ICT: MINAS GERAIS BUSINESS OppORTUNITIES

Federation of Industries of the State of Minas Gerais

9,2%

Sour

ces:

IBGE

, RAI

S

MINAS GERAIS A BIG STATE, WITH GREAT pOTENTIAL

INTERNATIONAL REpRESENTATIONS6 General Consulates 3 International Schools 31 Honorary Consulates 1 Consular Corps 8 Chambers of Commerce

COST EFFICIENCYLiving costs on average:

20.6 Million of inhabitantsPopulation size similar to Australia

Land size larger than France

63% of the National GDp is condensed in just 800 km

of the national GDp 2014:

US$ 184 Bi.Similar to New Zealand and Czech Republic

11% of Brazil’s industrial workers

Second largest in the country

3rd Brazilian industrial GDp 2014:

US$ 36,75 Bi.25%cheaper than

Rio de Janeiro

Comparison between the capitals

* Considered the quotation of US$ 1.00 = R$ 2.65 as of 12/30/2014

29% cheaper than

São Paulo

LOGISTICS: CLOSE TO EvERYTHING THAT INTEREST YOUR COMpANY IN BRAzIL

DIRECT INTERNATIONAL FLIGHTS – To Europe, the United States and other Latin American destinations.

JUST AN HOUR FLIGHT FROM SãO pAULO, BRASíLIA AND RIO DE JANEIRO – The country’s main economic, political and tourism centers.

LATIN AMERICA’S FIRST AEROTROpOLIS – Logistics advantages for hi-tech companies. – Industrial airport (less time for shipment). – BH Airport managed by Flughafen Zürich.

MAIN BRAzILIAN HIGHWAY SYSTEM(13% OF THE NATIONAL TOTAL)

2ND MAIN RAILWAY SYSTEM

INTERNATIONAL AIRpORT

MANY REGIONAL AIRpORTS

INDUSTRIAL AIRpORT

6 DRY pORTS(IN LAND CUSTOMS)

6

2nd highest concentration of students in the country 15% of engineering students in Brazil

The highest concentration of Federal Universities 11 Federal Universities 45 Private Universities 2 State Universities Best Business School in Latin America*

UFMG: Federal University of Minas Gerais is the federal University with the largest number of engineering students in the country More than 5.000 students

UFMG: leader in patents 439 national patents 89 international patents Highest concentration of Sciences and Engeneering Courses

Federal Education Institutes throughout the state

UFMG: worldwide known• Best Brazilian University in teaching quality• Most of the Masters and PhD programs at UFMG have the

highest grade in CAPES Ranking (National Institute)• One of the Top 400 Universities of The World 2nd Best

Ranked in Brazil / Shanghai Ranking -2014• Best Brazilian university in quality of education• Among the 3 best Brazilian Computer Science

courses in market evaluation

PUC Minas• Largest Catholic university in the world• Among the 3 best Brazilian Computer Science

courses in market evaluation

INaTEl• Center of excellence in teaching and research in Engineering• The first institute of education in the country to provide

an Engineer degree focused on Telecommunications

MINAS GERAIS TALENT pOOL ECOSYSTEM

Main Players (R&D)Federal Universities Technology Parks

Science and Technology Institutes Technological Innovation Centers

Sour

ces:

IBGE

, RAI

SSources: ABES and IDC

Sour

ces:

IBGE

, RAI

S *

Fina

ncia

l Tim

es R

anki

ng, S

hang

hai a

nd F

olha

de

São

Paul

o Ra

nkin

g

10,26% of the national students enrolled at universities

2nd state in the country in enrollments

10% of Brazilians Researchers

102.000 enrollments in engineering courses

32,3 thousand enrollments in computer science and communication courses.

7 th

ICT BRAzILIAN MARKET

laRGEST IN THE WORlD (2015)

BRaZIlIaN ICT MaRkET GROWING(2015 compared to 2014)

US$ 60 BIllIONS BRaZIlIaN ICT MaRkET (2015)

THE laRGEST IN laTIN aMERICa Brazil represents 45%

THE WORlD avERaGE GROWTH WaS 5.6%

US$ 12,3 billions Brazilian Software Market

US$ 33,4 billions Brazilian Hardware Market

US$ 14,3 billions Brazilian ICT Services Market

Software growth of 30.2%

Hardware growth of 6.3%

Services growth of 8.2%

Software, Hardware and Services

9.2%

Sources : RAIS/MTE CNAEs : 620, 631, 639 e 951

ICT BRAzILIAN MARKET

CONSUMER ElECTRONICS MaRkET IN THE WORlD(2014 and 2015)

INTERNET OF THINGS

120 MIllIONS INTERNET USERS4th in the world ranking

MORE THaN

3,900 ICTCOMPaNIES INMINaS GERaIS

laRGEST ICTCONCENTRaTIONIN BRaZIl.

MORE THaN

38,000JOBS IN THE SECTOR

820SOFTWaRE DEvElOPING aND lICENSING COMPaNIES

400MIllIONS

+70%2015

2020Number of connected things in Brazil

Market forecast

253 MIllIONS CEll PHONES5thin the world ranking

12.4 MIllIONSPCs e Tablets

51.4 MIllIONSCell Phones

UNITS SOlD IN 2015

140MIllIONS

US$ 4BIllIONS

US$ 7BIllIONS

MINAS GERAISICT FACTS AND FIGURES

10%OF TOTal

4 th 2 nd

Fontes: Euromonitor, internetlivestats, Abinee, IDC

Internal Market

MAIN ICT pLAYERS LOCATED IN MINAS GERAIS

• Created and based in Minas Gerais.

• A pioneer company in the value added services for cell phone segment in Brazil.

• 80% of mobile phones active in Brazil, use or have already used the company services.

aSSOCIaTION BETWEEN TWO IMPORTaNT PlayERS IN THE BRaZIlIaN ElECTRIC SECTOR: CEMIG aND lIGHT

• Provision of solutions, development and maintenance of management systems and integration to legacy systems.

ONE OF BRaZIl’S lEaDING TElECOMMUNICaTIONS COMPaNIES

• Headquarter in Uberlândia, Minas Gerais.

• 1.3 million customers.

• Integrated Technology and BPO solutions in Brazil and Latin America.

• 4,100 locations in Latin America.

• 4 units in Minas Gerais, include the headquarter.

GlOBal PlayERS THaT CHOOSE MINaS GERaIS

• One of the company’s largest operations centers in the world, in Nova Lima, where more than a thousand people work.

• Client Center, located in the company’s office in Belo Horizonte.

• One of the largest IT companies in Brazil Present in 30 countries.

• The German multinational acquired the local company Senergy in 2012, leader in energy measurement solutions, smart metering. Since then, Siemens offers software and services to reduce electrical losses.

• Brazilian BPO headquarter of indian ICT company, one of the world’s largest information technology companies.

• IT focused on mining. Office in Belo Horizonte is the base for Brazil and Latin America.

• The largest developer of Enterprise Resource Planning (ERP) in Latin America. TOTVS Minas Gerais unit is one of the five software factories of the company in Brazil.

lOCal SUCCESS CaSES

MAIN ICT pLAYERS LOCATEDIN MINAS GERAIS

SUCCESS STORY

200 highly qualified engineers.

“One in five searches made globally goes through our context algorithm”. Engineer responsible for the search engine in Google Belo Horizonte (MG)

1996

1999

2005

1998

2000

2015

a UFMG PhD research project developed a

search algorithm.

Investment made by a venture Capital Fund.

7 months later, the company was sold to a big national group.

Google acquired akwan and settled

in Belo Horizonte the only R&D Center in

Southern Hemisphere.

at the end of the project, it was a huge success (3,000 daily visitors).

launch the Miner project at UFMG.

akwan started its operation based on the experience of the PhD student and the venture Capital investiment.

Expansion Project to a bigger building in Belo Horizonte.

THE ONly COMPaNy R&D CENTER IN laTIN aMERICa

QUALIFIED pROFESSIONALCOST EFFICIENCY

Fonte: RAIS/MTE

50

100500

100

RESEARCH AND DEvELOpMENT MANAGER AND ENGINEERING AND TECHNOLOGY RESEARCHERSThe average wage of these professionals in Minas Gerais is 35% lower than the average of the states of Rio de Janeiro and Sao Paulo.

COMpUTER ENGINEERS AND SYSTEM ANALYSTSThe average wage of these professionals in Minas Gerais is 23% lower than the average of the states of Rio de Janeiro and São Paulo

IT DIRECTORS AND MANAGERSThe average wage of these professionals in Minas Gerais is 50% lower than the average of the states of Rio de Janeiro and São Paulo.

COMpUTING SpECIALISTS AND pROGRAMMING TECHNIQUESThe average wage of these professionals in Minas Gerais is 31% lower than the average of the states of Rio de Janeiro and São Paulo.

MGRJ and SP average

65

100500

100

77

100500

100

69

100500

100

WELFARE: BH, THE BEST CITY TO LIvE AND INvEST

*per 100.000 inhabitants**per 1.000 inhabitants

Sources: PNUD, IPEADATA, Brazil Medical Demography Survey

BETTER HEALTHCARE SYSTEM

INFANT MORTALITY (2010) PeR 1,000 LIve bIRThs

heALTh esTAbLIshMeNTs* (2009) DOcTORs (2015) **

bh 12,95 43 6,75RJ 13,02 32 6,28sP 13,15 21 4,65

BELO HORIzONTE (BH) CITY, THE CApITAL OF MINAS GERAIS

HDI

HDI Income (2010)

0,62

0,7

0,75

0,8

0,85

0,9

0,841 0,84 0,8430,856

0,737

0,845

0,719

0,855

0,725

HDI Longevity (2010) HDI Education (2010)

INTERNATIONALSCHOOLS

American School

Maple BearCanadian School

Torino FoundationItalian School

BH RJ SP

ENTREpRENEURSHIp ENvIRONMENT IN BELO HORIzONTE

BELO HORIzONTETECHNOLOGICAL pARK – BH. TEC

A CITY OF ENTREpRENEURSA City of Entrepeneurs

Rio de Janeiro

Florianópolis

PortoAlegre

GoiâniaVitória Belém

São PauloCuritiba

BeloHorizonte

Access to Capital

Human Capital Innovation

The five best cities for each indicator were selected.

SYNERGY IoTInternet of Things

Industrial coworking dedicated to improve technological industries’ competitiveness through resource and logistics sharing and fiscal optimization.

pILOT pLANT LOCATED IN THE METROpOLITAN REGION OF BELO HORIzONTE

Private Nonprofit Civil association, with scientific, technological, educational and cultural matters

a condo that houses companies dedicated to research and that produce new technologies. It also houses public and private centers for research and development

Next to the UFMG´s Campus, which facilitates the interaction between business and academy. It´s about 20 minutes from downtown, 40 minutes from International airport and 10 minutes from Pampulha airport

1

2

3

Source: Endeavor Index of Entrepreneurs Cities 2014Company 2: Smart Meters

Company 3: automotive

Board

Clean Room in Partnership with

UNITEC

Company 1: RFID

Company 4: Packaging

Semiconductors

SyNERGy CONTaGEM

ENTREpRENEURSHIp ENvIRONMENT IN BELO HORIzONTE

FIEMG’S ExpAND pROGRAM CAN pROvIDE ASSISTANCES TO INvESTORS REGARDING THE FOLLOWING ISSUES:

INvEST AND DO BUSINESS IN MINAS GERAIS WITH FIEMG

ONE STOp SHOp100% CHARGE FREE

Business Intelligence Services Foreign Trade

Trade Promotion Training

Labour Relations Innovation and Technology

Intellectual Property Support Environmental Projects

Fiscal and Tax Questions Institutional Affairs

Strategic Partnership with State Government for site location,

funding and incentives Funding and Market

Access Support

INNOvATION CLUSTER IN THE DOWNTOWN OF BELO HORIzONTE

THE BEST STARTUpS COMMUNITYIN BRAzIL.

Spark awards, 2014/2015

6 aCCElERaTORS

5 INvESTORS

2 INCUBaTORS

28 DIGITal aGENCIES

194 STaRTUPS

10 COWORkING

Creative Economy and Technology as strategic tools in Minas Gerais’ development, through the creation of a development agency for the state and the promotion of a talent hub in the capital.

Startups acceleration program, with the purpose of using the strength of FIEMG for the development of the startups ecosystem. Through three steps: identify projects with high precision, accelerate innovative business and maximize technological and market impacts.

Partnerships: FIEMG, SEBRaE, CODEMID, FJP, SEDECTES

Partnerships : FaPEMIG, SEBRaE, SEDECTES

One of the main startups communities in Brazil, with more than 200 companies from various sectors

invest@fiemg.com.br+55 (31) 3263-4486+55 (31) 3263-4720