Rio de Janeiro Government Instruments to Attract Investments

Marcelo Vertis Under Secretary for Economic Development and Energy

UK Energy in Briefing – Doing Business in Brazil 11th and 12th March 2013 that you already know or have heard about...

...and the Rio de Janeiro that you should also know about:

A fast growing economy with plenty of business opportunities.

Overview

Location: Southeast of Brazil (57% of national GDP)

Area 43,696 km2 (0.5% of the Brazilian territory)

Population 16 Million (8.4% of total)

GDP US$ 270 Billion (10.9% of Brazil’s GDP) US$ 16,870 (GDP per capita) Source: IBGE / IMF (2010) Investment Grade

A new moment in the economy

BBB - BBB - Baa 2 BBB - BBB-

April May March December June 2011 2008 2008 2010 2011 Investment Forecast A new moment of investments 120 Forecast

100

80

60

40

20

0

Source: Decisão Rio (Firjan) Calendar of Major Events Rio is prepared to host international events and meetings.

2011

2012 Rio + 20

FIFA Confederations World Youth 2013 Cup Brazil Day

2014 FIFA World Cup

2015 450 - Birthday Rio de Janeiro

2016 Olympics Games Infrastructure and Logistics

Investments of U$ 20,5 Bi in 2012-2014

ESPÍRITO SANTO Highways – 27.000 Km Varre-Sai Porciúncula BR-101 Vitória – 514 Km

Natividade Raillways – 3.000 Km B. Jesus de Itabapoana Laje de BR - 116 Muriaé Salvador – 1654Km 7 Ports (1 under construction) NOROESTE S. Francisco de Itabapoana S. José Italva de Ubá S. Antonio Cardoso 12 Airports de Pádua Moreira

Aperibé S.João São da Barra - 10 Domestics BR-040 Fidélis Belo Horizonte – 434Km NORTE Campos dos - 02 Internationals Goytacazes S. Sebastião Com. Levy Sapucaia do Alto Cantagalo Sta.Ma. Gasparian Carmo Madalena Cordeiro Três Rios S. J. do Vale Duas Trajano do Rio Preto Barras de Morais Conceição Rio das de Macabu Quissamã Valença Flores Paraíba BomSERRANA do Sul Jardim Areal MÉDIO PARAÍBA CENTRO-SUL Nova Paty do Friburgo Alferes Volta Barra Teresópolis Redonda do Piraí Mendes Miguel Resende Pereira Petrópolis Cachoeiras Casimiro Barra E.Paulo de de Macacu de Abreu Rio das Mansa Frontin METROPOLITANA Ostras Piraí BR-116 BAIXADAS Silva São Paulo – 429 Km Jardim Itaboraí LITORÂNEAS Seropédica B. Roxo D. de Rio Nova Iguaçu Caxias Tanguá Rio Claro Bonito Iguaba Armação Mesquita S.J. S. Gonçalo Grande de Búzios Itaguaí Nilópolis Meriti S. Pedro COSTA VERDE da Aldeia Niterói Maricá Rio de Janeiro Arraial do Angra Cabo dos Reis

Parati

OCEÂNO ATLÂNTICO

SantosBR- 101– 535Km Human Resources

Legend Universities Human Resources University Centers Technological Education Centers Important center for post graduate education (50 PhDs per 100,000 inhabitants).

Strong professional education network Noroeste . 6 technological education institutions . 18 universities Norte . 22 technological centers

. Research centers: Serrana Centro-Sul Fluminense • Biomedical Médio-Paraíba • Engineering Baixadas • Energy Litorâneas Metropolitana

Costa Verde Sources: MEC, CNPQ Major Investment Projects Oil and Gas US$ 61,0 Bi Oil Refining US$ 20,0 Bi Steel Industry US$ 6,4 Bi Ports and Shipyards US$ 12,2 Bi Transformation Industry US$ 6,9 Bi Light Itaocara Logistics US$ 6,4 Bi Hydroeletric Plant Energy US$ 4,7 Bi US$ 0,3 Bi Urban Development US$ 18,3 Bi Technological Innovation US$ 0,9 Bi Açu Thermo Plant Olimpic Games US$ 4,3 Bi US$ 4,6 Bi Petrobras - US$ 54,0 Bi Açu Complex PSA Peugeot MRS - US$ 0,3 Bi US$ 1,3 Bi Citroen OGX - US$ 3,3 Bi Techint US$ 0,8 Bi Hyundai US$ 5 Bi US$ 0,1 Bi

Nissan Metropolitan Belt Maracanã Barra do US$ 1,3 Bi Rolls RoyceUS$ 1,2 Bi US$ 0,5 Bi Comperj – US$ 2,7 US$ 0,1 Bi Bi Furado US$ 0,1 Bi MAN TechnologicalREDUC Innovation – 0,4 Bi US$ 0,6 - US$ 0,9 Angra 3 US$ 3,6 Bi Inhaúma Shipyard – US$ 0,1 Bi Porto do Sudeste (LLX) - US$ 0,6 Bi International Airport Usiminas - US$ 0,6 Bi US$Shipyard 0,4 Bi and Navy Base – US$ 2,8 Bi Gerdau - US$ 0,3 Bi Petrobras – US$ 4,6 Itaguaí CSN - US$ 2,1 Bi US$ 2,0 Bi Sources: Firjan, SEDEIS and PCRJ Business Opportunities Business investment opportunities

Primary Sector Industry Services Infrastructure

• Fruits Production • Reinssurance • Automotive • Real Estate

• Tourism • Ornamental • Steel Plant • Hotels Stones • Sewage • Information • Shipyards Technology • Forest • Urban Mobility • Petrochemical Development • Entertainment • O&G (Naval and • Airports • Movies Subsea) Production

• Celulose • Shows

Pre-Salt

Drilled Wells Pre-Salt Reservoirs Production Fields Exploration Blocks Source: Petrobras

1977 Enchova 410ft 1988 125m Marimbá 1,610ft 491m 1994 Marlim 3,370ft 1997 1,027m Marlim Sul 2003 2009 5,600ft Roncador Lula 1,707m 6,180ft 7,125ft 1,884m 2,172m Government Program to Atract Investments on O&G Sector Focus on: SUBSEA Government Program to Attract Investments

Government Program to Atract Investments on O&G Sector Focus on: Subsea and Naval Equipments Objectives: • Articulation of actions in the O&G sector to attract Sub Suppliers ; • Focus on the 2nd and 3rd links in the chain. • Partnership: Petrobras, ONIP, IBP, Firjan, Sebrae-RJ, APEX, RioNegócios SEDEIS – Government Instruments to Attract Investments

INFRASTRUCTURE

TAX INCENTIVES

FINANCIAL INCENTIVES

INDUSTRIAL TRAINING PROGRAM

LICENSING SUPPORT

RESEARCH & DEVELOPMENT

INDUSTRY SUPPLIERS SEDEIS Secretariat of Economic Development, Energy, Industry and Services Investors Municipalities

Geolocation Tax Solutions

Support in the Implementation and enlargement Investors >> Geolocation

Database of existent areas in the local authorities

Availability of areas in the Industrial Districts

Data about socioeconomics and demographic indicators of the local authorities

InformationSoluções about logistic Tributárias CODIN

Investors >> Tax Solutions

Orientation in obtaining tax and financial incentives

Interface and support near AGERIO - Agency of State Foment CODIN

Investors >> Support in the implementation and enlargement

Support in obtaining the environmental licenses

Articulation with the public utility concessionaires (water, energy, gas and phone)

Interface with municipal, state and federal organs for infrastructure information

Soluções Tributárias CODIN

Local Authorities

Support to the municipal projects in the economic development sector

Creation of Districts or Industrial Condominiums

Support to the local authorities special projects

Soluções Tributárias Company of Industrial Development of Rio de Janeiro

Contacts: Phone: +55 (21) 2334-1400 Email: [email protected] Website: www.codin.rj.gov.br Colocar o logo da Age Rio Main Operating Fields

 Fixed and working capital financing

 Microcredit

 Support to the municipalities of the State

 Administration of development funds

 Stake held in shares of investment funds

 Financial services provider

 Equity participation AGERIO AND PRIVATE INITIATIVE

Micro and Small Enterprises

 Fixed and working capital financing Strengthening of the production of goods and services AGERIO AND PRIVATE INITIATIVE

Medium and Large Enterprises

 Financing the supply chain Acting through consortiated operation. Ex.: Automotive Sector (Nissan, Peugeot)

Laticínios Marília S.A. – Itaperuna Porto do Rio de Janeiro Schultz – (A dairy industry) (Rio de Janeiro’s Harbor) AGERIO – Agência Estadual de Fomento

[email protected] - 2333-1212

Contatos: Tel + (55 21) 2333-1212 E-mail: [email protected] www.agerio.com.br We do really wish to welcome you to do business in Rio de Janeiro Thank You

[email protected] Tel: +55 (21) 2332-8338 www.desenvolvimento.rj.gov.br Fax: +55 (21) 2332-8316