Brazil: Seize the Opportunity

Richard Turner Deputy Director for UKTI Brazil and Deputy Consul General, Sao Paulo
ExploreExport 2011 Coventry 29 June 2011

UK Trade & Investment: Brazil

Brazil: The size of a continent 8.5 Mn km2

5th biggest country in the world Language: Portuguese Capital city: Brasilia Population 193 million the worlds 5th most populous country Divided into 5 regions and 27 states

North North East Central South East South

Source IBGE 2009

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 & Poors and FitchRatings upgraded Brazils sovereign risk rating to Investment Grade. Brazil is only the third Latin American country to reach Investment Grade status

Among developing countries, Brazils scientists contribute more of the mostcited research papers than any other country except China and India

UK Trade & Investment: Brazil

Brazil: Striking Facts

Worlds 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 So 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 (So Paulo Stock Exchange) Following Petrobras capitalisation in September 2010 BM&FBOVESPA became worlds 2nd largest stock exchange after Hong Kong

UK Trade & Investment: Brazil

Brazil: Striking Facts

25% of the world's agricultural land 22% of the worlds fresh water Worlds largest producer of ethanol, with 308 installed production plants, producing 17.7 billion litres per year

Worlds largest producer and exporter of coffee, sugar cane and fruit juices
Worlds largest exporter of meat, chicken and leather World's 2nd largest producer of soya

45% of Brazils energy (80% of electricity) already comes from renewable sources compared to a world average of 14%
Won the World Cup 5 times!!

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

UK Trade & Investment: Brazil

Brazil: High Value Opportunities 1. 2. 3. 4. 5. 6. 7. 8. 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)

UK Trade & Investment: Brazil

Other Leading Opportunities

Renewables Aerospace ICT Automotive Environmental Technologies Corporate Training Marine Distance Learning Construction Financial Services Life Sciences Defence and Security Chemicals Retail/Luxury Consumer Agribusiness Goods

UK Trade & Investment: Brazil

Not 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

UK Trade & Investment: Brazil Trade Flows

2010 UK Brazil Brazil UK Total

2,128,822,035 (+23%) 3,097,446,136 (+19%) 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

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

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.

UK Trade & Investment: Brazil

Richard Turner Deputy Director UKTI Brazil

richard.turner@fco.gov.uk +55 11 3094 2713

Obrigado!