1. 1
Outlook – Investment Opportunities
Made by Leonardo Slhessarenko and Gabriel Prado de Barros
2. Executive Summary
2
Overview of Brazil’s Economy
Overview of Mato Grosso’s Economy
Expertise
Business Opportunities
Financial Transactions
Legal System
4. 4
Overview of Brazil’s Economy
Seventh largest economy in the world
Brazil has an export-oriented economy
Extensive natural resources, agricultural diversity and manufacturing production
Issues: Bureaucracy, corruption and weak infrastructure
Opportunities: Average US Dollar to Brazilian Reais is R$3.8 to $1 (10/15/2015)
Source: World Bank and economia.uol.com.br/cotacoes/cambio/dolar-comercial-estados-unidos/?historico
5. 5
Average US dollar to Brazilian Reais
USD/BRL 3.8 - 10/15/2015
Source: World Bank and economia.uol.com.br/cotacoes/cambio/dolar-comercial-estados-unidos/?historico
In 2015 the biggest appreciation of the dollar in the history of Brazilian Reais was recorded
6. 6
Commodities global ranking
Source: USDA, FAO, IBGE. World production: USDA harvest 12/13
World production of Grains & Oilseed
Brazil in the world ranking
1st 2nd
3rd 4th
1st 19,6% 2nd 16,4% 3rd 10,1% 4th 6,6%
5th
• Coffee
• Orange juice
• Sugar Cane
• Soybeans
• Beef
• Poultry
• Corn
• Milk
• Grape
• Pork
• Cotton
7. 8
Increase of agricultural area
Source: FIESP/ICONE IMEA
Increase of 23 millions acres for the next years
Brazil still has room to grow
Acres
Millions
128
151
Millions
Acres
8. 9
Projection by 2022
Source: FIESP/ICONE IMEA
BillionsT
MillionsT
Agriculture
Production
Livestock
Production 14%44%
Projections:
Cotton, rice, barley,
beans, wheat,
soybeans, corn,
sugarcane.
Brazil's favorable climate allows for two crop per year
Brazil’s arable land has more growth potential than any other country
9. 1010
Costs linked to production
75% of Costs Are Linked to US$
Lower % of Fixed Costs
Fixed
16%
Variable
84%
US$
75%
Reais
25%
Key Highlights
Fertilizers are acquired through bank financing;
equivalent amount of soybean is immediately
pre-sold to lock-in operating margins
Leasing contracts are governed by a number of
soybeans bags per hectare, aligning costs to
production revenue
Supply contracts for chemicals are guaranteed
by cotton sales, creating a natural hedge for one
of the largest production costs
11. 12
Brazil’s commodities leader
Source: CONAB, IBGE e Imea
Mato Grosso accounts for 9% of the world’s total soybean production
Mato Grosso accounts for 3.9% of the world’s cotton production (9th largest worldwide)
The State of Mato Grosso produced over 52 million tons of total commodities in 2014/15
The State of Mato Grosso is the largest overall exporter in Brazil’s Midwest and one of the largest in Brazil
1st
18. The Dealmaker
19
1. Find an Opportunity
“Client”
2. Analyze and Evaluate
Offering Guarantees
for both sides 1. Find Capital
2. Capital and
ROI Strategies
3. Retain
Client or Exit
Strategy
3. Create strategy to
Raising Capital
OPPORTUNITY
INVESTMENT
Editor's Notes
Backup slide
Backup slide
This chart tells us the share in revenue.
As you can see agriculture accounts for 74% of revenue.
50% of this is soybeans, 11% corn, 9% cotton 3% sugarcane and 1% rice.
On the other hand, 26% of revenue is livestock.
20% is cattle, 4% poultry 1% pork and finally 1% is Milk.
Here in this slide, we see the development in land and production over the years.
In orange we can see that Mato Grosso grew from 4 to 13 million hectares or around 10 to 32 million acres.
Likewise, the production in green.
We came from 13 to 52 million tons this year.
In 15 years Mato Grosso grew 400% in production.
The good news is that Mato Grosso still growing.
Only grains is projected to reach 67 millions tons by 2022.
And almost 72 million tons by the same date.
Mato Grosso uses only 9% of the land in agriculture.
27% is pasture for cattle.
We believe that pastures land will be converted into agriculture.
41% of the lands are preserve by producers (untouch).
More than 60% of Mato Grosso areas are in somehow preserve, in parks like conservation units, native lands (indigenous) and as we said by producers.
Actually, Mato Grosso decrease deforestation by 92% in the past 10% according our Governor Pedro Taques.
Here we will talk a little bit about us.
Who we are and what we are bring to the table.