Brazil – A country of opportunities

1. Presentation title

2. Brazil – A country of opportunities Paulo Safady Simão CBIC Chair Brazil – A country of opportunities

3. BRAZILIANCONSTRUCTIONINDUSTRYCHAMBER National and international representative of employer associations in the construction and real estate industry

4. 26 Statesand Federal District BRAZILIANCONSTRUCTIONINDUSTRYCHAMBER UNIONS, EMPLOYER ASSOCIANTIONS AND CHAMBERS 62 Associations Highway Construction Sanitation Real Estate Construction Segments

5. GENERAL INFORMATION BRAZIL Brazil – A country of opportunities

6. RECENT GLOBAL FINANCIAL CRISIS “The stability of the economy and of the country’s democratic institutions as well as frank dialogue between government and civil society were decisive in successfully confronting the crisis” • A development strategy based on investment • and mass consumption (domestic market) was adopted; and ... • Monetary policy • Reserve requirement • Reduced interest rates • Foreign trade (reserves) • Fiscal policy • Reduced taxes on production • Investments in construction

7. ECONOMIC OUTLOOK • Economic stability; • Average growth of approximately 4.7% per year; • Growth driven by internal demand and by investments in infrastructure and housing; • Investments projected to grow by at least twice the rate of GDP in the coming 4 years; • Notwithstanding forecasts pointing to a renewed global downturn, domestic demand remains robust, international reserves and reserve requirements are higher than in 2008, and the fiscal situation is stronger. Source: Ministry of Finance, Brazilian Central Bank (BACEN) and CBIC Database

8. GDPGROWTH RATES In the period 2011-2014, the consolidation of investments (driven by construction) and increased domestic demand is expected to spur average annual economic growth of 4,7%. Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

9. MIDDLE CLASS ACCOUNTS FOR MORE THAN HALF OF BRAZILIAN POPULATION DISTRIBUTION OF ECONOMIC CLASSES IN BRAZIL (% POPULATION) Enhanced income distribution has added 29 million to middle class (Class C). Note: Monthly household per capita income by class at 2009 prices: Class A/B: more than R$ 4,800.00; Class C: R$ 1,115.00 – R$ 4,800.00; Class D: R$ 804.00 – R$ 1,115.00; Class E: up to R$ 804.00. Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared and estimated by the Ministry of Finance

10. A MIDDLE CLASS NATION COMPOSITION OF BRAZILIAN SOCIAL CLASSES (MILLIONS OF PEOPLE) Source: Getúlio Vargas Foundation/National Household Sample Survey. Prepared by the Ministry of Finance

11. BRAZILIAN ECONOMY: FORECAST * IMF Forecast Source: Brazilian Institute of Geography and Statistics (IBGE). Preparation and estimates by the Ministry of Finance.

12. GENERAL INFORMATION CONSTRUCTION Brazil – A country of opportunities

13. THE CONSTRUCTION INDUSTRY IN CONTEXT • Represents approximately 20% of national industrial output; • More than 2.8 million formal workers; • More than 170,000 licensed companies; • Accounts for nearly 41% of fixed investments in Brazil. Source and Preparation: CBIC Database.

14. GROWTHOFCONSTRUCTIONINDUSTRY LABOR FORCE Source: Annual Registry of Social Information/General Registry of Employed and Unemployed Persons (RAIS/CAGED), Ministry of Labor and Employment. Preparation: CBIC Database.

15. REAL ESTATE MARKET Brazil – A country of opportunities

16. GROWTH IN REAL ESTATE CREDIT 2002 – 2011 (financing volume)28 REAL ESTATE MARKET Note: New and used units Source: Brazilian Central Bank (BACEN), Brazilian Association of Real Estate Credit and Savings (ABECIP), and Federal Savings Bank (CEF) – FGTS Channel. CBIC Database.

17. HIGH QUALITY REAL ESTATE CREDIT Brazilian Savings and Loan System (SBPE) – Agreements with more than 3 outstanding installments signed after 1998 MortgageGuaranty + FiduciaryLien FiduciaryLien Source: Brazilian Central Bank and Brazilian Association of Real Estate Credit and Savings (ABECIP)

18. REAL ESTATEFINANCING AS A PERCENTAGEOFGDP Source: Brazilian Central Bank (BACEN) and Brazilian Association of Real Estate Credit and Savings (ABECIP). Preparation: CBIC Database

19. CREDIT TRANSACTIONS BY FINANCIAL SYSTEM IN 2009 (AT THE HEIGHT OF THE CRISIS) Steering of funds at low cost was decisive for maintaining credit levels at the height of the global crisis. Source: Brazilian Central Bank (BACEN). Preparation: CBIC Database

20. MY HOME, MY LIFE PROGRAM (PMCMV) Brazil – A country of opportunities

21. MY HOME, MY LIFE PROGRAM (PMCMV) • Disbursement of MCMV Program (R$ billion) *Caixa Econômica Federal estimate. Source: Caixa Econômica Federal. Preparation: Ministry of Finance.

22. ADDITIONAL GROWTH INDICATORS ... HOUSING NEEDS (millions of units) 5.81 Cumulative shortage - 2009 23.49 2010 - 2022 Source: Civil Construction Industry Trade Union of São Paulo (SINDUSCON-SP), São Paulo State Federation of Industry (FIESP), Getúlio Vargas Foundation (FGV). CBIC Database.

23. INFRASTRUCTURE Brazil – A country of opportunities

24. ? WHATIS THE PAC • It is a program of consistent investments aimed at meeting the challenges of infrastructure. Source: PAC2 Report.

25. GROWTH ACCELERATION PROGRAM – SECOND PHASE Source: PAC2 Report.

26. GROWTH ACCELERATION PROGRAM • Organizes government measures and supports private sector action over a 4 year period. • Develops an optimal environment to enable the country to grow at a faster rate through the execution of infrastructure studies, projects, and works. • Creates the conditions for addressing the obstacles to sustainable development.

27. 2014 FIFA WORLD CUP Stadiums Urban Mobility Ports and airports Environment sanitation Telecommunications Brazil – A country of opportunities

28. INVESTMENTS FOR THE 2014 FIFA WORLD CUP • (R$ billion) Source and Preparation: Ministry of Finance.

29. 2016 OLYMPIC GAMES Environment sanitation Urban Mobility Stadiums and arenas Ports and airports Telecommunications Brazil – A country of opportunities

30. PORTINVESTMENTS • Nine major projects of ports in the world (US$ billion) • Note: The expansion of the Port of Santos and the construction of the Açu Port in Rio de Janeiro, the largest venture investiment in port in Latin America. Source: CG-LA ExameYearbook 2011-2012. Preparation: Ministry of Finance

31. INVESTMENTPROGRAM IN TRANSPORTATION • Sixteen major transport projects in the world (US$ billion) Source and Preparation: Ministry of Finance.

32. INVESTMENTPROGRAM IN TRANSPORTATION • High-speed train linking the cities of Rio de Janeiro, São Paulo and Campinas • (R$ billion and % of total) Source: STN/Ministry of Finance. Preparation: Ministry of Finance

33. INVESTMENTPROGRAM IN TRANSPORTATION • Airport concession: Planned investments (R$ billion) Source: STN/Ministry of Finance. Preparation: Ministry of Finance

34. ENERGY • Subsalt; • Clean Energy; • Hydroelectric Plan; • Oil and Gas. Brazil – A country of opportunities

35. INVESTMENTS IN THE OILANDGAS SECTOR • Ten major projects in the Oil and Gas sectors in the world (US$ billlion) • Note: If plus ship-oil platforms whith building platforms the total value is US$ 40 billion. Source and Preparation: Ministry of Finance.

36. INVESTMENTS IN THE ELETRICITY SECTOR • Fifteen major projects in the Eletricity Sector in the world (US$ billlion) Source: CG-LA ExameYearbook 2011-2012. Preparation: Ministry of Finance

37. INVESTMENT FOR THE COUNTRY´SDEVELOPMENTANDGROWTH Note: Updated in January 2012. Preparation: Ministry of Finance.

38. OTHERS BUSINESS OPPORTUNITIES • Investment in tourism; • Commercial buildings – shopping malls, warehouses for logistics; • TecnologicalInnovationProgram

39. www.cbic.org.br presidencia@cbic.org.brPhone: +55(61) 3327-1013 Fax: +55(61) 3327-1393 BRAZILIAN CONSTRUCTION INDUSTRY CHAMBER Paulo Safady Simão CBIC CHAIR

40. Presentation title