Investment Opportunities in the State of São Paulo Sergio Costa Director.

Agência Paulista de Promoção de

Investimentos eCompetitividade

Investment Opportunities in the State of São Paulo

Sergio Costa

Director

Investe São Paulo

Investment Promotion Agency

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


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

Our Customers

Portfolio of projects

Number of projects: 65

Potential Investments: US$ 18.2 billion

Potential direct jobs: 59 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.

Investments Announced:US$ 6.4 billion

Direct Jobs:20.840

Exchange rate: US$ 1 = R$ 1.80

DABO

http://www.cummins.com.br/cla/index.php

Brazil on the World Stage


Brazil, the 7th economy of the planet

14,527

5,878

5,459

3,286

2,563

1st USA

3rd Japan

2nd China

4th Germany

5th France

6th UK

8th Italy

7th Brazil

12thSpain

10th Canada

9th India

11th Russia

2,090

2,055

2,250

1,577

1,632

1,480

1,410

Source: IMF - year 2010

GDP - US$ billions

The Brazilian economy has overtaken the economy of the United Kingdom in 2011 to

become the world’s 6th largest, according to the Centre for Economics and Business

Research (CEBR), an economic research group.


Selected Countries:Territory, Population and Economy

Territory > 3 million km2

Economy (GPD) > US$ 750 billion

Population > 100 million

Canada Australia

Russia India China

United States Brazil

Indonesia Nigeria

BangladeshPakistan

Japan Mexico

Spain

Germany FranceUnited Kingdom

Netherlands Italy South Korea

Source: IMF, World Bank - 2010


Brazilian Age Structure

Source: IBGE / Revista Veja, December 2010.

0

30

50

8020202010 2050

OpportunityLarger contingent of working-age population = possibility of increasing productivity

ChallengesIncrease on health and social security expenditures


Social Mobility

2003

2009

2014

0 20 40 60 80 100 120 140 160 180 200

13

20

31

66

95

113

47

44

40

49

29

16

A e B C D EYear

projection

Millions of Inhabitants

Source: Banco Central do Brasil/ FGV

State of São PauloCompetitive Advantages


Brazil and São Paulo State

Sources: IBGE, Brazilian Central Bank and SEADE – Exchange Rate US$ 1 = R$ 1.76

Territory (1,000 km²) 8,515Population (millions) 191Nominal GDP (US$ bln) 2,143GDP per capita (US$) 11,093

Brazil

São PauloTerritory (1,000 km²) 248Population (millions) 41Nominal GDP (US$ bln) 690GDP per capita (US$) 16,757

21% of the population

32% of Nominal GDP

1.5X of GDP per capita


• 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 productionSugar – 23 million tons/yearBeef – US$ 2.18 billion in exports

São Paulo Highlights


Nacional 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 J osé 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

Emprego &

Renda Educação Saúde

Ranking IFDMUF

Ranking IFDM

MUNICÍPIOS BRASILEIROS - Ano 2009IFDM

Index of Municipal Development

The best ranked Brazilian municipalities are in the State of São Paulo

39 out of the 50 best ranked Brazilian municipalities are in the State of São Paulo

IFDM Ranking

UFIFDM Ranking

BRAZILIAN MUNICIPALITIES - YEAR 2009

IFDM Employment & Income Education Health

National State

Source: FIRJAN - Federation of Industries of the State of Rio de Janeiro Indices published in 2011 based on 2009 data


São Paulo Competitive Advantages


R&D / Innovation

USP, Unicamp and Unesp

IPT internationalrecognition

All over the state

US$ 512 million annual budget

Fundação de Amparo à Pesquisa Científica e Tecnológica (Fapesp)

3 universities among the ones that most develop scientificresearch in Brazil

19 research institutes

30 initiatives of Technology Parks

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.


Technological and Technical Schools

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

Largest program of technical education in Brazil


Higher Education

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

521 college level institutions all over the State24% of Brazil’s total

Source: USP, Unicamp. Unesp


• 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

High Quality Infrastructure


High Quality Infrastructure

Highway

Waterway

Pipeline

Railway

Airport

Port

Source: Transportation Secretariat of State of São Paulo

Agência Paulista de Promoçãode Investimentos e Competividade

Santos Harbour

Current capacity

• 97 million tons in 2011

• 25% of the internacional brazilian trade

• Area of 7.8 million m²

• 5.748 ships a year

• 2,7 million containers TEU

Expansion of the harbour:• Increase the capacity of the harbour to

200 million tons a year

• Increase the depth of the channel

Fonte: Porto de Santos


São Sebastião Harbour

Current Areal

New Planned Area

Source: Porto de São Sebastião – US$ 1 = R$ 1,8

• Third biggest natural draught of the world

• 669 mil ton/year (2011)

• Build area 7.685 m²

• Total area 413.601 m²

Expansion project:• Receive and operate ships with 300 meters

long• Construction of 4 loading berths• Anchorages with 43 meters wide• Public granting to private companies operate

the terminals.

Estimated investments

US$ 342 million


Expansion and Modernization of the Airports

LOT 2 - SÃO JOSÉ DO RIO PRETO

LOT 5 - PRESIDENTE PRUDENTE

LOT 3 - BAURU - MARÍLIALOT 1 - JUNDIAÍ

LOT 4 - RIBEIRÃO PRETO

Fonte: Secretaria de Planejamento e Desenvolvimento Regional


• Energy matrix with 55% of renewables (2010)

• Competitive advantages for energy production from biomass

• New opportunities in environmental technology markets

• Brazil’s most advanced conservation system

• 17.5% of the State area is covered by native vegetation

• 10.8% of the State area is covered by rainforest

• 14.8% of the State area is covered by nature protection reserves (full protection and sustainable use)

• Total: 43% of the state area is preserved

Environmental Responsibility

Source: Energy Secretariat of State of Sao Paulo, Forest Foundation


Energy Matrix of São Paulo

Fonte: Departamento de Energia do Estado de São Paulo

Cane Products;

32,7%

Hydraulic and Electric-

ity; 17,9%

Others Renewables; 2,5%

Oil and e De-rivatives;

35,7%

Natural Gas; 7,2%

Mineral coal; 2,3%Firewood and Coal; 1,7%

Renewable Energy: 54,7% of the Matrix


Ethanol in Brazil

• World's largest producer and largest exporter of sugar cane and ethanol

• More than 400 plants produce ethanol, sugar and bioelectricity in Brazil

• 12 manufacturers offer over 90 models of flex-fuel cars

• Ethanol is already being used to produce green plastic

• Only country where alternative fuel consumption exceeds that of gasoline

• Only 1.5% of agricultural area occupied by sugarcane

Source: Unica


Brazil: 2nd Producer and1st Exporter worldwide

Ethanol production (billion liters)

Source: ICONE, FIESP


Ethanol Logistics Multimodal Integrated System

Features• Investment of over R$ 5 billion• 850 km long• 45 municipalities• Link between major states• Ethanol producers: SP, MG, GO and MT• Partnership between Petrobras and private companies

Goals• Reduce the cost of transporting ethanol• Facilitate the transportation of ethanol to Brazilian ports• Reduce heavy truck traffic on the roads• Reduce CO2 emissions

Source: Petrobras


Ethanol Logistics Multimodal Integrated System

FAPESP Program of Research in Bioenergy (BIOEN)

Goals: • Stimulate and articulate research and development activities using academic and industrial

laboratories.

• Promote the advance of knowledge about the Bioenergy production and its aplication in related areas in Brazil

Division of Research about socio-economic

impacts, environmental, and use of the

soil.

Division of Biomass to Bioenergy

(focus in sugar cane)

Division of Process of

Biofuel Manufacturing

Division of Biorefinary and

Alcohol Chemistry

Division of Ethanol

Aplications for Automotive

Motors.

5 research divisions

Fonte:fapesp


Fapesp Evolution of Revenues

Fonte: Fapesp

(U$ milhões)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

143 151177

242273

324

419

367

488

616

SECRETARIA DE DESENVOLVIMENTO ECONÔMICO, CIÊNCIA E TECNOLOGIA

Thank You!

Sergio Costa

Director

Tel. + 55 11 3218-5311

[email protected]

www.investe.sp.gov.br

Investment Opportunities in the State of São Paulo Sergio Costa Director.

Documents

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