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Ryan Devine ▪ Michael Higgins ▪ Paras Kamdar ▪ Patrick Kaminski ▪ Michael Orton ▪ Ryan Waldron

US/MULTINATIONAL BUSINESSES IN BRAZIL. Ryan Devine ▪ Michael Higgins ▪ Paras Kamdar ▪ Patrick Kaminski ▪ Michael Orton ▪ Ryan Waldron. Attracting Global Business. 8 th Largest Economy in the World (GDP) Employment Structure Agriculture 19% Industry 21% Services 60% GDP Structure

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Ryan Devine ▪ Michael Higgins ▪ Paras Kamdar ▪ Patrick Kaminski ▪ Michael Orton ▪ Ryan Waldron

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  1. US/MULTINATIONAL BUSINESSES IN BRAZIL Ryan Devine ▪ Michael Higgins ▪ Paras Kamdar ▪ Patrick Kaminski ▪ Michael Orton ▪ Ryan Waldron

  2. Attracting Global Business • 8th Largest Economy in the World (GDP) • Employment Structure • Agriculture 19% • Industry 21% • Services 60% • GDP Structure • Agriculture 6% • Industry 25% (Incl. 16% Manufacturing) • Services 69% US/Multinational Businesses in Brazil

  3. Oil & Gas Industry International Oil Majors • BP (UK) • O&G, Ethanol JV, Aviation Fuel, Lubricants, etc… • 4,200 Employees • Chevron (US) • Growing Offshore Operations; Deep-water Heavy Oil • Lubricants Manufacturing Plants in Sao Paulo & Rio • 700 Employees • Statoil (Norway) • Operator of Several Deep-Water Gas Wells • JV with Petrobas for Commercial & Technological Development Oil Services • Many Rigs Transferred Post-Macando US/Multinational Businesses in Brazil

  4. Exxon Mobil Senior Financial Corporate Controller • Business Support Center in Curitiba • Global Financial Consolidation, Computer Services, Call Center • XOM US Subsidiaries Report Financial Data to Curitiba • Young, Educated, English Speaking Workforce (Less $$$) • Lower Experience Level • High Turnover & Currency Appreciation Eroding Benefit • Intense Competition for Services from International Firms • Offer More Training & Promotion Opportunities • Minor Culture Adaptations • Longer Work Hours, Later Start • Lunch Subsidy, etc… is Government Mandate • Fewer Managers & Supervisors US/Multinational Businesses in Brazil

  5. Consumer Goods Brazil Growing Market • Growth Through Acquisitions of Local Companies • Expansion of Local Brands Pepsi vs. Coke • PepsiCo • Partnership with AmBev (Largest Brewer in Latin America) • 9,000 Employees Across 19 Plants & Food/Beverage Facilities • November 2011 Acquisition of Mabel – Cookies, Crackers, Snacks • Coca-Cola Brazil • 16 Independent Authorized Manufacturers • 53,000 Direct Employees Across 46 Plants • Over 150 Brands and Product Line Extensions US/Multinational Businesses in Brazil

  6. Consumer Goods • Unilever • Food: Lipton, Bertolli, Slim-Fast, Ben & Jerry’s • Personal: Dove, Axe, TRESemmé, St. Ives • Kraft Foods • Gums & Candies: Trident, Halls, Chiclets, Certs • Biscuits/Cookies: Nabisco, Club Social, Bon Gouter • Kimberly-Clark • 3,000 Employees Across 4 Factories • Personal Care: Scott Paper Towels, Kleenex • Baby Products: Huggies Diapers/Wet Wipes US/Multinational Businesses in Brazil

  7. Auto Manufacturing • Brazil’s Fast Growing Car Market • 5th Largest Automobile Market • 7th Largest Producer • Annual Production of Nearly 2,000,000 Vehicles • 1st Capitalist Company to Bring Together the 10 Major Car Assemblers Inside its National Territory • Market Players • Volkswagen • General Motors • FIAT • Ford • Increased Import Tax on Foreign-Built Cars • Raise in 2011 to 35% • Mexico Free-Trade Agreement in the News US/Multinational Businesses in Brazil

  8. Brazil & China International Trade • Biggest Trading Partner – China • Trade surplus exporting raw materials – iron ore, soy beans and crude oil • Trade deficit in manufactured goods due to: • Inflation • High Interest Rates • High Taxes • Poor Infrastructure • Lack of Proper Education/Training • Intense competition in the manufacturing sector • Protectionist measures to stifle imports and boost domestic output (i.e. 35% import duty) • China is single largest investor in Brazil US/Multinational Businesses in Brazil

  9. Recent Developments Brazilian Ethanol from Sugarcane • U.S. government import tariffs and tax credits (protecting ethanol distilled from corn) ended on Dec 31, 2011. • Opened the American market to sugarcane ethanol from Brazil • Brazil makes as much ethanol from sugarcane as U.S. does from corn Joint Ventures – Ethanol Production • Dow & Mitsui • Royal Dutch Shell & Cosan SA • Cargill & Grupo USJ – SJC Bioenergia US/Multinational Businesses in Brazil

  10. Multinational Presence in Brazil US/Multinational Businesses in Brazil

  11. Perguntas? US/Multinational Businesses in Brazil

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