The document outlines an agenda for a Canada-Brazil business mission taking place from October 21-25, 2013 in São Paulo and Rio de Janeiro. It includes an overview of Brazil's economy, sectors of opportunity, trade relations with Canada, and cultural factors to consider when doing business. Practical information is also provided on logistics, matchmaking meetings scheduled with local companies, and why Brazil represents an important market for foreign investment.

1. 2740 Matheson Boulevard East, Unit 5
Toronto, Ontario, L4W 4X3
Phone: +1 416 737.2280
Fax: +1 416 465.6206
CAP Mission BRAZIL
October 21st-25th , 2013
AGENDA
Country Outlook
Brazil-Canada
Business Culture
São Paulo
Rio de Janeiro
Conclusion: why Brazil?
Practical Info
Matchmaking

3. Brazil – A world within a Country

4. Brazil: South America’s Powerhouse
Sources: International Monetary Fund (IMF).
Brazil represents 50%
of South America’s
total GDP
GDP per capita: U$11.400
US$ 2,5 trillion of GDP

5. Brazil in numbers or Brazil’s Facts
Source: Brazilian Institute of Geography
and Statistics (IBGE) and Brazilian
Central Bank

6. Brazil in numbers (2011)

8. Growth of Brazilian GDP
Source: Brazilian Institute of Statistics and Geography.

9. Investment Prospects (R$ billion, and %change)
Source: GT Investimento, APE/BNDES, Mongan Stanley LatAM Economics.

10. Numbers by Region
Source: IBGE, 2009-10.

11. Population
 Brazil’s population is roughly 194 million
(2012) and estimated to be growing at
about 1.17% per year.
 About 42% of the population is under 24
years and 11% is 60 years and over.
 The average life expectancy is 73.1 years.
 A reduction in poverty has been witnessed,
especially among those living in extreme
poverty (with income of up to one-quarter
of the minimum wage per capita).
Source: IBGE, 2012.

12. More Buying Power
Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular .

13. Growing Middle Class → Expanding
Consumer Market
 The expansion of the classes C, B and A, in recent years should continue.
The country has witnessed a very positive moment in terms of reducing
inequality and increasing income.
* FGV Projection
Source: Brazilian Central Bank / FGV

14. Brazilian remarks in market and production
 Largest consumer market in Latin America;
 3rd largest market of cell phones, cosmetics and soft drinks;
 5th largest market of personal computers;
 World’s 7th largest manufacturer and 4th largest consumer of automobiles;
 World’s 4th largest manufacturer of aircraft and top producer of models
seating up to 120 passengers;
 Largest consumer market for renewable energies (UN);
 Largest producer of biofuels;
 Top 5 producer of medical and dental equipment;
Source: Apex, 2011.

15. Brazilian remarks in market and production
 Home to the world’s 10th largest petroleum reserves;
 Leader in production and exports of several agribusiness products and 3rd
overall largest exporter of agricultural goods;
 13th largest producer of scientific articles;
 10th largest industrial produce.
Source: Apex, 2011.

16. Largest consumer markets in 2012 and 2020
Sources: EXAME (magazine), McKinsey, Escopo, Euromonitor, Anfavea and Abraciclo.
Produced by: Ministry of Finance

17. Top 10 Imports (2011)
Sources: Brazilian Ministry Development Industry and Foreign Trade.
1. Crude oil: 6,2%
2. Automotives: 5,3%
3. Liquid oils: 3,5%
4. Autoparts: 2,8%
5. Drugs and medicine: 2,6%
6. Naphtha: 2,1%
7. Electronic components: 1,9%
8. Bituminous coal: 1,9%
9. Reception and transmission parts: 1,6%
10. Potassium chloride: 1,5%
Top 3 import countries
15.0% China
14.6% United States
7.0% Argentina
Also: Netherlands, Japan,
Germany and India.

18. Opportunities

19. Timing
Brazil is in a particularly positive moment

20. Investments 2005 - 2013 (R$ billion)
Source: GT Investimento, APE/BNDES, Mongan Stanley LatAM Economics.

21. Investments 2013-2016 (R$ billion)
Source: BNDES. Study: Perspectivas do Investimento, 2013.

22. Infrastructure – GOALS, next 5 years (US$)

23. Global consumer market in 2020 (US$ trillion)
In January 2013, the exchange rate was approximately US$ 1 = R$ 2.00
Sources: Exame Magazine and McKinsey. Produced by: Ministry of Finance.

24. Expected growth in business
In January 2013, the exchange rate was approximately US$ 1 = R$ 2.00
Sources: PricewaterhouseCoopers (PwC) Produced by: Ministry of Finance.
A recent survey with more than 1,300 CEOs
indicated that Brazil is the third most often
mentioned country as the one that the
CEOs consider most important for their
business overall growth prospects over the
next 12 months (excluding the country in
which the CEO is based).

25. Booming sectors

26. Brazil - Canada

27. Brazil is Canada’s 10th export market

28. Top 10 Canadian Exports to Brazil 2012

29. Top 10 Canadian Imports to Brazil 2012

30. Foreign Direct Investment Brazil - Canada
Source: Statistics Canada – CANSIM.

31. Canada-Brazil Bilateral Investments 2012
CDI
C$ 9.8 billion
Sectors:
Agriculture, Mining,
Shopping Centres,
Telecommunications,
Software, Environmental
Ind. Automotive Parts
Brazil is the 12th largest
destination for Canadian
outward investment
FDI
C$ 15.8 billion
Sectors:
Mining,
Steel,
Beverages,
Cement,
Software
Canada is the 7th largest
destination for Brazilian
outward investment
Source: Statistics Canada.

32. Understanding Brazil’s business culture

33. Building Relationships
 Brazilians place great importance on personal and family relationships.
Establishing a personal side to the business relationship, often through social
occasions, is a way to build mutual trust and pave the way to close a deal.
 Negotiations in Brazil are strongly influenced by personal contacts and
connections. Building this personal connection means that important deals are
normally conclude in person, and not by email or phone.

34.  When meeting for the first time, business relationships are formal;
 Some tips:
 In most sectors, clothing should be formal and conservative: Man wear
suits or dressy blazer; Woman can get away with a suit, dress or just a
nice top/pants/skirt;
(Late October weather is typically rain season, but warm)
 Use Mr./Mrs./Ms. And last name – many people are only called by their
last name in a work environment (but you should not do this until you
reach a more personal level);
 Common greeting is a handshake, although in informal situations man
and woman sometimes kiss on both cheeks and hug briefly
 It is usual to bring a small token/gift, such as pen, key-chain, etc.
(Note that anything of value could be perceived as a bribe.)
Business etiquette
.

35. Doing Business in Brazil
Closing the Deal

36.  Be committed to the market over the long-term;
 Be prepared to explain your strategy to provide timely and local service to your
Brazilian customer;
 Develop a local presence for visibility with key clients:
 After-sales service,
 Technical assistance
 Spare parts delivery & installation,
 Portuguese communication;
 Invest in local partnerships : JVs, MOUs, Strategic Alliances;
 Get good advice: Legal, Accounting, Fiscal;
 Collaborate with key professionals & sector associations in market.
Market Strategies to Succeed
Source: EDC Canada.

37. Foreign trade and investment opportunities
 Brazil is the leading territory for investment opportunities in Latin America;
 Large potential consumer market and a growing and thriving middle class;
 Export-based enterprises are generally favored;
 Foreign investors are eligible for most available incentives;
 Restrictions on foreign ownership exist in several sectors, including aviation
and publishing;
 There have been favorable changes in the business culture and a spread
of corporate governance and best practices;
 Robust performance of IPOs and merger and acquisition (M&A) markets in
recent years.

38.  Business activities are generally regulated;
 Prohibitions normally apply equally to local and foreign-owned
businesses;
 Considerable documentation and bureaucracy are involved in day-to-
day operations;
 Foreign-exchange transactions are controlled;
 Stock markets are active, sophisticated and reasonably developed;
 Patent, trademark and copyright protection is available.
Regulatory environment

39. Most Problematic Factors for Doing Business
Source: World Economic Forum, Morgan Stanley LatAm Economics.

40. Tax Burden Indicators
It takes companies in Brazil 2,600 hrs/yr. to prepare and pay taxes vs. a median of 224 hrs in other countries.
Source: World Bank, Morgan Stanley LatAm Economics.

41. São Paulo State

42. São Paulo State
Sources: IBGE, Brazilian Central Bank and SEADE .

43. City – State
 10th richest of the world
 15% of Brazil’s GDP
 Financial Center of the country

44.  Population: 41.9 million
 GDP: US$ 590 billion (33.9% of Brazil’s total)
 Home to vast majority of multinational regional HQ’s
 63% of international corporations in Brazil
 36% of the production of goods and services in the country
 Largest medical center in Latin America
 Strongest academic research center
São Paulo State

45. Rio de Janeiro

46. Rio de Janeiro State
Source: Decision Rio Investments 2011-2013.
 Population: 15.9 million
 GDP: US $ 254.5 billion (11% of Brazil’s total)
 2nd largest city in Brazil and 3rd in Latin America
 A logistics hub with 2 seaport, 3 commercial airports (2nd busiest in the
country)
 56% of Brazilian GDP comprised within a 500 km radius

47. Investments 2011-2013 Rio de Janeiro
Source: FIRJAN.

48. Investments 2012-2014 Rio de Janeiro
Source: FIRJAN

49. Conclusion
A large country with an expanding population, rising salaries and a
favored market for foreign investment in the region, Brazil’s medium-term
prospects remain encouraging.
Although the country needs to make a significant number of structural
changes to boost its potential growth, there is clear potential for Canadian
businesses to create collaborations and open new markets.
These opportunities are not only in the main cities of RJ and SP - the
Canadian Government has been developing relationships in other states,
both in the South and Northeast regions.

50. Why Brazil?
 2012 Context – Most comprehensive, positive Canada-Brazil Bilateral
relationship in 20 years – business, political, academic, S&T;
 Emerged market/sustainable economy – Trillion-Dollar Club member;
 Powerhouse of South America;
 Strong Domestic Market, with a fast growing middle class;
 Richness of natural and cultural assets;
 Environmental sustainability;
 Open markets and multilateralism;
 Clean and abundant renewable energy.

51. Before you get on the road, some practical info:
Official language: Portuguese
Electric current : 220v
Time difference: UTC-3 (SP, RJ) There is no time difference with Atlantic Time in
August. It will be 2hrs in October.
Exchange: 1 Canadian Dollar = ~ 2.3 Brazilian Real (as of August 27, 2013)
Please exchange at local banks before you leave, as international bank
machines not always available. Only carry what you need for the day, leave the
rest at hotel safe.
Local Cell Phones: Can be purchased for R$10 chip +R $20 credit
Security tips:
- No jewelry, expensive watches;
- Keep your electronics out of sight in public places;
- Carry a copy of your passport and small amounts of cash;
- Do not carry your wallet with all cards/documents;
- Credit Cards widely accepted, advise your bank that you are
travelling to Brazil. Take only one card with lower limit when out.

52. Matchmaking
 At least 5 meetings per company in RJ/SP
 Mandala local support team at pre-determined hotel location
 SP: most meetings at hotel, but also client location
 RJ meetings at hotel/client location
 Interpreters provided if required
 Transportation to meetings provided (private cars)
 Possibility of meeting out of town, depending on your objectives

53. 2740 Matheson Boulevard East, Unit 5
Toronto, Ontario, L4W 4X3
Phone: +1 416 737.2280
Fax: +1 416 465.6206