BRAZIL TODAY

1
BRAZIL TODAY

• Why do companies invest in Brazil?
• Brazil offers quality, competitiveness and
  productivity
• The next year promises to bring considerable
  growth for industry and agriculture
• Investing in Brazil pays off due to the exchange
  difference theres a return index of 13 to 17
  per year (depending on the investment)
• Low inflation index of 5 yearly
• Brazil offers quality, competitiveness and
  productivity

2
Mercosur Map

• Brazil, Argentina, Paraguay, Uruguay and Chile
  are full Mercosur Members

3
Free Trade Perspective

• Brazil is ready for foreign investment
• Once the Mercosur economy strengthens Brazil will
  be even stronger
• If Mercosur enters the FTAA this will lead the
  way to easier absorption of large investments
  from industries such as steel, cellular, iron and
  durable goods
• These companies will need office space,
  plantation land and industrial facilities
• One free trade zone in Brazils Manaus region
  already hosts large companies such as Gillette,
  Roche, Panasonic and Rayovac

4
Rural/Agricultural Market

• Brazil is a world-wide producer of soya, meat,
  poultry and oranges
• Brazils rich soil, favorable climatic conditions
  and low land prices have already enticed many
  investors
• Farms in central Brazil average US500 to
  US1,000 ha
• Last year this region commercialized 15
  properties totaling 200,000 ha

5
Cattle Industry

• Cattle ranches cost around US1000 to US1500
  per ha
• These are located in Brazils South and
  Southwest regions

6
The Industrial Market

• Development is strong in areas such as steel
  (National Siderugic Company), telephony (Motorola
  and Commscope) and the vehicle industry
• Major production areas are found in southern
  Brazil
• São Paulo, Campinas, and Rio de Janeiro remain
  strong
• Roche, Eveready and Rayovac have developed sites
  in outlying areas

7
Industrial Examples
RocheSão Paulo

• Pernod RicardRio de Janeiro

MotorolaSão Paulo
8
Industrial Examples
RayovacSão Paulo
Stanley Works São Paulo
Pilhas Energizer São Paulo
9
Industrial Examples
CSN Rio de Janeiro
10
The Office Market

• São Paulo still leads, followed by Rio de
  Janeiro, Porto Alegre, Curitiba and Campinas
• São Paulo prime market districts are concentrated
  in Berrini and Paulista
• São Paulo offers the most Triple A buildings
• Average Costs of square meters
• São Paulo US25 to US30 sqm/month
• Rio de Janeiro US18 to US23 sqm/month
• Belo Horizonte US15 to US20 sqm/month