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Investment Opportunities in the State of São Paulo.

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Presentation on theme: "Investment Opportunities in the State of São Paulo."— Presentation transcript:

1 Investment Opportunities in the State of São Paulo

2 Investe São Paulo

3 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

4 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

5 Our Customers 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 Announced Investments: USD 6.8 billion Direct Jobs: Exchange rate: US$ 1 = R$ 1.67 DABO June 2012

6 Brazil on the World Stage

7 Brazil, the 6th economy of the planet 15,094 7,298 5,870 3,577 2,776 1 st USA 3 rd Japan 2 nd China 4 th Germany 5 th France 7 th UK 8 th Italy 6 th Brazil 12 th Spain 10 th Canada 11 th India 9 th Russia 2,492 2,198 2,417 1,736 1,676 1,850 1,493 Source: IMF - year 2011 GDP - US$ billions

8 Selected Countries: Territory, Population and Economy Territory > 3 million km 2 Economy (GPD) > US$ 750 billion Population > 100 million CanadaAustralia Russia India China United States Brazil Indonesia Nigeria Bangladesh Pakistan Japan Mexico Spain GermanyFrance United Kingdom Netherlands Italy South Korea Source: IMF, World Bank

9 Brazilian Age Structure Source: IBGE / Revista Veja, December Opportunity Larger contingent of working-age population = possibility of increasing productivity Challenges Increase on health and social security expenditures

10 Social Mobility Year projection Millions of Inhabitants Source: Banco Central do Brasil/ FGV

11 Foreign Direct Investment into Brazil FDI in US$ billions Source: Brazilian Central Bank *Forecast based on the Inflation Report published in February 2012

12 Highlights of Germany-Brazil Relations

13 Germany-Brazil and SP Economic Relations Source: Ministry of Development, Industry and Foreign Trade of Brazil Source: Brazilian Central Bank (1) Considering only stock purchases, excluding intercompany loans Bilateral Trade (US$ billions) Brazil State of São Paulo % Total Bilateral Trade % Exports to Germany % Imports from Germany %

14 Germany - Brazil and SP Economic Relations Source: Ministry of Development, Industry and Foreign Trade of Brazil São Paulo’s exports to Germany (2011) Main Products and percentage of Brazil’s total Nuclear reactors, boilers, machinery and mechanical appliance (53%) Aircraft, spacecraft, and parts (99%) Coffee, tea, maté and spices (9%) Electrical machinery and equipment and parts (41%) Natural or cultured pearls, precious or semi- precious stones (63%) São Paulo’s imports from Germany (2011) Main Products and percentage of Brazil’s total Nuclear reactors, boilers, machinery and mechanical appliances (49%) Electrical machinery and equipment and parts thereof; others (69%) Vehicles other than railway or tramway rolling- stock, and parts and accessories thereof (43%) Organic chemicals (70%) Pharmaceutical products (61%)

15 State of São Paulo Competitive Advantages

16 Brazil and São Paulo Source: IBGE, Brazilian Central Bank, SEADE – Exchange Rate US$ 1 = R$ 1,76 Territorry (1,000 km²) Population (million) 191 GDP nominal (US$ bi) GDP per capita (US$) Brazil São Paulo Territorry (1,000 km²) 248 Population (million) 41 GDP nominal (US$ bi) 690 GDP per capita (US$) % of the population 32% of GDP nominal 1,5 X the GDP per capita of Brazil

17 1 st largest cargo airport in Latin America 1 st largest producer of sugar cane ethanol in the world 4 th largest stock exchange in the world (BM&FBOVESPA) 3 rd 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 São Paulo Highlights

18 São Paulo Competitive Advantages Largest Consumer Market in LATAM Skilled Workforce World-class Infrastructure Largest Brazilian Investor in R&D Social Development Environmental Responsibility

19 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

20 Highway Waterway Pipeline Railway  Airport Port Source: Transportation Secretariat of State of São Paulo

21 Environmental Responsibility Source: Energy Secretariat of State of Sao Paulo, Forest Foundation 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)

22 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 UF IFDM Ranking BRAZILIAN MUNICIPALITIES - YEAR 2009 IFDM Employment & Income EducationHealth National State Source: FIRJAN - Federation of Industries of the State of Rio de Janeiro Indices published in 2011 based on 2009 data

23 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 State 24% of Brazil’s total Source: USP, Unicamp. Unesp

24 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 – 2 nd semester 2011 Largest program of technical education in Brazil

25 R&D / Innovation USP, Unicamp and Unesp IPT international recognition 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 scientific research 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.

26 R&D - Examples of Companies Examples of companies carrying out R&D in the State of São Paulo

27 Economist Intelligence Unit Brazilian Investment Competitiveness Ranking December 2011 The Economist

28 General Ranking Source: The Economist, Centro de Liderança Pública and Veja Very Good Good Moderate Poor CLASSIFICATION NATIONAL OVERALL REGION SOUTH SOUTHEAST CENTER WEST NORTHEAST NORTH STATES #1 Scale – 100 for best, 0 for worst

29 1.Economic Environment Source: The Economist, Centro de Liderança Pública and Veja NATIONAL OVERALL Very Good Good Moderate Poor CLASSIFICATION SOUTH SOUTHEAST CENTER WEST NORTHEAST NORTH REGION STATES #1 Scale – 100 for best, 0 for worst

30 2.Human Resources Source: The Economist, Centro de Liderança Pública and Veja NATIONAL OVERALL Very Good Good Moderate Poor CLASSIFICATION SOUTH SOUTHEAST CENTER WEST NORTHEAST NORTH REGION STATES #1 Scale – 100 for best, 0 for worst

31 3.Innovation Source: The Economist, Centro de Liderança Pública and Veja NATIONAL OVERALL Very Good Good Moderate Poor CLASSIFICATION SOUTH SOUTHEAST CENTER WEST NORTHEAST NORTH REGION STATES #1 Scale – 100 for best, 0 for worst

32 4.Policies for Foreign Investments Source: The Economist, Centro de Liderança Pública and Veja NATIONAL OVERALL Very Good Good Moderate Poor CLASSIFICATION SOUTH SOUTHEAST CENTER WEST NORTHEAST NORTH REGION STATES #1 SP MG Scale – 100 for best, 0 for worst

33 Investment Opportunities

34 Pre-salt – Santos Basin Petrobras Planned Investments US$ 236,5 billion 95% in Brazil

35 Tietê-Paraná Waterway Estimated Investment Total Investment – US$ 597 million State Government – US$ 231 million Federal Government – US$ 366 million Summary of Investment 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 Source: São Sebastião Port AuthorityExchange rate: US$ 1 = R$ 1.70 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

36 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

37 Source: GESP Integrated Transport System in 2014

38 Public-Private Partnerships and Concessions

39 São Paulo State Budget for PPPs Limited to 3% of net revenues, pursuant to Federal Law 11079/04Available US$ 1.56 billion Used US$ 100 million PPP potential US$ 1.66 billion Expenditures with PPPs in 2010

40 Innovative Fast Track for PPP Projects State Decree dated August 30, 2011 allows interested investors to present proposals for PPPs Projects PRIVATE SECTOR INITIATIVE (MIP) APPROVAL PUBLIC CALL for detailed technical studies, including alternatives CONTRACT (PPP Project winner reimburses selected technical study author) EVALUATION by State Commission Technical studies PPP Project APPROVAL PRELIMINARY PPP PROPOSAL PUBLIC BIDDING for the PPP REJECTION Technical studies $

41 Line 6 – Orange of the Subway Network of São Paulo Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP

42 Pharmaceutical Industry of Américo Brasiliense - IFAB Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP

43 Line 18 – Bronze of the Metropolitan Network of São Paulo Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP

44 Prison Units in the State of São Paulo Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP

45 Interactive Class Source: Governo do Estado de São Paulo - Programa de Parcerias Público-Privadas - Conselho Gestor de PPP

46 Social Interest of Housing Source: Government of the State of São Paulo - Public-Private Partnership project (PPP) Program – Management Council of PPP

47 State Guarantee for Private Partners in PPPs 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 “Companhia Paulista de Parcerias (CPP)”

48 Public Private Partnerships - Applicability Capacity to generate revenue Financially self-sustaining projects Projects requiring government resources Traditional public projects Private Projects of interest to the Government Coordination, induction and stimulation Regular Concession PPP Sponsored Concession PPP Administrative Concession or Procurement of Public Works

49 Highways 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 Potential Investment: US$ 6.4 billion

50 Railways and Metro Bandeirantes Express US$ 2 billion Rail Ring US$ 1.2 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 Potential Investment: US$ 5.6 billion

51 Information Technology Government Internet Network US$ 1.6 billion Centralized Collection of Public Transports Fares US$ 313 million Source: Secretariat of Metropolitan Transports Potential Investment: US$ 1.9 billion

52 Sanitation São Lourenço – High Juquiá Production System US$ 599 million Clean Wave – North Shore Basin Water and Sewage US$ 312 million Source: Sabesp and Secretariat of Prison System Administration Other projects: US$ 900 million Potential Investment: US$ 1.8 billion

53 Airports and Ports DAESP network (30 airports upgrade) US$ 180 million São Sebastião Port US$ 349 million Source: Secretariat of Transports and São Sebastião Docks Potential Investment: US$ 529 million

54 SECRETARIA DE DESENVOLVIMENTO ECONÔMICO, CIÊNCIA E TECNOLOGIA 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:


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