1. CONCEITO BRAZIL
São Paulo, Brazil

2. Top Exports from Brazil
Meat
Sugar cane
Orange
Oil
Corn
Soy
Coffee
Ethanol
Iron ore
Airplanes

3. Doing Business in Brazil
Crisis and Recuperation
Economic Development
Trading Partners and Best Prospects

4. Industrial Production During the Crisis
IBGE indicated growth of 0.7% in March
By category, in 1st trimester 2009 compared to same period of 2008, in % :
General industry: Consumer goods: -8.0
Capital goods: Durables:
Intermediate goods: Semi and non-durable: -3.0

5. Retail Growth During the Crisis

6. Car Sales During the Crisis
Car production increased 34.2% between February and March. 08 09

7. Invest Confidence
The main São Paulo Stock Exchange Index, the Bovespa, has risen more than 75% from its low point last October.
Since January, R$ 5.7 billion has been invested in the Bovespa from overseas
Bovespa (Blue) vs. Dow Jones Industrial Average (Red).

8. Brazil’s Reaction to the Crisis
Government measures:
Tax cuts such as IPI, the federal tax on domestic and imported manufactured products.
Interest rate reduction – 9.25% per year.
Incentives for civil construction.
Infrastructure development.

9. GDP growing projection for 2010 The world recovering
Source: Agencia Estado

10. Brazilian GDP
Source: IBGE

11. Economic Indicators 2010 Estimates
GDP: US$ 1.58 Trillion (IMF)
Growth Rate: 4.83 %
Inflation Rate: 4.60 % year
Foreign Direct Investment : US$ 35 Billion
Interest rates, SELIC at 8.75 % year
Foreign Exchange Rate: 1 USD = 1.75 Reais
Unemployment Rate: 7.42 %
190 Million Consumers with Increased Purchasing Power
Source: Central Bank Brazil

12. Brazil Compared - GDP (US$ Billion)
Despite current economic challenges, Brazil continues to offer strong opportunities for U.S. exporters. Brazil's investment grade economy is the 10th largest in the world, with a GDP of $1.5 trillion. Brazil represents approximately half of South America's territory and economy.
Source: International Monetary Fund

13. Brazil’s Rate of Growth
0.0%
0.3%
4.3%
1.3%
2.7%
1.1%
5.7%
2.9%
3.7%
4.5%
5.1 % 0% 1% 2% 3% 4% 5% 6% 7% 8%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Annual Percent
2.6% average
1 %
2009
Brazil is rich in agricultural, mineral and industrial resources. The economy has experienced stable growth in recent years of 4 to 5%.
Source: IMF, Consensus Forecasts, IBGE

14. Inflation Rate
2,477%
1993
Source: Agência Estado

15. Foreign Direct Investment
(US$ Billion)
Source: Central Bank Brazil

16. Prime rate in Brazil has reached the lowest historic level (in %)
Banco Central Prime Rate Nov/25/

17. Interest Rates The SELIC rate is currently 8.75 % (per year).
Mortgage loans range from 8% to 12% per year for up to 25 year loans plus inflation.
Businesses generally pay from 2% to 4.5% (per month), depending on creditworthiness.
Checking account rates are about 140 % year.
Credit Card rates are 233 % per year.
Source: Central Bank Brazil

18. Foreign Exchange Rate
Source: BCB

19. GDP share - % of total GDP - 2008
Regional Disparities
GDP share - % of total GDP
North – 4,92
Northeast – 13,68
Center-West – 7,28
Southeast – 55,09
South – 19,03
Source: International Monetary Fund

20. Brazilian Imports by Economic Blocks

21. Bilateral Trade
(US$ Thousands)
Several of Brazil's largest companies are publicly traded on the NYSE including Petrobras (energy), Embraer (aerospace), and Vale (mining). Brazil has been in the spotlight in the United States quite a bit over the last two years. Most of Brazil's allure for US exporters is due to its geographical proximity, booming business opportunities, warm climate and friendly people.
Office of Trade and Industry Information (OTTI), U.S. Department of Commerce

22. U.S. Exports to Latin America
Brazil Compared:
U.S. Exports to Latin America
U.S. Exports to Latin America were on the rise in 2006.
Notice how Venezuela and Colombia are similar markets in size to Chile.
In Venezuela’s case, U.S. exports are increasing due to higher oil revenues and economic activity.
Source: Foreign Trade Division, U.S. Census Bureau

23. Best Prospects for Sales to Brazil
Agricultural Sector
Aerospace (Aircraft and Parts / Airports)
Electrical Power Systems
Environmental
Franchising
ICT - Information & Communication Technologies
Insurance
Medical Equipment
Mining
Oil and Gas
Pharmaceuticals
Safety & Security
Transportation (Ports / Railways)
Travel and Tourism

24. The Brazilian Oil and Gas Sector (November 2010)
Over 60 oil companies with oil exploration and appraisal areas in Brazil.
Petrobras investment: US$174 B (US$ 92 in Brazil’s E&P). Other oil co’s: Est. US$34.5 B.
Opportunity: 819 oil blocks auctioned; Petrobras plans to contract about 300 new vessels (e.g. oil drilling and production platforms, ships, platform support boats, and very large crude oil carriers) .
Pre-salt oil fields: Petrobras plans to invest USD$ billion from to 2020 to produce 5.7 million bpd plus 1,815 million bpd from pre-salt fields. This figure includes Petrobras and its partners’ pre-salt production.
Challenge: Heavy emphasis on local equipment content.
Complex suppliers’ registration process with Petrobras.

25. Pre-Salt Reserves
The New Frontier: 100 Billion Barrels? (A 500-mile wide area in Brazil, located under a thick layer of salt miles off of Brazil’s southeastern coast, stretching from Espírito Santo, Rio de Janeiro, São Paulo, Paraná, and Santa Catarina States, at an
average water depth of over 7000 feet. About 25 percent of the pre-salt area has already been contracted to private companies through Brazil’s competitive bid round process. )

26. 2010 Best Prospects for E&P Equipment
Production pipelines alloy coatings
Turbo compressors (6-10 Mw)
Polyester mooring cables
Mooring systems
Drilling pipelines
Electrical cables
Control systems for well control
Oil and gas metering systems
Offshore drilling rigs
Gravel packing
Drill bits
Steam generators (25-50 x BTU/d);
Special sphere subsea valves
Subsea sensors for analysis of oil and grease traces in water
Based on the result of privatization, growing consumer exposure (Internet) and demand for imports, and the falling dollar, these are the industries we feel will do well in Brazil on both the high and low end as previously discussed.

27. Best Prospects for E&P Services
Drilling
Workover services
Flexible lines and umbilicals laying services
Support to ROV vehicles
Support to mooring activities
Special vessels
Monitoring and inspection techniques for structural integrity of flexible risers
Based on the result of privatization, growing consumer exposure (Internet) and demand for imports, and the falling dollar, these are the industries we feel will do well in Brazil on both the high and low end as previously discussed.

28. World Cup 2014 and Olympic Games 2016 Business Opportunities in Rio
Rio de Janeiro will host the first-ever Olympic Games in South America August- September 2016, as well as some of the games for the 2014 World Cup. These two events will generate numerous trade and investment opportunities in several areas, for both games and the city.

29. Estimated investments
The state government of Rio de Janeiro estimates that investments from will reach US$50 billion in infrastructure, construction, transportation, public security, education and training, among others. Most of those investments will occur through Public-Private Partnerships (PPPs) under Brazil’s Growth Acceleration Program (PAC).

30. Investments in Building and Construction
There will be a huge demand for Architecture/Construction/Engineering (ACE) services to plan and build sport facilities (arenas, stadiums, etc), hotels, infrastructure and transportation projects, as well as port and airport upgrades.

31. Investments in Sport Facilities
Although more than half of Rio 2016 venues are ready, since Rio hosted the Pan American Olympic Games, about 20 new facilities are to be built. They include:
An aquatic sports stadium with 18,000 seats with an estimated construction cost of US$40 million.
An Olympic Park to host gymnastics, cycling, handball, and other sports competitions with an estimated building cost of US$200 million.
An Olympic village of 32 buildings with 12 floors each and a capacity of over 17,000 beds estimated at US$450 million.
An Olympic Tennis Center with 16 courts (US$45 million).
A renovated rowing stadium at Rodrigo de Freitas Lagoon will cost approximately S$2 million.
An arena in Copacabana for beach volley (US$7 million).
The renovation of Maracanã Stadium (where the opening and closing Olympic ceremonies will be held as well as soccer games) will cost approximately US$400 million, and must be completed before 2014 to use in the 2014 Soccer World Cup.

32. Investments in Hotel/Hospital Facilities
In 2010, the number of visitors to the city is expected to grow in 10% in comparison to 2008, when 1.68 million tourists came to Rio. By the time of the 2014 Soccer World Cup and the 2016 Olympic Games this number will increase even more.
Several hotels are being refurbished.
The municipality of Rio may reduce taxes to attract new investment in hotels; thereby creating opportunities for U.S. hotel chains in refurbishment, architectural projects and building or acquiring existing hotels.
As for hospitals, a clinic will be built within the Olympic Village.

33. Investments in Infrastructure
The estimated investment in infrastructure is about US$15 billion, including US$5 billion in logistics upgrades at seaports and airports. The main projects include:
The modernization and enlargement of the two International Airport terminals (increasing the airport's capacity from 15 million passengers per year to 25 million),
Highway widening,
Construction of “Olympic lanes”,
The Port of Rio area revitalization to include a new 30,000 square meter leisure area featuring bars, restaurants, an amphitheater, a multi-use space and parking,
Port dredging,
Construction of two new subway lines,
The creation of a Bus Rapid Transit (BRT) system,
Housing projects (including low income housing) and
Water sanitation.

34. Infra-structure Matters in Brazil
BR US Difference
Soy production costs dollars cheaper in Brazil
Transportation costs dollars cheaper in U.S.
Port costs dollars cheaper in U.S.
Total dollars in favor of USA
Conclusion:
To produce soy in Brazil is 51 dollars cheaper, but the logistic costs eliminates this advantage. In the end, it is 24 dollars cheaper to get the product to market in the US.
Source: Veja Magazine

35. Thank you !!
Camille: Here are the main points of contact in all four cities. We are happy to answer any questions you may have.