Investment Opportunities in Brazil

Some Highlights of Chinese Investments in Brazil

3rd largest market for PCs; 4th largest market for mobile phones, automobiles and TVs; 5th largest market for medical equipment. A Huge Consumer Market

Increased Investment is a Government Priority Source: Instituto Brasileiro de Geografia e Estatística (IBGE) Prepared by: Ministry of Finance, Brazil Gross Fixed Capital Formation (%GDP)

Despite government efforts in increasing public investments there is a huge space for private investment:

BRAZIL – Investment Opportunities PRIORITY SECTORS: INFRASTRUCTURE RESEARCH & DEVELOPMENT OIL & GAS RENEWABLE ENERGIES AGRIBUSINESS

In the coming decade, investments in infrastructure will lead the Brazilian economy

Increasing demand for infrastructure services Source: National Logistics & Planning Company (EPL) Energy Research Company (EPE) Ministry of Mining and Energy (MME) Credit Suísse Produced by : Ministry of Finance

The Brazilian economy is at the onset of a new investment cycle Largest concession program in recent decades: US$ 250 billion Infrastructure investments: great multiplier effect Most effective instrument to stimulate the economy in a period of international crisis BRASIL – Investment Opportunities

Priority Sectors: Infrastructure LOGISTICS INVESTMENTS PROGRAM (PIL) Launched in August 15th, 2012 Aimed at providing Brazil with a modern, integrated and efficient transportation network, strengthening the competitiveness of the Brazilian economy by reducing logistics costs by at least 30% by the time the program reaches completion. The plan will raise investment of over $250 billion. A defining characteristic of the PIL is its openness to international business.

PRIVATE Investment in Transport Infrastructure US$ billion Roads: US$ bi Railroads: US$ 45 bi Ports: US$ bi Airports: US$ 3.96 bi New investment program – Concessions

INFRASTRUCTURE Widening and extending 7,500 kilometers of highways, with various stretches of road to be auctioned to the private sector following a concessions contract model. Total estimated investments: US$ 21.8 bi US$ 12.9 bi Invested in 5 years Concession contracts will be awarded for 30 years BR-163/267/262 connects the agricultural Brazilian Central Western region and the main ports in the Southeast coast Total extension: 1,423km; total investments: US$3.7 bi

Construction of 10,000 kilometers of railway. Stretches of track are to be auctioned to the private sector following a concessions contract model. Total estimated investments: US$ 38.3 bi US$ 23.5 bi Invested in 5 years Concession contracts will be awarded for 35 years Uruaçu-Corinto-Campus connects the mining West region to the main ports in the Southeast coast. Extension: 1,730 km; total estimated investment: 7.6 bi INFRASTRUCTURE

Upgrade of existing and creation of new ports (both maritime and inland waterways), which have been opened up to private investment under a new regulatory framework. New Expected Private investments in concessions, leases and in Private Use Terminals Total estimated investments: US$ 22.8 bi US$ 13.0 bi invested until 2014/15 INFRASTRUCTURE

Development of 689 regional airports and aerodromes, including 5 international airports that are auctioned under concession contracts to the private sector. Regional airports: Estimated investment on the 1st phase: US$ 3.06 bi in 270 regional airports Partnership with states and municipalities for the management of the airports Administrative concession INFRASTRUCTURE

Inward FDI Stock (2011) Main Regions of Origin

Foreign Direct Investment Source: United Nations Conference on Trade and Development (UNCTAD) Prepared by: Ministry of Finance, Brazil Foreign Direct Investment (US$ billion) India 2013 Brazil 63 China Belgium Hong Kong Brazil Australia Russia United Kingdom Canada France German Italy India Spain Singapore USA China Brazil Hong Kong United Kingdom France Singapore Australia Canada Russia Ireland Chile Belgium Luxemburg USA

Brasil Global Net Trade Promotion and Investment Office Embassy of Brazil in Beijing Tel: +86 (10)

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