Brazil: Seize the Opportunity Richard Turner Deputy Director for UKTI Brazil and

1. Brazil: Seize the Opportunity Richard Turner Deputy Director for UKTI Brazil and Deputy Consul General, Sao Paulo ExploreExport 2011 Coventry 29 June 2011

2. UK Trade & Investment: Brazil Brazil: The size of a continent – 8.5 Mn km2 • North • North East • Central • SouthEast • South • 5th biggest country in the world • Language: Portuguese • Capital city: Brasilia • Population 193 million – the world’s 5th mostpopulous country • Dividedinto 5 regionsand 27 states Source IBGE 2009

3. UK Trade & Investment: Brazil Brazil: Vitality and Confidence • Continuing economic stability: GDP growth rate reaching 5.3 per cent in 2007 and a low inflation rate of just 3.7% reconfirms Brazil's status as a market growing strongly from a solid base. -0.2% growth in 2009 due to recession. Returned to strong growth of 7.5% in 2010. Predicted growth of between 4 to 4.5% in 2011. • Last year Brazil received 30% of the foreign direct investment in Latin America, almost double the amount of FDI it received in 2006 • In early 2008, Standard & Poor’s and FitchRatings upgraded Brazil’s sovereign risk rating to Investment Grade. Brazil is only the third Latin American country to reach Investment Grade status • Among developing countries, Brazil’s scientists contribute more of the most-cited research papers than any other country except China and India

4. UK Trade & Investment: Brazil Brazil: Striking Facts • World’s 7th biggest economy, alongside UK, France and ahead of Italy, Spain, Mexico, South Korea • GDP US$1.6trn; GDP per capita US$8,421 - larger than China's or India's – now could be consider middle income economy • State of São Paulo economy larger than Argentina's • Investment Grade from Standard & Poor's and FitchRatings • 82% of all equities traded in Latin America at BM&FBOVESPA (São Paulo Stock Exchange) • Following Petrobras capitalisation in September 2010 BM&FBOVESPA became world’s 2nd largest stock exchange after Hong Kong

5. UK Trade & Investment: Brazil Brazil: Striking Facts • 25% of the world's agricultural land • 22% of the world’s fresh water • World’s largest producer of ethanol, with 308 installed production plants, producing 17.7 billion litres per year • World’s largest producer and exporter of coffee, sugar cane and fruit juices • World’s largest exporter of meat, chicken and leather • World's 2nd largest producer of soya • 45% of Brazil’s energy (80% of electricity) already comes from renewable sources compared to a world average of 14% • Won the World Cup 5 times!!

6. UK Trade & Investment: Brazil Brazil: Infrastructure • 70 airports: annual flow of 75 million people • 54 ports: cpacity for over 500 million tonnes/year • 31,000 km of railways: 11th largest world railway network • 1.6 million km of roads: 3rd largest world road network • 100% digital telephone lines • Advanced communications: 125 million mobile lines; 42 million fixed lines and more than 1 million public telephones

7. UK Trade & Investment: Brazil Brazil: High Value Opportunities • Petrobras Business Plan 2010- 2014 (£9.1 billion) • Oil & Gas Critical Equipment Supply (£1.6 billion) • Rio 2016 Olympic Games Infrastructure (£1.5 billion) • 2014 World Cup Infrastructure (£984 million) • Naval Shipyard & Ship Building Programme (£1.2 billion) • Expansion of metro systems (£600 million) • Rail Infrastructure Development (£250 million) • Power Generation from Alternative Sources (£350 million) (the figures in brackets represents the value accessible to the UK, not the total value of the project)

8. UK Trade & Investment: Brazil Aerospace Automotive Corporate Training Distance Learning Financial Services Defence and Security Retail/Luxury Consumer Goods Other Leading Opportunities • Renewables • ICT • Environmental Technologies • Marine • Construction • Life Sciences • Chemicals • Agribusiness

9. UK Trade & Investment: BrazilNot all good news…. • Brazil 127th in Ease of Doing Business League in 2010 (152nd for paying taxes) • Complicated Tax System/High Import Duties • Starting up a company • Employment Laws • Bureaucracy • Infrastructure problems, not keeping pace with growth • Inflation pressures – currently annual rate 6.55% • High cost of borrowing

10. UK Trade & Investment: Brazil Trade Flows 2010 UK  Brazil £2,128,822,035 (+23%) Brazil  UK £3,097,446,136 (+19%) Total £5,226,268,171 2011 (Jan to Apr) UK  Brazil £656,142,879 (+15%) Brazil  UK £731,701,341 (-10%) Main UK Exports: Petroleum Products, Metals, Power Generating Equipment, Transport Equipment

11. UK Trade & Investment: Brazil Brazil: UKTI Services Tailored market reports Production of validated contact lists of agents, distributors, customers, key players Press and PR services Arrangements for special events such as product launches, seminar and receptions Support for participation in a trade fair/mission Development of a complete visiting programme when you come to the market Enhanced access to the key players drawing on our experience and contacts Reduction in time spent searching for contacts Reduced risk of encountering the wrong contacts as we will vet them beforehand drawing on our local expertise Reduced overall risk through our local knowledge, advice and assistance Faster identification of opportunities in the market Reasonable cost but high value Reduction in time spent with Logistics

12. UK Trade & Investment: Brazil Brazil: Delivering Results Time Business Opportunity Risk Cost UKTI services mean considerable time-saving, reduced risk, low costs and a short-cut to the significant opportunities to be discovered in the Brazilian market.

13. UK Trade & Investment: Brazil Richard Turner Deputy Director UKTI Brazil richard.turner@fco.gov.uk +55 11 3094 2713 Obrigado!