Norwegian Consulate General Report Rio de Janeiro

Norwegian Investments in Brazil 2019 Edition TABLE OF CONTENTS FOREWORD

Table of Contents Foreword

We are pleased to present the Investment of collaborative research. Development of Report 2019 on Norwegian Investments in new solutions based on technology and Brazil. This is the fifth edition of the report, and partnership with the university is at the heart we are proud to say that Norwegian investments of the company’s strategy to create sustainable Page continue to grow steadily. farming with minimal environmental impact. Foreword 3 The accumulated investments without asset Norwegian companies draws on the highly transfers are now at a total of US$ 25.5 billion. qualified and competent Brazilian work force. Executive Summary 4 Norwegian investments creates 27,000 direct Investing in personnel, including gender jobs, and more than 585,000 indirect and equality, is part of Norwegian business culture. induced jobs in Brazil. During the 2017-18 Several of the Norwegian companies in Brazil Introduction 6 period, Norwegian companies contributed with are being led by women and work to implement more than US$ 900 million in tax payments. policies to enhance female participation. Gender Overview 8 equality is not only an issue of fairness but also The oil, gas and maritime sectors are still the a matter of attracting the best talents, many of Oil & Gas, Offshore and Maritime 13 largest destination for Norwegian investments. whom will be women. Women's participation in Norwegian companies have an extensive the workforce is an indisputable contribution Renewable Energy 17 presence in the sector and are present to economic growth. There is considerable across the entire chain - from exploration to economic value at stake for companies and Research and Development production, providing expertise and technology nations. 18 to improve the yields of Brazilian fields. The ties between and Brazil are strong. Aluminium 20 We also see significant investments in Norway will continue to be a consistent and renewable energy, both solar and wind, as well long-term partner for Brazil - economically as Agribusiness 21 as hydro. ’s investment in the Apodi well as in other areas of common interests. Solar plant in Ceará, operated by Solar, is Technology & Media 22 a good example in this respect. Gender Equality 23 The Apodi plant can provide 170,000 households with electricity, and the clean energy produced is

equivalent to a CO2 reduction of around 200,000 tons per year. Statkraft is already operating two wind farms in Brazil, and the company considers Nils Martin Gunneng Brazil as a key market in the years to come. Ambassador

Within the R&D sector, the collaboration between our two countries is significant, both in investments and results. Brazil is one of the top 6 priority countries for Norwegian research and development cooperation outside of Europe. While the majority of research is in the energy sector, the cooperation extends to ecology in Marianne Fosland tropical forests, biodiversity and sustainable use. Consul General Yara's digital hub in São Paulo is a fine example

2 3 Executive Summary Executive Summary Norwegian Job Creation in Brazil Norwegian Investments in Brazil

US$ 4.2B INVESTED IN 2017 - 2018

US$ 25.5B Accumulated Investments without Asset Transfers

Direct Jobs Creation per State

More than 1,000 jobs

From 100 to 999 jobs

Less than 100 jobs

Direct Jobs Creation by Type US$ +10.1B LAST 5 YEARS Locations where Norwegian companies create industrial jobs Norwegian investments in Brazil in the five-year period from 2013 to 2018 Locations where Norwegian were at a record high level companies create administrative jobs

LOCATIONS JOBS CREATED 7.3% NORWEGIAN GDP

Accumulated Norwegian investments in 84 27,000 585,000 Brazil corresponded to approximately across 19 states Direct Jobs Indirect and Induced Jobs 7.3% of the Norwegian GDP in 2018 INTRODUCTION INTRODUCTION

Introduction to the Introduction to the Norwegian Investment Report Norwegian Investment Report

This report is commissioned by the Royal Estimates from desk research constitutes less Tax Payments to Brazil Business Environment Barometer Norwegian Consulate General in Rio de Janeiro, than 10% of the Norwegian investment and less For the first time we have collected information An anonymous qualitative survey was conducted in collaboration with Innovation Norway and the than 20% of the direct jobs. Indirect and induced from the Norwegian companies regarding their among Norwegian companies with activities Norwegian Brazilian Chamber of Commerce, in jobs were calculated estimates based on the job tax contribution in Brazil. in Brazil to get a better understanding of how order to present a new and updated version of generation model of the Brazilian Development investments are applied by the companies in Norwegian Investments in Brazil. The present Bank, BNDES. The Norwegian companies were asked to Brazil and what the main drivers are. fifth version adds data from the last 2 years. provide information about their tax contribution Definition of Norwegian Investments to Brazil excluding payroll taxes and mandatory In all, 42 Norwegian companies with activities The methodology and historical data presented To be considered a Norwegian investor, the employment-related contributions. in Brazil chose to participate in the qualitative in this report follow mapping exercises individual must be a Norwegian citizen, the survey which was conducted during August and commissioned by Innovation Norway, the company must be listed on the Stock During the 2017 - 2018 period Norwegian September 2019. Over 50% of the Norwegian Norwegian Consulate General in Rio de Janeiro Exchange, OSE or the company must have their companies contributed with more than US$ 900 companies with activities in Brazil surveyed have and the Embassy of Norway in Brasilia in 2017. operational headquarters in Norway and be million in tax payments to Brazil. plans to increase investments in Brazil over the registered with the Norwegian company registry. next 5 years, and nearly 70% of the respondents During surveys for this report we discovered In this report, no estimates related to tax intend to increase their workforces in the period. that some of the estimates related to direct Once a company qualifies as a Norwegian payments were made, but we will continue to job creation in the 2017 report were too investor, the country of origin of the capital track this figure moving forward. conservative. Hence we have adjusted the 2015 invested in Brazil is irrelevant. and 2016 numbers by about 5% in order to correctly reflect the development in job creation. Capital transfers and reinvestment of profit are the only two investment types that are Companies featured in this report are among considered for the purpose of this report. the top 15 Norwegian investors in Brazil or have made announcements in 2017 or 2018 that will Data Distribution NORWEGIAN COMPANIES IN BRAZIL affect Norwegian investments in Brazil in the The investment data collected and estimated sector they represent in the years ahead. is related to the period from 2017 to 2018. For consistency with the previous years, the Detailed information about the companies are Companies Invited to presentation of the investment data was equally 219 sourced exclusively from public information. 145 Participate in Survey distributed between 2017 and 2018. Maritime, Offshore, Companies that Created Company Survey Oil & Gas 104 Direct Jobs in Brazil For the employment data, a linear change from Norwegian companies with activities in Brazil 2016 to 2018 data was assumed. Companies that Responded were invited to participate in a quantitative 71 86 Other to the Quantitative Survey survey between June and September 2019. The majority of consolidated quantitative data in 3 Renewable this report was collected from the Norwegian Energy Norwegian companies with or without companies surveyed. Brazilian subsidiaries or associate companies that have engaged in commercial activities with Brazil, either Companies per Sector directly or through representatives.

6 7 OVERVIEW OVERVIEW

Agribusiness, chemicals, finance, IT, media, Indirect and Induced Job Creation mining, etc. are included in the segment "Other" Norwegian Investments in Brazil According to The Brazilian Development Bank's and represent sectors in which Norwegian model used to estimate indirect and induced companies are active in Brazil. Investment jobs, Norwegian companies generated more 2017 - 2018 participation in these areas has dropped slightly than 585,000 indirect and induced jobs across all compared to 2016, from 34% to 30%. sectors of the economy in 2018.

5% The criteria used for grouping the companies Renewable Indirect jobs are created outside the company, into these 3 main sectors is to maintain the Energy within suppliers or independent contractors that confidentiality of the company data as some of increase their headcount due to projects carried 45% the companies have a strong leadership position Oil & Gas out for a Norwegian company. As for induced in their specific sector. jobs, they are created due to the economic impact made by the company and the effects Direct Job Creation of the transformation of the income of the Maritime, A total of 104 Norwegian companies have direct employees and indirect employees. Offshore, employees across 84 different cities throughout Oil & Gas 30% Brazil. The 2017 - 2018 period observed a slight Offshore, maritime, oil & gas sectors alone are Other decline in number of direct jobs compared to responsible for generating 80.5% of the indirect 65% the 2016 level. and induced employment. There was, however, an increase in number of Norwegian expats working for Norwegian companies in Brazil. While in 2016 there were 105 expats, our survey shows an increase in 2018 to 146 expats.

Investments Overview Investment by Sector The period of 2017 - 2018 was characterized Equinor’s agreement to acquire a stake in the by readjustment of Norwegian companies in Roncador oilfield from Petrobras is the single JOBS CREATED DIRECT JOB BY YEAR Brazil. There was an increase in the number largest transaction during the current period. Direct of Norwegian companies doing business However, a positive investment trend can be with Brazil, while the number of Norwegian observed across all sectors and is not limited to companies generating direct jobs in Brazil has the oil & gas sector. 2018 27,000 not changed significantly. Although investments in the renewable energy 2017 27,500

The last 5-year period from 2013 to 2018 was sector dropped back to 2014 levels, Norway 2016 28,000 historically strong for Norwegian investments in has a larger and more diverse exposure 612,000 Brazil. The total investment exceeded US$ 10.1 to this sector. There are four companies Affected Jobs 2015 25,000 2017 - 2018 billion, with US$ 4.2 billion added in the 2017 - investing in four different types of renewable 2014 22,000 2018 period. energy sources in Brazil. Scatec Solar and Equinor entered the sector in Brazil with solar 2013 19,000 This overview of Norwegian investments in energy installations, while Statkraft expanded Induced Indirect 2012 15,000 Brazil only includes active investments made their operation through new acquisitions in in 2017 - 2018. We do not include investments hydropower. Umoe Bioenergy continues their made through financial instruments, bilateral focus on alternative sources like sugarcane- aid, and passive equity investments. based biofuel production, which produces

negative CO2 emissions. Job data for 2015 and 2016 was revised based on new information collected during the work with this edition.

8 9 Norwegian Asset Transfers to Brazil ACCUMULATED INVESTMENTS

Accumulated Norwegian investments in Brazil For the purpose of this report, asset transfers are The number of asset transfers for the 2017 - 2018 without asset transfers increased by 19.7% not considered a part of Norwegian investments period has increased compared to 2015 and 2016. since the last investment report. into Brazil. Nevertheless, asset transfers are the US$ 25.5B most significant investment type for many of the Largest asset transfers by Norwegian companies US$ 23.4B Norwegian companies operating in the Brazilian to Brazil in the period include the vessels: +19.7% maritime and offshore sectors. US$ 21.3B • SK Achiever for DOF For Norwegian companies, asset transfers mostly • West Saturn for involve transfer of offshore rigs and vessels into • Aker Wayfarer for Akastor US$ 18.4B Brazilian waters. These are assets that tend to Far Serenade and Far Scotsman for Solstad • US$ 16.7B have highly cyclical values. • Anna Knutsen, Lena Knutsen and Vigdis Knutsen for KNOT US$ 15.3B Annual Increase US$ 14.2B According to the Norwegian Shipowners' • Pioneiro de Libra and Petrojarl I for Teekay in Accumulated Association Brazil, ABRAN, Norwegian companies Investments own or control more than 50% of the most specialized vessel fleet present on the Brazilian continental shelf. US$ 10B

2012 2013 2014 2015 2016 2017 2018

REINVESTED PROFITS Norwegian Pension Fund in Brazil Reinvested profits continue to increase as a share of overall investments by Norwegian The Norwegian Pension Fund is an important In this report we did not include investments made companies in Brazil. player in the Brazilian financial market, and by the by the fund as a basis for Norwegian investments end of 2018 it had holdings in Brazilian bonds and to Brazil. Norwegian companies reinvested more equities worth US$ 8.97 billion. than US$ 1.5 billion of their profits into their 39.4% Brazilian operations between 2017 and 2018, Reinvested Profits By December 2018, the Norwegian Pension fund 2017 and 2018 up from US$ 921 million in 2015 and 2016. had US$ 6.17 billion invested in Brazilian equities which corresponds to 0.704 % of the Brazilian Reinvested profits are based on survey stock exchange (B3) total market capitalization responses by Norwegian companies. In addition to capital injections and reinvested US$ 5B profits, Norwegian companies also transfer Petrobras remains the fund's largest equity US$ 5B holding in Brazil. The total investment in Petrobras offshore assets to Brazil. For the purpose of 2010 - 2014 2.7% was US$ 659 million, which corresponds to a this report, asset transfers are not considered 0.83% ownership position in the company. 2015 - 2016 21.2% a part of Norwegian investments into Brazil. 2017 - 2018 39.4% Banco Bradesco is the second largest investment where the fund has a 0.97% ownership position, 2011 2012 2013 2014 2015 2016 2017 2018 with a total investment of US$ 637 million. Holdings in Brazil OIL & GAS, OFFSHORE AND MARITIME

Business Environment Barometer Winning Global Contracts with What is the main reason for your company to invest in the Brazilian market? Brazilian-built Technology

Norwegian investment in Attractive consumer market for my product or service 56% 37% manufacturing facilities Good prospects for my business along the Brazilian coast has resulted in significant Access to an abundant workforce success over recent years. Good incentives provided by the Brazilian government for establishing local operations Subsea Manufacturing After the inauguration of a plant in São José dos Pinhais in 2016 which received a R$ 260 million investment, What was the primary strategy for capital allocation in continues to Brazil over the 2017 and 2018 period? 13% strengthen their position as a supplier of subsea equipment. Invest in organic growth Subsea Manufacturing 65% 20% Aker Solutions - São José dos Pinhais Pay down debt In March 2018, the company secured a contract with Mergers and Acquisitions Equinor to supply system control modules Pay dividends produced in Brazil. The 47 modules will be exported to three fields located in Norway, in a Shipyards contract worth R$ 100 million for the Brazilian Shipbuilder and designer Vard delivered a subsidiary. multitude of projects for a variety of clients in the period between 2017 and 2018. Among Aker Solutions has leveraged their new the projects concluded was the PLSV Skandi What are your company’s investment plans in Brazil for the next 5 years? manufacturing capabilities for further expansion Recife, delivered by Vard Promar to DOF and in the Brazilian market as well. In 2018 the TechnipFMC in May 2018. 57% 36% 7% company won a contract with Petrobras which included a subsea production system and Skandi Recife, the fourth vessel built in Increase investments Reduce investments related services for Libra’s Mero 1 project. Pernambuco with local labor is currently Maintain same level as today the ship with the highest value added and The project installations will commence in complexity of its kind delivered in Brazil. 2020 and consist of 12 vertical subsea trees designed for Brazil's pre-salt layer, four subsea During the period, Vard Promar has also distribution units and three topside master finalized the Seawalk Port Royal, which will What are your company's plans for the workforce in Brazil in the next 5 years? control stations. operate in Kingston, Jamaica as well as two LPG carriers for Transpetro, namely Gilberto Freyre 69% 26% 5% Earlier the same year, Aker Solutions was and Jorge Amado. awarded a four-year service agreement with Increase our workforce Reduce our workforce Petrobras worth R$ 250 million, with an option for extension. The order consists of upgrades, Maintain the current workforce levels repairs and renovation of FPSOs located in three fields in the Campos Basin.

13 OIL & GAS, OFFSHORE AND MARITIME OIL & GAS, OFFSHORE AND MARITIME

Strong Investments for Activity in the Oil & Gas, Offshore and Maritime Offshore and Maritime Fleet

Norwegian companies have an extensive Specialized Vessel Norwegian companies own a total of seven Offshore Fleet presence in the Oil and Gas sector in Brazil Floating Production Storage and Offloading The highly complex specialized vessel Skandi Norwegian companies are responsible for a across the entire chain, from exploration to Vessels in Brazil: Recife was the result of the synergy of two significant portion of the support vessel fleet in production, providing expertise and technology Norwegian companies, shipbuilder Vard and Brazilian waters, especially Pipe-laying Support to improve the yields of Brazilian oilfields. Petrojarl 1 for Teekay offshore operator DOF, with commitment • Vessels and Anchor-handling Tug Supply to generate value and support technology Pioneiro de Libra for Teekay Vessels. Within the Oil & Gas, Offshore and Maritime • development locally. The vessel is owned by a Petrojarl Cidade de Itajai for Teekay sectors, between 2012 and 2018 Norwegian • joint venture of TechnipFMC and DOF Subsea. Sapura, DOF and SubSea7 are the owners of the companies invested more than US$ 7 billion in • Peregrino for Equinor entire Pipe-laying Support Vessel fleet in Brazil Brazil. Cidade de São Vicente for BW Offshore The Brazil-flagged pipe-laying support vessel, • and DOF is also responsible for the largest fleet delivered in 2018 to support Petrobras • Polvo for BW Offshore of Anchor-handling Tug Supply Vessels in Brazil, Equinor, previously known as Statoil, has been operations, was built at Vard Promar in the city Piranema Spirit for Teekay with 11 vessels. present in Brazil for nearly two decades. In • of Ipojuca, state of Pernambuco. The project recent years the company has been making involved hundreds of locally trained employees. These are highly capital-intensive vessels with In the period from 2017 to 2018 Norwegian important investments in the Brazilian market a long-life expectancy. The two new additions companies expanded their fleet in Brazilian by acquiring stakes in several key oilfields, Skandi Recife is the first co-financing between in the period between 2017 and 2018 are the waters with the following vessels: maintaining their position as the second-largest BNDES and Export Credit Norway. The latter Teekay-owned vessels Pioneiro de Libra and oil and natural gas operator in Brazil. is guaranteed by the Norwegian Export Credit Petrojarl 1. • Aker Wayfarer for Akastor Guarantee Agency. The focus on sustainable sources and less CO Skandi Recife and SK Achiever for DOF 2 Pioneiro de Libra is a new vessel received • emissions in production is an increasing priority Far Serenade and Far Scotsman for Solstad by Teekay in 2017 for use in Brazil, with an • for Equinor. The company has a projected estimated building cost of US$ 1 billion. • West Saturn for Seadrill investment of US$ 15 billion in Brazil by 2030. • Anna Knutsen, Lena Knutsen and Vigdis Petrojarl 1 was built in 1986 and was operating Knutsen for KNOT on various fields in the North Sea. Before • Pioneiro de Libra and Petrojarl I for Teekay Norwegian Investments in Brazil within arriving in Brazil in 2017, the vessel underwent a the Oil & Gas, Offshore and Maritime sectors 2.5 year-long modernisation program. without Asset Transfers US$ 2.7B Skandi Recife 2017 - 2018 US$ 2.5B Skandi Recife is a pipe- 2015 - 2016 laying support vessel built by Vard in Pernambuco for DOF and TechnipFMC.

The vessel is considered the most complex and US$ 2B specialized vessel built in Brazil.

US$ 1.3B 2013 - 2014

US$ 1B

2013 2014 2015 2016 2017 2018 14 15 OIL & GAS, OFFSHORE AND MARITIME RENEWABLE ENERGY

Equinor Maintains Position as Second-Largest Operator in Brazil

Equinor intensified their presence in the The companies in the consortium carried several Brazilian energy sector in the period from 2017 transactions in the adjacent BM-S-8 block to to 2018, both through the diversification of align equity interests across the two blocks that operations with the incorporation of solar power together comprise the Carcará oil discovery. to their portfolio and by acquiring stakes in oilfields. These transactions resulted in Equinor having 40% interest in BM-S-8 and a 40% interest in Participation in Roncador Carcará North. The company's most important agreement during this period was the purchase of 25% of Other Licensing Rounds Significant Investments the Roncador oilfield from Petrobras, tripling Four blocks were awarded to Equinor together Equinor's production in Brazil. Roncador, which with consortium partners in a licensing round in Renewable Energy started production in 1999, is Brazil’s third held in March 2018: largest oilfield in daily production. C-M-657, signature bonus of • Apodi Solar - Equinor and Scatec Solar The Roncador agreement consisted of an initial US$ 638.5 million, participation 30% payment of US$ 2.35 billion, which was adjusted C-M-709, signature bonus of to US$ 2 billion by the end of the transaction, • US$ 450 million, participation 20% Solar Energy Wind Energy plus additional contingent payments of up C-M-755 and C-M-793, signature bonus of to US$ 550 million, which corresponded to • Equinor's core business remains oil and gas, In September 2018, Equinor and Petrobras US$ 26 million, participation 40% investments in projects towards increasing the but the company has an extensive know-how also signed an MoU to evaluate offshore wind recovery from the field. in renewable energy sources in offshore wind projects in Brazil, showing the company’s In June 2018 Equinor also participated in two from projects in other countries. The acquisition commitment to exploring clean and renewable consortiums with winning bids for the Uirapuru The agreement was announced at the end of in solar assets, located in Ceará, represented sources. and Dois Irmãos blocks in the Santos and 2017 and completed by June 2018. Equinor a major first step towards the solar energy Campos basin. also announced a partnership with Petrobras business. Equinor is not the first Norwegian company to to increase value creation and the longevity of work with wind energy in Brazil. The Norwegian this oilfield, leveraging Equinor IOR technology • Uirapuru, signature bonus of In October 2017 the company acquired a company Statkraft is already operating two wind and experience acquired from the Norwegian US$ 682 million, participation 28% 40% stake in the 162MW Apodi solar project farms in Brazil. Continental Shelf. • Dois Irmãos, signature bonus of from the Norwegian company Scatec Solar in US$ 103 million, participation 25% a transaction worth US$ 25 million. Equinor Statkraft considers Brazil a key market Carcará Field has also acquired an additional 3.75% stake in for growth over years to come, and are Equinor continue to position themselves for the the project from Apodipar raising their total continuously investing and seeking new At the end of October 2017, a consortium future in Brazil, being registered to participate ownership to 43.75%. prospects to expand operations in the country. consisting of the operator Equinor (40%), in several tenders, including the production ExxonMobil (40%) and Galp (20%) submitted the sharing round for the surplus on a transfer-of- The Apodi complex began operation in Hydro Energy winning bid for the Carcará North block in the rights basis. December 2018 and can provide approximately Santos basin. Equinor invested US$ 364 million In October 2018, Statkraft signed a R$ 704 170,000 households with electricity. In order to in the consortium and the transaction was million agreement with EDP Energias Renováveis further develop the solar energy potential in the completed in June 2018. to acquire eight hydropower plants. country, a 50/50 joint venture was established with Scatec Solar to build, develop and operate This acquisition allowed Statkraft to increase new solar complexes in Brazil. its presence in Brazil, bringing the production capacity to 450 MW across 18 plants.

16 17 RESEARCH AND DEVELOPMENT RESEARCH AND DEVELOPMENT

Focus on Research and Focus on Research and Development in Brazil Development in Brazil

Norway and Brazil continue to strengthen The call, published in March 2018, was aimed at their long-standing science and technology selecting projects between research institutions cooperation following an agreement initially and companies. The projects, intended to signed in 2008. The extension of this agreement, benefit both Brazil and Norway, were focused Equinor’s intense activity in the signed in 2016, confirms Brazil as one of the top on the offshore petroleum industry and energy sector demands constant 6 priority countries for Norwegian cooperation included areas not only related to production, development and improvement outside the EU. exploration and increased oil recovery, but also of solutions to achieve better environmental technology and cost-efficient yields in a sustainable manner. Cooperation in Energy Projects drilling. This agreement nurtured important cooperation Norwegian companies received NOK 20 million in the period of 2017 and 2018, like the joint call while FINEP assigned R$ 10 million through for proposals by FINEP and the Research Council Fundo Nacional de Desenvolvimento Científico e of Norway, RCN. Tecnológico (FNDCT). FPSO Peregrino Equinor - Rio de Janeiro

In 2017, RCN also signed an agreement with FAPESP focused on solar generation cooperation research. Bilateral Cooperation Among Research Center in Campinas Universities FAPESP and Equinor have announced an Following the foundation laid by the UTFORSK Engineering Research Center in Oil Reservoir program, which aims to promote cooperation and Production Management which is the result between higher education and research of a partnership established in 2016. institutions in Brazil and Norway, the number Yara’s Hackathon held at the of scientific cooperation agreements signed In 2018, the University of Campinas, Unicamp, Universidade do Vale do Rio dos Sinos between Brazilian and Norwegian institutions located in São Paulo state, was chosen to host continued to increase in the period from 2017 to the center. The goal is to find new solutions in Development of new solutions based on Digital Farming Initiative 2018. reservoir and production management, focused technology is at the heart of Yara’s strategy on production optimization, enhanced/improved Yara maintains a global digital farming initiative, to create a farmer-centric approach in a Universidade Federal do Pará, Universidade oil recovery (EOR/IOR) and water handling. which includes digital hubs and research into sustainable manner. Federal Rural da Amazônia, Museu Paraense precision farming. Emílio Goeldi and Universidade Federal do Rio Over the next 10 years, R$ 50 million will be Up to 90% of their budget for research is de Janeiro are among the Brazilian institutions invested in this project, divided between Equinor One of Yara’s four hubs is located in São Paulo, directed at public organizations such as research that are building closer relationships with and FAPESP, with a contribution from Unicamp. inside a coworking space and has a team of institutions, universities, technology centres and Norwegian institutions like the University of Oslo 50 professionals working in collaboration with companies like EMBRAPA. and the University of Stavanger. startups and other companies.

An example of this cooperation is Yara's first These agreements aim to generate collaboration Hackaton in the Universidade do Vale do Rio dos in ecology in tropical forests, biodiversity and Sinos, organized to encourage innovation in the sustainable use of the environment. agricultural field.

18 19 ALUMINIUM AGRIBUSINESS

Investment and Expansion in the Aluminium Supply Chain

Expansion in Extruded Solutions Aside from the modernisation of the water treatment system, the company has committed In April 2018, Hydro finalised the acquisition R$ 100 million of investment to support social of two extrusion plants to consolidate their change in the communities in Barcarena. position in the Brazilian extrusion market. Local Workforce and Suppliers Located in Utinga and Tubarão, São Paulo and Santa Catarina states respectively, the newly Today, 76% of the employees in Hydro were acquired plants employ more than 560 people, born in Pará. Hydro is funding skill development and support Hydro in further strengthening training for local young people to increase the their downstream position in Brazil. Hydro proportion of positions filled by locals. already operate an extrusion plant in Itú, São Agricultural Productivity Paulo and the acquisition made the company Investments are also being made to ensure the industry leader in the Brazilian extrusion qualified local suppliers. In partnership with market. the REDES organization, from the Pará state and Agribusiness Industry Federation (Fiepa), Hydro launched the Robustness and Resilience Program for Development of Local Suppliers. Hydro has several large investment projects Yara Brazil Through this project, Hydro provides free related to ensuring the robustness and education and training to Hydro's suppliers resilience of their operations in Brazil, as well both in the administrative, commercial and as supporting the development of the local operational fields, to foster entrepreneurship The years 2017 and 2018 represented an The complex employs 1,015 permanent and community. in the state of Pará. Hydro's cases from this important period of further investment for Yara 970 outsourced employees. Another important program have received awards from REDES over in Brazil, in a market that has been presenting transaction in 2018 was the acquisition of the The world's largest alumina refinery outside recent years. record-breaking growth over the past years. remaining equity interests in Galvani Indústria, China, located near Belém in Barcarena, state Comércio e Serviços S.A. of Pará, is owned and operated by Hydro. Since The company has established itself as the acquiring the refinery from Vale in 2010, there market leader of high-quality for the has been constant investment Foliar Plant Brazilian market, investing in acquisition and in modernizing the facilities. To continue expanding the business in Brazil, development of new plants, thus reducing the Today, Hydro are one of the which represents a third of the company’s global needs for imports. largest employers in Pará, sales in fertilizers, Yara has invested over US$ 30 generating 11,000 direct and million in a foliar fertilizer facility. indirect jobs. Vale Cubatão Fertilizantes In May 2018, Yara closed the acquisition of Vale This is their first foliar and micronutrients Over the last two years, the Cubatão Fertilizantes, in a transaction valued at production facility in Brazil and the only one company has announced US$ 255 million. outside Europe. The new facilities are using several investments related state-of-the-art technology with automation in to the wastewater handling This acquisition was one of the key business nearly 100% of the process. and treatment systems for initiatives for Yara globally that year, allowing the refinery in Barcarena. them to integrate nitrogen production assets The 11,000 m2 plant is located in Sumaré, São The announced investment Hydro Extruded Solutions into their portfolio, serving both industrial and Paulo state, with good links to the Santos port is R$ 675 million and will be - Brazil fertilizer businesses. and main agriculture centers. completed by 2020.

20 21 TECHNOLOGY & MEDIA TECHNOLOGY & MEDIA GENDER EQUALITY

Investing in Gender Equality for Long-term Stability

Gender equality is a factor that is also increasingly important in businesses. Although Norway has come far in creating a better gender balance, this has only come about thanks to huge efforts from both the authorities and the sector itself. Not everyone favoured OLX Brazil - Adevinta the implementation of gender quotas on the boards of listed companies. There was a lot of scepticism, and there is still work to do in this field. Margareth Øvrum Increased Activity in Country Manager Brazil - Equinor The Global Gender Gap Report 2018 published by the World Economic Forum places Norway in Mobile, Media and Marketplaces 11th position in the Economic Participation and Opportunity ranking, reaching at least 80% of Most recently, the Norwegian asset parity. By comparison, Brazil ranks 92nd in the management firm commissioned same list. Brazil is also lagging behind in number a study from PwC which concluded that of women occupying seats on boards, with 8.4%, Norwegian companies with more female leaders A constantly increasing number of Norwegian Online Marketplace Leader whereas Norway reached 42.1% according to make less volatile investments and have a technology and media companies are active in Adevinta has also significantly increased its OECD data from 2017. smaller fluctuation in equity prices than their the Brazilian market. commitment to the Brazilian market by raising peers. their participation in OLX Brazil from 25% to 50% The largest investments are in the classifieds in May 2017. Norwegian companies brought to Brazil sector, but there are also investments occurring If Norwegian women’s participation elements of Norwegian values and a focus both in music streaming with Tidal and in mobile Since the increased ownership by Adevinta, “ in the workforce were reduced to on adding women to the workforce and as software with Otello. OLX Brazil has continued to announce large the OECD average, the value of the leaders of their Brazilian operations. One of the investments directed to technology and production loss would amount to our examples is Equinor, the second largest O&G Largest Job Site innovation in Brazil. Between 2017 and 2018, entire oil wealth, including that which is operator in Brazil, which has been led by Ms. Adevinta, a subsidiary of the Norwegian media OLX Brazil announced a combined R$ 358 still underground. Margareth Øvrum since 2018. This industry group Schibsted, own a majority stake in the million investments directed to technology and is often seen as male dominated, but 43% of Jens Stoltenberg, job site Infojobs which is the market leading innovation in Brazil. former Prime Minister of Norway Equinor's Brazilian workforce are women, who job board in Brazil. Unlike OLX Brazil, Infojobs also occupy 55% of leadership positions. is not in a capital-intensive growth phase. The Following these investments, OLX Brazil saw platform has been around for 15 years and has a strong expansion during this period, adding Motivation and Actions The agribusiness company Yara has been achieved market leadership through long-term nearly 300 staff, about 50% of their workforce. focused on reducing the gender pay gap investment in their Brazilian operation. The company is the leading marketplace in Gender equality is a key performance worldwide. In 2018, Yara undertook an analysis the country, responsible for transactions that indicator, it is becoming increasingly important to identify these types of discrepancies in The platform currently has more than 26 reached R$ 57.6 billion in 2017, involving sales of for fundamental investment analysis and several countries, including Brazil. The result of million professionals registered on its database. 26.7 million items. subsequent market valuations of Norwegian this project is guiding the company to ensure Comscore confirmed in March 2017 that companies. that they offer all their employees equal and fair Infojobs is the most visited job site in Brazil. pay. Over recent years, several studies have been published by Nordic companies correlating gender diversity in management with the company's long-term financial performance. 22 23 Locations Where Norwegian Companies Operate in Brazil 2017 - 2018

Published by Photo Credits

Frontpage and Page 13 Aker Solutions ASA Norwegian Consulate General Rio de Janeiro Frontpage and Page 17 Einar Aslaksen for Equinor ASA Frontpage and Page 18, 21 Yara International ASA

Frontpage and Page 19, 23 Ole Jørgen Bratland for Equinor ASA

Frontpage and Page 20 Norsk Hydro ASA

Frontpage and Page 22 Adevinta ASA

Frontpage PGS ASA

Rua Lauro Müller 116 - Torre Rio Sul - Botafogo Page 15 Vard Group AS Rio de Janeiro - RJ - 22.290-160

Developed by

Av. Ipiranga 200 São Paulo - SP - 01046-010

https://fujikawa.com.br/