Investment Opportunities in the State of São Paulo Investe São Paulo Mission Being the gateway to new investments or expansion of existing businesses, generating innovation, employment and income, in addition to the continuous improvement of the competitive environment and of the image of the State of São Paulo Investment Promotion Agency Areas of Activity I – Investment Projects • Technical support and orientation to investors • Contact with public and private institutions aiming as investment facilitation II – Business Prospection • Identification of sectors and companies with investment potential III – Actions for the Promotion of Competitiveness • Labor training, Taxation, Innovation, Infrastructure and Licensing • Studying and proposing public policies IV – Institutional Activities • Reception of foreign delegations and organization of international missions • Support and guidance for municipal governments V – Promotion of the image of the State of Sao Paulo Investment Promotion Agency Our Customers Announced Investments: USD 6.8 billion Direct Jobs: 22.400 June 2012 Portfolio of projects Number of projects: 62* Potential Investments: USD 10 billion Potential direct jobs: 40 thousand Sectors: automotive, food, oil and gas, energy, solid waste and machinery and equipment. Origin: United States, China, South Korea, Spain, Japan, Italy, England, France and Brazil. * The names of these companies are kept confidential in compliance with NDA signed with Investe São Paulo DABO Exchange rate: US$ 1 = R$ 1.67 Brazil on the World Stage Brazil, the 6th economy of the planet GDP - US$ billions 4th Germany 2,417 10th Canada 3,577 9th Russia 7th UK 1,850 1,736 2,198 12thSpain 1,493 15,094 2,776 8th Italy 5,870 5th France 7,298 3rd Japan 11th India 1st USA 1,676 2nd China 2,492 6th Brazil Investment Promotion Agency Source: IMF - year 2011 Selected Countries: Territory, Population and Economy Population > 100 million Territory > 3 million km2 Russia Canada India Netherlands Italy Indonesia Nigeria Brazil Japan United Kingdom Germany Bangladesh China Australia United States Pakistan Mexico France South Korea Spain Economy (GPD) > US$ 750 billion Source: IMF, World Bank - 2010 Investment Promotion Agency Brazilian Age Structure 2010 2020 2050 80 50 30 0 Opportunity Larger contingent of working-age population = possibility of increasing productivity Source: IBGE / Revista Veja, December 2010. Challenges Increase on health and social security expenditures Investment Promotion Agency Social Mobility AeB C D E Year 2014 31 113 40 16 projection 2009 20 2003 95 13 0 44 66 20 40 47 60 80 100 29 49 120 140 160 180 200 Millions of Inhabitants Source: Banco Central do Brasil/ FGV Investment Promotion Agency Foreign Direct Investment into Brazil FDI in US$ billions 66.7 55 48.4 45.0 34.5 26.0 18.1 16.6 15.0 18.8 10.1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012* Source: Brazilian Central Bank *Forecast based on the Inflation Report published in February 2012 Investment Promotion Agency Highlights of Germany-Brazil Relations Germany-Brazil and SP Economic Relations Brazil State of São Paulo % Total Bilateral Trade 24.3 10.0 41% Exports to Germany 9.0 1.8 20% Imports from Germany 15.2 8.2 54% Bilateral Trade (US$ billions) - 2011 Source: Ministry of Development, Industry and Foreign Trade of Brazil German FDI into Brazil (US$ millions) 2,473 1,801 1,388 1,125 1,086 628 795 506 867 538 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Brazilian Central Bank (1) Considering only stock purchases, excluding intercompany loans Investment Promotion Agency Germany - Brazil and SP Economic Relations Bilateral Trade Germany-Brazil (US$ billions ) 24 20.6 21 16 07 2002 07 2003 11 12 2005 2006 09 2004 2007 16 2008 2009 2010 2011 São Paulo’s exports to Germany (2011) São Paulo’s imports from Germany (2011) Main Products and percentage of Brazil’s total Main Products and percentage of Brazil’s total • Nuclear reactors, boilers, machinery and mechanical appliance (53%) • Nuclear reactors, boilers, machinery and mechanical appliances (49%) • Aircraft, spacecraft, and parts (99%) • Electrical machinery and equipment and parts thereof; others (69%) • Coffee, tea, maté and spices (9%) • • Electrical machinery and equipment and parts (41%) Vehicles other than railway or tramway rollingstock, and parts and accessories thereof (43%) • Organic chemicals (70%) • Natural or cultured pearls, precious or semiprecious stones (63%) • Pharmaceutical products (61%) Source: Ministry of Development, Industry and Foreign Trade of Brazil Investment Promotion Agency State of São Paulo Competitive Advantages Brazil and São Paulo Brazil 8.515 Population (million) 191 GDP nominal (US$ bi) 2.143 GDP per capita (US$) 11.093 Territorry (1,000 km²) São Paulo 248 Population (million) 41 GDP nominal (US$ bi) 690 GDP per capita (US$) 16.757 Territorry (1,000 km²) 21% of the population 32% of GDP nominal 1,5 X the GDP per capita of Brazil Source: IBGE, Brazilian Central Bank , SEADE – Exchange Rate US$ 1 = R$ 1,76 Investment Promotion Agency São Paulo Highlights • 1st largest cargo airport in Latin America • 1st largest producer of sugar cane ethanol in the world • 4th largest stock exchange in the world (BM&FBOVESPA) • 3rd largest producer of aircraft in the world • 48% of domestic production of vehicles • Capital: third largest metropolis in the world • Agribusiness: Orange – 53% of juice world production Sugar – 23 million tons/year Beef – US$ 2.18 billion in exports Investment Promotion Agency São Paulo Competitive Advantages Largest Consumer Market in LATAM Environmental Responsibility Skilled Workforce São Paulo Competitive Advantages Social Development World-class Infrastructure Largest Brazilian Investor in R&D Investment Promotion Agency High Quality Infrastructure • • • • • • 19 out of the 20 best highways in Brazil Largest port in Latin America (Santos) 2,400 km of waterways 5,400 km of railways 6,000 km of gas pipeline Around 50 million air passengers per year And it is getting better... Investment in public transport (trains and subway) São Paulo Highway Ring Expansion of the ports of Santos and São Sebastião Expansion and modernization of 30 regional airports Investment Promotion Agency High Quality Infrastructure Highway Railway Pipeline Waterway Airport Port Source: Transportation Secretariat of State of São Paulo Investment Promotion Agency Environmental Responsibility • • • • Energy matrix with 57% renewables (2010) Competitive advantages for energy production from biomass New opportunities in environmental technology markets Brazil’s most advanced structured conservation system • 17.5% State area is native vegetation • 10.8% State area is rainforest • 14.8% State area is nature protection reserves (full protection and sustainable use) Source: Energy Secretariat of State of Sao Paulo, Forest Foundation Investment Promotion Agency Index of Municipal Development The best ranked Brazilian municipalities are in the State of São Paulo IFDM Ranking Ranking IFDM UF UF Ranking IFDM IFDM Ranking BRAZILIAN MUNICIPALITIES MUNICÍPIOS BRASILEIROS- -YEAR Ano2009 2009 IFDM IFDM Emprego && Employment Income Renda Educação Education Saúde Health National Nacional State Estadual 1º 1º SP Barueri 0,9303 0,9184 0,9206 0,9518 2º 2º SP Paulínia 0,9290 0,8954 0,9675 0,9240 3º 3º SP Araraquara 0,9281 0,9035 0,9600 0,9207 4º 4º SP Ribeirão Preto 0,9239 0,9299 0,9213 0,9207 5º 5º SP São José do Rio Preto 0,9202 0,8704 0,9546 0,9356 6º 6º SP Indaiatuba 0,9164 0,8631 0,9393 0,9469 7º 7º SP Marília 0,9125 0,8463 0,9615 0,9297 8º 1º MT Lucas do Rio Verde 0,9046 0,8849 0,8650 0,9640 9º 8º SP Taubaté 0,8985 0,9013 0,8951 0,8992 10º 9º SP Itupeva 0,8942 0,8979 0,8921 0,8925 11º 10º SP São Paulo 0,8930 0,8799 0,9121 0,8870 12º 11º SP Santos 0,8924 0,8318 0,9312 0,9143 39 out of the 50 best ranked Brazilian municipalities are in the State of São Paulo Source: FIRJAN - Federation of Industries of the State of Rio de Janeiro Indices published in 2011 based on 2009 data Investment Promotion Agency Higher Education 521 college level institutions all over the State 24% of Brazil’s total The State Government is responsible for three of the best universities in Brazil: • USP - São Paulo University – 88,962 students • UNICAMP – Campinas State University – 36,801 students • UNESP – São Paulo State’s University – 46,634 students Source: USP, Unicamp. Unesp Investment Promotion Agency Technological and Technical Schools Largest program of technical education in Brazil Technological education - Fatecs • 55 thousand students • 51 technology colleges • 60 courses in the fields of industry, services and agriculture Technical Schools - Etecs • 216 thousand students • 203 technical schools • 101 courses in the fields of industry, services and agriculture Workforce Training • Centro Paula Souza’s structure may be used for workforce training at no cost to companies Source: Centro Paula Souza – 2nd semester 2011 Investment Promotion Agency R&D / Innovation More than 13% of the São Paulo State revenue is used in high quality education, research and development. The State also hosts federal universities and research institutions. Fundação de Amparo à Pesquisa Científica e Tecnológica (Fapesp) US$ 512 million annual budget 3 universities among the ones that most develop scientific research in Brazil USP, Unicamp and Unesp 19 research institutes IPT international recognition 30 initiatives of Technology Parks All over the state Investment Promotion Agency R&D - Examples of Companies Examples of companies carrying out R&D in the State of São Paulo Investment Promotion Agency Brazilian Investment Competitiveness Ranking December 2011 Economist Intelligence Unit The Economist General Ranking Scale – 100 for best, 0 for worst STATES CLASSIFICATION REGION SOUTHEAST Very Good SOUTH CENTER WEST Good NORTHEAST NORTH Moderate Poor NATIONAL OVERALL #1 Source: The Economist, Centro de Liderança Pública and Veja http://veja.abril.com.br/infograficos/clp/ Investment Promotion Agency 1.Economic Environment Scale – 100 for best, 0 for worst STATES CLASSIFICATION Very Good Good REGION SOUTHEAST SOUTH CENTER WEST NORTHEAST NORTH Moderate Poor NATIONAL OVERALL #1 Source: The Economist, Centro de Liderança Pública and Veja http://veja.abril.com.br/infograficos/clp/ Investment Promotion Agency 2.Human Resources Scale – 100 for best, 0 for worst STATES CLASSIFICATION Very Good Good REGION SOUTHEAST SOUTH CENTER WEST NORTH NORTHEAST Moderate Poor NATIONAL OVERALL #1 Source: The Economist, Centro de Liderança Pública and Veja http://veja.abril.com.br/infograficos/clp/ Investment Promotion Agency 3.Innovation Scale – 100 for best, 0 for worst STATES CLASSIFICATION Very Good Good Moderate REGION SOUTHEAST SOUTH CENTER WEST NORTHEAST NORTH Poor NATIONAL OVERALL #1 Source: The Economist, Centro de Liderança Pública and Veja http://veja.abril.com.br/infograficos/clp/ Investment Promotion Agency 4.Policies for Foreign Investments Scale – 100 for best, 0 for worst STATES CLASSIFICATION Very Good Good REGION SOUTHEAST SOUTH CENTER WEST NORTH NORTHEAST Moderate Poor NATIONAL OVERALL SP MG #1 Source: The Economist, Centro de Liderança Pública and Veja http://veja.abril.com.br/infograficos/clp/ Investment Promotion Agency Investment Opportunities Pre-salt – Santos Basin Petrobras 2012-2016 Planned Investments US$ 236,5 billion Investment Promotion Agency 95% in Brazil Tietê-Paraná Waterway Estimated Investment • Total Investment – US$ 597 million State Government – US$ 231 million Federal Government – US$ 366 million Summary of Investment • Profile Navigation Extension 2,400 km total 800 Km in São Paulo State Linking the 5 largest states in production of grain, sugar cane and derivatives Source: São Sebastião Port Authority Exchange rate: US$ 1 = R$ 1.70 Elimination of Bottlenecks Enlargement of spans and pillars protection Dredging and removal of high points Locks duplication • Extension Expansion and rectification of the route • Ports on waterway Investment Promotion Agency World Cup 2014 Public and Private Investment • • • • • • US$ 180 million of state investments in transport infrastructure in the stadium surroundings Arena for the opening of the World Cup - 65 thousand seats Increase from 42 thousand to 50 thousand hotel rooms until 2014 Connection of airports to subway and trains network Improvement and expansion of the transportation system 64 training centers preselected by the Local Committee, out of 145 nationwide Source: São Paulo State Government Investment Promotion Agency Integrated Transport System in 2014 Source: GESP Investment Promotion Agency Public-Private Partnerships and Concessions São Paulo State Budget for PPPs Limited to 3% of net revenues, pursuant to Federal Law 11079/04 Expenditures with PPPs in 2010 PPP potential US$ 1.66 billion Used US$ 100 million Available US$ 1.56 billion Investment Promotion Agency Innovative Fast Track for PPP Projects • State Decree 57.289 dated August 30, 2011 allows interested investors to present proposals for PPPs Projects PRELIMINARY PPP PROPOSAL APPROVAL PRIVATE SECTOR INITIATIVE (MIP) EVALUATION by State Commission REJECTION $ PUBLIC CALL for detailed technical studies, including alternatives Technical studies Technical studies Technical studies CONTRACT (PPP Project winner reimburses selected technical study author) PPP Project APPROVAL PUBLIC BIDDING for the PPP EVALUATION by State Commission REJECTION Investment Promotion Agency Line 6 – Orange of the Subway Network of São Paulo Call Notice 001/2011 – Presentation, for any interested, of expression of interest, aiming the development of studies and modeling for the design of the Public-Private Partnership project (PPP) LINE 6 – ORANGE OF THE SUBWAY NETWORK OF SÃO PAULO Published in Oct, 5th, 2011 Until the deadline date, on October 15th, 2011, 08(eight) parties had been registered: • Odebrecht Transport Participações S.A. • Construtora Andrade Gutierrez S.A, • Construções e Comércio Camargo Corrêa S.A., • Construtora Queiroz Galvão S.A., • Galvão Engenharia S.A. e Somague Engenharia S.A. , • MITSUI & CO (Brasil) S.A., • UTC Participações S.A. e CONSTRAN S.A. Construções e Comércio • CR Almeida S/A Engenharia de Obras Until the deadline date for the submission of studies, on February 13th, 2012, 3 studies had been received: • Construtora Queiroz Galvão S.A., • Galvão Engenharia S.A. e Somague Engenharia S.A. e • Odebrecht Transport Participações S.A. e Construtora Andrade Gutierrez S.A Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP Studies under evaluation with the coordination of the Executive Secretariat of the Manager Council of PPP Investment Promotion Agency Pharmaceutical Industry of Américo Brasiliense - IFAB Call Notice 002/2011 – Presentation, for any interested, of expression of interest, aiming the development of studies and modeling for the design of the Public-Private Partnership project (PPP) PHARMACEUTICAL INDUSTRY OF AMÉRICO BRASILIENSE – IFAB Published on October 27th, 2011 Until the deadline date, on November 16th, 2011, 02 (two) parties had been registered: • Ideen Farmacêutica Ltda e • Germed Farmacêutica Ltda Until the deadline date for submission of studies, on March 16th, 2012, 02 (two) studies had been received: • Ideen Farmacêutica Ltda e • Germed Farmacêutica Ltda Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP Studies under evaluation with the coordination of the Executive Secretariat of the Manager Council of PPP Investment Promotion Agency Line 18 – Bronze of the Metropolitan Network of São Paulo Call Notice 001/2012 – Presentation, for any interested, of expression of interest, aiming the development of studies and modeling for the design for the Public-Private Partnership project (PPP) LINE 18 – BRONZE OF THE METROPOLITAN NETWORK OF SÃO PAULO Published on February 2nd, 2012 Until the deadline date, on February 12th, 2012, 12 (twelve) parties had been registered: • CR Almeida S.A. Engenharia de Obras, • Contern Construções e Comércio Ltda, • Auto Viação ABC Ltda, • Brasell Gestão Empresarial Ltda, • Transporta – Consultoria em Transportes Ltda, • CMT Consórcio Metropolitanos de Transportes, • Delta Construções S.A., • Headwayx Engenharia Ltda, • Tiisa Triunfo IESA Infraestrutura S.A., • Mitsui e Co (Brasil) S.A., • Invepar Investimentos e Participações em Infraestrutura S.A./ Construtora Queiroz Galvão S.A./ Bombardier Transportation Brasil Ltda e • Odebrecht Transport Participações S.A Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP Deadline for the submission of the studies from the registered parties is July 16th, 2012. Investment Promotion Agency Prison Units in the State of São Paulo Call Notice 002/2012 - Presentation, for any interested, of expression of interest, aiming the development of studies and modeling for the design of the Public-Private Partnership project (PPP) PRISION UNITS IN THE STATE OF SÃO PAULO. Published on March 3rd, 2012 Until the deadline date, on March 13th, 2012, 06 (six) parties had been registered: • CCI Concessões Ltda, Empresa Tejofran de Saneamento e Serv. Ltda, NF Mota Construções e Comércio Ltda, Construtora Augusto Velloso S.A. e Instituto Nacional de Administração Prisional - INAP • G4S Engenharia e Sistemas S.A, • Azevedo Sodré Advogados, • Reviver Administração Prisional Privada Ltda, • Advance Construções e Participações Ltda/Socializa Empreendimentos e Serv. de Manut. Ltda • EGP Empresa Global de Projetos Ltda Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP Deadline for the submission of the studies from the registered parties is July 11th, 2012. Investment Promotion Agency Interactive Class Call Notice 003/2012 - Presentation, for any interested, of expression of interest, aiming the development of studies and modeling for the design of the Public-Private Partnership project (PPP) INTERACTIVE CLASS Until the deadline date on April 16th, 2012, 30 (thirty) parties had been registered: • 100% PROMO Marketing Promocional Ltda • Cassiano Zeferino e carvalho Neto • Clasus Brasil Informática ltda • College - Ensinos presenciais, online, interativos e multimídias • Dell Computadores do Brasil Ltda • Editora Marca Multimídia ltda ME • Editora Moderna • Editora Name Coc Ltda Published on April 4th, 2012 • Empresa Brasileira de Tecnologia, Informação e Comunicação ltda - Embratic • Fundação Carlos Alberto Vanzolini • Fundação de Apoio à USP - FUSP • Fundação L´Hermitage • Fundação Universa • IES 2 - Inovação, Educação e Soluções Tecnológicas • Instituto de Organização racional do Trabalho - Idort • Instituto de Pesquisa e Educação em Telecomunicações - IPET • Instituto Galileu Galilei para a Educação IGGE • Itautec S/A - Grupo Itautec • JMS Representações, Serviços eDistribuições Ltda • KPMG Structured Finance S.A. • Nova Tecnologia em Educação Ltda - (NT Educação) • Ogi Technologies Equipamentos e Tecnologia da Informação ltda • Planeta Educação, Gráfica e Editora Ltda • Positivo Informática S/A • Reinaldo da Silva Representações (Interexus) • Sapienti Tecnologia Educacional Ltda • Sharp Brasil Comércio e Distribuição de Artigos Eletrônicos Ltda • Sistech Tecnologia Educacional Comercial e Representação de Produtos Ltda (Pesc) • Texto Editores Ltda (LEYA) • Torino Informática Ltda Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP Deadline for the submission of the studies from the registered parties is July 23th, 2012. Investment Promotion Agency Social Interest of Housing Call Notice 002/2011 – Presentation, for any interested, of expression of interest, aiming the development of studies and modeling for the design of the Public-Private Partnership project (PPP) SOCIAL INTEREST OF HOUSING Published in April 17th, 2012 Republished in May 4th, 2012 Until the deadline date, on June 4th, 2012, 31 (thirty one) parties had been registered: • Actuale Consultoria Administrativa e Assessoria Empresarial Ltda • Atua Construtora e Incorporadora S/A • BAIRRO NOVO Empreendimentos Imobiliários S/A e Arquiteto Pedro Taddei e Associados Ltda • Brookfield Empreendimentos Econômicos AS • Casa Pinar Empreendimentos Imobiliários AS • CITTAD Empreendimentos Ltda • Companhia Latino Americana de Serviços • Concremat Engenharia e Tecnologia S.A. e Companhia City de Desenvolvimento • Construtora Celi Ltda • Construtora e Incorporadora Faleiros Ltda • Construtora Elecon Ltda • Construtora Pasarelli Ltda • Cury Construtora e Incorporadora S/A • DBB Brasil Ltda • Econ Construtora e Incorporadora Ltda • EGP- Empresa Global de Projetos Ltda • Elglobal Construtora Ltda • ENGELUX Construtora Ltda • Gerencial Consultoria, Empreendimentos e Participações Ltda • Geribello Engenharia Ltda • HE Engenharia • Impacto Gouvêa Construtora e Incorporadora Ltda • Instituto de Urbanismo e Estudos para a Metrópole • Itajaí Construtora • IXR - Property Advisory • MPE - Montagens e Projetos Especiais S/A • Multpla Engenharia Ltda. • Saned Engenharia e empreeendimentos • Techcasa Incorporação e Construção Ltda • Via Pública - Instituto para o Desenvolvimento da Gestão Pública e das Organizações de Interesse Público • Zoom Urbanismo, Arquitetura e Design Ltda Deadline for the submission of the studies from the registered parties is September 3rd, 2012. Source: Government of the State of São Paulo - Public-Private Partnership project (PPP) Program – Management Council of PPPPromotion Agency Investment State Guarantee for Private Partners in PPPs “Companhia Paulista de Parcerias (CPP)” State of São Paulo institution aimed at guaranteeing State obligations under PPP contracts; Assets amount to approximately US$ 568 million (R$ 1 billion); Prepares technical studies about the economic viability of PPPs; Recommends structure for PPP projects; Other atributions related to PPPs management Investment Promotion Agency Public Private Partnerships - Applicability Private Projects of interest to the Government Coordination, induction and stimulation PPP Regular Sponsored Concession Concession Financially self-sustaining projects PPP Administrative Concession or Procurement of Public Works Projects requiring government resources Traditional public projects Investment Promotion Agency Highways Potential Investment: US$ 6.4 billion Highway Ring – North US$ 3.2 billion North Coast – Highways US$ 2.8 billion South Coast – Highways US$ 388 million Source: Secretariat of Logistics and Transports Investment Promotion Agency Railways and Metro Potential Investment: US$ 5.6 billion Rail Ring US$ 1.2 billion Bandeirantes Express US$ 2 billion Airport Express and Guarulhos Train US$ 1.3 billion Other projects: US$ 1.1 billion Source: Secretariat of Metropolitan Transports, EMTU, CPTM, Secretariat of Transports Investment Promotion Agency Information Technology Potential Investment: US$ 1.9 billion Government Internet Network US$ 1.6 billion Source: Secretariat of Metropolitan Transports Centralized Collection of Public Transports Fares US$ 313 million Investment Promotion Agency Sanitation Potential Investment: US$ 1.8 billion São Lourenço – High Juquiá Production System US$ 599 million Clean Wave – North Shore Basin Water and Sewage US$ 312 million Other projects: US$ 900 million Source: Sabesp and Secretariat of Prison System Administration Investment Promotion Agency Airports and Ports Potential Investment: US$ 529 million DAESP network (30 airports upgrade) US$ 180 million Source: Secretariat of Transports and São Sebastião Docks São Sebastião Port US$ 349 million Investment Promotion Agency Thank you! Hans Schaeffer Director of Investment Sérgio Costa Director of International and Institutional Relations Wilson Roberto Soares General Manager of International and Institutional Relations Phone: + 55 11 3218 5311 Email: [email protected] www.investe.sp.gov.br SECRETARIA DE DESENVOLVIMENTO ECONÔMICO, CIÊNCIA E TECNOLOGIA