welcome you to our webcast: Destination Brazil: Evaluating and Sourcing the Hottest M&A Deals

and

Introduction

Moderator:

Suzanne Miller Senior Writer The Deal LLC

REMINDER:

The audience is in listen-only mode

Please e-mail questions via the Q&A panel box

Select questions will be answered during the last 10 minutes of the

program

Please answer poll questions

Webex customer support at 866-229-3239

Marcelo Di LorenzoPartner, Managing Director and

Head of Brazil3i Group plc

EXPERT PANEL

Karyn KoiffmanPartner

Kirkland & Ellis LLP

Marcello HallakePartner

Thompson & Knight LLP

EXPERT PANEL

Hans LinManaging Director

Bank of America Merrill Lynch

Source: Dealogic

Cross-border M&A: Brazilian targets

2005-2011

0

10

20

30

40

50

60

70

'05 '07 '09 '11YTD

Deal valuation

(85) (126)

(179) (172) (115) (229) (145)

Number of deals

$B

Cross-border M&A/Brazilian targets 2005-2011 based on deal values

  Less than $100M $100M-$500M

  Value $M Deals Value $M Deal

s

2005 713.98 30 3,841.63 17

2006 1,090.69 34 4,642.66 19

2007 1,110.03 48 7,316.49 29

2008 1,672.39 57 3,243.03 14

2009 1,252.95 44 4,296.29 18

2010 1,959.02 67 5,863.78 25

2011 YTD 1,467.94 43 3,011.68 13

Total since 2005 9,267.01 323 32,215.56 135Source: Dealogic

Cross-border M&A/Brazilian targets 2005-2011 based on deal values

Source: Dealogic

$500M-$1B $1B-$10B

Value $M Deals Value $M Deal

s

2,886.61 4 0 0

2,973.98 4 9,364.78 3

4,782.50 7 6,803.27 5

2,912.98 4 11,577.23 5

1,447.93 2 7,226.96 4

7,617.30 10 48,169.37 13

3,306.26 5 6,286.62 3

25,927.56 36 89,428.22 33

 

 

2005

2006

2007

2008

2009

2010

2011 YTD

Total since 2005

AUDIENCE POLL QUESTION

How many deals does your firm expect to conduct in Brazil over

the next 12 months?

A. 1-2B. 3-4C. 5 or moreD. None

Keys to sourcing and finding deals in Brazil

0

1000

2000

3000

4000

5000

6000

7000

8000

2005 2007 2009 2011YTD

Deal valuation

Source: Dealogic

PE Acquisitions Domestic and Foreign

10 22

39 30 9 32 20

Number of deals

$B

AUDIENCE POLL QUESTION

What is the greatest perceived risk in conducting M&A in Brazil?

A. Appreciation of the realB. Ability to conduct proper due

diligenceC. Government uncertainty D. Premium valuationsE. InflationF. Other

Brazilian inflation rate 2002-2010

Near-term outlook for dealmaking in Brazil

Top 5 Targeted Sectors in Brazil since 2005

  Target industry Value $ millions

Number of deals

1 Telecom 26,038.8 45

2 Oil & Gas 20,551.4 55

3 Metal & Steel 18,107.7 47

4 Mining 18,006.7 144

5 Chemicals 8,635.8 47

  Subtotal 91,340.4 338

  Total 156,838.4 1,051

Source: Dealogic

AUDIENCE POLL QUESTION

What sector do you expect will experience the highest level of M&A activity in Brazil over the next 12-18

months? A. Natural resourcesB. EnergyC. AgricultureD. Financial servicesE. Technology, media and telecomF. Construction and infrastructureG. Other

AUDIENCE POLL QUESTION

For the remainder of 2011, how much does your company expect to spend on

acquisitions in Brazil?A. $10 billion or more

B. Between $2.5 billion and $9.9 billion

C. Between $1 billion and $2.49 billionD. Between $500 million and $999 million

E. Between $250 million and $499 million

F. Under $249 million

G. None

AUDIENCE Q&A

•thank you for joining our webcast

and