© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investments

Rio de Janeiro Gateway to a New Brazil Investments and OpportunitiesBarcelona September 2012

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment

Agenda

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment2

The City in Evolution

About Rio

Why Rio

Rio Business1

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3

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5 Olympic Games

Rio Business 1

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4

CONECTINGBUSINESSinRIO

BUSINESSINTELLIGENCE

FACILITATION

INVESTMENTPROMOTION

Energy Startups Media Hospitality

Healthcare ITC Financial Services Industry & Infrastructure

Strategic Sectors

TRACK RECORD

23 PROJECTS IN LESS THAN 2 YEARS

USD 1.6 BILLION INVESTMENT8,000 EQUIVALENT JOBSUSD 12 MILLION PAYROLL

About Rio 1

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Location

8

Belo Horizonte

São Paulo

Vitória

Curitiba

Brasília

Campo Grande

Rio de Janeiro Açu Port

Vitória Port

Rio Port

Santos Port 500 km

AP4

AP5

AP3

AP2

AP1

SepetibaPort

6 million population (2nd largest city in Brazil and 3rd in Latin America)

A logistics hub with 2 seaports, 3 commercial airports (2nd busiest in the country)

56% of Brazilian GDP comprised within a 500 km radius

All Pre-Salt reserves concentrated around 500 km from Rio

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment

Global Events

Political Alignment

Strategic Vision

Security Improvement

Management

Investment Capacity

O&G Boom

Business Friendly Framework

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment9

Across Federal, State and Municipal levels

EnergyITCCreative IndustriesHospitality

Leading O&G ProducerR&D Excellence

HQ of the major decision centers Logistics Hub

Infrastructure investmentHospitality growth

Reduction of public debtInvestment grade qualification

Increase 5x the investment capacity

Until 2016:• USD3.5 Bi investments• 35 UPPs (New Police Unit)• All police members (50 k) will be

trained and 7 – 10 k new policemen

Sense of urgencyBusiness mindset

Meritocracy

Investment Grade

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment

April 2008 May 2008 June 2011

March 2010

November 2010

BBB- BBB- Baa2 BBB- Baa3

Brazil Brazil Brazil State of Rio City of Rio

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Gross Domestic Product Per Capita

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment

Purchase Power Parity, Cross-country comparison with the State of Rio de Janeiro

11

Russia Rio de Janeiro

Chile Mexico Brazil South Africa China India

15,83715,173 15,002

14,430

11,23910,498

7,519

3,339

US$ PPP

Source: IMF / IBGE (2010)

CONSUMERShighest growth middle class

Note: Upper Class (A & B) income above R$4,650 / middle class (C) income between R$1,395-4,650 / Lower Classe (D & E) income below R$1,395Source: IPEAD, IBGE, Ministério do Desenvolvimento Social, PwC, FGV and RN analysis

Rio

de Ja

neiro

Upper Class

Middle Class

Lower Class

Braz

il

Upper Class

Middle Class

Lower Class 47% 44% 39% 33% 25%

44% 48% 53% 55%60%

9% 8% 8% 12% 15%

35% 34% 28% 25% 20%

52% 54% 59% 60% 63%

13% 12% 13% 15% 17%2003 2006 2009 2011 2014

80%

75%

2003 2004 2005 2006 2007 2008 2009 2010 2011

685.0

905.1

755.8

1,011.4

894.1

1,017.8

782.2

956.2

CONSUMERSfastest growing per capita income

RJ

SP

BH

BR

+13,8%

+22,2%

+33,8%

+32,1%

Source: IBGE, RN AnalysisNote: Data in USD

Economic Indicators

¹Purchasing Power Parity ; Sources: IBGE,CIA World Factbook , PME, CAGED, LRF Research

Unemployment Rate (%) Employment Growth – City of RJ

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

35,750

21,393

25,739

28,939

54,573 61,787

58,218

84,186 84,147

51,540

119,391

2006 2007 2008 2009 2010

10,0

6,7

10.5

7,0

8.5

5.5

6.6

5.1

RJ

SP

BH

BR

The City has strong economic indicators, being responsible for both 50% of the State’s GDP (USD 60 bn) and ¼ of the FDI in the country

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment14

Foreign Direct Investment (2008-2012)

NEW YORK = USD 19B

SÃO PAULO = USD 17B

MOSCOW = USD 17B

PARIS = USD 14B

LONDON = USD 45B

BEIJING = USD 34B

BANGALORE = USD 20B

TOKYO = USD 13B

BERLIN = USD 8B

MEXICO = USD 5B

RIO DE JANEIRO = USD 21B

Source: fDi - FT, Rio Negócios Analysis

More than 300 Spanish companies are located in Brazil HQ of 15% are in Rio: ABENGOA • CEMUSA • CYMI MASA • EFE • Endesa • Gas Natural Fenosa •

IBERDROLA • LANXESS

HQ of the Largest Spanish Companies in Rio

Brazil Investment Prospects – IndustryProjection (2012-2015) Investment by Sector in USD B (2011)

59%

10%

4%

4%

9%

4%4% 2%3%

steel

electric/electronic

others

Source: BNDES, Rio Negócios AnalysisNote: USD = 1.8751 (BACEN – Dec-31-

11)

USD 319 B

O&G

petrochemical

mining

pulp &paper

automobile

textile

Rio is the leader in these sectors (represents 77% of investment in Brazil)

Why Rio 1

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Leading Companies in Rio50% of Brazilian market cap is from companies with headquarters in Rio

Mining & Steel Real Estate

FinanceEnergy Tech, Media, Telecom

Consumer Goods

Health

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment19

GLOBAL• 38% of working visas in Brazil

were issued to Rio in 2011• Ranked “Best Place to Live” by

foreign residents in Brazil

LIFESTYLE • A unique culture that

promotes innovation and entrepreneurship

GEOGRAPHY• 55+ miles of beaches• 30% of the city is made up of

green areas• Largest urban forest in the world

GLOBAL CITYthe place to attract and retain talent

TALENT POOL: ACADEMIC LEADERSHIPexcellence in engineering, physics, chemistry, math, IT and business

# of Courses - CAPES (Post Grad) - Grades 6 and 7# of Courses - MEC (Undergraduate) - Grades 4 and 5

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4

8

12

16

20

24

28

32

2

7 8 8

14

27 Rio de Janeiro

Porto Alegre

Recife

São Paulo

Belo Horizonte

Campinas

Source: MEC, CAPES, Universities and RN analysisNote: Curses – Engineering, Physics, Chemistry, Math's, IT and Business (Administration, Economics and Accounting)

-

30

60

90

120

150

31 35

43

75 76

128

Rio de Janeiro

Porto Alegre

Recife

São Paulo

Belo HorizonteCampinas

TALENT POOL: HIGH EDUCATIONhome to 20% of Brazil’s leading academic institutions

RIO: THE FASTEST GROWING R&D CENTER IN LATAMUSD 1.5 billion invested in the last 18 months

USD1.5billionInvestment

Excellence in O&G Research: CENPES

Research on: Innovation on Fuels Advanced Oil Recovery Environment Production on Deep Water Pipelines

USD 600 million investments in expansion

Exploratory Frontiers Natural Gas Renewable Energy Heavy Oil Optimization and Reliability

Strategic Refining Technologies

Basin Models Energetic Hydrogen Basic Engineering

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment25

Rio’s has the only international airport in Brazil with room to grow, with all infrastructure already in place. Galeão Airport connects the city to 26 domestic and 24 international destinations With an average of 343 takeoffs/landing/day the Galeão served 12.4 million passengers in 2010 Its capacity will increase from 18 million passengers to 26 millions passengers in the next two years (R$400

million capex) Currently there are 6 Brazilian airlines and 17 international airlines operating at Galeão

International Airlines with Direct Flights to Rio

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment26

Rio de Janeiro

Existing (may-12) Construction Licenced Analyses Projection (2015)

32,3953,256

4,764

5,196 45,611

41%

Source: Rio NegóciosNote: Including Hotels, Aparts, Inns, Hostels, Hotels-Motels

HOSPITALITY: ALL¹ PROJECTION – 2015

GLOBAL MARKETING PLATFORMhost of major global events in the coming years

2012

2013

2014

450th anniversary

2015

2016

Global Visibility: A Powerful Marketing Platform

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment29

2011

450th Anniversary

Confederations Cup

2012

2013

2014

2015

2016

Rio + 20

The City in Evolution 1

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38%

25%

15%

15%7% shipyard

steel

petro-chemical

automitiveothers

USD 19B

The Economic Hub of the State Investments

Source: FIRJAN “Decisão Rio 2012-2014”, Rio Negócios AnalysisNote: USD = 1.8751 (BACEN – dec-31-11)

¹ Investments which does not restrict the one region of the state

South USD 7.6B

North WestUSD 0.5B

NorthUSD 13.9B

EastUSD 6.1B

CenterUSD 0.5B“Baixada”

USD 7.8B

City of RioUSD 18.4B

Various (all state)¹USD 58.2B

investment by region

investment by sectors

USD 113 B

51%

19%24%

4%

1%1%

O&G

infrastructure

olympicvenues

otherstourism

manufacturingindustry

42%

29%

21%

8% logistic & transport

energy

urbandevelopment

sanitation

USD 24B

Porto Maravilha is the main ongoing urbanization project in the city of Rio de Janeiro

Porto Maravilha

Maracanã

Corcovado

Copacabana

Pão de Açúcar

Aeroporto Santos Dumont

Aeroporto Internacional

Tom Jobim11 km

5 km

7 km

2 km

8 km

6 km

Novo Rio Bus Terminal

Future High Speed Train

Terminal

Operational Docks

Central do Brazil Train Station

Cidade Nova Subway Station

Bus Terminal

Main Distances from Porto Maravilha Porto Maravilha Area and Surroundings

Porto Maravilha

Largest PPP in Brazil (USD 4.5 bi in 15 years) works begun in 2010 and ends by 2015

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment32

WATERFRONT: MAJOR PROJECTSCentral Bank

Via Binary & VLT

Infrastructure

Tunnel

Urbanization and Perimetral Elevated Highway demolition

Olympic Port

Museum of Tomorrow

Art Gallery

Reurbanization of Hills

Aquarium

Infrastructure

WATERFRONT: MAJOR PROJECTSCentral Bank

Via Binary & VLT

Infrastructure

Tunnel

Urbanization and Perimetral Elevated Highway demolition

Olympic Port

Museum of Tomorrow

Art Gallery

Reurbanization of Hills

Aquarium

Infrastructure

Mass Transportation System

2011

TransOeste

Mass Transportation System

2012

TransOlímpica

TransOeste

TransCarioca

TransBrasil

Mass Transportation System

2015

USD 8.5 billioninvestment

700Kpeopleserved

additional63% of pop will use the fully integrated mass transit system

50% reduction commuting time

Olympic Games 1

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5

Investments and Opportunities

39 © Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investment

ProjectUSD

(milhões)BRT - TransCarioca 282,4 BRT - TransOeste 211,2 Porto Maravilha Phase 1 108,2 Porto Maravilha Phase 2 352,9 Jõao Havelange Stadium Surrounding Area 16,5 AP5 Sanitation System 83,5 Jacarepaguá Environmental Rehabilitation 86,5 Athlets Village 23,5 Bike Lanes Expansion 8,8 Reforestation 18,8 Popular Housing: "Morar Carioca" 351,2 Education: "Rio Criança Global" 6,5 Health Olympic Program: "Rio em Forma Olímpico" 8,8 Accessibility Plan 0,6 Time Rio 2,6 TOTAL 1.562,1

Olympic Park

Features: Rio 2016 games area which will turn as a neighborhood after the Olympics

Area: 1.2 M m²

International Bid: 18 countries & 60 proposals

Duration: 15 years

Date Signed : 18/04/12

Start: Jul/2012

Conclusion: Jul/2015

Investment: USD 823M

Companies: Odebrecht, Andrade Gutierrez and Carvalho Hosken.

2016 Olympic Games

Over 10M domestic and foreign touristsMore than 10K athletes from over 200 nations

Over 30K media professionals

© Rio Business: Official Agency of Rio de Janeiro City Hall, responsible for attracting and facilitating inward investments

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