1. Pedro Bastos September, 2013

2. Disappointment with Brazil given recent economic performance… GDP Growth Source: HSBC Global Asset Management – Brazil/ IBGE 2

3. … commodities and consumption having a lower impact on the overall economy Brazilian exports price index Unemployment rate (%) Source: HSBC Global Asset Management – Brazil/ Funcex/ IBGE 3

4. 4 Next growth phase must have investments as the key driver Investment rate (Investments / GDP) Competitiveness Index (Lower = more competitive) Source: HSBC Global Asset Management – Brazil/ World Bank/ IBGE

5. 5 International reserves (USD billion) Public Debt (% of GDP) Source: HSBC Global Asset Management – Brazil/ Brazilian Central Bank Brazil has a solid background Good starting point

6. Brazil has a solid background The last few decades were a period of relevant advances. Some examples: Opening of the economy, privatizations Some important reforms (Financial system, partial social security reform, fiscal responsibility law) Micro reforms: civil construction, credit market Brazil has an attractive potential in different segments: Consumption: Economic and social improvement (GDP per capita, mid-income class) Structural advantages (large population, demographics, etc) Investments Infrastructure pent up demand Projects due to one-off events and projects Exports Well positioned as a key commodity supplier Latin America region has an attractive potential over the long term An attractive demand for the medium term 6

7. Forecasts Source: HSBC Global Asset Management – Brazil 7