© 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
2
3
4
5 Olympic Games
Rio Business 1
2
3
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
2
3
4
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
10
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
2
3
4
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
-
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
2
3
4
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
2
3
4
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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