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2. 14/05/2015Brazil – A country of opportunities Paulo Safady Simão CBIC Chair

3. National and international representative of employer associations in the construction and real estate industry BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER

4. 26 States and Federal District Highway Construction Sanitation Real Estate Construction Segments UNIONS, EMPLOYER ASSOCIANTIONS AND CHAMBERS 62 Associations BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER

5. GENERAL INFORMATION BRAZIL Brazil – A country of opportunities

6. RECENT GLOBAL FINANCIAL CRISIS “The stability of the economy and of the country’s democratic institutions as well as frank dialogue between government and civil society were decisive in successfully confronting the crisis” A development strategy based on investment and mass consumption (domestic market) was adopted; and... Monetary policy Reserve requirement Reduced interest rates Foreign trade (reserves) Fiscal policy Reduced taxes on production Investments in construction

7. Source: Ministry of Finance, Brazilian Central Bank (BACEN) and CBIC Database ECONOMIC OUTLOOK Economic stability; Average growth of approximately 4.7% per year; Growth driven by internal demand and by investments in infrastructure and housing; Investments projected to grow by at least twice the rate of GDP in the coming 4 years; Notwithstanding forecasts pointing to a renewed global downturn, domestic demand remains robust, international reserves and reserve requirements are higher than in 2008, and the fiscal situation is stronger.

8. GDP GROWTH RATES Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance. In the period 2011-2014, the consolidation of investments (driven by construction) and increased domestic demand is expected to spur average annual economic growth of 4,7%.

9. MIDDLE CLASS ACCOUNTS FOR MORE THAN HALF OF BRAZILIAN POPULATION Note: Monthly household per capita income by class at 2009 prices: Class A/B: more than R$ 4,800.00; Class C: R$ 1,115.00 – R$ 4,800.00; Class D: R$ 804.00 – R$ 1,115.00; Class E: up to R$ 804.00. Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared and estimated by the Ministry of Finance Enhanced income distribution has added 29 million to middle class (Class C). DISTRIBUTION OF ECONOMIC CLASSES IN BRAZIL (% POPULATION)

10. A MIDDLE CLASS NATION Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared by the Ministry of Finance COMPOSITION OF BRAZILIAN SOCIAL CLASSES (MILLIONS OF PEOPLE)

11. BRAZILIAN ECONOMY: FORECAST * IMF Forecast Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

12. GENERAL INFORMATION CONSTRUCTION Brazil – A country of opportunities

13. THE CONSTRUCTION INDUSTRY IN CONTEXT  Represents approximately 20% of national industrial output;  More than 2.8 million formal workers;  More than 170,000 licensed companies;  Accounts for nearly 41% of fixed investments in Brazil. Source and Preparation: CBIC Database.

14. GROWTH OF CONSTRUCTION INDUSTRY LABOR FORCE Source: Annual Registry of Social Information/General Registry of Employed and Unemployed Persons (RAIS/CAGED), Ministry of Labor and Employment. Preparation: CBIC Database.

15. REAL ESTATE MARKET Brazil – A country of opportunities

16. REAL ESTATE MARKET GROWTH IN REAL ESTATE CREDIT 2002 – 2011 (financing volume) 28 Note: New and used units Source: Brazilian Central Bank (BACEN), Brazilian Association of Real Estate Credit and Savings (ABECIP), and Federal Savings Bank (CEF) – FGTS Channel. CBIC Database.

17. Source: Brazilian Central Bank and Brazilian Association of Real Estate Credit and Savings (ABECIP) Brazilian Savings and Loan System (SBPE) – Agreements with more than 3 outstanding installments signed after 1998 HIGH QUALITY REAL ESTATE CREDIT Mortgage Guaranty + Fiduciary Lien Fiduciary Lien

18. Source: Brazilian Central Bank (BACEN) and Brazilian Association of Real Estate Credit and Savings (ABECIP). Preparation: CBIC Database REAL ESTATE FINANCING AS A PERCENTAGE OF GDP

19. Source: Brazilian Central Bank (BACEN). Preparation: CBIC Database CREDIT TRANSACTIONS BY FINANCIAL SYSTEM IN 2009 (AT THE HEIGHT OF THE CRISIS) Steering of funds at low cost was decisive for maintaining credit levels at the height of the global crisis.

20. MY HOME, MY LIFE PROGRAM (PMCMV) Brazil – A country of opportunities

21. Disbursement of MCMV Program (R$ billion) *Caixa Econômica Federal estimate. Source: Caixa Econômica Federal. Preparation: Ministry of Finance. MY HOME, MY LIFE PROGRAM (PMCMV)

22. HOUSING NEEDS (millions of units) Source: Civil Construction Industry Trade Union of São Paulo (SINDUSCON-SP), São Paulo State Federation of Industry (FIESP), Getúlio Vargas Foundation (FGV). CBIC Database. ADDITIONAL GROWTH INDICATORS... 5.81 Cumulative shortage - 2009 23.49 2010 - 2022

23. INFRASTRUCTURE Brazil – A country of opportunities

24. Source: PAC2 Report. WHAT IS THE PAC It is a program of consistent investments aimed at meeting the challenges of infrastructure. ? GROWTH ACCELERATION PROGRAM SECOND PHASE 2011-2014

25. Source: PAC2 Report. GROWTH ACCELERATION PROGRAM – SECOND PHASE

26. Organizes government measures and supports private sector action over a 4 year period. Develops an optimal environment to enable the country to grow at a faster rate through the execution of infrastructure studies, projects, and works. Creates the conditions for addressing the obstacles to sustainable development. GROWTH ACCELERATION PROGRAM

27. Stadiums Urban Mobility Ports and airports Environment sanitation Telecommunica tions 2014 FIFA WORLD CUP Brazil – A country of opportunities

28. (R$ billion) INVESTMENTS FOR THE 2014 FIFA WORLD CUP Source and Preparation: Ministry of Finance.

29. 2016 OLYMPIC GAMES Stadiums and arenas Urban Mobility Ports and airports Environment sanitation Telecommunica tions Brazil – A country of opportunities

30. Note: The expansion of the Port of Santos and the construction of the Açu Port in Rio de Janeiro, the largest venture investiment in port in Latin America. Source: CG-LA ExameYearbook 2011-2012. Preparation: Ministry of Finance Nine major projects of ports in the world (US$ billion) PORT INVESTMENTS

31. Sixteen major transport projects in the world (US$ billion) INVESTMENT PROGRAM IN TRANSPORTATION Source and Preparation: Ministry of Finance.

32. High-speed train linking the cities of Rio de Janeiro, São Paulo and Campinas (R$ billion and % of total) INVESTMENT PROGRAM IN TRANSPORTATION Source: STN/Ministry of Finance. Preparation: Ministry of Finance

33. Airport concession: Planned investments (R$ billion) INVESTMENT PROGRAM IN TRANSPORTATION Source: STN/Ministry of Finance. Preparation: Ministry of Finance

34. ENERGY  Subsalt;  Clean Energy;  Hydroelectric Plan;  Oil and Gas. Brazil – A country of opportunities

35. Ten major projects in the Oil and Gas sectors in the world (US$ billlion) INVESTMENTS IN THE OIL AND GAS SECTOR Source and Preparation: Ministry of Finance. Note: If plus ship-oil platforms whith building platforms the total value is US$ 40 billion.

36. INVESTMENTS IN THE ELETRICITY SECTOR Fifteen major projects in the Eletricity Sector in the world (US$ billlion) Source: CG-LA ExameYearbook 2011-2012. Preparation: Ministry of Finance

37. INVESTMENT FOR THE COUNTRY´S DEVELOPMENT AND GROWTH Note: Updated in January 2012. Preparation: Ministry of Finance.

38. OTHERS BUSINESS OPPORTUNITIES  Investment in tourism;  Commercial buildings – shopping malls, warehouses for logistics;  Tecnological Innovation Program

39. Paulo Safady Simão CBIC CHAIR BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER www.cbic.org.br presidencia@cbic.org.br Phone: +55(61) 3327-1013 Fax: +55(61) 3327-1393

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