1. National and international representative of firms active in the Construction Industry and Real Estate Market

2. 62 entities 26 states and the FD / Highway projects Sanitation and sewage treatment Real estate market Construction segments UNIONS, ASSOCIATIONS, AND CHAMBERS

3. GENERAL INFORMATION BRAZIL

4. POPULATION DISTRIBUTION Source: IBGE, 2010 Census.

5. GDP GROWTH RATES In the period 2011-2014, the consolidation of investments (driven by construction) and increased domestic demand is expected to spur average annual economic growth of 4,7%. Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

6. GROWTH WITH POVERTY REDUCTION Source: FGV. Preparation and estimated by the Ministry of Finance Sustainable growth associated to inclusive policies will enable a 70% reduction in poverty in the period 2003-2014 POPULATION IN POVERTY (% OF POPULATION)

7. ASCENSION OF THE MIDDLE CLASS Note: Monthly household per capita income by class at 2009 prices: Class A/B: more than R$ 4,800.00; Socioeconomic Class C: R$ 1,115.00 – R$ 4,800.00; Class D: R$ 804.00 – R$ 1,115.00; Class E: up to R$ 804.00. Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared by the Ministry of Finance From 2002-2009 (7 years), a total of 25.7 million people were incorporated to the middle class (C) (in 2011, Socioeconomic Class C represented 55% of the population). COMPOSITION OF THE BRAZILIAN SOCIAL CLASS (MILLIONS)

8. FORMAL JOB CREATION GROWTH IN BRAZIL Source: CAGED, Ministry of Labor and Employment. Prepared by the Ministry of Finance * 12-month cumulative through January

9. DEMOGRAPHIC BONUS (expansion of economically active population) Source: IBGE. MARKET EXPANSION From 1995-2040, Brazil the number of economically active individuals will exceed the number of dependents (larger supply of labor and new consumers

10. REAL ESTATE MARKET

11. KEY SOURCES OF RESOURCES Source: Brazilian Central Bank (BACEN) and Federal Savings Bank (CEF) – FGTS Channel. CBIC Database.

12. GROWTH IN REAL ESTATE CREDIT 2002 – 2011 (financing volume)28 The first quarter of 2012 registered a 10% increase in financing volume against the same period of the previous year Note: New and used units Source: Brazilian Central Bank (BACEN), Brazilian Association of Real Estate Credit and Savings (ABECIP), and Federal Savings Bank (CEF) – FGTS Channel. CBIC Database.

13. Fonte: Central Bank of Brazil, Produced by: Ministry of Finance CREDIT TRANSACTIONS FOR INDIVIDUALS Real-estate credit has grown faster than other forms of individual credit CREDIT TRANSACTIONS FOR INDIVIDUALS (R$ BILLION)

14. Brazilian Savings and Loan System (SBPE) – Agreements with more than 3 outstanding installments signed after 1998 HIGH QUALITY REAL ESTATE CREDIT Mortgage Guaranty + Fiduciary Lien Fiduciary Lien Source: Brazilian Central Bank and Brazilian Association of Real Estate Credit and Savings (ABECIP)

15. REAL ESTATE FINANCING AS A PERCENTAGE OF GDP Source: Brazilian Central Bank (BACEN) and Brazilian Association of Real Estate Credit and Savings (ABECIP). Preparation: CBIC Database

16. WHY HAS THIS DEVELOPMENT TAKEN PLACE ?

17. BRAZILIAN ECONOMY: FORECAST * IMF Forecast Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

18.  Greater legal security;  Significant resource allocation;  Streamlined procedures;  Decision to serve as lever of growth; LAW No. 10931/2004  Financial segment discovers real-estate credit.

19. LAW No. 10931/2004 Reduced interest rates Lower costs Increased Employment levels Increased demand for real estate Increased funding for real estate market VIRTUOUS CYCLE FOR REAL ESTATE MARKET

20.  Lowers interest rates;  Extends payment terms;  Reduces taxes;  Provides resources for subsidies;  Streamlines procedures;  Increases purchasing power of low-income households. MY HOME, MY LIFE PROGRAM

21.  SEGMENT 1 Household incomes up to US$ 842.10 Almost fully subsidized.  SEGEMENT 2 Household incomes from US$ 842.10 - US$ 1,631.58  Reduced fees and costs;  Lower interest.  SEGMENT 3 Household incomes from US$ 1,631.58 - US$ 2,631.58  Reduced fees and costs;  Lower interest. MY HOME, MY LIFE PROGRAM Source: My Home, My Life Program. US$ = R$ 0.526

22. BUSINESS OPPORTUNITIES  Investments in publicly traded companies;  Production of enterprises;  New technologies.

23. OTHERS BUSINESS OPPORTUNITIES

24. SHOPPING CENTERS Source: ABRASCE Photograph of the Pátio Brasil Shopping Center – Federal District

25. TOURISM Source: Brazilian Federal Police Department and Ministry of Tourism Foto do Shopping Pátio Brasil - DF TOURISTS TO BRAZIL

26. BUSINESS OPPORTUNITIES  Built to Suit ;  Commercial projects

27. RECOMMENDATIONS  Local partnership;  Choose your business well;  Analyze opportunities throughout Brazil;  Understand technical and legal standards and regulations.

28. HOW CAN CBIC HELP ? Institutionally  At Government level Executive Legislative  Civil Society at large NGOs and Social Movements; Employers and Business Organizations Unions (workers’)  CBIC has associates across the country and participates in all construction activities, where it may offer institutional support to investors

29. Thanks ! BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER www.cbic.org.br vicepresidente@cbic.org.br Phone: +55(61) 3327-1013 Fax: +55(61) 3327-1393