Perspectivas de Crescimento - EY by Amcham-Brasil

V Business Round-up

Perspectivas de crescimento AmCham S達o Paulo, 01 de Outubro de 2013

AmCham | Perspectivas de Crescimento

Brazil: Recent Economic History Significant structural changes in the 90’s and 00’s led to the construction of a sustainable economy in Brazil.

Consolidation of Economic Stability

80`s lost decade

% of Total Consumption per Income Brackets

Growth 900%

800%

35%

46%

64%

13%

700%

600%

12% 23%

41%

52%

1995

2002

2008

Emerging Class ►

13%

Class B

500%

Upper Class

Amongst other consequences, the changes have successfully promoted income distribution which has inserted millions of families into the consumer market making internal demand thrive, fueling growth and attracting significant foreign investment.

400%

300%

200%

100%

1980 to 1989 330%

1990 to 1994 764%

1995 to 2000 8,6%

2001 to 2010 6,7%

Public Debt as % of GDP

99%

87%

38%

48%

Interest Rates (inter-banks)

252%

94%

13%

16%

Inflation

1930 to 1939 6%

Source: World Bank Group, FMI, IBGE and Ipeadata

AmCham | Perspectivas de Crescimento

1940 to 1949 12%

1950 to 1959 19%

1960 to 1979 40%

Pillars of the Brazilian Economy

1- Economic and political stability

►

Since 1994, Brazil successfully implemented pragmatic economic policies which paved the way to sustainable and predictable growth: ► Inflation target regime; ► Floating exchange rate; ► Fiscal responsibility. The 1988 Constitution organized Federal institutions in a virtuous way, and enforced political and social stability.

2- Competitive advantage in key sectors

►

Brazil has clear competitive advantage in key sectors, such as, but not limited to: ► Oil & Gas ► Mining ► Steel Making ► Soft commodities ► Green fuel (ethanol) ► Pulp & paper

Source: Brazilian Central Bank

AmCham | Perspectivas de Crescimento

4- Efficient and lowly leveraged financial sector

3- Internal Demand

►

The real income of the Brazilian population grew at a very fast pace during recent years; The Middle Class increased its share in the total population from 38% in 2003 to 51% in 2009; Consumption levels significantly increased and strengthened domestic demand. Consumption in upcoming years should be channeled to goods, notably household appliance and hygiene products.

►

Strong and well capitalized, Brazilian financial sector has played a crucial role in the country’s resilience to global downturn and guarantees enough liquidity to sustain future growth; The Brazilian National Development Bank (BNDES) is capitalized to make investments in strategic sectors of the economy.

Economic and Political Stability

1- Economic and political stability

►

Since 1999, Brazil successfully implemented pragmatic economic policies which paved the way to sustainable and predictable growth: ► Inflation target regime; ► Floating exchange rate; ► Fiscal responsibility. The 1988 Constitution organized Federal institutions in a virtuous way, and enforced political and social stability.

2- Competitive advantage in key sectors

►

Brazil has clear competitive advantage in key sectors, such as, but not limited to: ► Oil & Gas ► Mining ► Steel Making ► Soft commodities ► Green fuel (ethanol) ► Pulp & paper

AmCham | Perspectivas de Crescimento

4- Efficient and lowly leveraged financial sector

3- Internal Demand

►

Brazil: a Main Player in Global Economy Brazilian economy has expressive growth in consumption but even higher capital formation growth, a feature of 16% sustainability. Brazil also has austere public finances and a government that is a dynamic growth promoter. 14%

World Top-10 Economies12% US$ tri, PPP adjusted

Growth with formation of Capital

10%

14%

4% 2% 0% 5,96

3,40

2,60

-2% -4%

10% 9%

-8%

4% 2%

3% 3%

2% 3% 0%

-1%

China

-6%

8% 7%

China

CAGR

8,23

12% 11%

2005 â&#x20AC;&#x201C; 2010 Growth

6%15,68

Growth based on Debt

Brazil

14,1% 11,0% 8,9%

Brazil 6,6% 3,6% 4,0%

Russia Russia 8,2% 9,7% 12,2%

France France 2,2% 2,8% 3,3%

Net Fixed Capital Formation Growth

3,5% 2,9% 2,8%

GDP Growth

84%

1,82

Source: Brazilian Central Bank, CIA The Workd Factbook

AmCham | Perspectivas de Crescimento

Public Debt in 2010

2,01

-4,4% 2,2% 2,9%

Growth in Consumption 80%

2,02

0,0% 2,1% 2,6%

UK USA

92%

2,44

2,39

-4%

Spain Germany Spain Germany UK -0,5% 3,7% 4,5%

77%

60%

40%

18% 10%

China

Brazil

Russia

France

Spain

Germany

USA

Internal Demand

1- Economic and political stability

►

2- Competitive advantage in key sectors

►

Brazil has clear competitive advantage in key sectors, such as, but not limited to: ► Oil & Gas ► Mining ► Steel Making ► Soft commodities ► Green fuel (ethanol) ► Pulp & paper

AmCham | Perspectivas de Crescimento

4- Efficient and lowly leveraged financial sector

3- Internal Demand

►

Internal Demand per Income Bracket Distribution of Families per Income Bracket

Consumption per Income Bracket

% of Families

% of Total Consumption

1995

2002

2008

1995

2002

2008

CAGR (1995 to 2008)

Over 2.707

27%

15%

64%

46%

35%

13,8%

From 1.804 to 2.707

13%

12%

13%

20,6%

From 1.083 to 1.804

19%

17%

15%

12%

16%

18%

24,4%

From 361 to 1.083

31%

42%

47%

11%

21%

28%

29,5%

Up to 361

10%

16%

22%

41,9%

13,8% 20,6% 24,4% 29,5% 41,9%

Source: IBGE and FGV (Getúlio Vargas Foundation)

Evolution of Total Income Distribution

Internal Demand Drives Growth

2007

In US$ bn, real

1.364

1.350

1.383

25,4 -28,5

2000 H

1.487

1.420

1.383

49,5

69,7

66,9

56,0

31,1

4,1 -1,2

-21,5

2001 H

2002 H

2003 H

2004 H

Real Internal Demand (US$ bi) Source: IBGE and FGV (Getúlio Vargas Foundation)

1.549

1.878

1.785

1.702

1.639

2005 H

2006 H

2007 H

2008 H

Real Net Foreign Demand (US$ bi)

AmCham | Perspectivas de Crescimento

2009 H

-22,8

2010 H

2030 A > R$10.375

32,9%

41,0%

B-C R$2.490 to R$ 10.375

45,7%

41,0%

D-E < R$830 to R$1.245

18,0%

21,4%

Potential consumption in the lower social classes

In the last decade the increase in income duplicated the consumption capacity of D Class Average Monthly Income per Family in Brazil (R$)

Annual Consumption of Class D in Brazil (R$ bi)

638

275 2002

2012

% of Households with and without main appliances 2012

Stove

99%

95%

2002 Freezer

2002

97%

2012

70%

96%

14%

90%

86%

0.80% 37% 63%

91%

Internet

Washing Machine

2002

10%

Mobile

64%

409

30%

3% 36%

198

30%

Phone

Computer

Households that have the appliance

65%

98%

â&#x2013;şThe

Households without the appliance

AmCham | Perspectivas de Crescimento

22% 78%

survey by Datapopular shows that increasing in the income of class D families is making the housewives valorize the costbenefit relationship, and even pay more for products that offer more convenience.

70%

99%

2% 35%

â&#x2013;şA

27% 73%

Source: Data Popular/Whirpool, 2012

computer and cell phone were the products most purchased between 20022012.

IDH - M CAGR

Sul

RS PR

0.543 0.542 0.507 1991

0.664 0.65 2000

0.674

2,7%

2,1%

0.684

2,5%

0.639

3,0%

0.699

2,5%

0.552

0.658

2,9%

0.512

0.631

3,0%

0.471

0.665

2,6%

0.525 0.749 0.746

1,7%

1,8%

2010

Nordeste

0.664

0.761

0.541

MS MT GO DF

2,2%

0.488

0.707

0.487

1991

0.615 0.725 2000

0.731 0.824

2,9%

0.506

0.646

3,0%

2000

2010

CAGR 0.646

1,5%

0.369 0.459 0.407 0.413 0.43 0.472 0.362 1991

3,0%

0.708

2,3%

0.598

0.673

2,7%

0.518

0.682

2,7%

0.69

2,5%

0.725

2,3%

0.476

0.639

3,0%

2000

2010

0.484

2,0%

0.537 0.544 0.601

0.774

0.578

►

1,6%

0.674

MG 0.573

0.613

0.729

2,2%

0.478 0.505

0.64

0.74

2,0%

►

► ►

1991

2000

Source: PNUD

AmCham | Perspectivas de Crescimento

2010

IDH No Mundo

Ranking IDH Global

Noruega

0,955

Austrália

0,938

Estados Unidos

0,937

Países Baixos

0,921

Alemanha

0,920

Nova Zelândia

0,919

Irlanda

0,916

Suécia

0,916

Suíça

0,913

Japão

0,912

Canadá

0,911

República da Coreia

0,909

Hong Kong, China

0,906

Islândia

0,906

Dinamarca

0,901

Israel

0,900

Bélgica

0,897

Áustria

0,895

Singapura

0,895

França

0,893

Itália

0,881

Reino Unido

0,875

Portugal

0,816

Argentina

0,811

Federação Russa

0,788

Cuba

México

0,775

Venezuela

0,748

Brasil

0,730

101

China

0,699

TO RR RO PA AM

0.702

IDH

Sudeste

0.66

0.515

2,2%

2010

0.783

1991

0.518

2,4%

CAGR

0.476

0.577

0.449

0.616

0.408 0.428 0.362 0.44 0.382 0.357 0.405 0.386 0.37

0.624

Norte

Centro - Oeste

CAGR 0.735

CAGR

O Índice de Desenvolvimento Humano (IDH) é uma medida resumida do progresso a longo prazo em três dimensões básicas do desenvolvimento humano: renda, educação e saúde; O objetivo da criação do IDH foi o de oferecer um contraponto a outro indicador muito utilizado, o Produto Interno Bruto (PIB) per capita, que considera apenas a dimensão econômica do desenvolvimento; O IDH-M é um ajuste metodológico ao IDH Global; Países ricos possuem IDH próximo a 1, nações em desenvolvimento apresentam IDH mais próximo de 0.

País

IDH 2012

0,78

Regions

AmCham | Perspectivas de Crescimento

Principais Drivers de Crescimento para Empresas Investidas de Private Equities no Brasil Breakdown of Organic Revenue Growth by Key Driver

AmCham | Perspectivas de Crescimento

População por região e estado (mil)

CAGR

RS PR

4,542 9,139 8,449 1991

5,356

6,248

10,188

10,694

9,563

10,445

2000

1,7% 0,8% 1,1%

2010

Centro - Oeste

CAGR

2,078

1,780

2,027

4,019

1,492 2,416 2,582

2,449

1,7%

3,035

2,1%

Nordeste

Sul

2,504 5,003

6,004

1,601

2,051

2,570

1991

2000

2010

2,1%

7,128 3,201

1,784 2,777 2,843 7,918 3,444

1,7% 1,4% 1,0%

8,796

1,1%

3,767

0,9%

6,575

1,5%

8,452

1,5%

7,431

PI PE PB

5,651

4,930 6,367

2,068 3,168 3,118

MA CE

13,070

14,017

0,9%

11,868 2,514

2,823

3,120

1,1%

1991

2000

2010

BA AL

2,5%

CAGR 1,383 450 CAGR

1,562

2,2% 3,9% 1,7%

41,262

SP RJ

37,032 31,589

920 218 1,133

14,391

15,990

1,2%

RO 7,581

4,950

AC 2,813

3,484

2,7% 4,5% 3,0%

17,891

19,597

1,2%

2,103

2,601

3,097

3,515

1,6%

289 418

477 558

670 734

1991

2000

2010

1991

2000

2010

AmCham | Perspectivas de Crescimento

2,3%

15,743

Source: IBGE

TO RR

6,192

MG 12,808

1,4%

Norte

Sudeste

1,157 324 1,380

População por região e capital (mil)

CAGR

Florianópolis - SC

255

Porto Alegre - RS

1,263

Curitiba - PR

1,313 1991

342 1,360

421

0,6% 1,587 2000

1,752

1,5%

2010

Centro - Oeste

CAGR

Campo Grande - MS Cuiabá - MT Goiânia - GO

525 401

663 483

1,598 1991

402 607 598 1,297 497 695

2000

1,5%

Aracaju - SE

461 710

814

1,6%

Natal - RN

715

1,538

0,9%

Teresina - PI

1,422

724

2,0%

Recife - PE

595

1,015

1,7%

João Pessoa - PB

2,452

1,5%

2,676

1,4%

2,1%

868

São Luís - MA

2,138

Fortaleza - CE Salvador - BA

787

2,1%

551

1,7%

1,302

1,8%

2,072 628

797

933

2,570

2,5%

1991

2000

2010

1,091

2,043

1,9%

804

1,766

921

Brasília - DF

571

2,7%

1,409

Nordeste

Sul

CAGR

2,441

2010

Maceió - AL

CAGR 228 284 CAGR

137

São Paulo - SP Rio de Janeiro - RJ

9,627

0,8%

Vitória - ES

143 286

200 335

3,9% Palmas - TO 1,7%

1,393

Belém - PA 1,280

2,3%

1,245

Belo Horizonte - MG

258 2,017 1991

Source: IBGE

AmCham | Perspectivas de Crescimento

292 2,233 2000

6,320

0,8%

328 2,375

1,3% 0,9%

2010

Manaus - AM Macapá - AP Rio Branco - AC

1,404 5,852

Boa Vista - RR Porto Velho - RO

1,802

5,474

10,406

11,254

Norte

Sudeste

429

2,2%

1,011

2,7%

179 197

283 253

1991

2000

398 336 2010

4,5% 3,0%

PIB por regi達o e estado (bi)

CAGR

CAGR 152.5

13,4%

252.5

11,9%

23.9 32.3 22.1

13,9%

95.2

13,4%

31.9

13,1%

45.3

14,3%

77.9

13,2%

154.3

12,7%

14.1

24.6

12,2%

2005

2010

RS PR

85.3 43.3 81.8 69.1

144.2

2,000

2005

126.7

217.3 2010

CAGR

Centro - Oeste

43.5

14,4%

59.6 14,9%

MS MT

21.7 37.5

GO DF

11.3 14.9 26.2 46.5 2,000

97.6

50.5 80.5 2005

13.4 17.9 11.1 49.9 6.5 9.1 6.1 27.0 9.3 11.9 22.6 46.5 7.8 2,000

14,0% 149.9

13,5% 13,8%

12,1%

Nordeste

Sul

RN PI PE PB MA

16.9 25.3 40.9

CE BA AL

90.9

12,4%

2010

CAGR 17.2

16,7%

6.3

13,6%

23.6

CAGR

14,8%

TO RR

11,4%

1,247.6

727.0

11,3% 407.1

139.8 100.6 23.2 2,000

Source: IBGE

AmCham | Perspectivas de Crescimento

247.0 192.6 47.2 2005

351.4 82.1 2010

13,3% 13,5%

77.8 15,1%

9.1 3.2 12.9

424.2

Norte

Sudeste

1.8 3.7 5.9 19.1 16.7 2.4 2.2 2,000

AM AP AC

39.1 59.8 13,6% 33.4 4.4 4.5

8.3 8.5

2005

2010

13,4% 14,7%

PIB por região e capital (bi)

CAGR

8.8

9.8 12,7%

Porto Alegre - RS Curitiba - PR

6.0 3.0

28.1

16.5 16.4

29.7

2,000

2005

43.0

53.1

Centro - Oeste

11.1 24.4

Cuiabá - MT

6.9

Goiânia - GO

7.0 13.5

Brasília - DF

3.7 3.5 7.9 46.5 2,000

2005

14,0% 12,2% 11,9%

149.9 12,4%

80.5

12,2% 13,6%

Aracaju - SE

10.5 30.0

11,8%

Teresina - PI

9.8

13,2%

12,5%

CAGR

Campo Grande - MS

11,9%

10,1%

2010

13.9

12.0

Nordeste

Sul

Florianópolis - SC

5.2 6.6 5.2 16.3 2.8 3.8 2.9 9.8 2.8 4.7 11.1

5.0 10.1

17.9

14,4%

Recife - PE João Pessoa - PB São Luís - MA

37.1 12,8%

Fortaleza - CE Salvador - BA

20.1

Maceió - AL

36.7 22.5

11,6%

12.3 3.3

6.3

12.1

2,000

2005

2010

2010 3.9

14,0%

CAGR

7.5

19,5% 14,3% 17,7%

18.0

10,8%

4.7 CAGR

Natal - RN

Palmas - TO

São Paulo - SP

443.6

10,7%

Rio de Janeiro - RJ

261.5

Vitória - ES

190.2

9,5%

51.7 25.0

12,7% 14,1%

117.8 76.7 15.7 6.7 2,000

Source: IBGE

AmCham | Perspectivas de Crescimento

29.0 15.8 2005

Porto Velho - RO

2.3 3.7

Belém - PA

0.7 1.2 1.5 6.5

48.6

1.5 1.2 2,000

13,2%

Macapá - AP Rio Branco - AC

27.5

14.1

2010

Manaus - AM

11.3

Belo Horizonte - MG

160.3

Norte

Sudeste

Boa Vista - RR 1.7

2.8 2.4

5.2 4.3

2005

2010

12,9% 13,8%

Serviços Pará Amazonas Tocantins Rondônia Amapá Maranhão Distrito Federal Mato Grosso Espírito Santo Mato Grosso do Sul Sergipe Alagoas Rio Grande do Norte Acre Paraíba São Paulo Pernambuco Paraná Bahia Santa Catarina Goiás Ceará Piauí

Número de empresas (Unidades) 2003 2006 2011 2.342 4.054 4.949 2.660 4.374 5.456 704 719 1.430 1.042 1.453 1.951 681 1.004 1.170 4.011 4.712 6.812 15.672 19.624 24.008 9.031 10.622 13.747 14.728 16.067 21.411 9.313 9.748 13.434 3.714 3.970 5.216 4.096 4.528 5.731 5.567 6.077 7.648 818 888 1.106 5.510 5.589 7.445 300.687 359.879 404.547 15.793 19.910 21.066 68.284 69.467 89.891 26.134 30.428 34.382 49.428 56.037 62.789 21.172 21.757 26.643 13.983 15.320 16.773

CAGR 9,8% 9,4% 9,3% 8,2% 7,0% 6,8% 5,5% 5,4% 4,8% 4,7% 4,3% 4,3% 4,0% 3,8% 3,8% 3,8% 3,7% 3,5% 3,5% 3,0% 2,9% 2,3%

Pessoal ocupado em 31/12 (Pessoas) 2003 2006 2011 Tocantins 6.483 8.583 17.186 Rondônia 13.511 18.466 31.442 Maranhão 46.228 55.486 99.383 Pará 59.001 85.623 121.604 Espírito Santo 112.702 158.217 230.913 Acre 7.559 8.489 15.411 Amazonas 56.054 84.731 113.636 Alagoas 34.934 46.112 70.083 São Paulo 2.113.254 3.027.445 4.144.284 Piauí 27.696 32.106 53.857 Mato Grosso 61.865 76.582 120.047 Pernambuco 195.989 236.556 362.021 Ceará 144.026 170.289 264.727 Rio Grande do Norte 55.980 68.396 99.891 Paraná 378.909 439.792 655.524 Mato Grosso do Sul 60.289 67.684 102.330 Bahia 285.279 340.106 483.766 Goiás 162.311 189.567 273.087 Amapá 9.055 11.127 15.205 Paraíba 42.788 49.302 71.785 Minas Gerais 657.948 771.272 1.084.546 Rio de Janeiro 889.258 993.360 1.456.367

3.922

3.418

4.649

2,1%

Sergipe

Rio de Janeiro

85.807

83.517

101.367

2,1%

Roraima

8.963

Minas Gerais

99.584

98.623

117.035

2,0%

Rio Grande do Sul

423.862

Rio Grande do Sul

80.954

90.238

94.974

2,0%

Santa Catarina

284.296

835

926

964

1,8%

Distrito Federal

203.276

-9,9%

Total

Roraima Total

2.526.331 2.814.489 1.096.594

Source: IBGE

AmCham | Perspectivas de Crescimento

40.036

45.420

CAGR 13,0% 11,1% 10,0% 9,5% 9,4% 9,3% 9,2% 9,1% 8,8% 8,7% 8,6% 8,0% 7,9% 7,5% 7,1% 6,8% 6,8% 6,7% 6,7% 6,7% 6,4% 6,4%

65.406

6,3%

7.105

14.391

6,1%

508.820

674.044

6,0%

338.589

449.977

5,9%

240.567

307.386

5,3%

19.144.656 24.239.376

11.398.299 -6,3%

Empresas Comerciais Número de estabelecimentos comerciais com receita de revenda (Unidades)

Pará Amazonas Rondônia Espírito Santo Tocantins Paraíba Santa Catarina Amapá Paraná Piauí Distrito Federal Sergipe São Paulo Acre Bahia Maranhão Rio Grande do Norte Rio de Janeiro Mato Grosso do Sul Mato Grosso Ceará Pernambuco Goiás Minas Gerais Rio Grande do Sul Alagoas Roraima Total

2003 4.405 5.103 2.290 20.812 1.418 18.661

2.006 8.164 7.339 2.708 26.388 1.651 22.129

63.968 77.149 90.121 1.562 2.238 2.176 105.645 121.774 142.743 15.125 18.458 20.366 20.312 24.015 27.119 7.526 8.792 9.942 377.655 492.743 480.991 1.793 2.406 2.233 73.122 67.561 89.347 21.660 25.268 26.129 17.606 20.196 21.010 96.028 100.560 114.381 17.636 20.449 20.833 23.158 25.273 27.334 48.115 54.517 56.217 36.613 44.901 42.694 51.477 63.025 59.011 182.748 162.166 203.764 140.618 172.726 147.766 13.982 14.197 13.893 2.078 2.318 1.442 4.113.348 4.767.333 1.683.068

Source: IBGE

2011 9.800 8.901 3.912 32.062 2.183 26.698

AmCham | Perspectivas de Crescimento

Pessoal ocupado em 31/12 em empresas comerciais (Pessoas)

CAGR 10,5% 7,2% 6,9% 5,6% 5,5% 4,6%

Espírito Santo Pará Amazonas Amapá Rondônia Acre

2003 13.437 38.357 8.305 51.538 101.299 139.859

4,4% 4,2% 3,8% 3,8% 3,7% 3,5% 3,1% 2,8% 2,5% 2,4% 2,2% 2,2% 2,1% 2,1% 2,0% 1,9% 1,7% 1,4% 0,6% -0,1% -4,5% -10,6%

Santa Catarina 60.649 Alagoas 10.523 Ceará 99.553 Pernambuco 257.102 Paraíba 159.295 Tocantins 110.359 São Paulo 70.309 Bahia 8.141 Paraná 10.195 Rio Grande do Sul 39.885 Mato Grosso 1.736.793 Distrito Federal 283.592 Rio de Janeiro 84.080 Roraima 57.554 Maranhão 462.926 Minas Gerais 79.953 Rio Grande do Norte 211.674 Mato Grosso do Sul 602.924 Goiás 721.297 Piauí 57.159 Sergipe 489.103 Total 17.897.583

2006 20.351 60.637 11.262 76.621 151.712 196.183

2011 33.080 89.103 18.045 111.199 217.237 273.212

CAGR 11,9% 11,1% 10,2% 10,1% 10,0% 8,7%

75.388 16.785 139.375 344.366 202.471 143.380 97.027 10.184 12.848 49.140 2.348.490 332.244 101.485 71.419 559.190 91.620 278.903 703.100 805.446 64.538 592.960 22.671.375

117.459 20.270 187.205 473.031 291.900 201.027 124.182 14.276 17.600 67.155 2.904.686 464.927 137.554 93.795 748.663 129.295 318.205 895.277 1.064.407 83.688 699.383 9.795.861

8,6% 8,5% 8,2% 7,9% 7,9% 7,8% 7,4% 7,3% 7,1% 6,7% 6,6% 6,4% 6,3% 6,3% 6,2% 6,2% 5,2% 5,1% 5,0% 4,9% 4,6% -7,3%

Empresas de construção *Número de empresas ativas

Brasil Norte Nordeste Sudeste Sul Centro-Oeste

Brasil

2001

2002

2003

2004

2007

2008*

2011*

555.164

122.892

119.002

109.003

106.504

109.140

96.862

106.733

63.735

92.732

12.700

5.652

5.626

5.491

5.354

5.530

3.949

4.429

2.548

3.495

95.232

19.515

19.652

18.869

18.377

18.862

15.524

16.692

9.032

12.763

339.248

58.269

56.318

50.611

50.050

51.683

48.928

53.910

31.876

45.651

65.155

31.902

30.025

27.263

26.102

26.295

22.274

24.441

15.445

23.152

42.829

7.555

7.381

6.769

6.621

6.770

6.187

7.261

4.834

7.670

2000

2001

2002

2003

2004

Pessoal ocupado 2005 2006

2007

2008

CAGR (2008 - 2011)

2011

673.843 1.476.141 1.486.274 1.579.021 1.584.386 1.541.628 1.575.883 1.806.258 2.048.409 2.668.696

Norte Nordeste Sudeste Sul Centro-Oeste

Número de Empresas 2005 2006

2000

18.996

59.161

66.249

67.305

89.519

77.937

66.788

75.596

85.093

109.114

118.944

278.023

293.047

291.155

314.232

297.868

267.888

297.350

358.140

533.598

414.659

824.605

808.025

886.007

836.960

835.715

917.951 1.062.043 1.183.474 1.466.311

77.860

213.567

221.286

219.731

233.725

214.299

209.947

240.572

270.238

355.453

43.384

100.785

97.669

114.824

109.950

115.810

113.308

130.697

151.464

204.220

AmCham | Perspectivas de Crescimento

13,3% 11,1% 12,2% 12,7% 14,4% 16,6%

CAGR (2008 - 2011) 9,2% 8,6% 14,2% 7,4% 9,6% 10,5%

Indústria Unidades locais industriais de empresas industriais com 5 ou mais pessoas ocupadas

Brasil Minas Gerais Rio de Janeiro São Paulo Paraná Santa Catarina Rio Grande do Sul Rondônia Acre Amazonas Roraima Pará Amapá Tocantins Maranhão Piauí Ceará Rio Grande do Norte Paraíba Pernambuco Alagoas Sergipe Bahia Espírito Santo Mato Grosso do Sul Mato Grosso Goiás Distrito Federal

2002 150,0 18,7 9,7 51,3 12,4 12,1 15,8 0,9 0,2 0,8 0,1 1,5 0,1 0,3 0,6 0,7 3,2

2003 154,5 19,7 9,5 51,4 13,0 12,6 16,2 0,9 0,2 0,8 0,1 1,7 0,1 0,3 0,7 0,7 3,3

2004 161,0 20,2 9,7 53,5 13,7 12,9 16,9 1,0 0,2 0,8 0,1 2,0 0,1 0,4 0,7 0,7 3,8

1,1 1,3 3,3 0,6 0,7 3,7 3,1 1,1 1,9 4,2 0,8

1,2 1,3 3,5 0,6 0,7 3,9 3,3 1,2 2,3 4,5 0,8

1,2 1,2 3,6 0,6 0,7 4,2 3,3 1,3 2,3 4,7 0,9

Source: IBGE

AmCham | Perspectivas de Crescimento

Número de unidades locais (Unidades - mil) 2005 2006 2007 2008 164,6 172,5 172,7 182,2 20,7 22,5 21,6 22,5 9,5 9,7 9,4 9,8 55,0 55,4 56,9 59,4 13,9 14,9 15,2 15,4 13,9 15,3 15,2 16,5 16,8 17,2 17,1 18,1 1,1 1,0 1,1 1,2 0,2 0,2 0,2 0,2 0,9 1,0 1,0 1,1 0,1 0,1 0,1 0,1 2,0 2,2 2,2 2,4 0,1 0,1 0,1 0,1 0,4 0,4 0,4 0,5 0,8 0,8 0,7 0,8 0,8 0,9 0,8 1,0 3,8 3,9 4,2 4,3 1,3 1,3 3,8 0,7 0,8 4,2 3,4 1,3 2,4 4,5 0,9

1,4 1,4 4,1 0,7 0,8 4,6 3,8 1,4 2,4 5,1 1,0

1,5 1,2 4,2 0,6 0,8 4,6 3,7 1,4 2,4 5,2 1,0

1,6 1,4 4,6 0,7 0,9 5,1 4,0 1,4 2,6 5,4 1,1

2009 185,6 23,0 10,4 58,9 16,3 16,9 18,3 0,9 0,2 1,1 0,1 2,0 0,1 0,5 1,0 1,0 4,7

2010 189,5 23,9 10,2 57,6 17,3 17,4 19,3 1,1 0,2 1,1 0,1 2,0 0,2 0,5 1,0 1,0 5,1

2011 197,7 24,1 10,7 60,7 17,5 18,1 20,4 1,2 0,3 1,2 0,1 2,1 0,2 0,5 1,1 1,1 5,0

CAGR 3,1% 2,9% 1,1% 1,9% 3,9% 4,6% 2,9% 3,0% 6,5% 5,1% 7,4% 3,6% 7,8% 7,3% 5,9% 5,6% 5,2%

1,6 1,5 4,8 0,7 0,9 4,9 4,1 1,5 2,9 5,9 1,2

1,7 1,6 4,9 0,8 0,9 5,4 4,2 1,5 3,1 6,1 1,3

1,9 1,7 5,3 0,9 1,0 5,7 4,4 1,7 3,0 6,5 1,3

5,6% 3,3% 5,5% 4,7% 5,1% 5,0% 3,7% 5,2% 5,1% 5,0% 5,6%

Overview of Major Industrial Clusters

2 1

7 3 5 6

In Recife growth has been driven by investments in the port of Suape and surrounding industrial area. The state’s GDP has grown at a rate that is twice the Brazilian average and Recife is the economic center of the northeast of Brazil. Salvador is the fourth largest city in Brazil and has a major international port. The industrial area services the petrochemical industry and is the road hub for all northeast-bound cargo.

Vitória is a main transportation hub for wood and mineral products arriving from the interior states.

Rio de Janeiro is Brazil’s second largest city and a major oil and gas centre.

In São Paulo, the GDP of the state of São Paulo represents more than 30% of the country’s GDP, and the state is a major industrial hub for industrialized and agricultural products.

Warehouse Clusters Main Railroads Main Interstate Highways

Main Cargo Airports (By Volume of Cargo)

Curitiba is the one of the main regions in the southern regions of Brazil with a GDP of USD 61 billion

Main Ports Manaus Duty Free Zone

Belo Horizonte is the third largest city in Brazil.

Export Processing Zones Sources: Colliers/ Cushman & Wakefield/ CB Richard Ellis/IBGE

AmCham | Perspectivas de Crescimento

Automotive Industry Existing & announced investments Some of the announced investments

North

Northeast

Amazonas – 1

Bahia – 1 Ceará – 1

Center-West Goiás – 3

Southeast Minas Gerais – 5 Rio de Janeiro – 3 São Paulo – 22

South Paraná – 8 Rio Grande do Sul – 12 Santa Catarina – 1

Source: ANFAVEA Anuário 2013 21

AmCham | Perspectivas de Crescimento

Total: 57

• Fiat – Pernambuco • Nissan – Rio de Janeiro • Honda – São Paulo • Chery – São Paulo • Hyundai – São Paulo • BMW – Santa Catarina • GM – Santa Catarina • Audi/VW - Paraná

Gas Station Evolution Brazil has ~39 thousand gas stations ►

Southeast region has the larger amount of Gas Stations, but one of the lowest CAGR of 1,1% from 2008 to 2011;

►

The states with the higher percentage of Gas Station are: São Paulo (23,2%), Minas Gerais (10,7%), Rio Grande do Sul (8%), Paraná (7,1%), Bahia (5,6%) Rio de Janeiro (5,6%) and Santa Catarina (5,5%)

►

The Gas Station can be independent (white flag), which means that it is not tied to any distributor, it can negotiate with any distributor and achieve lowest fuel prices, but each pump must be identified by the distributor’s Logo/Name. Independents represent 43,3% of Gas Stations.

Gas Stations Geographical Distribution

2,386

2008

2,564

2,677

2,788 7,835

2009

2010

8,149

8,363

2009

2010

8,743

2011 2008

2011

3,3% 16,1%

North

Gas stations in Brazil, by Brand

Northeast 8,0%

0.94% 3.6%

Independent Gas Station

9.01%

Midwest

9.5% 43.3%

Southeast

Ipiranga

3,423

Raízen

3,187

3,233

3,326 26,3%

Alesat

13.8%

46,2%

2008

2009

2010

2011

South

2008

Total of Gas Station in Brazil 37,973

38,235

39,027

8,033 7,787

2009

Source: ANP

8,032 7,934

2008

15,935

16,041

2009

2010

2011

Other

19.9%

36,730

15,994 15,535

AmCham | Perspectivas de Crescimento

2010

2011

2009

2010

2011

Meals Eaten inside and Outside the Home Classes B and C together have the biggest participation percentage of meals eaten outside the house in all regions North â&#x2013;ş

â&#x2013;ş

The percentage of total meals eaten inside the house in 2003 was 76% and meals eaten outside the house 24%.

North Northeast

Meals Eaten Outside the Home 19%

In 2006 the percentage of meals eaten inside the house decreased to 69% and the meals eaten outside the house increased to 31% a total increase of ~30%.

Southeast

81%

2003

18%

A 43%

70%

C 79%

22%

21% 28% 38%

Meals Eaten Outside the Home by Social Class*

Meals Eaten Inside the Home Meals Eaten Outside the Home 20%

24%

80%

77%

19% 26% 2003

South Meals Eaten Inside the Home

Meals Eaten Outside the Home by Social Class*

Meals Eaten Outside the Home 23%

28%

17%

22%

45%

Sources: IBGE

D 35%

2009

Southeast Meals Eaten Inside the Home

25%

2009 *Data from 2009

AmCham | Perspectivas de Crescimento

27%

B C

72%

Meals Eaten Outside the Home by Social Class* A

25% 37%

37%

53% 25%

73%

D 33%

2003

Meals Eaten Outside the Home

19% 77%

45%

2009

15%

20%

E 2003

2009

B C

76%

Northeast

Meals Eaten Outside the Home 25%

34%

32%

Meals Eaten Outside the Home by Social Class*

30%

14% 11% 16%

Midwest

24%

21%

Midwest

South

Meals Eaten Inside the Home

Meals Eaten Outside the Home by Social Class*

Meals Eaten Inside the Home

63%

E 2003

2009

33%

B C D

43%

Heavy Machinery Brazilian Bulldozer Production and Sales Bulldozer Sale by Region

Bulldozer Domestic Production against Imports

National

232 North 1.099

Northeast 426

3.032

Midwest

Brazil Southeast 9,9%

5.355

566 South

4.871

2010

2011

Source: Anfavea

AmCham | Perspectivas de Crescimento

2006 2007 2008 2009 2010 2011

2.050 2.675 3.973 3.523 4.861 5.337

Imported 55 158 10 18

Housing Demand: Current Deficit in Brazil Brazil has a total current housing deficit of 7.8 million homes, concentrated mainly in the Southeast and Northeast of the country, and on low income families Housing Deficit per Region and Component in 2007

Necessary Investment

‘000 houses and % of total

2007 Deficit Relativo

2030

13,9%

4,65%

Número total de casas necessárias no país (milhão)

56,2

93,1

Deficit em números de casas (milhão)

7,8

4,3

13.7% 34.7%

4.5%

Tamanho médio/domicílio (m²)

Preço médio/metro quadrado (R$)

2.000

37.7%

9.2%

4.7% 9.2%

Investimento necessário para reduzir o deficit entre 2007 a 2030

420.919

Investimento anual (R$ milhão)

18.301

►

The necessary investment to reduce the relative deficit by 2/3 by 2030 is of R$ 421 billion, an average of

R$ 18,3 billion per

year. ► * In bn

Sources: IBGE, Ernst & Young Terco

AmCham | Perspectivas de Crescimento

Low income housing deficit is one of the main reasons behind the program MCMV.

Housing Demand: Summary Main housing demand factors will generate an approximate investment requirement of R$ 271 billion per year. DEFICIT

Total de investimento necessário para reduzir o déficit de 2007 em 2/3 (R$ milhão) Investimento Anual (R$ milhão)

420.919 18.301

DEPRECIATION

Estoque de domicílios (R$ milhão) Depreciação (R$ milhão)

1.967.000

R$ 271 bn/year

59.010

DEMOGRAPHICS Demanda por novas casas durante o período (milhões) Demanda por novas casas / ano (milhão / ano) Investimento necessário em casas (R$ milhões/ano) Sources: Brazilian Geographic and Statistics Institute (“IBGE”), Ernst & Young Terco

AmCham | Perspectivas de Crescimento

36,9 1,6 Investim entos necessários em casa (R$ m ilhões/ano)

Shoppings no Brasil Distribuição de Shoppings por região*

Breakdown por região Rio de Janeiro, 11.5%

Norte, 4.0%

Nordeste, 13.2% Centro Oeste, 9.0%

Norte 4%

Nordeste 253 80

Sudeste 55,7%

Sudeste, 55.7%

Sul, 18.1%

►Mesmo

Centro-Oeste 9%

13,2%

se desenvolvendo em outras regiões do país, ainda há um grande potencial a ser desenvolvido para complementar a oferta, fala-se em mais de 150 cidades com 150 mil habitantes ou mais; A distribuição dos Shopping Centers nas regiões do Brasil ainda é bastante desigual. Com 56% dos Shoppings na região sudeste, representando 60% do total de ABL.

►

Sul 18,1%

*Shoppings de empresas listadas

AmCham | Perspectivas de Crescimento

Fonte: BrShoppings, Abrasce

Investimentos

AmCham | Perspectivas de Crescimento

Brazilian Economy Future Opportunities Opportunities

Fifa World Cup 2014

►

The World Cup will be responsible for the creation of 3.63 million jobs;

►

Expected to direct investments of US$ 13 bi in national infrastructure; and

►

These direct investments will generate indirect investments of US$ 71 bi in the Brazilian economy.

►

For the 2016 Olympic Games is estimated a direct investment, on public and private infrastructure in the order of US$ 7,2 bi, with positive impacts on various sectors of the economy; and

Olympic Games (2016) ►

These direct investments generate a significant multiplier impact on the country’s economy due to the cascading effect of the entire production chain affected.

►

The PAC will invest US$ 785 bi on strategic segments of the economy (2010-2014); and

►

The most invested segments are: Oil and Gas (US$ 177 bi) and mining (US$ 29 bi).

►

Brazil is the second most popular international destination in terms of value of FDI (Foreign Direct Investments), and the fifth in terms of FDI projects:

►

Despite of the deterioration in the international scenario uncertainty regarding the U.S. growth and intensification of the sovereign debt crisis in Europe - the number of FDI projects has increased in 2012 in comparison with 2011.

PAC

FDI

Source: EYT

AmCham | Perspectivas de Crescimento



 Potencial Investments



Perspectivas do Investimento Panorama geral Setores em R$ Bilhões de 2012 Petróleo e Gás Extrativa Mineral Automotivo Papel e Celulose Sucroenergético Química Siderurgia Eletroeletrônica Têxtil e confecções Complexo Ind. Da Saúde Aeronáutica Demais da Ind. Indústria Energia Elétrica Telecomunicações Saneamento Transp. Rodoviário Ferrovias Portos Aeroportos Infraestrutura Residências Agricultura e Serviços Total

20082011 276 67 42 21 47 23 35 22 12 10 3 288 847 160 85 34 40 27 10 3 359 596 1149 2.951

Source: BNDES

AmCham | Perspectivas de Crescimento

20132016 405 57 63 30 5 30 28 28 14 12 10 352 1.033 166 102 42 69 77 24 9 489 770 1.515 3.807

Variação % 46,8 -15,1 49,2 45,2 -90,2 30 -21,4 27 20,7 13,4 224,1 22,1 22 3,6 20,1 24,9 71,8 182,6 150,1 170,9 36,2 29,1 31,9 29

Growth Acceleration Program Programa de Aceleração do Crescimento – “PAC” ►

The PAC is essentially focused on reducing the accumulated deficit in infrastructure through a variety of means;

►

In March 2010, part two of the Growth Acceleration Program was launched with an infrastructure investment plan of R$ 958.8 billion to be deployed between 2011 and 2014. Funded with a mix of private, state, federal and municipal investment, the allocation is as follows: ►

Energy: Focused on maintaining the country’s leading global status of producing clean and renewable sources of energy; supporting the production of oil (mainly in the country’s south east coast); electricity efficiency;

►

Transport: Continuation of work of the PAC-1 program in improving, expanding and integrating a logistical network of roads, railways, ports, waterways and airports;

►

Housing: Goal of reducing the country’s housing deficit, providing construction sector incentives and job creation;

►

Water and Light for All: Objective of continuing the program of free access to lighting for poorer communities as well as the provision of improved water supply and resources;

►

Urban Improvement: Goal of improving the quality of life in Brazil’s major cities with a focus on sanitation, urban mobility, pavement improvements and crime prevention;

►

Community Citizenship: Goal of augmenting the accessibility of state services in the country’s poorer areas.

Sources: Government Website

AmCham | Perspectivas de Crescimento

Infrastructure Investment Infrastructure Investment in % Investment/GDP in Brazil

17%

16%

15%

16%

17%

19%

18%

20%

19%

18%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010 (1)

2011 (1)

2012 (1)

(1) - Para os anos de 2010 e 2011 os resultados preliminares foram obtidos a partir das Contas Nacionais Trimestrais.

Infrastructure Investment (in Billion Dollar) and % Investment/GDP per Country 2500 43%

2000

12%

1500 20%

1000

19%

500

21%

33%

19%

27%

15%

17%

20%

21%

0 China

EUA

Japan Germany France

Source: Abdib,2009

 

Índia

Italy

Spain

United Brazil Kingdom

Russia

Mexico

The chart above shows the amount of infrastructure investments and % of GDP invested in infrastructure. Currently, Brazil is investing about 17% of its GDP in infrastructure , which represents US$ 261 billion. With the development of PAC and the establishment of a solid regulatory framework in many sectors, this % tends to increase.

AmCham | Perspectivas de Crescimento

PAC – New Railways, Ports and Airports The map includes only the most significant projects... PAC 1 & 2 Main Developments ►

Railways – include developing an integrated, modern, high capacity system and connecting production areas. The new railways connect to existing ones, increasing reach and facilitating the transportation of cargo only, not serving passengers, freeing up space for the flow of vehicles. This investment also reduces the number of trucks on the roads, improving traffic conditions on the roads.

►

Airports – The investments in airports include the expansion or construction of new passenger and cargo terminals, modular structures, construction of new runways, courtyards, and control towers, technological upgrades, however entirely new airports will not be built. Altogether 26 airports received (in PAC 1) or are receiving (PAC 2) investments.

►

Ports – The investments related to ports, are for: docking systems, dredging, land access, reduction of port bureaucracy and passenger terminals. Besides Luis Correa, the only entirely new port, 24 other ports received (in PAC 1) or are receiving (PAC 2) investments.

Boa Vista Macapá Marajo Island Belém

Itaqui

São Luis

Pecém Fortaleza

Açailândia

Manaus

Teresina

Natal João Pessoa Suape Recife Maceió

Estreito Eliseu Martins Porto Velho Rio Branco Vilhena

Palmas Figueirópolis

Aracaju

Porto Real do Colégio Salvador

Barreiras

Cuiabá Cuiabá Uruaçu Alto Araguaia

Ilhéus

Brasilia GoiâniaUberlândia

Campo Grande Panorama Dourado

Pre-existing Railways

Vila Velha Campinas

Railways Under Construction Railway Projects

Belo Horizonte

Cascavel Chapecó

São Paulo Santos Curitiba Itajaí Florianópolis

New Airport Porto Alegre State Capitals Porto Rio Grande Sources: Government Website

AmCham | Perspectivas de Crescimento

Rio de Janeiro

Brazilian PPP Portfolio Brazil 2010

Brazil 2012

Total: 23 PPPs

Total: 52 PPPs* PPPs in 2012

PPPs in 2010

Social Infrastructure 25%

Stadia Arenas 26% Transport 22%

Social Infrastructure 18%

Sanitation 13%

Public Facilities 13%

Others 8%

Urban Mobility 27%

Sanitation 17% Public Facilities 13%

Transport 8%

Others 2%

* Estimated PPPs by the end of 2012.

AmCham | Perspectivas de Crescimento

Stadia Arenas 8%

PAC - Highway Projects New highways Main Highway Developments

PAC 1 & 2 Main Highway Developments

Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Boa Vista 2

Macapá São Luis

Belém 6

Manaus

Fortaleza

Teresina

Natal João Pessoa

10 3

Recife Porto Velho Rio Branco 8

Palmas

Aracaju

Maceió

Salvador 14

Cuiabá

Brasilia Goiânia

18 Campo Grande

Belo Horizonte 19

Rio de Janeiro

►

State Capitals 22

Florianópolis Porto Alegre

Sources: Government Website

AmCham | Perspectivas de Crescimento

To (City)

Vila Central Vila Novo Paraíso Laranjal do Jari Oiapoque Porto Velho Crossing/Paving Manaus Porto Velho Cachimbo Cabedelo Fortaleza Canindé Areia Branca Campina Grande São Francisco Presidente Médici Altamira Ribeirão de Cascalheira Eliseu Martins Corrente Sorriso Uruaçu Taguatinga Paranã Jeremoabo Juazeiro Cuiabá Rondonópolis Formosa do Rio Preto Cocos Coxim Alcinópolis Januária Bocaiúva Frutal Sác Simão Patos Alto Paranaíba Ponta Grossa Campo Mourão Irati Ibaiti Santana do Livramento Santa Maria Florianópolis Porto Alegre

São Paulo Curitiba

Highways (Paving & Construction)

Vila Velha

From (City)

Only the main developments were included, such as construction of new roads and the paving of existing dirt ones.

Foreign Direct Investments by Region FDI Inflows by Destination City

FDI Inflows by Destination City

Sources: FDI Intelligence

AmCham | Perspectivas de Crescimento

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Proprietary and confidential. Do not distribute without written permission.

Competitive Advantages in Key Sectors

1- Economic and political stability

►

2- Competitive advantage in key sectors

►

Brazil has clear competitive advantage in key sectors, such as, but not limited to: ► Oil & Gas ► Mining ► Steel Making ► Soft commodities ► Green fuel (ethanol) ► Pulp & paper

Source: Brazilian Central Bank

AmCham | Perspectivas de Crescimento

4- Efficient and lowly leveraged financial sector

3- Internal Demand

►

Competitive advantage in key sectors Many Brazilian sectors have high margins due to strong demand, relative investment scarcity and intrinsic competitive advantages. Net Margins per Sector *** Real Estate *

2011 (Hundred Millions)

88%

40% 37% 37%

Extractive Industry **

136 Energy, Gas and Water

88% 99

27% 25% 22% 16% 13%

166 40%

274 37%

116 37%

146

27%

157

25%

375

22%

11%

167 1075

16%

13%

11%

Retail Sales

Net Operation Surplus/Sales

Source: 2011 Input – Output Matrix, Brazilian Statistics Institute and Central Bank.

Financial Services

* Development, Rentals & Others

Construction

** Mining & Oil *** Net Margins = [Sector’s Revenues – Intermediary Consumption – Salaries & Compensations – Professional Services – Taxes] / Sales.

AmCham | Perspectivas de Crescimento

Target Inflation by Central Bank

Oil & Gas Sector Floating Exchange Rate Policy

4.000

4,0

3.500

3,5

Oil Production Concession Areas in Brazil 3.000

Global Proven Oil Reserves and Brazilian Oil Discovery

3,0

In billion of barrel 2.500

2,5

2.000

2,0

1.500

1,5

1.000

1,0

500

0,5

–

Base Interest Rate (Selic)

Brazilian Country Risk (left axis)

BRL / USD (right axis)

4,0 State Indebtness 3,5 3,0

►

60,4%

2,5

54,8%

52,0%

2,0 by Region: 50,6% Oil Production

47,7%

1,5

Gas Production by Region:

48,4% 47,3% 45,5%

1,0 0,5 –

Source: Petrobras, Crédit Suisse

BRL /40 USD (right axis) | Perspectivas de Crescimento AmCham

42,1% 39,1% 38,5% 36,4%

The recent discovery of multi-billion barrels reserves in the Brazilian pre-salt layer is the world’s most important oil discovery since 2002 ►

The country has confirmed reserves of 15 billion barrel

►

It is estimated it can reach 100 billion barrels if the pre-salt basin is confirmed

►

This discovery should make Brazil a major player in the world market and a net exporter of fuel in the next decade;

35,2% ►

The massive investments in this sector exceed R$300 billion in the next 5 years will be financed both by government institutions, and private corporations, especially from abroad.

Oil & Gas Sector

AmCham | Perspectivas de Crescimento

Mining and Steel Making Brazil has huge mineral reserves – especially iron ore, aluminum, copper, chromium, gold, tin, nickel, manganese, and zinc – and clear advantages in sectors associated with these commodities Mineral

Brazil’s Resources (ton)

% of World’s Resources

Semi-finished Steel (slab) Production Cost

Iron ore

US$ per ton as of 2007 26 billion

Average: 296

17,4%

Nickel

9 million

Aluminum

(21.7%)

4 bn

10,5%

271

285

286

302

303

309

316

321

337

232

2,2%

Uranium

Average

30,000

14,3%

Gold

►

1,900

4,7%

Iron ore accounts for over half of the value of Brazilian mineral production, according to 2006 data from the National Department of Mineral Production (DNPM):

Copper

Manganese

►

566 million

15 million

Source: DNPM, Ibram,, Crédit Suisse

AmCham | Perspectivas de Crescimento

8,8%

1,6%

Brazil’s competitive advantage in steelmaking is its low production cost, derived mainly from low-cost iron ore.

►

Brazil is also an important producer of non-metallic minerals (e.g., limestone, slate, marble, etc., which are mostly used as construction inputs) and of gold, aluminum, copper, nickel and manganese;

►

Most of the iron ore, gold and manganese extracted from Brazilian mines is exported, while most of the aluminum (bauxite) and nickel extracted is channeled to the domestic market.

Soft Commodities Coffee

Exports world ranking

Tobacco Production world ranking

Exports world ranking

Cotton Production world ranking

Exports world ranking

Corn Production world ranking

Exports world ranking

Soybeans

Production world ranking

Exports world ranking

Source: WFO, CIA The World Factbook, CrĂŠdit Suisse

AmCham | Perspectivas de Crescimento

7.682 3.287

12%

16%

48% 7%

544

33%

505 Spain

Production world ranking

8.512

France

Sugar

9.373

India

9.561

Australia

Exports world ranking

9.971

Brazil

USA

Production world ranking

China

Orange

17.075

Canada

Russia

Exports world ranking

% used

1 In â&#x20AC;&#x2DC;000 square kilometer:

Available Arable Land Area in Selected Countries

Production world ranking

25%

Oil & Gas Sector

AmCham | Perspectivas de Crescimento