Brazil. Investment Opportuni/es. Miriam Belchior. Minister of State

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1 Brazil Investment Opportuni/es Miriam Belchior Minister of State Ministry of Planning, Budget and Management

2 BRAZIL IN A SUCCESSFUL MOMENT Four structural movements explain this moment: Sustained economic growth: with price stability, fiscal responsibility and lower external fragility Dynamic internal market as main driver, increasing the resilience to the economic crisis Important interna/onal player as exporter and des/na/on of foreign investments Investment as an important priority of public spending, having the private sector as a partner: Growth Accelera/on Program PAC Minha Casa, Minha Vida Program Pre Salt Layer World Cup Olympics and Paralympic Games

3 BRAZIL IN A SUCCESSFUL MOMENT We have reduced social and regional inequali/es, ge\ng us back on the track of sustained development, preserving the democra/c ins/tu/ons Brazil is a country of opportuni/es, with macroeconomic stability, an expanding consumer market and policy support for investment and innova/on

4 GROWTH ACCELERATION PROGRAM PAC In 2007 PAC 1 To accelerate the pace of economic growth To increase employment and income To reduce social and regional inequali/es To overcome infrastructure bo^lenecks In 2009 a new role To reduce the impact of the interna/onal crisis countercyclical policy In 2011 a new phase: PAC

5 GROWTH ACCELERATION PROGRAM PAC Infrastructure projects in three areas 94,1% completed US$ billion Area LOGISTICS 45,1 POWER G&T 165,8 SOCIAL AND URBAN 152,3 TOTAL 363,2

6 GROWTH ACCELERATION PROGRAM PAC Preliminary investment forecast US$ billion Area LOGISTICS 67,2 POWER G&T 260,0 SOCIAL AND URBAN 200,4 TOTAL 527,7

7 INVESTMENT OPPORTUNITIES HOUSING MINHA CASA, MINHA VIDA POWER GENERATION AND TRANSMISSION OIL AND GAS HIGHWAYS RAILROADS AIRPORTS URBAN MOBILITY PORTS

8 HOUSING MINHA CASA, MINHA VIDA PROGRAM

9 MINHA CASA, MINHA VIDA PROGRAM 1 st PHASE US$ 29,4 billion 1 million homes to families with income up to US$ 2.569, reducing Brazil s housing deficit by 14% 57% of the units to low income families (monthly income lower than US$ 771) Subsidies for housing finance to families with income between US$ 771 and US$ Guarantee Fund to reduce risks and costs 2 nd PHASE US$ 69,4 billion To build 2 million homes Long term partnership between Government and private investors

10 ELECTRIC POWER GENERATION AND TRANSMISSION

11 ELECTRIC POWER GENERATION Compe//veness as priority, renewable sources with low carbon emission Annual energy biddings in a regulated market Hydroelectric power plant energy delivered at the fimh year Wind, thermal and other power plants* energy delivered at the third year Biddings planned HPP 15 thousand MW US$ 21 billion * New projects are included each year in accordance with the planning of the sector

12 ELECTRIC ENERGY TRANSMISSION Large interconnec/ons km Regional Lines km Total Investment US$ 27 billion

13 OIL AND GAS Produc/on and Explora/on

14 PRODUCTION AND EXPLORATION Increase oil and gas produc/on Seismic assessment, drilling, plaoorm construc/on and produc/on development To explore the reserves and enlarge na/onal produc/on, including the new Pre Salt discoveries poten/al reserves of 11 to 16 billon barrels of oil equivalent (BOE) Value chain: naval industry, mechanical engineering, steel, chemical, precision engineering, among others Total Investment US$ 405 billion US$ 106 billion Amer 2014 US$ 299 billion

15 REFINEMENT, PETROCHEMISTRY AND FERTILIZER Refinery Premium I Refinery Clara Camarão Refinery Premium II Suape Petrochemical PTA Suape Petrochemical PET POY Refinery Abreu e Lima FAFEN SE Sulphate of Ammonia Ammonia Factory Nitrogen Fer/lizer Factory III Chemical Complex UFN 4 Rio s Petrochemical Complex Total Investment US$ 76 billion US$ 44 billion Amer 2014 US$ 32 billion

16 HIGHWAYS

17 HIGHWAYS Preliminary investment forecast US$ 28 billion Projects Km Expansion Maintenance Projects

18 FEDERAL HIGHWAY CONCESSION PROGRAM Total Investment US$ 3 billion Central South Region 54% of the Brazilian GDP GO DF BR 116 BR 040 MG Belo Horizonte Governador Valadares Concession bidding 2 nd half, 2012 Total Length: km BR 040/Distrito Federal Goiás Minas Gerais 937 km BR 116/Minas Gerais 817 km

19 CONCESSION MODEL Emphasis on service quality Concessionaire performs the necessary investments in the most efficient way to meet the Performance Parameters Investments Construc/ons required recovery, duplica/on, ligh/ng, and others Construc/ons condi/oned to the volume of traffic to expand capacity Performance Parameters: paving, safety, signage, ligh/ng, user assistance, and others Project rate of return IRR: 6 to 8% p.y. Term of Concession: 25 years Annual tariff increase indexed to infla/on

20 RAILROADS

21 RAILROADS Preliminary investment forecast US$ 25 bilion Projects Km Expansion Studies High Speed Rail 1.991

22 RAILROADS North Extension North South Railway Barcarena North South Railway South Sec/on Palmas Anápolis Itaqui Açailândia Midwest Integra/on Railway Araguaína Uruaçu/GO Lucas do Rio Verde/MT East West Integra/on Railway Midwest Integra/on Railway Lucas do Rio Verde/MT Vilhena/RO Vilhena North South Railway Ouro Verde/GO Estrela d Oeste/SP West Integra/on Railway Lucas do Rio Verde Palmas Figueirópolis Estrela d Oeste Panorama Dourados Estreito Guaraí Uruaçu Anápolis Uberlândia Barreiras Cae/té Barreiras/BA Figueirópolis/TO Ilhéus North South Railway Estrela d Oeste/SP Panorama/SP East West Integra/on Railway Ilhéus/BA Barreiras/BA Construc/on Studies and projects Done / preexis/ng In progress To bid

23 HIGH SPEED RAIL US$ 18 BILLION Resende 36 million inhabitants Metropolitan Region of Campinas São José dos Campos Taubaté Volta Redonda Campinas São Paulo Rio de Janeiro 511 km Metropolitan Region of São Paulo Metropolitan Region of Rio de Janeiro Market Poten/al Metropolitan Region of São Paulo: 19 million inhabitants Metropolitan Region of Rio de Janeiro: 12 million inhabitants Metropolitan Region of Campinas: 2.5 million inhabitants Economic Relevance Rio de Janeiro and São Paulo states concentrate 45 % of Brazil s GDP São Paulo is La/n America's biggest financial center, concentra/ng 70% of the stock market Rio de Janeiro is the biggest Brazilian tourism hub

24 HIGH SPEED RAIL HSR Concession process 1 st stage concession of the services of opera/on, maintenance and technological pa^ern concession bidding 2nd semester nd stage concession of the civil construc/on and infrastructure maintenance according to the technical and technological parameters Bidding to be open to all exis/ng technologies Compulsory technology transfer Public sector par/cipa/on: own capital and financing Documenta/on available at Technical studies on demand, alignment, geology, opera/on and economic financial modeling completed and available

25 AIRPORTS

26 AIRPORTS Increasing Demand 10% average annual growth between 2003 and ,1% es/mated average annual growth un/l 2030 TOTAL INVESTMENT US$ 12 billion 56 works in 22 airports

27 AIRPORT CONCESSION PROGRAM Investment US$ 9 billion SÃO GONÇALO DO AMARANTE Capacity millions of Airport Passengers/year São Gonçalo do Amarante 0,0 6,2 Guarulhos 25,9 40,0 Campinas 9,3 13,3 Brasília 14,0 21,7 CAMPINAS BRASÍLIA SP (GUARULHOS) Concession of 4 airports São Gonçalo do Amarante/RN, Brasília/DF, Guarulhos e Campinas/SP Federal Government will define the development plan for the sector

28 URBAN MOBILITY

29 MOBILIDADE GRANDES CIDADES US$ 10 billion Subway, LRT, BRT and bus lanes Public transporta/on systems in major urban centers Projects of 7 ci/es were already announced Belo Horizonte/MG, Curi/ba/PR, Porto Alegre/RS, Salvador/BA, Fortaleza/CE, Recife/PE and Rio de Janeiro/RJ Program is on final stage of selec/on construc/on to be started in 2012 Manaus Belém São Luis Teresina Fortaleza Natal João Pessoa Recife Maceió Brasília Salvador Campo Grande Goiânia Belo Horizonte Guarulhos Campinas São Paulo Curi/ba São Bernardo do Campo Rio de Janeiro Duque de Caxias Nova Iguaçu São Gonçalo Porto Alegre Metrôs

30 PORTS

31 PORTS Moderniza/on and Construc/on 71 PROJECTS 24 PORTS US$ 3 billion Ventures Quan/ty Dredging 23 Port Infrastructure 37 Logis/cs Intelligence Systems/ Studies and Projects 11

32 WORLD CUP

33 12 HOST CITIES Fortaleza Manaus Natal Recife Cuiabá Salvador Brasília Belo Horizonte São Paulo Rio de Janeiro Curi/ba Porto Alegre

34 12 STADIUMS US$ 4 BILLION UNDER Estádios da Copa 2014 Andamento das obras (declaratório) CONSTRUCTION BELO HORIZONTE 50% BRASÍLIA 52% CUIABÁ 40% CURITIBA 11% FORTALEZA 61% MANAUS 38% NATAL 21% PORTO ALEGRE 20% RECIFE 33% RIO DE JANEIRO 40% SALVADOR 54% SÃO PAULO 30%

35 URBAN MOBILITY 50 Projects Subway,, LRT, BRT and bus lanes Total investment US$ 7 billion

36 PORTS 7 passenger terminals Total investment US$ 497 million

37 Olympic Park OLYMPIC GAMES RIO 2016

38 AEROPORTOS Módulo Operacional MOP AEROPORTOS NAS CIDADES DA COPA OLYMPIC GAMES 2016 Major Investments: Building Arenas, Media Center and Olympic Village Urban Legacy Urban Mobility: BRT (Transolímpica and Av. Brasil), Subway Line 4 and LRT Port Downtown Port area revitaliza/on Social Legacy security and slums urbaniza/on Environmental Legacy sanita/on and pollu/on control

39 Brazil Investment Opportuni/es Miriam Belchior Minister of State Ministry of Planning, Budget and Management