Seminar material by Sergio Rodrigues Costa: 27.8.2012 Opening Seminar and B2B Meetings with Brazilian Port and Offshore Oil & Gas Delegation The seminar was organized on the occasion of the visit of the Brazilian Port and Offshore Oil & Gas Delegation to Finland on 27.8.2012.

1. Investment Opportunities in
the State of São Paulo, Brazil
Sérgio Costa
International Relations Director
August, 2012

2. The support you need to fast-track your
investment
in the leading state of Brazil

3. Our 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
Investment Promotion Agency

4. Areas of Activity
All our services are free-of-charge
Investment Outreach
• Identification of sectors and companies with investment potential
Investment Projects
• Technical support to investors: site location, taxes, infrastructure and more!
• Contact with public and private institutions aiming at investment facilitation
Institutional Activities
• Reception of foreign delegations and organization of international missions
• Support and guidance to municipal governments
SP Actions for the Promotion of Competitiveness
• Labor training, Taxation, Innovation, Infrastructure and Licensing
• Study and proposal of public policies
Promotion of the image of the State of Sao Paulo

5. Support in all Project Stages
Project needs
Site selection
Site visit
Environmental, infrastructure and tax procedures
Announcement
Groundbreaking and construction
Opening
Aftercare

6. Our Customers August 2012
Announced Investments: Direct Jobs:
Portfolio of projects USD 7.52 billion 24,370
Number of projects: 63*
Potential Investments: USD 17.5 billion
Potential direct jobs: 57 thousand
Sectors: automotive, food, oil and gas,
energy, machinery and equipment,
information technology and communication,
solid waste and biotechnology.
Origin: United States, China, South Korea,
Spain, Japan, Italy, England, France and
Brazil.
DABO
* The names of these companies are kept confidential
in compliance with NDA signed with Investe São Paulo
Exchange: US$ 1 = R$ 1.67

7. State of São Paulo
Competitive Advantages

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

9. Brazil and São Paulo
Brazil
Territory (1,000 km²) 8.515
Population (millions) 192
GDP nominal (US$ bi) 2.475
GDP per capita (US$) 12.866
São Paulo
Territory (1,000 km²) 248
Population (millions) 42
GDP nominal (US$ bi) 792
GDP per capita (US$) 19.049
21% of the population
32% of GDP nominal
1.5X of GDP per capita
Source: IBGE, Brazilian Central Bank , SEADE – Exchange Rate US$ 1 = R$ 1,76 Investment Promotion Agency

10. São Paulo Highlights
• 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 production
Sugar – 23 million tons/year
Beef – US$ 2.18 billion in exports
Investment Promotion Agency

11. One of the Most Important Economic
Regions of the World
GDP (PPP) US$
Rank Region Country
Billion
1 California USA 1.897
2 Texas USA 1.205
3 New York USA 1.157
4 Guangdong China 1.156
5 Jiansu China 1.040
6 Shandong China 1.001
7 Tokyo Japan 767
8 Florida USA 746
9 São Paulo Brazil 715
10 Zhejiang China 692
Source: International Monetary Fund – estimative for the year 2010
PPP: Purchasing Power Parity
Investment Promotion Agency

12. High Quality Infrastructure
• 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
Investment Promotion Agency

13. High Quality Infrastructure
Highway
Railway
Pipeline
Waterway
 Airport
Port
Source: Transportation Secretariat of State of Sao Paulo
Investment Promotion Agency

14. Environmental Responsibility
• 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)
Source: Energy Secretariat of State of Sao Paulo, Forest Foundation
Investment Promotion Agency

15. FIRJAN Index of Municipal Development
The best ranked Brazilian municipalities are in the State of São Paulo
Ranking IFDM
IFDM Ranking Ranking IFDM
IFDM Ranking Employment&
Emprego &
UF
UF IFDM
IFDM Educação
Education Saúde
Health
Nacional
National Estadual
State MUNICÍPIOS BRASILEIROS- - Ano2009
BRAZILIAN MUNICIPALITIES YEAR 2009 Income
Renda
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 José 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
39 out of the 50 best ranked AND 19 out of the top 20
Brazilian municipalities are in the State of São Paulo
Source: Federation of Industries of the State of Rio de Janeiro
Indices published in 2011 based on 2009 data Investment Promotion Agency

16. Higher Education
521 college level institutions all over the State
24% of Brazilian total
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’s State University – 46,634 students
Source's, Unicamp. Unesp
Investment Promotion Agency

17. Technological and Technical Schools:
Largest program of technical education in Brazil
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 – 2ºsemester 2011 Investment Promotion Agency

18. R&D / Innovation
More than 13% of the São Paulo State
Fundação de Amparo à
revenue is used in high quality US$ 616 million
Pesquisa Científica e
education, research and development. annual budget
Tecnológica (Fapesp)
The State also hosts federal universities
and research institutions.
3 universities among
the ones that most USP, Unicamp
develop scientific and Unesp
research in Brazil
IPT
19 research institutes international
recognition
30 initiatives of All over
Technological Parks the state
Investment Promotion Agency

19. R&D
Some of the companies carrying out R&D projects in the State of São Paulo
Investment Promotion Agency

20. Investment Opportunities

21. Pre-salt – Santos Basin
Petrobras 2012-2016
Planned Investments
US$ 236,5 billion
95% in Brazil Promotion Agency
Investment

22. Production Chain Opportunities
Petrochemicals
Mechanical Eq.
Iron and Steel Metallurgy
Energy
Operator
Logistics
Support
Integrators
Chain Drivers
Suppliers
Other Related Industries
Related Sectors
Source: ONIP

23. Petrobras new vessels demand
New Vessels
Future Situation (cumulative values)
Current
Critical Resources Situation until 2013 until 2016 until 2020
LDA drilling rigs above 2,000 m 5 26 31 53
Support and special boats 254 465 491 504
Production platforms e FPSO 41 53 63 84
Others (jacket e TLWP) 79 81 83 85
26 contracted rigs, 28 more to be built until 2020
Source: Petrobras Investment Promotion Agency

24. Main projects equipment procurement
Item unit Total Item unit Total
Wet Christmas trees un 700 Filters Un 500
un 700 Burners (flares) Un 235
Wellheads
km 4,000 Heating ovens Un 210
Flexible ducts
un 35 Reactors Un 450
Manifolds
t 42,000 Oil and water separators Un 50
Pipes
km 2,500 Storage tanks Un 3,500
Umbilical
un 1,700 Towers Un 600
Dry Christmas trees
un 1,700 Generators Un 600
Land wellheads
Item Unit Total
Pumps un 19,200
Compressors un 3,400
Tower cranes un 2,000
Cranes un 260
Combustion engines un 1,200
Turbines un 600
Steel plates t 2,000,000
Source: Petrobras Investment Promotion Agency

25. Expected demand due to pre-salt discoveries
Sectors Present Status Expected additional demand
Reservoir data
4 seismic ships in Brazilian waters 1 to 6 additional seismic ships during next 5 years
nowadays
47 drilling platforms, 8 Petrobras 27 additional ships under contract already
Drilling contracts
owned included 28 additional ships will be contracted
Drilling services and Expected growth demand proportional to platforms in
N/A
associated goods activity nationwide (7% to 12% yearly)
Well completion and Expected growth demand proportional to platforms in
N/A
servicing activity nationwide (7% to 12% yearly)
110 Petrobras owned production 10 production platforms already contracted by Petrobras;
Infrastructure
platforms operating nowadays 26 production platforms to pre-salt new discoveries
increased demand is not known, since it depends on the
Production and development plans; are preliminary estimates of
N/A
maintenance ~ 4000 Christmas trees and 7200 m umbilical additional
by 2015
Logistical support
about 100 helicopters doubling of demand for air support services until 2010
approximately 210 support vessels 146 additional support vessels
Deactivation 7 deactivation units between 1970 N/A
and 2000
Source: Petrobras

26. Thank you!
Sérgio Rodrigues Costa
International Relations Director
Phone: +55 11 3218-6061
sergiocosta@investesp.org.br
investesp@investesp.org.br
www.investe.sp.gov.br
SECRETARIA DE DESENVOLVIMENTO
ECONÔMICO, CIÊNCIA E TECNOLOGIA