1. Brazilian IoT Landscape: building a long term plan Ricardo Rivera ICT Industries Research Manager (BNDES) www.iotbrasil.com.br IoT Week 2016 - Belgrado - Innovation day 31-05 Brazil Session: IoT Panorama and collaboration with EU

2. 1960 Energy shortage No Automotive Industry Oil Crisis Agriculture Expansion 3rd largest civil aircraft manufacturer 3rd largest oil company in the world 6th largest* automotive manufacturer Basic Inputs Development 2nd largest mining company 50% of fuel consumption comes from sugar cane ethanol Brazil is the 3rd largest food exporter Aircraft Industry development *Non-exhaustive list IoT/Innovation: Next opportunity for new companies blossoming in Brazil Innovation Challenge IoT, Renewable Energy, Biotech among the top priorities 197019801990Today1950

3. How we plan to build a long term vision? Interopera bility SecurityPrivacy Government articulation Human Resources Financing… Smart Cities Smart Farming Health Manufacturing Logistics Mobility Home Automation ??? Horizontals Verticals

4. IoT study should address a balanced view considering opportunities for innovation and impact on Brazil development Deep dive Public policies proposals Supply Criteria (ex.):  Local ICT existing and desirable competences (software, hardware, microelectronics)  Niche opportunities and new business models ... Demand Criteria (ex.):  Brazilian “big challenges” and opportunities  Global and local potential market  Addressable government procurement  Social impact ... Horizontal Issues Multi criteria analysis to select verticals and horizontals Action Plan (2017-2022) (2017-2022) 4

5. Action Plan (2017-2022), initiatives like: Regulatory framework (e.g. privacy, interoperability) Financing, specially venture capital Human Resources development Tax breaks International integration (support for exports, international cooperation) IoT observatory … Horizontals Verticals Bed tests (specially using government procurement power) and living labs Innovation public calls International agreement (innovation, standards etc)...

6. SWOT for IoT Strength Market: 200 M early adopters, 9.9 M M2M terminals (jun/15; top 10 ww) Diversified potential demand: manufacturing, government demand and B2C sectors HR: software competence acknowledgment Innovation: electronics clusters (SMEs) Policy Instruments: financing and fiscal incentives Competitive advantage: Agribusiness, O&G, Mining, Tourism and Aviation Weaknesses Infrastructure: broadband access and quality, logistics costs Gaps in innovation environment: lack of long term policies, weak companies-universities interaction, low private investment in innovation, embryonary start- up environment Macro constraints: high interest rates HR: lack of engineers and scientists, and basic education system Opportunities Well being: crowded cities, integrated Health System (SUS), urban agenda Productivity: agribusiness, logistics, basic inputs (mining, forest based, O&G) Renewable energy Threats Industrial sector loosing competitiveness Tsunami of new global and fast scalable business models capturing value from local tradable and non tradables sectors Low-skilled jobs losses

7. Successful Cases: IoT local development for local opportunities/challenges Logistics Brazilian roadways map (2015)

8. Successful Cases: IoT local development for local opportunities/challenges Smart Cities 7º smartest city in 2015 (ICF)

9. Successful Cases: IoT local development for local opportunities/challenges Agribusiness

10. Successful Cases: IoT local development for local opportunities/challenges Health Tropical diseases epidemic

11. Final Remarks IoT will address relevant Brazilian problems/opportunities Brazil definitely needs a long term plan for IoT IoT Week is a great opportunity to exchange knowledge and strengthen EU-Brazil relationship Thanks and…... and hope to see you in Rio!