THE BEST OF BRAZIL
TO THE WORLD
TO THE WORLD
Brazilian Economic Overview
BRAZIL
Competitive and dynamic industry that ranks among the world’s top
Leader in clean and renewable energy
3rd main market for biodiesel
4th largest market for cell phones, automobiles and TV sets 3rd main main aircraft manufacturer
aircraft manufacturer
3rd largest market for personal computers
5th largest largest market for medical equipment
k tf
di l
i
t
10th largest industrial producer
Home to the world’s 10th largest oil reserves
13th largest producer of scientific articles
Macroeconomic and social structure for ATRAÇÃO DE INVESTIMENTOS Çof long term transformation
a period
a period of long‐term transformation
BRAZIL ESTRANGEIROS DIRETOS (IED)
The strength of our domestic market and a great emphasis on g
p
investments are the main drivers of our growth.
Brazil has been experiencing medium to high rates of GDP growth over the past decade.
FLDT1
Growth of Brazilian GDP
FLDT2
GDP average growth (%) 7.5%
5.2%
4.0%
The international crisis affected the country’s growth in 2009. However,
t ’
th i 2009 H
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.
6 1%
6.1%
5.7%
3.2%
2.7%
3 0%
3.0%
‐0.2%
2004
2005
2006
2007
2008
* Forecast.
Source: Brazilian Institute of Statistics and Geography.
2009
2010
2011 2012*
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
Sustainable economic growth and social ATRAÇÃO DE INVESTIMENTOS Ç
and
and environmental sustainability
environmental
sustainability
BRAZIL ESTRANGEIROS DIRETOS (IED)
The Brazilian middle class reached 105.5 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$ 1450.00.
l i R$ 1450 00
Source: Ministry of Finance.
Slide 5
FLDT14
ou "purchase power"?
Alterado
Felipe Leão Dalla Torre, 10/30/2012
Minimum wage
g
Increase of the minimum Increase
of the minimum
wage, inflation control, job creation and social benefits sustain the population’s p p
purchase power.
Growth of the minimum wage
FLDT15
Real minimum wage has grown more than 50% since 2003.
2003
Today’s minimum wage is R$ 622.00.
Source: Ministry of Finance.
Slide 6
FLDT15
ou "purchase power"?
Alterado
Felipe Leão Dalla Torre, 10/30/2012
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
1,229
995
The unemployment rate fell 35% over the last 6 years and reached 5.8% in May 2012.
The quality of jobs in Brazil can be verified by the increasing level of job formalization.
1,566
1,452
2004
2005
2006
2007
2008
Source: Ministry of Labour and Employment.
2009
2010
2011
2012*
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
Foreign trade – opening up markets and ATRAÇÃO DE INVESTIMENTOS Ç
multilateralism
BRAZIL ESTRANGEIROS DIRETOS (IED)
Brazilian trade flow continues
to expand with a trade surplus of US$ 29.8 billion in 2011.
Strategy of geographical export Strategy
of geographical export
diversification including Asia, Mercosul, Africa and the Middle East
Middle East.
Brazil has been able to expand its foreign trade over the last g
decade
Brazilian Trade Balance
FLDT5
In the same period, Brazil also took advantage of the increases in world prices of commodities.
ld i
f
diti
Exports classified according to added value – 1st half of 2012
Classification
Basic Products
Semi‐Manufactured
Manufactured
Share on Exports (%)
47.6
13.7
36.9
Source: Ministry of Development, Industry and Foreign Trade
Source: Ministry of Development, Industry and Foreign Trade.
Slide 8
FLDT5
"Trade Balance"?
Alterado
Felipe Leão Dalla Torre, 10/29/2012
Democratic stability and institutional ATRAÇÃO DE INVESTIMENTOS Çto investors
security
security to investors
BRAZIL
ESTRANGEIROS DIRETOS (IED)
Brazil has become one of the main destinations of FDI in the last d d tt ti i
decade, attracting investments for t
t f
several sectors of its economy.
FLDT16
FDI record in 2011: US$ 66.6 bi
Foreign Direct Investment ‐ Economic Sector (% of total and US$ bi)
FLDT13
From January to July 2012, Brazil received US$ 34.8 billion in FDI.
34.5
15.1
2005
55
48.5
45
EEstimated FDI for 2012 amounts to i
d FDI f 2012
US$ 55 billion.
66.6
31
18.8
2006
2007
Source: Brazilian Central Bank.
2008
2009
2010
2011
2012*
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
What is driving strong FDI inward? Local manufacturing
FLDT6
3rd largest market for computers (behind US and China)
(behind US and China) Information
technology
15.3 M computers in 2011
55 M households with TVs (10 M with cable TV)
4th largest market for cell phones Consumer
electronics
Telecom
62 M cell phones in 2011*
4th largest market for automobiles Transportation & auto Transportation & auto parts
3 13 M hi l i 2011
3.13 M vehicles in 2011
2nd largest market for ATMs and 5th g
largest for medical equipment * estimate
Automation & medical equipment
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
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.
Proportion of people with educational Proportion
of people with educational
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.
Attractive Sectors
Attractive Sectors for FDI
Renewable Energy gy
Oil & Gas
S i d t
Semiconductors and Displays
d Di l
Aerospace
Real Estate FLDT7
R&D Activities
Infrastructure
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
Attractive Sectors
Renewable Energy
High‐end technology sector with rich supply chain;
National objective of increasing energy production and maintaining the cleanest energy matrix in the world;
National objective of increasing 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);
•
PCH (small hydroelectric plants).
FLDT8
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%
Source: Ministry of Mines and Energy Biomass
6%
Wind
6%
Hydroelectric
63%
Key Players:
WOBBEN
BIOENERGY
IMPSA
ALSTOM
SHARP SAMSUNG
SUZLON 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
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,
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
)
2012‐2020 O&G Operators Investments (US$ billion)
Oil Production Forecast
million barrels/day
5 12
5.12
FLDT9
1.81 1.90
2.37
5.63
4.41
2.87
3.53
Construction Construction of Ships $8
of Production Units $84
FLDT10
Seismic $22
Seismic $22
Exploration & Evaluation $60
Production P d ti
Development
$55
2006 2008 2010 2012 2014 2016 2018 2020
Chart - Source: ONIP – National Organization of
Petroleum Industryy
Construction g
of Drilling Units $96
Slide 15
FLDT9
É preciso substituir "vírgula" por"ponto" na separação entre unidade e casa decimal.
Alterado
Felipe Leão Dalla Torre, 10/29/2012
FLDT10
Está faltando um substantivo:
"Alguma coisa" + "sismico".
Está de acordo com o texto original.
Felipe Leão Dalla Torre, 10/29/2012
FLDT17
"over the next 10 years"?
Alterado
Felipe Leão Dalla Torre, 10/30/2012
Attractive Sectors
Semiconductors and Displays
Industry attractiveness: specific legislation (PADIS); payroll tax reduction for design activities (PBM); funding and loans; grants; skilled workforce.
Impact on the trade balance:
•
•
Superior to US$ 4.7 billion in 2011, trend of speed up growth;
p
,
p
pg
;
Semiconductors and Displays: more than 80% of the deficit of the Brazilian Electronic Complex. Key partners:
Freescale
HT Micron Gemalto
HT Micron
Smart
IC Brasil
SIX
CEITEC
*
US$ billion
Semiconductors & Displays
Environment Outlook
5
4
3
2012
2014
Foundry 2
5
Back‐end (except memories)
4
6
2
22
25 1
Training Centers IC Brasil
2
3
Memory Manufacturing (Back‐end)
1
4
TFT Full Plant (for LCD, Tablet and Smart Phone)
0
2
Design Houses IC Brasil (Private + Government)
* estimates
Semiconductors ‐ Trade Balance Deficit 0
1996 1998 2000 2002 2004 2006 2008 2010
Priority Sectors
Industry volumes of the Brazilian airline industry, 2006-2010
Aerospace
68 0
68,0
70
9 With total revenue of 10 billion USD, the Brazilian airlines industry experienced strong growth during 2010 after suffering decline in 2009. The industry is predicted to continue to grow strongly through to the end of the forecasted period in 2015
forecasted period in 2015.
9 Industry volumes increased with a CAGR of 9.9% between 2006‐2010, to reach a total of 68 million passengers in 2010. The industry volume is expected to rise to 106.6 million passengers by the end of 2015, representing a CAGR of 9.4% for the period 2010‐2015.
9 Domestic flights had the highest volume in the Brazilian airlines industry in D
i fli h h d h hi h
l
i h B ili
i li
i d
i
2010, with a total of 61.8 million passengers, equivalent to 91% of the industry’s overall volume.
60
59,3
54,9
50,0
46,7
50
14.7%
15
6%
10
40
7 9%
7.9%
7.1%
30
5
20
10
0
0
2006
9 Growth of business jets 2007
2008
2009
2010
Annual growth rate (%)
9 Increased outsourcing development and manufacturing
Increased outsourcing development and manufacturing
Million passengers
Source: IBM analysis largely based on Datamonitor, Airlines in Brazil, Dec. 2011
9 Good prospects for MRO
9 Very good size of labor pool, 9 Good support from federal and local government to foreign investors.
9 Quite good levels in R&D expenditures and patents application.
Government policy towards foreign investment index, score from 0 to 5, 5 = b t 2012 d
best, 2012 and quality of support expected from government in setting up lit f
t
t df
ti
tti
index, score from 0 to 10, 10 = best practice, 2012
5
10
10
4
3
4
4
4
4
4
7
5
5
5
5
2
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
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.
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
j t for
f the
th nextt 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.
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.
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).
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
Apex‐Brasil and FDI
MDIC Structure
Ministry of Development, Industry and Foreign Trade
MDIC
Foreign Trade Chamber
National Development Bank
CAMEX
BNDES
Productive Development Secretariat
SDP
Foreign Trade Secretariat
SECEX
National Development Fund
FND
Manaus Free Trade Zone
SUFRAMA
Trade and Service Secretariat
Industrial Technology Secretariat
SCS
STI
National Institute of Metrology, Quality and Technology
National Institute of Industrial Property
INMETRO
, INPI
Brazilian Industrial Development Agency
Brazilian Trade and Investment Promotion Agency
Brazilian Service of Support for Micro and Small Enterprises ABDI
Apex‐Brasil
SEBRAE
APEX‐BRASIL
The best of Brazil to the world
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
Promotion of the Brasil
brand abroad
Foreign direct investment attraction
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).
FOREIGN DIRECT INVESTMENT
ATTRACTION
FOCUS ON PRIORITY SECTORS
PRIORITY SECTORS
Priority sectors in line with the 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
Brazilian exports
Apex‐Brasil Investment Attraction Portfolio
TAILOR‐MADE SUPPORT TO FOREIGN INVESTORS
Building Connections Site Selection
Relevant Data
•
Contacting key players and authorities (state & municipal);
(state & municipal);
•
Providing strategic information to support decision;
d
•
Understanding the key factors for site selection;
it
l ti
•
Organizing site visits and meetings;
•
•
Identifying potential locations;
•
Matchmaking with suppliers and service providers.
service providers.
Providing support in regulatory issues;
•
Gathering information on selected sites (short list)
sites (short list).
•
Providing aftercare
Providing aftercare. Thank you!
Thank you!
Tel.: (55 61) 3426.0202
[email protected]
www.apexbrasil.com.br