THE BEST OF BRAZIL TO THE

Transcription

1 THE BEST OF BRAZIL TO THE WORLD

2 Brazilian Economic Overview

3 BRAZIL Competitive and dynamic industry that ranks among the world s top Leader in clean and renewable energy 3 rd main market for biodiesel 4 th largest market for cell phones, automobiles and TV sets 3 rd main aircraft manufacturer 3 rd largest market for personal computers 5 th largest market ktfor medical equipment 10 th largest industrial producer Home to the world s 10 th largest oil reserves 13 th largest producer of scientific articles

4 Macroeconomic ATRAÇÃO DE INVESTIMENTOS and social structure for a period of long term transformation ESTRANGEIROS DIRETOS (IED) The strength of our domestic market and a great emphasis on investments are the main drivers of our growth. BRAZIL Growth of Brazilian GDP Brazil has been experiencing medium to high rates of GDP growth over the past decade. FLDT1 FLDT2 GDP average growth (%) 61% 6.1% 5.7% 5.2% 7.5% The international crisis affected the country s growth in However, by the second semester, Brazil had already retaken the growth path. In 2010, after the world crisis, Brazilian economy expanded at a 7.5% rate. 4.0% 3.2% 2.7% 30% 0.2% * * Forecast. Source: Brazilian Institute of Statistics and Geography.

5 Slide 4 FLDT1 "GDP growth"? Alterado Felipe Leão Dalla Torre, 10/29/2012 FLDT2 As casas decimais devem estar separadas da unidade por "ponto" (e não por "vírgula"). Favor arrumar. Alterado Felipe Leão Dalla Torre, 10/29/2012

6 Sustainable economic growth and social and ATRAÇÃO environmental DE INVESTIMENTOS sustainability ESTRANGEIROS DIRETOS (IED) BRAZIL The Brazilian middle class reached million in 2011, representing 55% of the population. Middle class is expected to continue expanding in the following years. Growth of the population s Purchase Power FLDT14 Class incomes (millions of inhabitants and share of population) The average wage for the C class is R$ Source: Ministry of Finance.

7 Slide 5 FLDT14 ou "purchase power"? Alterado Felipe Leão Dalla Torre, 10/30/2012

8 Minimum wage Increase of the minimum wage, inflation control, job creation and social benefits sustain the population s p purchase power. Growth of the minimum wage FLDT15 Real minimum wage has grown more than 50% since Today s minimum wage is R$ Source: Ministry of Finance.

9 Slide 6 FLDT15 ou "purchase power"? Alterado Felipe Leão Dalla Torre, 10/30/2012

10 Strong domestic market, vast and ATRAÇÃO DE INVESTIMENTOS Çpopulation diverse diverse population BRAZIL ESTRANGEIROS DIRETOS (IED) From 2004 to 2011, 1,470 thousand new jobs were created FLDT3 each year on average. h In 2010, there was a 15% formal employment growth in the employment growth in the construction sector and a 8.7% growth in the manufacturing sector. 15 million formal jobs in Brazil FLDT4 Net employment generation (thousands of jobs) 2,137 1,617 1,523 1,254 1,403 1, The unemployment rate fell 35% over the last 6 years and reached 5.8% in May The quality of jobs in Brazil can be verified by the increasing level of job formalization. 1,566 1, Source: Ministry of Labour and Employment *

11 Slide 7 FLDT3 Esse número me pareceu confuso... É "1 mil e 470 empregos"? Se sim, deveria estar grafado "1,470 jobs" Ou é "1 milhão e 470 mil"? Se sim, deveria estar grafado "1,470,000 jobs" ou "1,470 thousand jobs" ou, melhor ainda, "1.47 million jobs". Alterado Felipe Leão Dalla Torre, 10/29/2012 FLDT4 "job creation" (para ficar alinhado com termos usados no texto ao lado)? "Employment Generation" é o que está de acordo com o documento oficial. Felipe Leão Dalla Torre, 10/29/2012

12 Foreign ATRAÇÃO trade DE opening INVESTIMENTOS up markets and multilateralism ESTRANGEIROS DIRETOS (IED) Brazilian trade flow continues to expand with a trade surplus of US$ 29.8 billion in Strategy of geographical export diversification including Asia, Mercosul, Africa and the Middle East. In the same period, Brazil also took advantage of the increases in world prices of commodities. Exports classified according to added value 1st half of 2012 Classification Share on Exports (%) Basic Products 47.6 Semi Manufactured 13.7 Manufactured 36.9 BRAZIL Brazil has been able to expand its foreign trade over the last decade Brazilian Trade Balance FLDT5 Source: Ministry of Development, Industry and Foreign Trade Source: Ministry of Development, Industry and Foreign Trade.

13 Slide 8 FLDT5 "Trade Balance"? Alterado Felipe Leão Dalla Torre, 10/29/2012

14 Democratic ATRAÇÃO stability DE INVESTIMENTOS and institutional security to investors ESTRANGEIROS DIRETOS (IED) BRAZIL Brazil has become one of the main destinations of FDI in the last decade, d attracting ti investments t for several sectors of its economy. FLDT16 FDI record in 2011: US$ 66.6 bi Foreign Direct Investment Economic Sector (% of total and US$ bi) From January to July 2012, Brazil received US$ 34.8 billion in FDI. FLDT Estimated dfdi for 2012 amounts to US$ 55 billion * Source: Brazilian Central Bank.

15 Slide 9 FLDT13 É preciso substituir "vírgula" por "ponto" nos números fracionários deste gráfico. Alterado Felipe Leão Dalla Torre, 10/29/2012 FLDT16 "one of the main destinations of FDI"? Alterado Felipe Leão Dalla Torre, 10/30/2012

16 What is driving strong FDI inward? FLDT6 3rd largest market for computers (behind US and China) 15.3 M computers in 2011 Information technology Local manufacturing 55 M households with TVs (10 M with cable TV) Consumer electronics 4th largest market for cell phones 62 M cell phones in 2011* Telecom 4th largest market for automobiles 313M 3.13 vehicles in 2011 Transportation & auto parts 2nd largest market for ATMs and 5th largest for medical equipment Automation & medical equipment * estimate

17 Slide 10 FLDT6 Nesta tabela, "M" corresponde a "million"? Se sim, sugiro substituir pela palavra por extenso, para fins de clareza. Preciso verificar com a Flávia esses dados. Felipe Leão Dalla Torre, 10/29/2012

18 Increasing number of individuals with professional and educational qualification The increase in the educational level of the employed population provides an important explanation for the increase in productivity, which reduces production costs, raises wages and business profitability. Proportionofpeople of people witheducational qualification Between 2009 and 2012, the proportion of people with professional training among the working age population increased from 21.6% to 24.9%. Source: Ministry of Finance.

19 Attractive Sectors

20 Attractive Sectors for FDI Renewable Energy Oil & Gas Semiconductors and Displays Aerospace Real Estate FLDT7 R&D Activities Infrastructure

21 Slide 13 FLDT7 Nos slides seguintes, não há destaque para "Aerospace". Há, no entanto, um slide específico para "R&D". Favor rever. Há destaque para Aero Space. Inserido "R&D" Felipe Leão Dalla Torre, 10/29/2012

22 Attractive Sectors Renewable Energy High end technology sector with rich supply chain; National objective ofincreasing energy production and maintaining the cleanest energy matrix in the world; Brazil has a long history of clean energy production and features potential to grow also in other sources: Wind energy; Solar energy (distributed generation); FLDT8 PCH (small hydroelectric plants). The goal is not only to produce clean energy, but also to attract productive investments to the supply chain. Installed Capacity Small Hydro 6% Thermoelectri c 19% Biomass 6% Wind 6% Hydroelectric 63% Key Players: WOBBEN BIOENERGY IMPSA ALSTOM SHARP SAMSUNG SUZLON Source: Ministry of Mines and Energy

23 Slide 14 FLDT8 Por que "other sources"? 1) Querem dizer "outras fontes renováveis"? Ou 2) querem dizer "outras fontes, incluindo as não renováveis"? Outras Fontes Incluindo as não renovaveis No caso 1), o problema é que ainda não foi mencionado nenhum tipo específico de de energia renovável neste texto. É o caso 2) Felipe Leão Dalla Torre, 10/29/2012

24 Attractive Sectors Oil & Gas FLDT17 US$ 330 billion in public and private estimated investments over the next 10 years; High demand for machinery and equipment for the exploration of oil & gas in pre salt layer reserves in the Atlantic Ocean; Very extensive supply chain, with possibility to attract several companies and great potential for creating job positions; In line with national government policies for the development of the national supply chain for the sector (minimum nationalization level required for Petrobras suppliers). ( q pp ) O&G Operators Investments (US$ billion) Oil Production Forecast million barrels/day FLDT Construction Seismic $ Construction of Ships $8 FLDT9 Exploration 3.53 of & Evaluation 2.87 Production 2.37 $ Units $ Chart - Source: ONIP National Organization of Petroleum Industry Construction of Drilling Units $96 Production Development $55

25 Slide 15 FLDT9 É preciso substituir "vírgula" por"ponto" na separação entre unidade e casa decimal. Alterado Felipe Leão Dalla Torre, 10/29/2012 FLDT10 FLDT17 Está faltando um substantivo: "Alguma coisa" + "sismico". Está de acordo com o texto original. Felipe Leão Dalla Torre, 10/29/2012 "over the next 10 years"? Alterado Felipe Leão Dalla Torre, 10/30/2012

26 Attractive Sectors Semiconductors and Displays Industry attractiveness: specific legislation (PADIS); payroll tax reduction for design activities (PBM); funding and loans; grants; skilled workforce. Impact on the trade balance: Superior to US$ 4.7 billion in 2011, trend of speed up growth; Semiconductors and Displays: more than 80% of the deficit of the Brazilian Electronic Complex. Key partners: Freescale HT Micron Gemalto SIX Smart IC Brasil CEITEC Semiconductors & Displays * 4 Environment Outlook Foundry 2 5 Back end (except memories) ion US$ bill 5 Semiconductors Trade Balance Deficit Design Houses IC Brasil (Private + Government) Training Centers IC Brasil 2 3 Memory Manufacturing (Back end) 1 4 TFT Full Plant (for LCD, Tablet and Smart Phone) 0 2 * estimates

27 Priority Sectors Aerospace Industry volumes of the Brazilian airline industry, % 59, ,9 With total revenue of 10 billion USD, the Brazilian airlines industry 50,0 experienced strong growth during 2010 after suffering decline in The 50 46,7 6% industry is predicted to continue to grow strongly through to the end of the 10 forecasted period in % 7.9% 7.1% Industry volumes increased with a CAGR of 9.9% between , to 30 reach a total of 68 million passengers in The industry volume is expected to rise to million passengers by the end of 2015, representing 5 20 a CAGR of 9.4% for the period Domestic flights had hdh the highest h volume in the Brazilian airlines ili industry in , with a total of 61.8 million passengers, equivalent to 91% of the industry s overall volume , Growth of business jets Increased outsourcing development and manufacturing Annual growth rate (%) Million passengers Source: IBM analysis largely based on Datamonitor, Airlines in Brazil, Dec Good prospects for MRO Very good size of labor pool, Good support from federal and local government to foreign investors. Quite good levels in R&D expenditures and patents application. Government policy towards foreign investment index, score from 0 to 5, 5 = best, 2012 and quality of support expected from government in setting up index, score from 0 to 10, 10 = best practice, Argentina Brazil Canada Chile China France India Mexico The Economist Intelligence Unit, Market Indicators and Forecasts, August 2012 and IBM PLI assessment based on IFC, Global Investment Promotion Benchmarking, 2009 Source: IBM-PLI Plant Location International

28 Attractive Sectors Real Estate A combination of factors have boosted the real estate sector in Brazil: GDP per capita/employment, credit/interest, confidence, industry, consumption. Expected 20 25% IRR in several opportunities in real estate. Main real estate opportunities: Logistics/Industrial parks Very limited offer + high demand Diversified industry = wide range of opportunities Shopping malls The number of shopping malls in Brazil has been growing fast (7% only in 2011). Hotels Expansion driven by major events (2014 World Cup, 2016 Olympics and others) and domestic demand. Around 3,000 new hotels are expected to be constructed until 2015 to match the growing demand.

29 Attractive Sectors R&D Activities Government priority: Brazilian Industrial Policy focused on innovation and technological development; Several incentives: payroll tax reduction and funding; The Brazilian Government announced an US$ 8 billion investment to support innovation projects for the next 3 years. Promising prospects: Brazil has been rapidly approaching the top ten group of countries that publish high level scientific papers (with nearly 2.9% of total) and is the leading country in Latin America. R&D centers from many important global key players: GE, Siemens, Embraer, Fiat, Tenaris, Schlumberger and Google, among others.

30 Attractive Sectors Infrastructure FLDT11 The government launched a concession program on highways, railways, ports and airports in 2012 and expects very high levels of investment in these areas. The Brazilian government approved the National Plan for Integrated Logistics (PNLI), which aims at expanding the capacity of public and private investments in infrastructure. Expectation of investments of up to R$ 133 billion over the next 25 years, of which R$ 79.5 billion will be spent in the next 5 years. FLDT12 Federal partners: ANAC (National Agency of Civil Aviation), ANTT (National Agency of Land Transportation), ANTAQ (National Agency for Water Transportation).

31 Slide 20 FLDT11 Título deve ficar diferente dos demais ("Attractive Sectors"), mesmo? Alterado Felipe Leão Dalla Torre, 10/29/2012 FLDT12 "next" ou "first"? Alterado Felipe Leão Dalla Torre, 10/29/2012

32 Apex Brasil and FDI

33 MDIC Structure Ministry of Development, Industry and Foreign Trade MDIC Foreign Trade Chamber CAMEX National Development Bank BNDES Productive Trade and Service Development Secretariat Secretariat SECEX SDP SCS STI Foreign Trade Secretariat Industrial Technology Secretariat National Development Fund FND Manaus Free Trade Zone SUFRAMA National Institute of Metrology, Quality and Technology INMETRO, National Institute of Industrial Property INPI Brazilian Industrial Development Agency Brazilian Trade and Investment Promotion Agency Brazilian Service of Support for Micro and Small Enterprises ABDI Apex Brasil SEBRAE

34 APEX BRASIL The best of Brazil to the world Export promotion of Brazilian products and services Support to internationalization of Brazilian enterprises Promotion of the Brasil brand abroad Promotionof the Brasil brand abroad Foreign direct investment attraction

35 National Foreign Investment Attraction ATRAÇÃO DE INVESTIMENTOS Ç ESTRANGEIROS DIRETOS (IED) Program Development of a Brazilian l f l Investment Promotion Network with the participation of federal states and institutions. t t d i tit ti Preparation of Investment epa at o o est e t Attraction Campaigns for specific sectors in partnership ( with states (i.e. Pernambuco and Pará).

36 FOREIGN DIRECT INVESTMENT ATTRACTION FOCUS ON PRIORITY SECTORS Priority sectors in line with the National Development Policy Focus on the development of Brazil and its states Employment generation Improvement and increase of Brazilian exports

37 Apex Brasil Investment Attraction Portfolio TAILOR MADE SUPPORT TO FOREIGN INVESTORS Building Connections Relevant Data Site Selection Contacting key players and authorities Providing strategic information Understanding the key factors for (state & municipal); to support decision; site selection; Organizing site visits and meetings; Providing support in regulatory Identifying potential locations; Matchmaking with suppliers and issues; Gathering information on selected service providers. Providing aftercare. sites (short list).

38 Thank you! Tel.: (55 61)