEN TO LOWER TAXES SLOW LEGAL SYSTEM LIENS TO FOREIGN INSTITUTIONS LOCAL CREDIT FACILITIES MORE ATTRACTIVE TO LOCALLY MANUFACTURED GOODS INFANT INSURANCE INDUSTRY

DO’S HAVE LOCAL SEASONED PRESENCE TO SELECT/CALL CLIENTS (EX. CONSTRUCTION & OIL COS). C LEVEL NETWORKS ARE KEY TO ANTICIPATE ISSUES (EX. CFO & CEO) RELIABLE MARKET INTELLIGENCE BY INDUSTRY & POLITICS BEHIND THE INDUSTRY (RAILROAD CASE) THINK CLIENT’S LONG TERM STRATEGY (HEALTHCARE CASE) LONG TERM YIELDS VS SHORT TERM RESULTS (HEALTHCARE CASE)

DO’S SPEAK PORTUGUESE – YES DOESN’T MEAN YES AND NO DOESN’T MEAN NO… LEGAL ISSUES – DO IT RIGHT - SEEK SPECIFIC LEGAL SUPPORT BEFORE ENGAGING IN BUSINESS CREDIT – KYC & STAY TUNED FOR THE DURATION OF THE LINE COLLECTION – LIENS ? IF YOU NEED, TOO LATE…

INTELIGENCIA CORPORATIVA Rua Helena 280, Suite 703, Sao Paulo – SP Ph - +5511-3044-4848