Why? Preface: What Does the World’s 5th Largest Country look Like from Space? Source: NASA (United States – National Aeronautics and Space Administration)

INTRODUCTION: Brazil Structural Framework and Forward Trends . . .

West Largely Uninhabitable … 80% Population in East Framework: Structural Determinants of Brazil’s Economic Geography … People

Economy: Growth in Brazil’s Economy IMF Projected Growth Rate at 6% for Next 5 Source: World Bank, IMF

Source: ERSUSDA Wealth: Brazil to have 2nd Highest GDP per Capita among BRIC Countries Brazil GDP per Capita: USD 5,700 (2009) … USD8,800 (2020) Brazil GDP per Capita

Income: Brazil Per Capita Disposable Income in Tandem with China Per Capita Disposable Income Growing at Average 6% Per Annum Source: GS Global ECS Research Disposable Income Per Capita (USD per annum)

Resources: Rich in Mineral Resources – Iron Ore, Manganese, Gold World’s 3rd Largest Iron Producer … 3rd Largest Manganese Reserves Source: US Geological Survey

Resources: Global Power in Natural Resources, Energy Production World’s Second Fuel Ethanol Producer … 4th Largest Timber Producer Source: Renewable Fuels Association

Resources: A Global Power in Agriculture – Soybeans, Coffee, Beef World’s Largest (#1) Green Coffee Producer … 2nd Soybeans Producer Source: Food and Agriculture Organization, International Coffee Organization

The Future 2020: 1 of 5 Countries Highest Combined - GDP, Population, Resources > USD3 trillion GDP … 100+ million people … > 3 million sq km

Corporate Trends: Structural Optimization – Markets, Resources, Innovation

Corporate Burning Platforms: Markets, Resources, Innovation Market Access/Revenue Growth … Global Structural’ Cost Reduction

1. Market: Car Sales/Production Proxy for Directional Market Sizing? Leading Position for Car Penetration among BRIC Car Penetration in BRIC (units per 1,000 people) Car Penetration in Brazil (units per 1,000 people) Sources: GS Global ECS Research, Other

USD47 billion Market by 2015 … 5th in World Pharmaceutical Market Size Country Ranking (2000 – 2015f - USD billion) Sources: IMS; GSK, “Assessment of Opportunity for Pharmaceutical Manufacturers in Emerging Markets” JMCP; Monitor Analysis; Exolus 1. Market: Projected to be World’s 5th Largest Pharma Market by 2015

1. Market: High Spending Growth Resumes after Global Crisis Sales Growing at 28% CAGR Source: EIU, Planet Retail USD Million Retail Sales Growth

2. Revenue/Costs: Where are Pareto-Optimal Market/Resource Envelopes? Intersection of Natural Resources (West) … A/S Cities … People (East) Source: Brazilian Institute of Geography and Statistics

Car Investment Proxy for Investment Destinations? 2. Production/Resources: Where are other Key Investment Nodes?

2. Production/Resources: Sao Paulo State Immense, Larger than the UK Sao Paulo State (248,209 km sq) larger than United Kingdom (243,610 km sq) Sources: Publically Available Information

2. Production/Resources: Management Sourced in Sao Paulo, Labor Local Sao Paulo Brazil’s Leading Foreign Investment Destination Sources: Publically Available Information

2. Production/Resources: Rio State Immense, as Large as Countries Rio de Janeiro State (43,696 km sq) roughly same size Switzerland Sources: Publically Available Information

2. Production/Resources: Management Sourced in Rio, Labor Local Rio de Janeiro Region a Leading Investment Destination for Oil and Gas Sector Sources: Publically Available Information

Innovation clusters 3. Innovation: Where are Leading Innovation Nodes? Sources: Kirsten Bound, “Brazil the Natural Knowledge Economy”; Isabel Bortagaray, “Innovation Clusters in Latin America”

Anchor: Embraer – World’s 3rd Largest Aircraft Manufacturer 3. Innovation: The Largest Aerospace Cluster in Southern Hemisphere Sources: DECOMI, “Brazilian Aerospace Cluster, Believing in Great Ideas”

Installed Green Energy: Brazil 45% … OECD Average 7% … World 12% 3. Innovation: A Global Leader in Green Energy - Biomass, Hydro Source: International Energy Agency, Brazil Ministry of Mines and Energy Primary Energy Supply* *For Year 2008 Green 45% Green 8% Green 12%

Brazil’s Economic Health

Senior Executives Select Brazil as a Top Global Investment Destination Brazil Top 5 Investment Destination in World Source: World Investment Prospects 2009 - 2011 Top 14 Most Attractive Destinations for Future Investment (2009 – 2011) % Percent of Responses

Brazil Economic Outlook: Large Forex Reserves, Positive Fundamentals World’s 7th Largest Forex Reserves … Low External Debt … Growing Banking System Brazil Holds The World’s 7th Largest Foreign Exchange Reserves: USD 316 billion In 2011 the Central Bank has accumulated over USD 316 billion in foreign reserves, up from USD 50 billion in 2004. The accumulation of large external surpluses means financial system enjoys abundant liquidity. Low External Debt/GDP Ratio and Positive Current Account Balance Healthy external debt to GDP ratio at 14% of GDP in 2010. Federal budget deficit at 2.3 % GDP in 2010; projected to decrease to 1.7% of GDP in 2011. Brazil’s Banking System under Stable and Rapid Expansion Banking deposits grew at CAGR or over 29% during 2002 – 2008 which indicate strong confidence of people to bank system. Moreover, the deposit system remained mostly unaffected through the global credit crunch . Banking sector assets are projected to grow at a CAGR of 10% from 2010 to 2013. Source: Central Bank of Brazil, OECD

For a Comparative Perspective with the other BRIC Countries Please Refer to the Following Research Reports Found on Slideshare @ http://www.slideshare.net/contest/worlds-best-presentation-contest-2010/entries http://www.slideshare.net/Exolus/india-2020-what-india-will-look-like-in-the-future http://www.slideshare.net/Exolus/russia-2020-what-will-russia-look-like-in-the-future Download Reports @ www.exolus.com/en/knowledge/research.html China 2020 India 2020 Russia 2020

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