São Paulo, Number 1 State in Brazil

(1)

Investment

Promotion

Agency

São Paulo,

Number 1 State in Brazil

Sergio Costa

Director

(2)

Investment Promotion 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

(3)

Promotion of the image of the State of Sao Paulo

Actions for the Promotion of Competitiveness

• Labor training, Taxation, Innovation, Infrastructure and Licensing

• Studying and proposing public policies

Institutional Activities

• Reception of foreign delegations and organization of international missions

• Support and guidance for municipal governments

Investment Projects

• Technical support and orientation to investors:

site location, taxes, infrastructure

• Contact with public and private institutions aiming as investment facilitation

Business Prospection

• Identification of sectors and companies with investment potential

Areas of Activity

(4)

Our Website

(5)

International Cooperation Agreements

America

USA:

R20

BRATECC

Charlotte RP

Europe

Norway:

BNCC

United Kingdom:

UKTI

Spain:

ICEX

Portugal:

AICEP

Italy:

ITALCAM

Toscana Promozione

Czech Republic:

CzechInvest

Asia

South Korea:

Kotra, Kobras

Japan:

JETRO

Bank Tokyo-Mitsubishi UFJ

(6)

Our Customers

Direct jobs

49,963

Investments

US$ 11,861 bi

67 announcements

(7)

(8)

Brazil, the 7th economy of the planet

15,653

8,250

5,984

3,366

2,580

1

st

_USA

3

rd

_Japan

2

nd

_China

4

th

_Germany

5

th

_France

6

th

_UK

8

th

_Italy

7th

_Brazil

12

th

_Australia

11

th

_Canada

10

th

_India

9

th

_Russia

2,245

1,980

2,433

1,770

1,946

1,953

1,493

Source: IMF - year 2012

(9)

Selected Countries:

Territory, Population and Economy

Territory > 3 million km

2

Economy (GDP) > US$ 750 billion

Population > 100 million

Canada Australia

Russia India China

United States Brazil

Indonesia Nigeria Bangladesh Pakistan Japan Mexico Spain Germany France United Kingdom

Netherlands Italy South Korea

(10)

Brazilian Age Structure

Source: IBGE / Revista Veja, December 2010.

0

30

50

80 2020

2010

2050

Opportunity

Larger contingent of working-age

population = possibility of increasing

productivity

Challenges

Increase on health and social security

expenditures

(11)

Social Mobility

Year

projection

Percentage of Inhabitants

Source: Banco Central do Brasil/ FGV

7.4%

10.6%

15.5%

37.7%

50.5%

56.5%

26.9%

23.4%

20.0%

28.0%

15.4%

8.0%

2003

2009

2014

A e B

C

D

E

(12)

São Paulo state in the

Brazilian Context

(13)

Agência Paulista de Promoção de Investimentos e Competividade

Brasil and São Paulo Comparison

8.515.000 Km²

Territory

248.000 _3%

Km²

193.9 million

Population

41.9 _22%

million

US$ 2.475

billion

GDP

nominal

33%

US$ 750

billion

US$ 11,611

GDP

per capita

US$ 17.908

50% larger

São Paulo’s

Share

Source: IBGE, Banco Central e SEADE Exchange Rate: US$ 1 = R$ 1.95

(14)

São Paulo Competitive Advantages

São Paulo

Competitive

Advantages

Largest Consumer

Market in LATAM

Skilled

Workforce

Supply Chain

World-class

Infrastructure

Largest Brazilian

Investor in R&D

Environmental

Responsibility

(15)

Brazilian State Capitals where the

consumer market grows most

36.59

22.40

8.62 _7.78

7.19 _6.65

5.75

4.25

4.07 _3.65

São Paulo -SP Rio de Janeiro - RJ

Brasília - DF Belo Horizonte - MG

Curitíba - PR Salvador - BA Fortaleza - CE Recife - PE Porto Alegre -RS

Manaus - AM

Sales increase 2010 - 2020

1 (US$ billions)

(1) 45 product categories analyzed

Source: Exame Magazine – McKinsey Exchange rate – US$ 1 = R$ 1.67

(16)

São Paulo Consumer Market Map

Source: IPC marketing 2012

196

194.4 Inland

Capital metropolitan region

USD billion

50.2%

49.8%

The largest Brazilian consumer market

(17)

São Paulo’s share of the Brazilian output

33.52%

Petroleum products

36.76%

Biofuels

47.77%

Chemicals

55.28%

Machinery and equipment

58.13%

Electronic components

58.34%

Computer equipment and

peripherals

60%

Communications equipment

67.83%

Manufacture of pharmaceutical

chemicals and pharmaceuticals

72.92%

Electromedical and

electrotherapeutic apparatus

and equipment of irradiation

95.84%

Aircraft

(18)

Higher Education

Source: INEP

577 college level

institutions

1,542,415

students enrolled

The State Government is responsible for three of the best universities in Latin America

Largest number of technological students graduated in Brazil

• 59 thousand students

• 56 technology colleges

(19)

Technical Schools

1274

technical schools

357,000

students enrolled

The largest program of technical education in Brazil:

Your company can have specific courses tailored to the project needs

Technical Schools – Etecs

• 226 thousand students

• 211 technical schools

• 124 courses in the fields of industry, services and agriculture

(20)

R&D / Innovation

USP, Unicamp

and Unesp

International

recognition

All over

the state

US$ 513 million

annual budget

Fundação de Amparo à

Pesquisa Científica e

Tecnológica (Fapesp)

3 universities among

the ones that most

develop scientific

research in Brazil

19 research institutes

19 initiatives of

Technology Parks

More than

13%

of the São Paulo State

revenue

is

used

in

high

quality

education, research and development.

The State also hosts federal universities

and research institutions.

(21)

State funds invested in R&D (2010)

Source: Coordenação-Geral de Indicadores(CGIN)- ASCAV/SEXEC - Ministério da Ciência e Tecnologia

5,012.2

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

(R$ millions)

72%

28%

(22)

Technology Park System

Source: Secretariat of Development.

19 implementation initiatives

Piracicaba

São José dos

Campos

São Carlos - Damha

Campinas

Ribeirão Preto

(23)

19 out of the 20 best

highways in Brazil

5.400 Km of railways

2 international airports

32 domestic airports

Largest port

in South America

800 km of Waterways

Pipeline

in industrial centers

• 19 out of the 20 best highways

• 5,400 Km of railways

• 2 international airports

• 32 domestic airports

• 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

World-Class Infrastructure

(24)

• 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

Environmental Responsibility

(25)

Ranking IFDM Nacional

1º

SP

Indaiatuba

0,9486

0,9394

0,9585

0,9479

2º

_SP

São José do Rio Preto

0,9357

0,8941

0,9650

0,9479

3º

SP

Itatiba

0,9276

0,9167

0,9330

0,9332

4º

SP

Amparo

0,9259

0,8748

0,9525

0,9503

5º

_SP

Barueri

0,9258

0,8865

0,9525

0,9385

6º

SP

Ribeirão Preto

0,9230

0,9223

0,9258

0,9209

7º

SP

Marília

0,9195

0,8449

0,9825

0,9311

8º

_SP

Louveira

0,9194

0,8611

0,9681

0,9291

9º

SP

Jundiaí

0,9171

0,8983

0,9276

0,9252

10º

SP

Paulínia

0,9159

0,8551

0,9675

0,9250

11º

_SP

Bauru

0,9127

0,8964

0,9402

0,9016

12º

SP

Campinas

0,9117

0,8954

0,9136

0,9260

13º

SP

Santos

0,9108

0,8689

0,9400

0,9234

14º

_SP

Valinhos

0,9107

0,9318

0,8916

0,9087

15º

RS

Bento Gonçalves

0,9102

0,9474

0,8471

0,9360

16º

SP

Bragança Paulista

0,9097

0,9075

0,9088

0,9129

17º

_SP

Araraquara

0,9092

0,8465

0,9600

0,9210

18º

SP

Americana

0,9091

0,8453

0,9700

0,9119

19º

SP

São Caetano do Sul

0,9072

0,8206

0,9675

0,9335

20º

SP

Atibaia

0,9067

0,9102

0,9286

0,8813

IFDM Income

and job Education Health State Ranking IFDM

Base year 2010

FIRJAN Index of Municipal Development

19 out of the

20 best ranked

(26)

Economist Intelligence Unit

The Economist

Brazilian Investment

(27)

General Ranking

#1

Source: The Economist, Centro de Liderança Pública e Veja

http://veja.abril.com.br/multimidia/infograficos/ranking-de-gestao-dos-estados-brasileiros

VERY GOOD

GOOD

FAIR

POOR

CLASSIFICATION

77.1 71.8 62.8 60.5 59.5 54.7 47.7 47.1 44.2 43.1 43.1 42.8 42.8 40.8 _{39.2 36.6} 33.8 33 32.8 30.2 29.7 28.8 28.1 27.8 23.5 22.6 17.7

SP RJ MG RS PR SC DF ES BA AM MS GO MT PE CE SE PA PB RO AL RN TO AC RR MA PI

AP

(28)

Human Resources

#1

91.7 83.3 75 75 66.7 66.7 58.3 50 41.7 41.7 41.7 41.7 33.3 33.3 33.3 33.3 25 25 16.7 16.7 16.7 16.7 16.7 16.7 8.3 8.3 8.3

SP RJ MG PR RS SC DF ES AM BA GO MT CE MS PE RO PA RN AC AL AP PB RR SE MA PI

TO

Scale – 100 for best, 0 for worst

VERY GOOD

GOOD

FAIR

POOR

(29)

Highways Quality

#1

Scale – 100 for best, 0 for worst

VERY GOOD

GOOD

FAIR

POOR

CLASSIFICATION

100 75 75 75 50 50 50 50 25 25 25 25 25 25 25 0 0 0 0 0 0 0 0 0 0 0 0

SP PR RJ RS BA DF PB SC AL ES MG PI RN RO SE AC AM AP CE GO MA MS MT PA PE RR TO

(30)

Innovation

#1

100 85 65 55 50 45 45 35 35 30 30 30 30 30 25 25 25 20 20 20 15 15 10 10 10 10 10

SP RJ MG RS SC AM PR BA PE CE GO MS MT SE AL DF ES PA PB TO MA RN AC AP

PI RO RR

Scale – 100 for best, 0 for worst

VERY GOOD

GOOD

FAIR

POOR

(31)

One of the lowest national

death rate by gunfire

7,1 8,0 8,5 9,3 10,0 10,5 13,4 13,8 14,5 15,8 16,3 18,9 19,9 20,6 22,0 23,0 23,6 25,0 25,3 26,4 26,4 30,3 32,8 34,4 34,6 39,4 55,3

RR

PI

SC SP AC TO MG MA MS AP RS AM MT RN GO SE RO CE DF PR RJ PE PB BA PA ES AL

Death rate by gunfire in Brazilian States

( per 100,000 inhabitants - 2010)

(32)

(33)

Brazil IT Market - Highlights

US$ 123 BILLION

IT Revenues

US$ 2,5 BILLION

Brazilian IT Exports

2.5 MILLION

IT Professionals

5.2% of BRAZILIAN GDP

MOST IMPORTANT SECTORS

Finance services

Production

Communication

Oil and Gas

Sales market

Agriculture

Government

5 th

_{Largest internal market of the planet}

(34)

Brazilian IT Market

Values in US$ Billion

Source: BRASSCOM 2012

IT in House

54 Hardware

35,3

Services

15,4

Software

9,5

BPO

5,8

Exports

3

(35)

IT Market Growth – World Comparison

10,8%

5,9%

Brazilian

Growth

2012/2011

World

Growth

2012/2011

Main Growth in IT market 12/11

China: 15%

Brazil: 10,8%

India: 10,1%

(36)

Broadband Access in Brazil

81%

19%

Broadband access

Mobile

Fixed

114,7 MILLION

TOTAL BROADBAND ACCESS

39%

OF BRAZILIANS HOMES HAVE

BROADBAND ACCESS

(37)

Average Time Online

13 14,1

21 25,1

25,2

26,7

27,5

31,1

35,6

40,9

India

China

Japan

Russia

Germany

Brazil

France

South Korea

UK

United States

Source: 2012 Brazil Digital Future in Focus Report

(38)

Some Technological Companies in SP

(Industrial Plant, Brazil Headquarters or Offices)

(39)

IT Graduation (2011)

Source: INEP, Ministry of Education.

739 159 101 103 SP MG RJ RS

Computer

Engineering

660 350 94 51 SP MG RJ RS

Information

Systems

5.601 2.062 1.409 813 SP MG RJ RS

Computer

Science

13.714 3.977 3.214 1.543 SP MG RJ RS

Total

ITC

(40)

SIBRATEC

Innovation Centers Network

Microeletronic

Digital Technologics

of Information and Communication

Eletronic for products

São Carlos

UFSCAR

USP - ICMC

Limeira

UNICAMP- CESET

Campinas

UNICAMP

UNISAL

CPQD

CTI

ELDORADO

VON BRAUN

São Paulo

LSITec

Mackenzie

Source: Sibratec

(41)

Intel Strategic Research Alliance (ISRA)

Research partnerships

Software Implementation of

Cryptographic Algorithms

Asymmetric Cryptography

for Embedded Systems

Institute Microsoft

Research – FAPESP of

(42)

Goals

To stimulate investment in:

Modernization or expansion of industrial plant

Greenfields projects

Development of new technologies

Strengthen the informatics sector in the State

Benefits for companies with operations in São Paulo

Possibility of use of ICMS credits for investments

If the company has not accumulated ICMS, allows it to make the deferral /

suspension of ICMS on the purchase of equipment suppliers established in the

State of São Paulo

Pro-Informatica

(43)

Source: Statistical Yearbook Unicamp 2010 (*)

IC – Institute of Computing and IMECC – Institute of Mathematics, Statistics and Computer Science

Master Degree and PhD

Unicamp

290

349

262

268 ₂₆₀

43

40 ₂₇

₃₄

45 Statistics

Maths

Applied

Math

Computer

Sciences

Computer

Engineering

Enrolled

Graduates

Undergraduate Courses Scenario (2010)

97

79

86

61

90

77

74

57

35

45

33

35

34

29

33

22 2010

2009

2008

2007

2006

2005

2004

2003

Master Degree

PhD

5

9

29 ₂₁

58

61

51

66

54 ₅₀

₅₁

52

51

5 14 23 52 73 131 192 243 309 363 413 464 516 567 -300 -100 100 300 500 700 0 20 40 60 80 100 120 140 160 180 200

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Patents applied

Accumulated

(44)

Intelectual Property - USP

Unit

Patents

Sotware

**Register(*)**

Statistics and Math

Institute- ICMC

52

2 Engineering School of Sao

Carlos- EESC

4

1 The campus of São Carlos traditionally focused on

applied research and entrepreneurship in new

business creation and development of joint projects

with the private sector and has strong partnerships

with:

USP

Area

Master

Graduated

PHDs

Computation Sciences and

Computational Mathematics

43

24 Mathematics

₁₅

₈

52 53 35 55 26 26 ₂₅ 30 13 11 12 8 2007 2008 2009 2010

Evolution of Graduated Students per course USP - São Carlos

Computation Engineering Mathematics

(45)

Number of graduates forecast

Computer Science – 2009 a 2013

15.034

15.928

16.876

17.884

18.955 2009

2010

2011

2012

2013

(46)

21.367

24.501

28.095

32.216

36.942 2009

2010

2011

2012

2013

Number of graduates forecast

Information Processing – 2009 a 2013

(47)

Brazilian Software Market

Scenario and trends

(48)

IT World Market

2012 (US$ bi)

Source: ABES – Associação Brasileira das Empesas de Software Mercado Brasileiro de Software – Panorama e Tendências 2012

USA

US$ 638

Canada

US$ 51

Mexico

US$ 21

Brazil

US$ 60,2

France

US$ 76

UK

US$ 110

Germany

US$ 101

India

US$ 40

China

US$ 173

Japan

US$ 172

Australia

US$ 42

Colombia

US$ 6,5

Argentina

US$ 7,8

TOTAL – US$ 2,023 billion

49% is the brazilian share of

Latin America market

(49)

Brazilian IT Market Evolution

(US$ billion)

Source: ABES – Associação Brasileira das Empesas de Software Mercado Brasileiro de Software – Panorama e Tendências 2012

4,07

5,25

6,59

7,93

11,09

10,84

13,53

15,14

17,5

1,93

2,16

2,5

3,19

3,92

4,52

5,51

6,3

9,67

23,5%

22,7%

22,3%

35%

2,3%

24%

12,6%

26,7%

-50 50 150 250 350 450 0 5 10 15 20 25 30

2004

2005

2006

2007

2008

2009

2010

2011

2012

(50)

ITC Market in Brazil

Total ITC Market in Brazil by segment – 2011 (US$ billion)

Market Segmentation Domestic Market

Export Market

Total Market

Software

_6,177

_0,123

_6,3

services

_13,306

_1,834

_15,14

Subtotal

_19,483

_1,957

_21,44

Hardware

_23,01

_0,22

_23,23

Telecom

_94,96

_-

_94,96

Other Services

_5,61

_0,47

_6,08

In-House TI

_46,12

_-

_46,12

Total Market

_189,18

_2,647

_191,83

Source: ABES – Brazilian Association of Software Companies Brazilian Software Market Report 2012

(51)

Brazilian software and services market

Brazilian software and services market by origin

Origin

Volume

(US$ bi)

Share

(%)

2011 / 2010

Domestic Production

_1.240

_19,7%

_{21,5% +}

Domestic Production for Export

₁₂₃

_2,0%

_{11,8% +}

Foreign Production

_4.937

_78,4%

_{12,7% +}

Software Subtotal

_6.300

_100,0%

_{14,3% +}

Taylor Made Software

_1.496

_9,9%

_{21,6% +}

Services Domestic Market

_11.737

_77,5%

_{10,7% +}

Services Export

_1.834

_12,1%

_{12,5% +}

Foreign Production

₇₃

_0,5%

_{7,3% +}

Services Subtotal

_15.140

_100,0%

_{11,9% +}

Software and Services Total

_21.440

_-

_{12,6% +}

(52)

Brazilian software and services market

Software and Services Brazilian Market Segmentation

Segment

Volume

Share

2011 / 2010

Applications

_2.486

_39,46%

_{48,2% +}

development environments

_1.743

_27,67%

_{6,0% +}

Infrastructure and Security

1.948 30,92%

6,4% -

Export Software

123 1,95%

11,8% +

Software Subtotal

_6.300

_100,00%

_{14,3% +}

Outsourcing

_4.763

_31,46%

_{114,9% +}

Support

_3.043

_20,10%

_{3,1% -}

System Integration

_2.152

_14,21%

_{33,8% -}

Exported services

_1.834

_12,11%

_{12,5% +}

Taylor Made Software

_1.496

_9,88%

_{21,6% +}

Consultancy

_1.455

_9,61%

_{14,7% -}

Training

397 2,62%

12,7% -

Services Subtotal

_15.140

_100%

_{11,9% +}

Software and Services Total

_21.440

_-

_{12,6% +}

(53)

Brazilian IT market trend (US$ billion)

61,9

71,2

76,9

83 89,7

96,8

104,6

113

122 131,8

142,3

153,7

3,5%

3,8%

3,9%

4,0%

4,2%

4,3%

4,5%

4,6%

4,8%

4,9%

5,1%

5,3%

0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 0 20 40 60 80 100 120 140 160 180

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

IT Market

IT/GDP

Source: BRASSCOM - Brazilian Association of ITC Companies, ABES - Brazilian Association of Software Companies, IDC Brazilain Software Market - Scenarios and Trends 2010 RCR Consultancy

(54)

Brazilian IT exports trend

3,0

3,5

4,2

5,0

5,9

7,0

8,4

10,0

11,9

14,1

16,8

20,0

18%

20%

19%

18%

20%

19%

18%

19%

0 1 2 3 4 5 6 7 0,0 5,0 10,0 15,0 20,0 25,0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Exports

Annual Growth

Source: BRASSCOM - Brazilian Association of ITC Companies, ABES - Brazilian Association of Software Companies, IDC Brazilain Software Market - Scenarios and Trends 2010 RCR Consultancy

(55)

(56)

Top Vehicles Producers in the World

Over 1.4 million vehicles

produced in 2012 in SP

The State of São Paulo is the 15th

largest producer in the world

Brazil is the 7th largest producer

in the world

Source: Anfavea – Brazilian Automotive Industry Association (2013), International Organization of Motor Vehicle Manufacturers.

Ranking

Country

Units (thousand)

1 _China

_19.271.808

2 _USA

_10.328.884

3 Japan

_9.942.711

4 _Germany

_5.649.269

5 _{South Corea}

_4.557.738

6 _India

_4.145.194

7 Brazil

_3.387.390

8 _Mexico

_3.001.974

8 _Thailand

_2.483.043

10 _Canda

_2.463.732

11 _Russia

_2.231.737

12 _Spain

_1.979.179

13 _France

_1.967.765

14 _{United Kingdom}

_1.576.945

15 Czech Republic

_1.178.938

16 _Turkey

_1.072.339

(57)

Largest Brazilian market

34%

11%

8%

5%

26%

SP

MG

PR

RJ

RS

SC

Others

Consumer Market for Vehicles in Brazil

Source: Anfavea, DENATRAN (2012)

Brazilian Production per State (2012)

41,5%

25,2%

15,4%

4,4%

5,6%

6,1%

1,9%

SP

MG

PR

RJ

BA

RS

GO

Fleet by State (2012)

(58)

Distribution of suppliers units in Brazil

Source: Sindipeças (2012)

São Paulo

472 units – 68% of total

Rio Grande do Sul

37 units

Paraná

35 units (5%)

Santa Catarina

24 units

Minas Gerais

76 units

Bahia

23 units

Rio de Janeiro

15 units

Amazonas

11 units

Pernambuco

4 units

Ceará

1 unit (0,1 %)

Espírito Santo

1 unit (0,1 %)

Goiás

1 unit (0,1 %)

(59)

REVENUES

US$ 41.818 BILLION

EXPORTS (FOB)

US$ 10,471 BILLION

IMPORTS (FOB)

US$ 16,258 BILLION

EMPLOYEES

218 MIL PESSOAS

Autoparts Sector Perfomance

Assemblers

OEM´s

69%

Aftermarket

15%

Exports

9%

Intrasector

7%

Autoparts destination

(60)

Foreign participation

in the Autoparts Sector

56%

23%

15%

5% 1%

Foreign

National

Foreign majority

National majority

Mixed capital

Revenue by capital origin

25,2%

23,0%

8,6% 8,1% 8,1%

5,4%

21,7%

Germany

USA

Spain

Italy

Japan

France

Other

(61)

Units and Job Distribution

13,8%

18,6%

18,0%

21,3%

13,4% 8,4%

6,3%

01 - 60

61 - 125

126 - 250

251 - 500

501 - 1000

1001 - 2000

> 2001

Companies distribution by the number of employees

26,9%

11,8%

16,3%

12,6%

32,4%

SP´s countryside

SP capitol

SP´s metropolitan region

SP - ABCD

Other states

Geographic distribution of business units ( factories and offices)

(62)

Automotive Industry in

Brazil and São Paulo

(63)

Automotive Companies

Investments in Brazil

US$ million

Source: Anfavea (2012)

1.042

748

820

1.180

1.572

2.136

3.197

2.721

3.872

5.339

5.347 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2102

(64)

Employees in the Sector

91.533

90.697

102.082 107.408 106.350

120.338 126.777 124.478

137.862

146.043

149.543 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Autoveículos

Vehicles

Máquinas Agrícolas

Agricultural Machines

(65)

Brazilian Automotive

Market Evolution

Net Revenues US$ million

49.332 _48.435

61.015 62.576

66.200

79.782

85.451 _84.633

95.785

95.730 _93.977

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Veículos

Vehicles

Máquinas Agrícolas

Agricultural Machines

(66)

Green Fleet

Source: Anfavea/UNICA

422.731

2.701.781

290.974

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Gasolina

Etanol

Flex

Diesel

Gasoline

Ethanol

(67)

(68)

Brazilian Production of Trucks and Buses

Truck Production

1990-2011

Bus Production

1990-2011

48.219 70.073 71.114

113.228

189.941

223.388 1990

1995

2000

2005

2010

2011

12.962 19.660 21.301

29.366

40.530

49.373 1990

1995

2000

2005

2010

2011

Source: Anfavea 2012

(69)

Brazilian Fleet of Trucks and Buses

27%

12%

10%

8%

5%

6%

4% 4%

24%

Trucks Fleet (2011)

SP

MG

PR

RS

SC

RJ

BA

GO

Outros

others

28%

12%

7%

3%

8%

6%

4%

_25%

Buses Fleet (2011)

SP

MG

PR

RS

SC

RJ

BA

GO

Outros

others

(70)

Pro-Vehicle

Investment Incentive Program

for the Automotor Vehicle Producer

(71)

Goals

Stimulate investments in the:

• Modernization or expansion of production facilities

• Greenfiled investment

• Development of new products

Improve the automotive sector in the State

• Agricultural machines and equipment, construction,

buses and trucks.

Benefits for companies with plants in São Paulo

• Possibility of using ICMS credits for investments

• Reduction of charging the ICMS on the purchase of machinery and equipment

used in production.

(72)

Operation

• Payment of products and goods, electrical energy included

• Payment of ICMS in the importation of industrial goods

• Transfer to others contributors – suppliers

Beneficiaries

• Automotive production in the State of São Paulo

• Suppliers of materials and equipment for building in the State of São Paulo

• Suppliers of industrial products in the State of São Paulo

Incentives for acquirement of Capital Goods

• Possibility of deferment with pro-vehicle

• The Payment of ICMS charged in the acquirment of capital goods is postpone.

As a result, the investor doesn’t have to pay the tax charged in this case.

(73)

(74)

Most Frequent

• Isention – Urban Territorial Property Tax (IPTU)

• Reduction – Service Tax (ISS)

• Isention (for plant construction) - Service Tax (ISS)

Others

• Special conditions for terrain acquiral

• Labor force training support

• Infrastructure

• Road access

Municipality Incentives

(75)

(76)

Investment with Fiscal and Social

Responsibility

São Paulo State

Investment Plan of

US$ 65,8

billion

PPPs

15 projects

_{US$ 18,5 billion}

Public Funds

Treasury

Financing

(77)

Innovative Fast Track for PPP Projects

State Decree 57.289 dated August 30, 2011 allows interested investors to present

proposals for PPPs Projects

PRIVATE SECTOR

INITIATIVE (MIP)

APPROVAL

PUBLIC CALL

for detailed technical

studies, including

alternatives

CONTRACT

(PPP Project winner

reimburses selected

technical study author)

EVALUATION by

State Commission

EVALUATION by State

Commission

Technical studies

PPP Project

APPROVAL

PRELIMINARY PPP

PROPOSAL

PUBLIC BIDDING

for the PPP

REJECTION

Technical studies

$

(78)

(79)

World 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 thousand

Olympic 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 contests

(80)

SECRETARIA DE DESENVOLVIMENTO ECONÔMICO, CIÊNCIA E TECNOLOGIA

Thank You!

Sergio Costa

Director

Telephone: + 55 11 3218 5745

E-mail: investesp@investesp.org.br

sergio.costa@investesp.org.br

www.investe.sp.gov.br