Presentation Pierre Alain De Smedt

Entrepreneurship in BrazilEntrepreneurship in Brazil

"Before the Portuguese discovered Brazil, "Before the Portuguese discovered Brazil, Brazilians had discovered happiness …"Brazilians had discovered happiness …"

Oswald de Andrade Oswald de Andrade (1890-1954)(1890-1954)

Pierre Alain De Pierre Alain De SmedtSmedt

Dilma Rousseff vs Lula da Silva

Continuity of Growth with strong leadership Dilma a former revolutionary against dictatorship, defensor of

human rights reinforces cooperation inside Mercosur action to enter the security council of UNO deep sense of responsability, very discrete, punctual, will

avoid any improvised declaration, decides fast on facts, not intuition

20 bil€ budget reduction (-7/8% linear) with exceptions like PAC

inflation estd 7%

The New BrazilThe New Brazil End of the stereotypes

the country of the future football and carnaval 

End of short cycles, hyper inflation and devaluation

End of hyperindebtment and risk of "default" End of political instability

one of the top performers of bric countries

The "miracle" of South American left

Lula the President with the highest acceptance level after 8 years leadership (>80% !)

Now Dilma Rousseff from 01.01.2011 Continuity The social and economic miracle in figures (cf

Ivan van de Cloot)

The New BrazilThe New Brazil

The whole world is watching Brazil, which stand out as the 4th country preferred to invest ahead of

Germany …

The new international respect

World football championship 2014 Olympic games in Rio 2016 Mercosur leader and FTA negociations with EU Strong international recognition Leader in bilateral relationship with Africa

The New BrazilThe New Brazil

Growth Acceleration Program: BRL 1,6 trillion (USD 850bn). USD 530 billion between 2011-2014 (Public-Private-

Partnerships) – Mainly Infrastructure. World Cup (2014): preliminary estimates: +0,5% to +1,0% of

GDP.Olympic Games (2016): preliminary estimates: +1,0 to +2,0% of GDP.Oil and Gas: sub-salt: 13bn barrel (optimist estimates suggest

50bn barrel). USD 1 trillion in total revenues, USD 450bn in government taxes (in 30 years), USD 170bn in direct

investments (next 7-10 years). Brazil will be the largest oil producer of the Western World (5 million barrel/day in the mid-

20’s). Real Estate investments: credit/gdp to the mortgage sector is

only 3%. Our estimates suggests an increase to 10% until 2018. Strength of the capital markets.

MOST IMPORTANT INVESTMENTS AHEADMOST IMPORTANT INVESTMENTS AHEAD

Biggest aerospace power of the southern hemisphere Biggest fixed line telephone market of Latin America 3rd in the world in the aircraft industry 3rd biggest global steel-making power 3rd in the world computer market 4th biggest TV network in the world 5th biggest mobile phone market 7th biggest manufacturer of cars in the world 8th world oil power 7th economy of the world – projection that it will become

6th by 2013 surpassing United Kingdom 10th world producer of capital goods.

The New BrazilThe New Brazil

The incredible natural resources and agricultural strength

N° 1 for coffee and orange juiceN° 2 for sugar, soja, beef, pork, chickenN° 3 for corn, grapefruit, pepper, cashew, …14% of waterreservescrops grew during last 20 years from 58 mil ton to >150 mil ton

cattle from 79 mil heads to 170 milfuture 3rd oil producer - reserves estd. 33 bil barrels (presal) (?100 bil barrels)

The New BrazilThe New Brazil

Brasil an industrial giant : a few examples

Aeronautics :Embraer (3rd Airplane producer world wide)

Oil industry :Petrobas

Raw materials – Biotechnology – Pharma industry Automotive industry

The New BrazilThe New Brazil

The Brasilian challenge Adapt and finance infrastructure to growth (PAC1 and

PAC2) roads, railways, airports, harbours power generation and energy matrix (respecting

climate change rules) telecommunications

Control real valuation (Brazil is highest return worldwide)

Reduce further social GAP (3/60) and make further progress in health care (MST, Plan 0 Fome)

Education Mercosur

The New BrazilThe New Brazil

ConclusionsConclusions

All ingredients are present to confirm today's exceptional growth

It is one of the most profitable investments (real returns + growth potential)

This will work if Brazil is able to put in place in due time the necessary infrastructure and to educate its population in line with the new technological challenges

It can be a major contributor to help solve climate change problem

The New BrazilThe New Brazil