BUSINESS OPPORTUNITIES IN BRAZIL - ahkbrasil.comahkbrasil.com/upload_arq/joao borba.pdf · Business Opportunities & Legacy. 2014 FIFA World Cup Brazil Odebrecht Organization. BUSINESS

BUSINESS OPPORTUNITIES IN BRAZIL

Olympic and Paralympic Games

Agenda

Business Opportunities & Legacy

2014 FIFA World Cup Brazil

Odebrecht Organization


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Leader in Engineering and Construction in LatinAmerica, with a significant presence in Africa

Leader in Thermoplastic Resins Industry in theAmericas & 8th largest in the world

Consolidating itself as leader in ethanol productionand energy co-generation through biomass in Brazil

Investments in Transportation, Logistics and Energy inLatin America

Full service provider of integrated solutions to the Oil& Gas industry, prepared to be a relevant player in theBrazilian pre-salt layer

One of the largest private operators in Water &Sewage and Waste Treatment segments in Brazil

Consolidating itself as one of the leaders in Real EstateDevelopment and Construction in Brazil, focusing on thegrowing low-income housing market and select residentialand commercial developments

GROSS REVENUESLTM US$ 26.3 bn

EBITDA LTM US$ 3.0 bn

TOTAL ASSETS US$ 35.5 bn

TOTAL CAPEX US$ 2,2 bn

Originated in Brazil, and present in over 20 Countries, Odebrecht is a Organization with 65 years of history grounded on a unique and present Corporate Culture, guided by TEO

(Odebrecht’s Entrepreneurial Technology)

FINANCIAL HIGHLIGHTS(2010)

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Largest Construction Company in Latin America

With a 65 year history and an international presence of over 31 years,

CNO is the 15th International Contractor*

Present in over 20 countries

5

Geographically distributed and structured in six business units, ensuring decentralization and

planned delegation to leverage the Company´s growth

*Source: Engineering News Record’s Magazine Aug/10

Brazil

130 Mil Employees worldwide

Performance Capability

Highways

Tunnels Metro Lines

Buildings

Bridges

Thermal and Nuclear Power

Plants

Energy Transmission

Lines

Sanitation Pipelines

Hydroelectric Power Plant

Irrigation Projects

Airports

46

Railways

148 Treatment and Pumping Stations Gas and Oil Pipelines

Offshore & Onshore StructuresPorts

38

Outfalls20

282

843 292

70172

69

29

18

605

328

34

162

17

thousand tons

6

Porto Maravilha (RJ) – US$ 800 MM

Embraport (RJ) – US$ 400 MM Metrô L4 (RJ) – US$ 400 MMTransnordestina (PI / PE) – US$ 600 MM

Prosub (RJ) – US$ 2,500 MM Dom Pedro I (SP) – US$ 800 MM

Grota Funda (RJ) – US$ 400 MM Arena Pernambuco (PE) – US$ 300 MM Canal do Sertão (AL) – US$ 300 MM

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Performance Capability

SPORTS EVENTS FROM 2010 TO 2016 IN BRAZIL


JANUARY 2011

2014 FIFA WORLD CUP BRAZIL


• 2014 FIFA WORLD CUP BRAZIL

FIFA’S FOOTBALL WORLD CUP IS ONE OF THE WORLD’S MOST IMPORTANT SPORTEVENTS. IN 2014, BRAZIL WILL BE THE HOST COUNTRY FOR THE SECOND TIME, 64YEARS AFTER THE 1950 WORLD CUP.

BEARING IN MIND THAT AN EVENT THE SIZE OF THE WORLD CUP IS A RAREOPPORTUNITY TO CARRY OUT SEVERAL INVESTMENTS IN INFRASTRUCTURESECTORS WHICH THE COUNTRY HAS BEEN CALLING FOR A LONG TIME.

THE IMPACT OF SUCH AN IMPORTANT EVENT CAN CAUSE IN THE GLOBAL MEDIA,IN ADDITION TO THE AMOUNT OF FINANCIAL RESOURCE TO BE INVESTED, WHICHARE UNPRECEDENTED BUSINESS OPPORTUNITY FOR THE COUNTRY TO INCREASEITS DEVELOPMENT IN TRANSPORTATION, ENERGY, COMMUNICATIONS ANDINFRASTRUCTURE SERVICE, THUS LEAVING A POSITIVE LEGACY TO BENEFIT THESOCIETY AS A WHOLE.

World Cup Stadiums & ARENAS

Reform

Construction

Manaus (AM)

Rio de Janeiro (RJ)

São Paulo (SP)

Curitiba (PR)

Porto Alegre (RS)

Natal (RN)

Salvador (BA)

Recife

(PE)

Cuiabá (MT)Brasília (GO)

Type of investmentCapacity

* PPP = Public and Private Partnership

Fortaleza (CE)

42.000

Public

Approval of bidding

documents 53.000

PPP* 45.000

PPP*

46.000

PPP*

50.400

PPP*45.000

Public

74.000

Public

70.000

Public

41.000

Private

Belo Horizonte (MG)

62.000

Private

70.000

PPP*

65.000

Private*

*Viewed Business

building and refurbishment of existing stadiums

Corinthians Stadium (SP)


Pernambuco Arena Recife PE) Pernambuco Arena Recife (PE) 2 5

Fonte Nova Arena –Salvador (BA) Metro Line 4 – Barra/Gavea (RJ) 1 4

12

Maracanã Stadium(RJ) 3 6

Works related to the World Cup 2014 & the 2016 Olympics

Public and Private investments

Multipliers(From 2014 to 2019)Total Investment up to

2014

Civil Infrastructure- Arenas

- Airports- Ports

- Urban Mobility

Services InfrastructureReal Estate/Health/ Others

48%

22%

30%Consumption/

Tourism

135,7

Total Investment + Impact

Civil Infrastructure

Services Infrastructure

Consumption / Tourism

SECTORS MEASURED INCREASE OF…

Jobs Production of supplies

Taxes

Consumption

183,2In billions of Reais

47,5

Indirect impact

Source: Ministério do Esporte

Direct impact

Estimated economic impacts of 2014 FIFA World Cup


FONTE NOVA ARENA – SALVADOR BAHIA

FONTE NOVA ARENA - Overview

• Investments surrounding the arena ofR$ 200-250 MM:

Shopping: 30,000 sqm GLA (grossleasable area)

Hotel with up to 231 rooms(5,600 sqm)

2 Commercial Towers (1,080offices with 40,400 sqm)

• Arena Capacity: 50.4 thousand seats

1.0 thousand skyboxes

2.5 thousand business seats

1.9 thousand parking spaces

TOTAL OF INVESTMENTS OVER R$ 675MM

PERNAMBUCO ARENA – Recife - (PE)

Pernambuco Arena Greenfield Project

Investments of R$ 560 MM

• The project includes:

•Mall

•Real Estate Project

• Institutional Areas

• Green Areas

•Administrative Center

• Arena Capacity: 46 thousand seats

• 4.3 thousand skyboxes

• 4.5 thousand business seats

• 5.9 thousand premium seats

• 6.0 thousand parking spaces

CIDADE DA COPA - Masterplan

Constructed Area129.581 sqm

Parking4,700 (parking space)

Why Construct and Invest in Sports Arenas

15,7%

53,4%

13,4%

17,5%

10,7%

43,0%

16,4%

29,9%

Classe A e B

Classe C

Classe D

Classe E 2003 2010

Sources: FGV; Comperio; Ibope; Site “Futebol em números”

• Distribution of economic classes in Brazil

25

30

35

40

45

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Announcement of World Cup

World Cup

30% Range

• Impact of World Cup on audience of German Soccer League’s arenas

91% 87%74% 71%

57%36%

Ingl

ater

ra

Ale

man

ha

Espa

nha

Fran

ça

Itál

ia

Bras

il

• Index of Occupation of soccer stadiums in the main world leagues (2009)

MM Fans.

The increase of Brazilian middle-class economic standards

represents an opportunity to create additional revenues derived from sports arenas

Engl

and

Ger

man

y

Spai

n

Fran

ce

Ital

y

Braz

il

Class E

Class D

Class C

Class A and B

98 99 00 01 02 03 04 05 06 07 08


OLYMPIC AND PARALYMPIC GAMES

RIO 2016 OLYMPIC AND PARALYMPIC GAMES

• IN 2016, THE BIGGEST SPORT EVENT IN THE WORLD WILL TAKE PLACE FOR THE FIRST TIME INSOUTH AMERICA. THE CITY OF RIO DE JANEIRO IS PROUD AND IN CHARGE OF HOSTING THEOLYMPIC ANDA PARALYMPIC GAMES, A HAPPENING THAT AFFECTS THE DAILY ROUTINE OFBRAZILIANS SINCE THE VICTORY CONFIRMATION, ONTHE UNFORGETTABLE OCTOBER 2nd , 2009.

• THE INFRASTRUCTURE FOR THE FULFILLMENT OF THE GAMES IS REALLY IMPRESSIVE. THERE WILLBE MORE TAN 100,000 PEOPLE INVOLVED DIRECTLY AT THE ORGANIZATION OF THE GAMES,INCLUDING 70,000 VOLUNTEERS. MILLIONS IN THE CITY, INTHE COUNTRY AND IN THE CONTINENTWILL BE REACHED BY THE GAMES.

• MORE THAN 10,500 ATLHETES OF ABOUT 205 NATIONS AROUND THE WORLD ARE EXPECTED TOCOME TO RIO 2016 OLYMPIC AND PARALYMPIC GAMES, BESIDES THOUSANDS OF MEDIAPROFESSIONAL, FANS OF SPORT AND TOURISTS FROM ALL OVER THE GLOBE.

• IN ORDER TO RECEIVE ALL THE GESTS, RIO WILL PASS THROUGH A TRANSFORMATION WITHOUTEVER LOSING THE CARIOCA SPIRIT AND THE BRAZILIAN ENERGY THAT UPLIFT EVERYONE.

THE AUTORIDADE PUBLICA OLIMPICA – APO WAS CREATED TO FOLLOW PLANNED ACTIONS. LIKEODA 2012 LONDON OLYMPICTHES GAMES, APO WILL BE RESPONSIBLE FOR COORDINATING ALLACTIONS, OF THE INTERFACE BETWEEN LOCAL, STATE AND FEDERAL GOVERNMENTS AND THE RIO2016 ORGANIZING COMMITTEE.



OLYMPIC PARK


21CHf – 14/04/2010

Domestic Market

InfrastructureStimulus to

Export

Economic Growth Agenda

Investment Partnerships

Education

Business Opportunities & Legacy

• BUSINESS OPPORTUNITIES & LEGACY

AS A RESULT, BOTH EVENTS WILL BRING FORTH AN ENVIRONMENT OF GREATOPPORTUNITIES TO THE COUNTRY DEVELOPMENT, BEFORE AND AFTER THEIMPLEMENTATION OF LARGE INVESTMENTS, MOST OF THEM IN INFRASTRUCTURESECTORS, STADIUMS AND ARENAS, IN EACH ONE OF THE TWELVE HOST CITIES SOTHAT BRAZIL MEETS FIFA´S REQUIREMENTS;

INVESTMENTS IN BASIC SANITATION, URBAN TRANSPORTATION, ENERGY ANDOTHER ECONOMY SECTORS , SUCH AS COMMERCE, SERVICES AND TOURISM AREPERMANENT IMPROVEMENTS, FOR THE SOCIETY AND THE SOLID BASIS TO APOSITIVE LEGACY FOR EACH ONE OF THE HOST CITIES AND THE COUNTRY.


Crowded airports & insufficient terminals

Despite the country´s impressive growth and economic stability in the past 5 years, there is still great need for infrastructure development in Brazil

Airports

Lousy public transportation (underground and bus lines)

Urban Transportation

Insufficient roads and related infrastructure (especially in

less populated regions such as the North and Northwest)

Roads & Railways

Arenas

Sources: BNDES, Infraero, ANTT, Ministério do Esporte

Existing sports arenas are not state-of-the-art premises• BNDES has opened a credit line of up to R$400 MM per stadium

• Most stadiums have already defined a financial model for rebuilding or reforming: Public Funds, PPP, Concessions or Private Stadiums

Turning World Cup Challenges into Opportunities…


IN ORDER TO CARRY OUT ALL THE NECESSARY INVESTMENTS, THE FEDERALGOVERNMENT WILL BE AN IMPORTANT SUPPLIER OF FUNDS, AND THE DRIVINGENGINE PUSHING SERVICES RHYTHM.

SO, GOVERNMENT SHOULD IMPLEMENT THE MOBILITY PAC 2 (A PLAN TO SPEEDUP GROWTH), AND SHOULD SUPPORT STATES, CITIES AND PRIVATE BUSINESS,WITH A SPECIAL CREDIT LINE FROM BNDES (SOCIAL AND DEVELOPMENT BANK),TO FUND AND ENSURE THE EXECUTION OF PUBLIC WORKS AND PUBLIC / PRIVATEPARTNERSHIPS (PPP) PROJECTS.

THE GOVERNMENT PROGRAM PAC 2 WILL BE RESPONSIBLE FOR OVER THAN US$530 BILLIONS, CREATING BUSINESS OPPORTUNITIES FOR EVERYBODY.



25CHf – 14/04/2010

31.7

12.8

154.6

17.0

58.1

256.4

TOTAL ~ 530.6 US$ BILLIONSSanitation, Risk Areas Prevention, Urban

Mobility, Street Paving

Health,Daycare Centers,

Schools,Sports,

Leisure Plaza,Police Stations

Popular Housing,Turning “SLUMS”

into popular sections

Universalizing the Access to Water and Electric Energy

Logistic Network :Highways,

Railways,Ports,Waterways,Airports

Electric energy generation and

Transmission, Oil and Natural Gas,

Pre-Salt,Shipyards,Platforms, and Drilling platforms

Fonte: PAC2

A BETTERCITY

ENERGY COMMUNITY

HOUSING

WATER & POWER

TRANSPORTATION

ODEBRECHT GROUP AND THE PAC`s2 PROGRAM



THERE ARE STILL MANY QUESTIONS TO BE ASKED AND ACTIONS TO BE IMPLEMENTED,BUT TO ANSWER THESE QUESTIONING, THERE IS A FRIENDLY SCENARIO EXPECTING FORBRAZIL IN THE COMING YEARS THAT SHOULD, THROUGH THE RELEASING OF SUCHINVESTMENTS, BOOST CONTRY GROWTH IN SUSTAINABLE BASIS.

THE SOCIETY IS FULLY MOBILIZED, TO SUPPORT SUCH INVESTMENTS AND WILLING TORECEIVE AS A LEGACY, THE IMPROVEMENTS THAT THE GAMES WILL ALSO BRING, IN THESECTORS OF ENVIRONMENT, WITH THE CLEANING OF RIVERS AND LAKES, AIRPORTINFRASTRUCTURE, SUBWAY, SOCIAL PROGRAMS, THUS SPEEDING UP THE COUNTRYGROWTH, AND BRINGING TO THE PEOPLE, A BETTER FUTURE.


THANK YOU

E-mail: [email protected]

JOÃO BORBA FILHOBUSINESS DEVELOPMENT DIRECTOR

MAY 2011


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BUSINESS OPPORTUNITIES IN BRAZIL - ahkbrasil.comahkbrasil.com/upload_arq/joao borba.pdf · Business Opportunities & Legacy. 2014 FIFA World Cup Brazil Odebrecht Organization. BUSINESS