São Paulo, Number 1 State in Brazil Luciano Almeida President May 22 nd, 2013

Investment Promotion

Agency

São Paulo,Number 1 State in Brazil

Luciano Almeida

President

May 22nd, 2013

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

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

SP


Our Website

SP in Maps

Our Customers

Portfolio of projects

Number of projects: 61

Potential Investment: USD 7,672 billion

Potential direct jobs: 30,000

Sectors: automotive, food, oil and gas, energy, machinery and equipment, information technology and communication, solid waste and biotechnology.

Origin: Austria, Brazil, Canada, Chile, China, France, Germany, Japan.South Korea, USA and UK

* The names of these companies are kept confidential in compliance with NDA signed with Investe São Paulo

May 2013

Direct Jobs:42.200

Announced Investments:USD 9,300 billion

http://www.cummins.com.br/cla/index.php

Agência Paulista de Promoçãode Investimentos e Competividade

Brasil and São Paulo Comparison

8.515.000 Km²

Territory 3%248.000

Km²

193.9 million

Population 22%41.9

million

US$ 2.475 billion

GDP nominal 33%

US$ 750billion

US$ 11,611GDP

per capita50% largerUS$ 17.908

São Paulo´sShare

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


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

EnvironmentalResponsibility


Brazilian State Capitals where the consumer market grows most

São P

aulo

- SP

Rio de

Jan

eiro

- RJ

Brasí

lia -

DF

Belo H

orizo

nte

- MG

Curití

ba -

PR

Salvad

or -

BA

Forta

leza

- CE

Recife

- PE

Porto

Aleg

re -

RS

Man

aus

- AM

36.59

22.40

8.62 7.78 7.19 6.65 5.754.25 4.07 3.65

Sales increase 2010 - 20201

(US$ billions)

(1) 45 product categories analyzed

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


São Paulo Consumer Market Map

Source: IPC marketing 2012

196

194.4

InlandCapital metropolitan region

USD billion

50,2%

49,8%

The largest brazilian consumer marketUSD 390 billion


São Paulo’s share of the Brazilian output

33,52%Petroleum products

36,76%Biofuels47,77%Chemicals55,28%

Machinery and equipment58,13%

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

Selected Sectors


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• 61 courses in the areas industry, services and agrobusiness


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

Source: INEP, Centro Paula Souza


R&D / Innovation

USP, Unicamp and Unesp

Internationalrecognition

All over the state

USD 616 million annual budget

Fundação de Amparo à Pesquisa Científica e Tecnológica (Fapesp)

3 universities among the ones that most develop scientificresearch in Brazil

19 research institutes

19 initiatives of Technological 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.


State funds invested in R&D (2010)

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

SP RJ PR MG SC BA RS DF CE PE

5,012.2

488.9 413.5 213.9 209.9 120.4 92.9 70.3 63.5 58.2

(R$ millions)

72%

28%

SPDemais 26 Estados

Other 26 states


Technology Park System

Source: Secretariat of Development.

19 implementation initiatives

Piracicaba

São José dos Campos

São Carlos - Damha Campinas

Ribeirão Preto

Sorocaba

19 out of the 20 best highways in Brazil5.400 Km of railways2 international airports33 domestic airportsLargest portin South America800 km of WaterwaysPipelinein industrial centers

• 19 out of the 20 best highways• 5,400 Km of railways• 2 international airports• 33 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


• 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

Source: Energy Secretariat of State of Sao Paulo, Forest Foundation

FIRJAN Index of Municipal Development

19 out of the 20 best ranked Brazilian municipalities are in the State of São Paulo

Ranking IFDM

Nacional

1º SP Indaiatuba 0,9486 0,9394 0,9585 0,94792º SP São J osé do Rio Preto 0,9357 0,8941 0,9650 0,94793º SP Itatiba 0,9276 0,9167 0,9330 0,93324º SP Amparo 0,9259 0,8748 0,9525 0,95035º SP Barueri 0,9258 0,8865 0,9525 0,93856º SP Ribeirão Preto 0,9230 0,9223 0,9258 0,92097º SP Marília 0,9195 0,8449 0,9825 0,93118º SP Louveira 0,9194 0,8611 0,9681 0,92919º SP J undiaí 0,9171 0,8983 0,9276 0,925210º SP Paulínia 0,9159 0,8551 0,9675 0,925011º SP Bauru 0,9127 0,8964 0,9402 0,901612º SP Campinas 0,9117 0,8954 0,9136 0,926013º SP Santos 0,9108 0,8689 0,9400 0,923414º SP Valinhos 0,9107 0,9318 0,8916 0,908715º RS Bento Gonçalves 0,9102 0,9474 0,8471 0,936016º SP Bragança Paulista 0,9097 0,9075 0,9088 0,912917º SP Araraquara 0,9092 0,8465 0,9600 0,921018º SP Americana 0,9091 0,8453 0,9700 0,911919º SP São Caetano do Sul 0,9072 0,8206 0,9675 0,933520º SP Atibaia 0,9067 0,9102 0,9286 0,8813

Educação Saúde UFRanking IFDM

Ano Base 2010IFDM

Emprego &

Renda

Oil & Gas at the State of São Paulo

Cespeg - Creation

PurposesI – To evaluate the social, environmental, economic and fiscal impacts generated by the ancillary activities and the support activities for the exploration, production, transportation and refining of oil & natural gas in São Paulo shore, aiming the increase in its development;

II – To propose actions to the Government of the State of São Paulo that are necessary for the full development of the activities mentioned in item I of this article.

Decree 53.392 of 08/09/2008 Special Comission for Oil & Natural Gas in the State of São Paulo (CESPEG)

Comission becomes Council

Energy Secretarial

Naval Cluster:To present new areas, naval vocations and support actions

necessary for the setting up of shipyards, naval repair centers and

maritime support bases for the offshore activities related to oil in

the Santos Basin.

State Council for Oil & Gas

Naval Cluster

Agência Paulista de Promoçãode Investimentos e Competividade

Pre-salt – Santos Basin

• Petrobras E&P Investments in São Paulo: US$9.5 billion (Petrobras Business Plan 2013-2017)

• Investments in O&G in São Paulo shore 2010-2025: US$ 78 billion


Impacts on São Paulo shore

93,3%

~0,3%

6,7%

Source: State Energy Secretariat and Arcadis Tetraplan 2010

• Estimated Investments in São Paulo shore until 2025 (Oil & Gas and Port) –

US$ 105 billion


New Jobs

New jobs to be created in São Paulo until 2025

- Oil & Gas, port and naval activities.

Implementation step : 130,000 jobs (petroleum and port)

Operation step: 71,000 jobs (petroleum and port)

Indirect jobs: 120,000 jobs

Source: State Energy Secretariat and Arcadis Tetraplan 2010


Main Research Centers on Oil and Gas in São Paulo

Source: State Energy SecretariatSeminário Brasilianas – 30/04/2013

USP(capital)

Fluid interaction/Offshore mechanics and structure laboratoryGeosciences InstituteUltrasound LaboratoryEletrotechnical and Energy InstituteOceanographic InstituteDepartament of Mineralogy and Geotectonics

IPTTests for fluence in salt rocksRisers, umbilicals, manifolds and christmas tressFPSO, relievers, moorings, stakes (estacas-torpedo) and anchors (âncoras-tartaruga)Ducts, BGL-1 and stinger

UFABCEnergy, Energy Economy, Sustainable Development e Petroleum.

Unesp(Presidente Prudente)

Geodetic and topographic positioning; GIS (Geographic information system); Digital photogrammetry; Digital image processing.

USP(Ribeirão Preto)

Accountancy and finance for the energy sectorUnesp

(Rio Claro)Petroleum geologyEnvironmental engineering applied to the O&G sector

UnicampCenter for Petroleum Studies: mineral resources economy, well engineering, geological reservoir modeling, drilling and completion of wellsDepartament of Geology and Natural Resources - Institute of GeosciencesLaboratory of Intensified Processes for evaluation and elaboration of petroleum – Chemical Engineering School


Professional qualification courses - free of cost

Seminário Brasilianas – 30/04/2013Fonte mapa: Google

Peruíbe

Itanhaém

Systems Analysis and Development, Business management, Port Management, Logistics, Sistems for Internet

Travel agencying, Civil Building Design, Buildings, Eletronics, Eletrotechnics, Informatics, Informatics via internet, Mechanics, Telecommunication, Management, Accountancy, Metalurgy, Nutrition and Dietétics, Ports, Secretarial, Labour Safety, Technical School

Communital health agent, Accountancy, Pharmaceutics, Informatics, Logistics, Real estate operations

Logistics, Management, Environment, Tourism

Cubatão

Santos

Management, Buildings, Travel agencying, Communital health agent, Trade, Nursing, Informatics, Tourism, Secretarial and Assistance, Technical School

São Sebastião

Management, Hidrology, Informatics via internet, Secretarial, Technical School

São VicenteGuarujá

Mongaguá

Caraguatatuba

Praia Grande

Hospitality, Aeronautical maintenance, Secretarial, Tourism, Technical School

FATECs (11 courses)

ETECs (51 courses)

USP (2 courses)

Bertioga

Marine Biology Center

Systems Analysis and Development, Foreign Trade, Business management, Chemical processes

Logistics, Accountancy

Nursing, Informatics, Buildings, Technical School

Logistics, Environment, Technical School

Business management, Port management

Petroleum EngenieeringUNESP (1 course)

Course of Marine Biology and Coastal Management

Seminário Brasilianas – 30/04/2013

São Paulo is the destiny of significant part of Petrobras R&D resources

Partnership with universities and R&D institutions

Research and education centers

Construction of new laboratories

Infrastructure increase

Equipment acquisition

Operational Units

Investments in the State of São Paulo in 2006-2011R$ 469 MM


Support for the Santos Basin Operations in the state of São Paulo

Seminário Brasilianas – 30/04/2013Source: Petrobras and Government of the State of São P aulo

Cities with existing installation and implantation projects and study

SantosHeadquarter

CDAGeology lab

São Vicentecompany

contracted construction

and assembly

Praia Grande

Merluza Pipeline

Cubatãogas treatment

and warehouseNaval Pole

Guarulhos

CDA

Itanhaém

Airport

Guarujá

Logistic base on study

São Sebastião

Port and TEBAR

Caraguatatuba

UTGCA

São José dos CamposPlatform for receipt of

C5+ at Revap


Gas supply and demand in the state of São Paulo


Natural Gas Proven Reserves (in Million M3)

Natural Gas Production (in Million M3 per day)

Natural Gas Consumption (in Milion M3 per day)

BRASIL436.430 70,56 56,75

SÃO PAULO45.439 5,43 16,60

Investment Promotion AgencySource: State Energy Secretariat / IPT (2009)

The state of São Paulo in the Oil & Gas supply chain

For each R$ 1 billion invested in E&P more than R$ 400 million are supllied from São Paulo

ACTIVITY DIRECT INDIRECT TOTAL

Machinery manufacturing and maintenance 80.5 16.9 97.4

Other metal products manufacturing 61.9 28.1 90.0

Services 36.7 40.1 76.8

Siderurgy 11.9 22.6 34.5

Transportation 3.8 29.5 33.3

Oil refining and petrochemical industry - 32.9 32.9

Electric equipment and material manufacturing 18.9 10.8 29.7

Chemical products manufacturing 17.0 8.3 25.3

Total 230.7 189.2 419.9


Some Incentives


P&G – Oil and Natural Gas financing line. Finacing of up to 100% of the elegible items

REPETRO (National and State)Special Customs Regimen for Export and Import of goods destinated to the

exploration and production of oil and natural gas.

Tax suspension II (Import tax), IPI, PIS/PASEP and COFINS.

Reduction or exemption

ICMS – State of São Paulo;

- ICMS exemption on the notional export and Drawback;

- ICMS reduction to 3% in the transactions previous to the notional export;

- ICMS reduction to 3% in imports under temporary admission for the production and mining stages, ICMS exemption for the exploration stage.

SECRETARIA DE DESENVOLVIMENTO ECONÔMICO, CIÊNCIA E TECNOLOGIA

Thank You!

Luciano AlmeidaPresident

Telephone: + 55 11 3218 6060

E-mail: [email protected]

www.investe.sp.gov.br

Documents

São Paulo, Number 1 State in Brazil Luciano Almeida President May 22 nd, 2013