1. Doing Business in Brazil
Overview, Opportunities and Challenges
FGV – Creating Innovative Businesses in Brazil
August 2014

2.  Doing Business in Brazil
 Rio de Janeiro – Facts & Figures
AGENDA  Introduction
 The Role of the Institutions
 Brazil – Facts & Figures
 About Rio Negocios
Tonight’s Agenda

3. “…a slightly gangly adolescent, standing tall amid the
world community, not fully grown into its new stature
but confident and eager to make its mark”
Ricardo Amorim, Brazilian Economist

5. Brazil: too big to ignore

6. Source: Euromonitor International

9. “What makes Brazil unique is the
strength of its domestic demand”
Neal Shearing at Capital Economics

12. USD 448
Billion investment
(2013-2016)
Oil and Gas = USD 203 Bi
Electric Energy = USD 83 Bi
Telecom = USD 51 Bi
Railways = USD 38 Bi
Highways = USD 35 Bi
Sanitation = USD 21 Bi
Ports = USD 12 Bi
Airports = USD 5 Bi
Source: BNDES
BNDES: Perspectives in Infrastructure
Investment by sector

14. Belo Horizonte
São Paulo
Vitória
Curitiba
Brasília
Campo Grande
Rio de Janeiro Açu Port
Vitória
Port
Rio Port
Santos Port
AP4
AP5
AP3
AP2
AP1
Sepetiba
Port
 Population: 6.5 M
 Logistics HUB – 2 ports, 3
airoports (2nd most
important in the country)
 56% of Brazilian GDP is
within a 500km radius
 All pre-salt reserves within a
500km radius
Framework

15. KEY FACTORS
Institutional Security
Demand for Commodities (Food, Mining, O&G)
Strong expansion in the Internal Market
National Factors
Public Safety
Alignment & New Political Generation
Regional Factors
International Events
Talent Pool  Largest amount of courses with Best quality in science
Sectors Headquarters of investments captors  50% of the country targeted investments in sectors that
Rio has the lead (BNDES)
O&G
 USD 400 billion investment over the next 10 years
 Logistics (ports of Sepetiba and Rio)
 Engineering Services
 Industries (Inhaúma Shipyard, COMPERJ)
 Technology
EFFECTS CHALLENGES
Business Framework

16. EFFECTS KEY FACTORS CHALLENGES
Global visibility
Unemployment Rate (Talent & Productivity)
Infrastructure
 Waterfront Area: USD 4.5 B
 Transport: USD 8.5 B
 Sanitation, Environment and Olympic Areas
Industrial Expansion
 CSA: USD 6.7 Bi investment (Brazil largest)
 O&G Chain and arrival of new companies in the sector:
Rolls Royce, Oil & States
Technological Development  USD 1.6 B investment in new R & D Centers
Services & Real Estate  16,000 Housing Units in New Hotels (70%)
 10,000 commercial units launched in 2012 (350 km ²)
Table Source: Estimates produced by the database of Aggregated Data Census 2010 by census tract, extracted 25/07/2012
Graph Source: IBGE, Research, Coordination of Work and Income, Monthly Employment Survey
Unemployment Rate
Business Framework
Rio de Janeiro - RJ 48.90
Recife - PE 50.76
Vitória - ES 54.25
Salvador - BA 55.06
Brazil 56.12
Brasília - DF 58.88
Porto Alegre - RS 59.26
São Paulo - SP 60.39
Belo Horizonte - MG 60.51
Curitiba - PR 52.82
Population 15-24 years old, working
or seeking employment (%)

17. CHALLENGES KEY FACTORS EFFECTS
Professional Training
Bureaucracy
Construction of the city's image
Operating Costs
Commercial exploitation of the moment
• Project professional training of approximately 150,000
service professionals
Source: Rio Negócios, database of companies received
Shortage of areas
14%
12%
11%
11%
11%
9%
9%
7%
7%
4%
3%
2% Industry
Tech
Energy
Hospitality
Finances
Infrastructure
Creative
Economy
Consulting
International
Representations
Education
HealthSales
+4K
companies
% Of Sector Companies Received by Rio Negócios
Business Framework

18. 38%
25%
15%
15%
7% shipyard
steel
petro-
chemical
automotive
others
USD 19B
42%
29%
21%
8%
logistics &
transport
energy
urban
development
sanitation
USD 24B
The Economic Hub of the State Investments
Source: FIRJAN “Decisão Rio 2012-2014”, Rio Negócios Analysis
Note: USD = 1.8751 (BACEN – Dec-31-11)
¹ Investments which does not restrict the one region of the
state
South
USD 7.6B
North West
USD 0.5B
North
USD 13.9B
East
USD 6.1B
Center
USD 0.5B
“Baixada”
USD 7.8B
City of Rio
USD 18.4B
Various (all state)¹
USD 58.2B
USD 113 B
51%
19%
24%
4%
1%
1%
O&G
infrastructure
Olympic
venues
others
tourism
manufacturing
industry
investment by sectors investment by region
The economic center of the state investments

19. INTERNATIONAL
• 35% of working visas in Brazil were
issued to Rio
• Ranked “Best Place to Live” by foreign
residents in Brazil
LIFESTYLE
• A unique culture that
promotes innovation and
entrepreneurship
GEOGRAPHY
• Over 90 km of beaches
• 30% of the city is made up of green
areas
• Largest urban forest in the world
Global City
the place to attract and retain talent

20. # of Courses - CAPES (Post Grad) - Grades 6 and 7# of Courses - MEC (Undergraduate) - Grades 4 and 5
2
7
8 8
14
27
-
4
8
12
16
20
24
28
32
Rio de
Janeiro
Porto Alegre
Recife
São Paulo
Belo Horizonte
Campinas
Source: MEC, CAPES, Universities and RN analysis
Note: Courses – Engineering, Physics, Chemistry, Math, IT and Business (Administration, Economics and Accounting)
31
35
43
75 76
128
-
30
60
90
120
150
Rio de Janeiro
Porto Alegre
Recife
São Paulo
Belo Horizonte
Campinas
Talents: leader in academic excellence

21. Higher Education
Rio is home to 20% of Brazil’s leading academic institutions

22. Latin American Center for R&D
USD1,6billion
investments

23. Strategic Sectors

24. BRAZILDOINGBUSINESS

26. TOPICS DB 2014 Rank DB 2013 Rank Change in Rank
Starting a Business 123 20 121 11 -2 -9
Construction Permits 130 34 126 30 -4 -4
Getting Electricity 14 13 14 13 No change No change
Registering Property 107 25 103 24 -4 -1
Getting Credit 109 3 105 3 -4 No change
Protecting Investors 80 6 80 6 No change No change
Paying Taxes 159 64 160 69 1 5
Trading Across Borders 124 22 124 21 No change -1
Enforcing Contracts 121 11 121 12 No change 1
Resolving Insolvency 135 17 146 16 11 -1
Ease of Doing Business

27. Indicator Brazil
Latin America &
Caribbean OECD
Procedures (number) 13 9 5
Time (days) 107.5 36.1 11.1
Cost (% of income
per capita)
4.6 33.1 3.6

28. Advantages
• Political Stability
• Solid Institutions
• Internal Market Growh
• Investments in Infrastructure
Disadvantages
• Overall Bureaucracy
• Tax burdens - around 37% of GDP
• Corruption
• Operating Costs
• Cultural Aspects / Time
The Great and the Not so Great

29. A word about Bureaucracy

30. 1. Relationships come first, second and third
2. Time is relative
3. Local commitment
4. Organizational structure
5. Business meetings
6. Language
7. Personal Communication
8. The Written Word
9. Humor
10. Appearance
Cultural Aspects

31. Federal Level
Ministry of Development, Industry and Commerce (MDIC)
Ministry of Exterior Relations (MRE)
APEX
State Level
Undersecretary of International Relations
CODIN
AgeRio
FIRJAN
Municipal Level
Rio Negócios
Public Institutions that can help

33. Rio Negócios
Following in the footsteps of the world’s top cities to create the first municipal
investment promotion agency in Brazil

34. How We Work
Our Focus & Opportunities How We Work

35. 4 years: Track Record

37. Thank you!
Tami Vivas
Institutional Relations Manager
Rio Negócios
www.rio-negocios.com
tvivas@rio-negocios.com