Investment Climate In Brazil Presentation by Anand Nagaraj Citi Commercial Bank - Middle East Product and Marketing Head

10 Aspects About Brazil’s Current Investment Climate

1) 40 million people moved up on the social scale, 55% in Middle Class On top of the pyramid is 160,000 millionaires – 11th biggest country in this respect Mix of economical/political stability over last 20 years Strengthening of Social Programs to Reduce Inequality, Large Consuming Middle Class Unemployment RateReal Wages Mar-02Mar-03Mar-04Mar-05Mar-06Mar-07Mar-08Mar-09 Mar-10Mar-11Mar-12 Unemployment RateUnemployment Rate (s.a) Source: IBGE and Citi

2) GDP reached USD 2.2 trillion in 2012 Constitutes 42% of Latin America’s GDP 7th Strongest Economy in the World (by GDP), and 1st in Latin America GDP Growth I 2008.II 2008.III 2008.IV 2009.I 2009.II 2009.III 2009.IV 2010.I 2010.II 2010.III 2010.IV 2011.I 2011.II 2011.III 2011.IV 2012.I 2012.II 2012.III 2012.IV 2013.I 2013.II 2013.III 2013.IV QoQ GDP Growth Source: IBGE and Citi

3) Stable inflation since second half of the 90’s and decrease of local interest rate Brazilian reserves USD 36bn in 1999, USD 379bn in 2012 “Investment Grade” rating after the global financial crisis in 2008 Brazil Has Become a Stable Business Environment Real Interest RatesConsumer Inflation Index (IPCA) Oct-03Oct-04Oct-05Oct-06Oct-07Oct-08Oct-09Oct-10Oct-11Oct-12 Source: CitiSource: Bloomberg and Citi

4) Wide and Diverse Production Matrix

5) 15th position globally for oil production – 13.9bn barrels in 2012 Leverage towards self-sufficiency Brazil Occupies Relevant Global Position in Oil Production

6) Capable of supporting global expansion of Brazilian companies Bovespa (Brazil’s main Stock Exchange) was 3rd biggest in the world in 2012 – USD 13tr on negotiated volumes 466 companies listed on the stock exchange – 23rd ranking globally in this criteria Total CAP of the stocks traded in Brazil are the 7th biggest in the world Sophisticated and Efficient Financial Market Structure Equity Market Capitalization Source: BM&F Bovespa

7) FDI increased from USD 32.8bn in 2000 to USD 66.6bn in 2011 Foreign Direct Invsestment More Than Doubled in the Last 12 Years Foreign Investors - (Participation by Region)

8) Volumes of exports grown from USD 96.7bn in 2004 to USD 256bn in 2011 Main export products: Iron ores and concentrates (15%), Petroleum oils, crude (8%), Raw sugar, cane (6%), Soya beans (5%), Poultry (3%) Major Export Partners: China (15%), United States (10%), Argentina (9%), Netherlands (4%), Germany (4%) Imports grown from USD 62.8bn in 2004 to USD 226.2bn in 2011 Main import products: Cars (6%), Petroleum oils, refined (5%), Parts and accessories of the motor vehicles (4%), Electronic integrated circuits (3%), Medicaments, packaged (2%) Major Import Partners: United States (18%), China (16%), Argentina (10%), Germany (8%), Korea, Rep. (5%) Exports and Imports More Than Doubled over the Last 7 Years

9) 2014: Brazil to host the FIFA World Cup 2016: Brazil to host the Summer Olympic Games Increase in participation of private capital (both local and foreigner) on infrastructure- Privatizations and Public and Private Partnerships of certain airports / railways / roads / ports Investments on Infrastructure Related to Upcoming Major Sport Events Source: IBGE and Citi Private Consumption x Investments

10) Banking with Citi opens capability of differentiating from local comeptitions due to cross- border capabilities and foreign trade operations Citi entered Brazil market 1915 (97 years) Citi Brazil in major parts of the territory; present in all major cities Headquarters in Sao Paulo Full product suite serve companies both locally and internationally: Citi Transaction Services (CTS) Citi Commercial Bank (CCB) Consumer Banking Citi Brazil a Benchmark on Cross-Border Operations

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