TOP 10 reasons to

invest in BRAZIL

Opportunities How to explore the opportunities

offered in one of the most important

emerging countries in the world?

ORESUND BUSINESS &

CONSULTING can support

your company to explore the

several opportunities to increase

the market share of your

business within South America

countries, mainly in Brazil,

the biggest and the most

important country in the

South continent. See some of

the good reasons to start

thinking about it now:

The economic growth of Brazil FACTS & FIGURES

June/2011

1. Brazil is now a smooth-running democracy, a

force in agribusiness, finance, manufacturing

and worthy of hosting the 2014 World Cup

and 2016 summer Olympics.

2. In 2010, Brazil exported $197 billion worth of

products -- mostly meats, processed foods,

soybeans, aircraft, electrical goods, computers

and computer parts, plus the standbys of

coffee and iron ore.

3. Presents an excellent performance of stocks,

many of which have doubled and tripled

since the world’s markets pulled themselves

out of the quicksand two years ago.

4. Has elected Dilma Rousseff as the country’s

new president. She is the hand-picked

successor to outgoing two-term president

Luiz Inácio Lula da Silva, who left office with

80% approval rating.

5. Brazil is very proud of its robust currency, the

Real.

6. Wages and salaries are rising in “reais” and

exploding in the equivalent of dollars, so

Brazilian consumers have more purchasing

power than ever imagined before.

7. With the government having conquered the

monetary instability and inflation of the 1990s,

banks are willing to extend long-term

mortgages, car loans and credit cards.

8. Brazil is developing a financial-and-investing

culture it never had before. Eight years ago,

the country had only 80,000 individual stock

investors, now there are more than 630,000.

9. The Brazilian finance system is one of the

most and best regulated economic sectors in

the world, where the “Conselho Monetário

Nacional” (CMN) and “Banco Central” (BC)

work together in order define governance

rules and mitigate eventual risks.

10. The BNDES will invest Tri US$ 2,0 between

2011 and 2014, which represents 23% of GDP,

against the current 19%.

Macroeconomic Outlook From a less dynamic economy, with growth

rates below the world average, Brazil has joined

the group of countries that lead the world

economic growth - and will continue to lead it in

the coming years.

Between 2010 and 2020, the expectation is that

Brazil will be the third country in the ranking of

the biggest contributions to global growth. The

Brazilian economic success comes along,

differently from what happened in the past,

with social inclusion and reduction of social and

regional disparities.

The results coming from private and foreign direct

investment flows to emerging countries, which has

intensified since 2004, are shown on world GDP

statistics. Brazil reached the average of 4,5% in

economy growth from 2007 to 2010, even

considering the sensitive investment flow

reduction faced in 2009.

When the crisis occurred, Federal Government

promptly acted. The measures approved were

quite different from traditional recipe used by the

country in past experiences. The Government

implemented a series of counter-cyclical

fiscal and monetary measures in order to

stimulate the economy, reversing private

sector expectations and reestablishing overall

confidence.

Brazil was one of the last countries to suffer

the crisis effects and one of the first to recover

from it.

In 2010, Brazil realized an extraordinary

structure investment increasing, which will

impact positively on the continuous growth

of the next periods.

Economy Forecast For the coming years, it is expected large

investments in infrastructure, such as

construction, telecommunications, sanitation

and oil exploration and refining. The

Brazilian Government considers the

expansion of infrastructure investment as a

fundamental condition for sustainable

development.

Thus, it has launched the Growth

Acceleration Program (PAC), which invested

more than R$ 500 billion between 2007 and 2010 in

transportation, energy, sanitation, housing and water

resources sectors.

The PAC-2, initiated in 2011, will continue to boost

investment in order to reach 24% of GDP by 2014.

The government encourages investments by offering

incentives for all regions and segments, providing a

balanced growth for the 190 million inhabitants.

Macroeconomic Forecast 2011 - 2016

2009 2010 2011* 2012* 2013* 2014* 2015* 2016*

GDP % -0,2 7,6 4,3 4,7 4,8 5,2 4,2 4,5

Nominal rate (Selic) %

8,8 10,8 12,5 11,3 10,3 9,8 9,0 8,5

CPI (IPCA) % 4,3 5,9 6,3 4,5 4,5 4,5 4,3 4,0

Unemployment rate %

8,1 6,7 6,4 6,1 6,1 5,9 5,7 5,7

FX – Year end (R$ / US$) 1,75 1,70 1,60 1,70 1,74 1,76 1,81 1,84

Exports (US$ Bn)

154,1 196,6 257,4 300,0 328,4 352,5 384,0 416,5

Imports (US$ Bn)

130,3 179,8 233,9 279,5 302,3 329,9 360,4 392,6

Source: Banco Central

*Banco Brasdesco

10 important cities that push the economy in Brazil

city population ( millions )

1 Porto Alegre 1,4 Two Mercosul countries, Argentina and Uruguay, border this attractive city.

2 Curitiba 1,7 “Curitiba is the best place to live in Brazil” Reader’s Digest

3 Belo Horizonte 2,3 A mixture of contemporary and classical architecture surrounded by mountains.

4 São Paulo 11,2 Business center of Latin America and also known for its diversity culture.

5 Rio de Janeiro 6.3 A global city and an attractive, wonderful place to live work and invest.

6 Brasilia 2,0 The capital of Brazil and a city of striking contemporary appearance

7 Salvador 2,6 Brazil's capital of happiness due to its easygoing population

8 Recife 1,5 The major port on the Atlantic Ocean and it is known as the “Brazilian Venice”

9 Fortaleza 2,4 In this beautiful city, the economy arises from its diversified commerce and tourism

10 Manaus 1,7 A free economic zone, with interesting tax incentives that attracts several companies

2

3 4

5

6

7

8

9

1

10

Services

How can ORESUND help your company to succeed in Brazilian business growth?

The support service during the Start-Up process

of foreign companies in Brazil, is one of the

special projects developed by ORESUND and

selected partners.

Since the Government is being committed with

several accomplishments internally and

externally, several changes have been made in

order to provide sustainable and assertive rules.

This means that Tax legislation has been

changing continuously and can motivate from

the improvement perspective, but can “afraid”

some investors who are interested in increasing

their companies’ profits by exploring the

Brazilian Market.

The Start-Up process is based on strategic plan

developed together with the company

headquarters and a business strategic group,

which will contain all the strategic goals

expected by the company, a real schedule

and comprehensive rules.

Since our project group is create based on

company needs, every single member is

selected according to requirements defined

for the specific role. Which means that, for

each process phase of the project, the

participants will be aggregating value.

The figure below demonstrates the three

different phases of a Start-Up project of a

market company, which expectation is to

enable the staff to totally manage the

business by themselves in the third moment

of the project. It is as typical market

company that will consider the production

plant on a second phase.

This process ensures that the company will

be settled down following the local

legislation and all activities areas will be

created, prepared, trained and managed

according to the company business rules

and strategies. Subsequently, ORESUND

can keep the services support according to

the company needs.

Management Support

Company ORESUND

Marketing

Legal

StaffLogistic

Company

Structure

ORESUND

To be confident and offer services with quality

and efficiency, ORESUND counts on selected

partners, which will contribute with their

expertise in each activity defined as below.

The full coordination of this integration is

made by ORESUND together with the

Company Start-Up.

Services provided and coordinated by ORESUND

and partnerships during Start-Up process

Strategy &

Compliance Legal & Tax

Marketing

& Publicity

Administration

& Finance

Accounting

&

Controlling

Supply

Chain HR

Business Plan

Strategy

Schedule

Investment

Survey

Benchmarking

BSC

Business Process

Procedures

Audit

Legal

Corporate Law

Commercial Law

Tax Law

Labor Law

Contract

Management

Tax legislation

monitoring

Radar

Market

Competitors

Customers

Relationship

Sales Team

Performance

Product &

Branding

Communication

Promotion

Campaigns

Fairs/Exposition

Office

Settling Up

Gen. admin.

IT solutions and

management

Banking

Cash

Management

Credit & Risk

Management

Financing

Daily Routine

Book Closing

Risk

Management

Reporting

CRM

Sourcing

Purchasing

Import

Export

Logistics

Storage

Recruitment and

selection

Compensation

and benefits

Industrial

relations and

personnel

Health and

safety

Training and

development

Internal

communication

What are the benefits for

the Company Start-up?

• Keep focus on business strategies

• Speed up the start-up process

• Mitigate risks

• Delegate administrative and operational activities smoothly and assertively

Contact:

Adriana Gurgel

adriana.gurgel@oresund.com.br

F. 55 11 7867 4866

55 11 3876 8886

São Paulo – Brazil

www.oresund.com.br