BUSINESS OPPORTUNITIES IN BRAZIL
Olympic and Paralympic Games
Agenda
Business Opportunities & Legacy
2014 FIFA World Cup Brazil
Odebrecht Organization
BUSINESS OPPORTUNITIES IN BRAZIL
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BUSINESS OPPORTUNITIES IN BRAZIL
BUSINESS OPPORTUNITIES IN BRAZIL
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
BUSINESS OPPORTUNITIES IN BRAZIL
JANUARY 2011
2014 FIFA WORLD CUP BRAZIL
BUSINESS OPPORTUNITIES IN 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)
BUSINESS OPPORTUNITIES IN BRAZIL
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
BUSINESS OPPORTUNITIES IN BRAZIL
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
BUSINESS OPPORTUNITIES IN BRAZIL
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.
BUSINESS OPPORTUNITIES IN BRAZIL
BUSINESS OPPORTUNITIES IN BRAZIL
OLYMPIC PARK
BUSINESS OPPORTUNITIES IN BRAZIL
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.
BUSINESS OPPORTUNITIES IN BRAZIL
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…
• BUSINESS OPPORTUNITIES & LEGACY
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$530 BILLIONS, CREATING BUSINESS OPPORTUNITIES FOR EVERYBODY.
BUSINESS OPPORTUNITIES IN BRAZIL
BUSINESS OPPORTUNITIES IN BRAZIL
25CHf – 14/04/2010
31.7
12.8
154.6
17.0
58.1
256.4
TOTAL ~ 530.6 US$ 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
BUSINESS OPPORTUNITIES IN BRAZIL
• BUSINESS OPPORTUNITIES & LEGACY
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.
BUSINESS OPPORTUNITIES IN BRAZIL
THANK YOU
E-mail: [email protected]
JOÃO BORBA FILHOBUSINESS DEVELOPMENT DIRECTOR
MAY 2011
BUSINESS OPPORTUNITIES IN BRAZIL