Sérgio Costa | Investe São Paulo | Global Cities Initiative

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Sérgio Costa | Investe São Paulo | Global Cities Initiative

  1. 1. 28/11/2012 Investe São Paulo – Global CitiesSérgio Costa InvestmentDirector PromotionNovember, 28th, 2012 Agency Mission Being the gateway to new investments or expansion of existing businesses, generating innovation, employment and income, in addition to the continuous improvement of the competitive environment and of the image of the State of São Paulo Investment Promotion Agency 1
  2. 2. 28/11/2012 Areas of Activity Investment Outreach • Identification of sectors and companies with investment potential Investment Projects • Technical support and orientation to investors: site location, taxes, infrastructure • Contact with public and private institutions aiming as investment facilitation Institutional Activities • Reception of foreign delegations and organization of international missions • Support and guidance for municipal governmentsSP Actions for the Promotion of Competitiveness • Labor training, Taxation, Innovation, Infrastructure and Licensing • Studying and proposing public policies Promotion of the image of the State of Sao Paulo Our Website SP in Maps Investment Promotion Agency 2
  3. 3. 28/11/2012 Our Customers October 2012 Announced Investments: Direct Jobs:Portfolio of projects USD 8.802 billion 35.290Number of projects: 59*Potential Investments: USD 9,4 billionPotential direct jobs: 27,600Sectors: automotive, food, oil and gas,energy, machinery and equipment,information technology andcommunication, solid waste andbiotechnology.Origin: United States, China, SouthKorea, Spain, Japan, Italy, England,France and Brazil. DABO* The names of these companies are keptconfidential in compliance with NDA signed withInveste São Paulo Exchange: US$ 1 = R$ 1.67 Brazil in World Economic Context 3
  4. 4. 28/11/2012 Brazil, the 6th economy of the planet GDP - US$ billions 4th Germany 2,417 3,577 9th Russia10th Canada 7th UK 1,850 1,736 2,198 12thSpain 2,776 8th Italy 1,493 5,870 15,094 5th France 7,298 3rd Japan 1st USA 11th India 1,676 2nd China 2,492 6th Brazil Investment Promotion Agency Source: IMF - year 2011 Selected Countries: Territory, Population and Economy Population > 100 million Territory > 3 million km2 Pakistan Bangladesh Russia India China Canada Australia Indonesia Nigeria United States Brazil Japan Mexico United Kingdom Germany France Netherlands Italy South Korea Spain Economy (GPD) > US$ 750 billion Investment Promotion Agency Source: IMF, World Bank - 2010 4
  5. 5. 28/11/2012 Brazilian Age Structure 2010 2020 2050 80 50 30 0 Opportunity Challenges Larger contingent of working-age Increase on health and social security population = possibility of increasing expenditures productivity Investment Promotion Agency Source: IBGE / Revista Veja, December 2010. Social Mobility AeB C D E Year 2014 15,5% 56,5% 20,0% 8,0%projection 2009 10,6% 50,5% 23,4% 15,4% 2003 7,4% 37,7% 26,9% 28,0% Percentage of Inhabitants Investment Promotion Agency Source: Banco Central do Brasil/ FGV 5
  6. 6. 28/11/2012 São Paulo state in the Brazilian Context Brazil and São Paulo Brazil Territory (1,000 km²)8.515 Population (million) 192 GDP nominal (US$ bi) 2.475 GDP per capita (US$) 12.866 São Paulo Territory (1,000 km²)248 Population (million) 42 GDP nominal (US$ bi) 792 GDP per capita (US$) 19.049 22% of the population 32% of GDP nominal 1,5X of GDP per capita Investment Promotion AgencySource: IBGE, Brazilian Central Bank , SEADE – Exchange Rate US$ 1 = R$ 1,76 6
  7. 7. 28/11/2012 São Paulo Highlights• 1st largest cargo airport in South America• 1st largest producer of sugar cane ethanol in the world• 1st largest helicopter fleet in the world• One of the five largest stock exchange in the world (BM&FBOVESPA)• 3rd largest producer of aircraft in the world• 42% of domestic production of vehicles• Capital: sixth largest metropolis in the world• Agribusiness: Orange – 53% of juice world production Sugar – 23 million tons/year Beef – US$ 2.18 billion in exports Investment Promotion Agency São Paulo Competitive Advantages Largest Consumer Market in LATAM Environmental Skilled Responsibility Workforce São Paulo Competitive Advantages Largest Brazilian Supply Chain Investor in R&D World-class Infrastructure Investment Promotion Agency 7
  8. 8. 28/11/2012 Brazilian State Capitals where the consumer market grows most Sales increase 2010 - 20201 (US$ billions) 36.59 22.40 8.62 7.78 7.19 6.65 5.75 4.25 4.07 3.65 São Paulo - Rio de Janeiro Brasília - DF Belo Horizonte Curitíba - PR Salvador - BA Fortaleza - CE Recife - PE Porto Alegre - Manaus - AM SP - RJ - MG RS (1) 45 product categories analyzed Source: Exame Magazine – McKinsey Exchange rate – US$ 1 = R$ 1.67 20 Brazilian inland cities where the consumer market grows most Sales increase 2010 - 20201 Share of the cities by state (US$ billions) Campinas 2,34 Santos 1,86 $3,05 Sorocaba 1,50 Ribeirão Preto 1,44 $1,14 São José dos Campos 1,14 Piracicaba 1,08 $1,20 Jundiaí 1,08 São José do Rio Preto 0,96 Bauru $1,20 $12,34 0,96 Joinville 1,08 Caixias do Sul 1,20 $1,74 Rio das Ostras 1,14Campo dos Goytacazes 0,96 Londrina 1,02 $2,10 Parauapebas 1,74 Uberlândia 2,10 Juiz de Fora 1,26 $3,35 Anápolis 1,14 Juazeiro do Norte 0,96 SP MG RJ PA RS BA GO Others Feira de Santana 1,20 (1) 45 product categories analyzed Source: Exame Magazine – McKinsey Exchange rate – US$ 1 = R$ 1.67 Investment Promotion Agency 8
  9. 9. 28/11/2012 São Paulo’s share of the Brazilian output Selected Sectors 72.92% 67.83% 58,34% 33,52% 95.84% 58,13% 55,28% 47,77% 36,76% 60% Electromedical andManufacture of pharmaceutical Computer equipment and Petroleum products electrotherapeuticequipment Communications apparatus Machinery and equipment Electronic components Chemicals Biofuels Aircraftchemicalsperipherals and pharmaceuticals and equipment of irradiation Higher Education 572 college level 1,474,516 institutions students enrolledThe State Government is responsible for three of the best universities in Latin AmericaLargest number of technological students graduated in Brazil • 59 thousand students • 55 technology colleges • 61 courses in the areas industry, services and agricultureSource: INEP Agência Paulista de Promoção de Investimentos e Competividade 9
  10. 10. 28/11/2012 Technical Schools 1274 More than 430,000 technical schools students enrolled Largest program of technical education in Brazil:Technical Schools – Etecs• 226 thousand students• 208 technical schools• 121 courses in the fields of industry, services and agriculture Agência Paulista de PromoçãoSource: INEP, Centro Paula Souza de Investimentos e Competividade R&D / Innovation More than 13% of the São Paulo State Fundação de Amparo à revenue is used in high quality US$ 616 million Pesquisa Científica e education, research and development. annual budget Tecnológica (Fapesp) The State also hosts federal universities and research institutions. 3 universities among the ones that most USP, Unicamp develop scientific and Unesp research in Brazil International 19 research institutes recognition 19 initiatives of All over Technological Parks the state Investment Promotion Agency 10
  11. 11. 28/11/2012 State funds invested in R&D (2010) (R$ millions) 5.012,2 SP Other 26 states Demais 26 Estados 28% 72% 488,9 413,5 213,9 209,9 120,4 92,9 70,3 63,5 58,2 SP RJ PR MG SC BA RS DF CE PE Source: Coordenação-Geral de Indicadores(CGIN)- ASCAV/SEXEC - Ministério da Ciência e Tecnologia Investment Promotion Agency Technology Park System 19 implementation initiatives São José dos Campos São Carlos - Damha Campinas Piracicaba Ribeirão Preto Sorocaba Investment Promotion AgencySource: Secretariat of Development. 11
  12. 12. 28/11/2012 World Class Infrastructure • 19 out of the 20 best highways • 800out ofrailways best Largestof of railways 5,400km 19 Km Waterways 2 international airports Pipelineport 20 5.400 Km the • 2 international airports 33 South America domestic airports • highways in Brazil in domestic airports 33 industrial centers • Largest port in South America • 800 km of Waterways • Pipelines in industrial centers Highway Railway Waterway Pipeline Home airport International airport River port Sea port Environmental Responsibility• Energy matrix with 55% of renewables• Competitive advantages for energy production from biomass• New opportunities in environmental technology markets• Brazil’s most advanced conservation system • 17.5% of the state area is of environmental preservation • 27 State Parks • 21 Ecological Stations • 17 Experimental Stations • 13 State Forests Source: Energy Secretariat of State of Sao Paulo, Forest Foundation Investment Promotion Agency 12
  13. 13. 28/11/2012 FIRJAN Index of Municipal Development 19 out of the 20 best ranked Brazilian municipalities are in the State of São Paulo Ranking IFDM Ranking IFDM Emprego & UF IFDM Educação SaúdeNacional Estadual MUNICÍPIOS BRASILEIROS - Ano 2009 Renda 1º 1º SP Barueri 0,9303 0,9184 0,9206 0,9518 2º 2º SP Paulínia 0,9290 0,8954 0,9675 0,9240 3º 3º SP Araraquara 0,9281 0,9035 0,9600 0,9207 4º 4º SP Ribeirão Preto 0,9239 0,9299 0,9213 0,9207 5º 5º SP São José do Rio Preto 0,9202 0,8704 0,9546 0,9356 6º 6º SP Indaiatuba 0,9164 0,8631 0,9393 0,9469 7º 7º SP Marília 0,9125 0,8463 0,9615 0,9297 8º 1º MT Lucas do Rio Verde 0,9046 0,8849 0,8650 0,9640 9º 8º SP Taubaté 0,8985 0,9013 0,8951 0,8992 10º 9º SP Itupeva 0,8942 0,8979 0,8921 0,8925 11º 10º SP São Paulo 0,8930 0,8799 0,9121 0,8870 12º 11º SP Santos 0,8924 0,8318 0,9312 0,9143 13º 12º SP São Carlos 0,8906 0,8038 0,9525 0,9155 14º 13º SP Santana de Parnaíba 0,8902 0,9011 0,8508 0,9188 15º 14º SP Jundiaí 0,8898 0,8244 0,9185 0,9264 16º 15º SP Itu 0,8893 0,9166 0,8603 0,8910 17º 16º SP Americana 0,8889 0,7949 0,9606 0,9110 18º 17º SP Bauru 0,8882 0,8516 0,9118 0,9011 19º 18º SP Amparo 0,8872 0,7792 0,9301 0,9522 20º 19º 0,8866 0,8465 Investment Promotion Agency 0,8888 0,9246 SP Campinas Brazilian Investment Competitiveness Ranking Economist Intelligence Unit The Economist 13
  14. 14. 28/11/2012 General Ranking Scale – 100 for best, 0 for worst STATES CLASSIFICATION REGION SOUTHEAST Very Good SOUTH CENTER WEST Good NORTHEAST NORTH Moderate Poor NATIONAL OVERALL #1Source: The Economist, Centro de Liderança Pública and Veja Investment Promotion Agencyhttp://veja.abril.com.br/infograficos/clp/ Economic Environment Scale – 100 for best, 0 for worst STATES CLASSIFICATION REGION SOUTHEAST Very Good SOUTH CENTER WEST Good NORTHEAST NORTH Moderate Poor NATIONAL OVERALL #1Source: The Economist, Centro de Liderança Pública and Veja Investment Promotion Agencyhttp://veja.abril.com.br/infograficos/clp/ 14
  15. 15. 28/11/2012 Human Resources Scale – 100 for best, 0 for worst STATES CLASSIFICATION REGION SOUTHEAST Very Good SOUTH CENTER WEST Good NORTH NORTHEAST Moderate Poor NATIONAL OVERALL #1Source: The Economist, Centro de Liderança Pública and Veja Investment Promotion Agencyhttp://veja.abril.com.br/infograficos/clp/ Infrastructure: Highways Quality Scale – 100 for best, 0 for worst STATES Highways quality CLASSIFICATION REGION SOUTHEAST Very Good SOUTH CENTER WEST Good NORTHEAST NORTH Moderate Poor NATIONAL OVERALL SP DF #1Source: The Economist, Centro de Liderança Pública and Veja Investment Promotion Agencyhttp://veja.abril.com.br/infograficos/clp/ 15
  16. 16. 28/11/2012 Innovation Scale – 100 for best, 0 for worst STATES CLASSIFICATION REGION SOUTHEAST Very Good SOUTH CENTER WEST Good NORTHEAST NORTH Moderate Poor NATIONAL OVERALL #1Source: The Economist, Centro de Liderança Pública and Veja Investment Promotion Agencyhttp://veja.abril.com.br/infograficos/clp/ PPPs and MIP 16
  17. 17. 28/11/2012 Investment with Fiscal and Social Responsibility São Paulo State: Investment Plan of R$ 118.6 billion Over R$ 3 billions available every year to be invested in PPPs Investments forecast in the Multi-Year Program 2012-2015 State-Owned State Treasury Companies R$ 85.2 billion R$ 8,4 billion Private Sector R$ 25 billion Investment Promotion Agency Innovative Fast Track for PPP Projects State Decree 57.289 dated August 30, 2011 allows interested investors to present proposals for PPPs Projects PRELIMINARY PPP PROPOSAL APPROVAL PRIVATE SECTOR EVALUATION by INITIATIVE (MIP) State Commission REJECTION PUBLIC CALL for detailed technical studies, including alternatives Technical studies $ Technical studies Technical studies PPP Project CONTRACT APPROVAL (PPP Project winner PUBLIC BIDDING EVALUATION by State reimburses selected for the PPP Commissiontechnical study author) REJECTION Investment Promotion Agency 17
  18. 18. 28/11/2012 Current MIP Projects Line 6 – Orange of the Subway Prison Units in the State Deadline for presentation of studies by Network of São Paulo registered parties in August 2012. Studies under evaluation with the coordination of the Executive Secretariat of the Managing Council of PPP Private Investment - US$ 5, 9 bi Private Investment - US$ 426 mi Pharmaceutical Factory Interactive Class Américo Brasiliense – IFAB Deadline for presentation of studies by Studies under evaluation with the registered parties in July 2012. coordination of the Executive Secretariat of the Managing Council of PPP Private Investment - USS$ 80 mi Private Investment - US$ 750 mi Line 18 – Bronze of the Social Interest of Housing Metropolitan Network of São Deadline for presentation of studies by Paulo registered parties in September, 2012 Deadline for presentation of studies by registered parties in July, 2012 Private Investment - US$ 2,2 bi Private Investment - US$ 2,36 biExchange Rate US$ 1 = R$ 1,76 Major Events 18
  19. 19. 28/11/2012 Major EventsWorld Cup 2014• R$ 300 million of state investments in public works around the arena• Opening Stadium for 65 thousand spectators• Increase from 42 thousand hotel rooms to 50 thousandOlympic Games 2016• R$ 28.8 billion until 2016 • R$ 23.23 billion in infrastructure • R$ 5.62 billion for operations• São Paulo is expected to host selected contestsExpo 2020• Date: May 15 to November 15• Venue: Pirituba region• Motto: Power of Diversity, Harmony for Growth• Public estimated: 30 million visitors Global Cities Announced Investments, Foreign Trade and taxes. 19
  20. 20. 28/11/2012 Announced Investments Brazil x São Paulo 500 356 271 277 40% 39% 48% 42% 2009 2010 2011 2012 No. of projects SP 113 139 202 134 No. of projects Brazil 271 356 500 277 Source: fDi Intelligence from The Financial Times Ltd Investment Promotion Agency Announced Investments Brazil x São Paulo No. Projects SP No. Projects Brasil (2003- Strategic sectors Participation of SP (2003-2012) 2012)Aerospace 19 51 37%Green Economy 38 75 51%Oil & Gas 7 62 11%Software & IT 165 345 48%servicesLife Sciences 11 49 22%Source: fDi Intelligence from The Financial Times Ltd Investment Promotion Agency 20
  21. 21. 28/11/2012 US announced Investments Brazil x São Paulo Headline FDI trends by year Capital Capital Number of investment in investment In Number of Year projects in % of SP SP Brazil % of SP projects in SP Brazil Total (USD m) Total (USD m) 2003 28 83 34% 692,7 6.860,40 10% 2004 15 53 28% 369,4 3.686,10 10% 2005 20 43 47% 504,6 3.653,20 14% 2006 34 53 64% 841,6 5.174,50 16% 2007 29 48 60% 424,6 2.277,20 19% 2008 31 68 46% 2.321,00 9.545,50 24% 2009 37 79 47% 1.529,80 7.588,30 20% 2010 48 102 47% 1.330,00 9.091,60 15% 2011 62 146 42% 4.824,00 11.580,10 42% 2012 50 89 56% 2.243,10 5.062,90 44% Total 354 764 46% 15.080,80 64.519,80 23%Source: fDi Intelligence from The Financial Times Ltd Investment Promotion Agency US companies which announced Investments in SP Top 10 Companies: Jobs Created and Capital Investment Jobs created Capital investment Company Name Total Total (USD m) General Motors (GM) 4,402 1,395.90 IBM 2,972 263.80 Owens Corning 537 225.10 Cargill 308 79.90 Ford 2,309 589.70 Microsoft 135 15.40 Harley-Davidson 306 41.60 Motorola Solutions (Motorola) 593 31.30 Deere & Company 724 96.50 DuPont 83 16.20 Source: fDi Intelligence from The Financial Times Ltd Investment Promotion Agency 21
  22. 22. 28/11/2012 U.S origin cities for São Paulo Investments Projects Companies Capital Source city Jobs Created Investment No % No % (USD m)NYC (NY) 34 9.60 32 10.70 7,199 2,303.20Detroit (MI) 14 3.95 3 1.00 6,711 1,985.60Chicago (IL) 13 3.67 11 3.68 811 242.30Armonk (NY) 10 2.82 2 0.67 2,988 268.60Miami (FL) 8 2.26 8 2.68 232 870.50Dallas (TX) 7 1.98 6 2.01 676 917.10Toledo (OH) 6 1.69 2 0.67 545 227.50San Francisco (CA) 6 1.69 6 2.01 1,427 57.50San Diego (CA) 5 1.41 4 1.34 234 33.00Minneapolis (MN) 5 1.41 3 1.00 308 79.90San Jose (CA) 5 1.41 4 1.34 390 23.70Milwaukee (WI) 5 1.41 3 1.00 1,041 114.10Los Angeles (CA) 5 1.41 4 1.34 153 138.70Akron (OH) 4 1.13 4 1.34 599 68.90Indianapolis (IN) 4 1.13 4 1.34 1,356 95.40Stamford (CT) 4 1.13 3 1.00 98 75.10Houston (TX) 4 1.13 3 1.00 196 42.60Boston (MA) 4 1.13 4 1.34 633 586.10Palo Alto (CA) 4 1.13 3 1.00 1,229 37.80Wilmington (DE) 3 0.85 2 0.67 83 16.20Other source cities 201 56.78 187 62.54 23,741 6,837.80Not Specified 3 0.85 3 1.00 113 59.20Total 354 100.00 299 100.00 50,763 15,080.80 Source: fDi Intelligence from The Financial Times Ltd Investment Promotion Agency Brazil destination cities of U.S companies Investments Projects Companies Capital JobsDestination city Investment No % No % Created (USD m)Sao Paulo 234 66.10 217 72.58 23,291 7,497.00Campinas 17 4.80 17 5.69 1,485 471.40Paulinia 8 2.26 6 2.01 2,403 325.90Jundiaí 8 2.26 8 2.68 1,169 203.80Sao Jose dos Campos 6 1.69 6 2.01 1,2 233.20São Caetano do Sul 5 1.41 2 0.67 3,611 1,161.10Limeira 5 1.41 4 1.34 824 165.50Rio Claro 5 1.41 2 0.67 510 168.10Sorocaba 4 1.13 4 1.34 670 111.40Indaiatuba 4 1.13 3 1.00 1,083 175.40Sao Carlos 4 1.13 4 1.34 1,129 1,029.60Jaguariuna 3 0.85 2 0.67 869 47.30Taubaté 3 0.85 1 0.33 1,819 432.70Mogi das Cruzes 3 0.85 3 1.00 489 80.40Hortolandia 3 0.85 2 0.67 3,245 194.70Cotia 3 0.85 3 1.00 246 816.80Alphaville * 2 0.56 2 0.67 127 18.60Ribeirão Preto 2 0.56 2 0.67 276 59.80Embu 2 0.56 2 0.67 67 2.00Cubatao 2 0.56 1 0.33 103 128.00Other destination cities 23 6.50 23 7.69 4,207 750.00Not Specified 8 2.26 8 2.68 1,94 1,008.10Total 354 100.00 299 100.00 50,763 15,080.80Source: fDi Intelligence from The Financial Times Ltd Investment Promotion Agency* Alphaville is a Business Center in the cities of Barueri and Santana do Parnaíba 22
  23. 23. 28/11/2012 Foreign Trade Origin countries for São Paulo ImportsCountry 2010 20111st USA 12.927.155.024 14.793.421.5552nd China 9.108.909.926 11.619.421.1183rd Germany 7.011.731.183 8.164.566.2434th Nigeria 2.418.700.260 3.661.742.3365th Japan 3.428.858.958 3.483.675.4966th Argentina 2.979.281.479 3.315.369.7257thSouth Korea 2.352.862.160 3.135.444.5808th India 1.707.825.148 2.567.457.4669th Italy 1.985.487.795 2.424.987.43010th France 2.164.389.827 2.424.306.197Source: MDIC-SECEX. in US$ FOB Investment Promotion Agency Foreign Trade Destination countries for São Paulo ExportsCountry 2010 20111st Argentina 8.460.959.789 9.926.285.7502nd USA 4.923.373.883 6.245.243.4783rd China 1.669.127.663 2.876.868.9414th Netherlands 1.747.308.919 2.115.523.9825th Mexico 1.955.113.354 2.076.204.8856th Germany 1.577.666.442 1.822.585.9087th Venezuela 1.489.102.016 1.784.815.2018th Chile 1.741.768.520 1.687.968.6959th Belgium 1.279.412.659 1.553.151.84610th Russia 1.286.565.803 1.319.658.327Source: MDIC-SECEX. in US$ FOB Investment Promotion Agency 23
  24. 24. 28/11/2012 Tax Overview Brazil —2012 Tax from Domestic Production and Imports by Categories Maximum Tax Tax Kind Categories Minimum Tax Average Tax (values in %) Capital Goods 2,00 9,94 35,00 Domestic Consumer Goods 2,00 16,84 300,00 Production Fuels and Lubricants 8,00 11,63 15,00 Raw Material and Intermediate goods 2,00 8,11 60,00 Capital Goods 2,00 14,56 35,00 Consumer Goods 2,00 17,88 35,00 Imports Fuels and Lubricants 2,00 10,77 14,00 Raw Material and Intermediate goods 2,00 9,86 35,00Source: TIPI (Receita Federal do Brasil) and SECEX (MDIC). Investment Promotion Agency Costs of inputs Brasil — 2011-2012 Productor Price Index of Manufacturing industry Cumulative change in the last 12 months (month / month of the previous year) (Percentage) 7,53 7,14 6,99 6,88 6,81 6,68 6,64 6,22 5,69 4,89 4,83 4,91 4,78 4,68 4,24 3,22 2,60 2,55 1,75 1,36 0,71 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2011 2012 Source: IPP-IBGE Investment Promotion Agency 24
  25. 25. 28/11/2012 Thank You! Sérgio Costa Director Telephone: + 55 11 3218 6061E-mail: sergiocosta@investesp.org.br www.investe.sp.gov.br SECRETARIA DE DESENVOLVIMENTO ECONÔMICO, CIÊNCIA E TECNOLOGIA 25

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