A Nation called São Paulo

A Nation called SĂŁo Paulo

SĂŁo Paulo - 21st largest economy in the

45 million people, the largest state in Brazil

More than 200 thousand km² of extension, larger than the UK

Latam Headquarters of 65% of Fortune 500

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world Second strongest economy in South America (larger than Argentina) USD 647 billion GDP World’s number one producer of sugar, sugarcane ethanol and orange juice 4th largest consumer market in Latin America and largest in Brazil, only behind Mexico, Colombia and Brazil

Healthy and stable economy GDP at current values (Constant 2016 USD) Trillions of dollars

Other states

SĂŁo Paulo Source: IBGE

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Diverse and qualified workforce The largest Japanese, Italian and Lebanese colonies in the world Home for the two best universities in Latam, according to Times Higher Education 39% of Brazil’s PhDs and 13,043 postgraduates in the 3 state universities alone 63% of the population with 11 years or more of study (Brazilian average is 51%) Source: SPNegócios; InvestSP; PNAD; Times Higher Education

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The best state for FDI in Latam FDI’s Latin American State of the Future: it ranks first for both Economic Potential and Business Friendliness São Paulo accounts for 20% of FDI projects in South America Number of investments announced in 2018, according to each state: São Paulo

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Paraná

7 7

Minas Gerais 5

Rio Grande do Sul Santa Catarina

5

Ceará

5 4

Mato Grosso Rio de Janeiro

4

Bahia

4 3

Espírito Santo Goiás

2

Piauí

2

Pará Mato Grosso do Sul

2 1

Alagoas

1

Pernambuco

1

Rio Grande do Norte

1

Maranhão

1

Rondônia

1

Other states 0

Source: InvestSP; Financial Times (fDI)

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Government priorities Economic Development

Infrastructure

Science, Technology and Innovation

Social Development

Most relevant economic areas

30% of total Brazilian production

32% of total Brazilian services value added

20% of total Brazilian agribusiness GDP

42% of total refined oil in the country

40% of total foreign tourists in Brazil

40% of total jobs in Brazil related to creative economy

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State of São Paulo exports

21%

Foodstuffs

18%

Transportation

14%

Machines

9%

Vegetable Products

7%

Chemical Products

6%

Mineral Products

4%

Metals

4%

Plastics and Rubbers

4%

Animal Products

3%

Paper Goods

3%

Unspecified

2%

Precious Metals

1%

Textiles

4%

Others

Exports total: USD 58.6 billion

% by value of exportation (2017)

Source: DataViva (SECEX)

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Innovative Agriculture Biocontrol products (based on micro and macroorganisms) for pest and disease control is a market that grows 20% per year in Brazil Source: State Government

Growing creative economy 47% of Brazilian creative GDP

5.2%/year expected growth for the next 4 years Netflix to produce 20 original local series until 2020 The largest Comic Con Experience in the world (262 thousand participants in 2018) Third largest music market in the world

Source: Firjan/IBGE; PricewaterhouseCoopers; press clipping

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World class infrastructure More than 50 million people fly per year just in the two busiest airports of the country (equivalent to Colombian population) The largest port in Latin America is located in Santos, with 130 million tons of cargo annually, representing Âź of the total Brazilian trade flow

18 of 20 best Brazilian highways are in the State of SĂŁo Paulo

Source: State Government; Infraero; press clipping; InvestSP

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New investment opportunities

220 projects in its portfolio USD 13 billion in investments

Airports 20 regional airports to be leased to the private sector

Industry 4.0 Graphene factory and dozens of satellite factories

Transport 260 km of intercity trains and subway

Environment Support in the decontamination of one of the largest rivers crossing the capital

Source: InvestSP; State Government

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Innovation District

More than 650,000 m² for the Brazilian Sillicon Valley

Source: State Government

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Transport Intercity Train • 135 km; 7 new stations • Investment – USD 1.4 billion • Concession – In study Metropolitan Train • 139 km; 1.8 million passengers/day • Investment – USD 2 billion • Concession – 30-35 years¹ Subway • 74 km; 2.4 million passengers/day • Investment – USD 11.2 billion • Concession – 30-35 years¹ 1

Some lines are still in study. Source: State Government

Health Partnerships with the private sector to make Butantan Institute the world’s largest producer of vaccines

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Environment Parks concessions – Cantareira and Campos do Jordão

• 567 hectares • Investment – USD 3.8 million • Concession – 20 years

Pinheiros River PPP

• Water and energy exploration rights • Waterway transportation of passengers and cargo • Investment – 270 million (still in revision) • Concession – In study 13

Multisector investment opportunities

Logistics, Transportation and Urban Mobility Build railway connections between key regions New concessions to expand the state highways network Construction of bus lanes Improvements and ports deployment along the TietĂŞ-ParanĂĄ Waterway Infrastructure development for agricultural production outflow through railways, waterways, ports, airports, pipelines and roads

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Creative Economy Games startups (AR/VR) Audiovisual production and postproduction studios and services Venues for shows and events (privatization of key venues) Production of audiovisual content Music festivals and performing arts

Other sectors Expand participation of the private sector in the treatment of sewage Construction of new housing through private partnerships Construction of new healthcare facilities Construction, maintenance and management of new prisons through private partnerships

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Innovation frontier of Brazil 74% of the total Brazilian state investment in R&D

Agricultural Sciences

Biological Sciences

Earth and Exact Sciences

Social Applied Sciences

Health Sciences

Engineering Sciences Source: InvestSP; State Government; FAPESP

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Home for one of the largest airplane manufacturers in the world, SĂŁo Paulo is the aerospace hub for South America

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Tech parks and innovation ecosystems

VOTUPORANGA

BA SÃO JOSÉ DO RIO PRETO ARAÇATUBA

A PRESIDENTE PRUDENTE MARÍLIA

BAURU

OURINHOS

Many private sector initiatives to support startups are located throughout the state:

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BO

ITAPEVA

12 Tech Parks 13 Startup Incubators FRANCA

8 Innovation Centers

ARRETOS

RIBEIRÃO PRETO

SÃO JOÃO DA BOA VISTA

ARARAQUARA

SÃO CARLOS

PIRACICABA

GUARATINGUETÁ

CAMPINAS JUNDIAÍ

OTUCATU

GUARULHOS

SOROCABA

SÃO PAULO OSASCO

STO. ANDRÉ S. BERNARDO DO CAMPO

SÃO JOSÉ DOS CAMPOS

MOGI DAS CRUZES

SANTOS

REGISTRO

Source: State Government

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Social Impact Best HDI in Brazil¹

More than 1.5 million families benefited by state and federal income transfer programs

“Bom Prato” program served 20 million meals in 2018 at USD 0.3 (BRL 1) for the underprivileged population

More than 70 million liters of milk distributed annually for more than 410 thousand beneficiaries

Regional ONU ODS office located in São Paulo

Without considering Brasilia, a federal district with only 2% of Brazil’s population Source: State Government; Atlas of Human Development in Brazil

1

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Vocational Education

Largest vocational education program in Brazil, with 290,000 students Out of the 30 best state public schools of the country, 13 are vocational schools in the State of SĂŁo Paulo

76% of students from state public vocational programs are from public schools

32% of students from state vocational programs are Afro-Brazilian

Source: Paula Souza Center

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Social Impact

Health

The largest hospital network in the country, with + 100 hospitals managed by the state The Butantan Institute is responsible for more than half of the vaccines produced in Brazil. For 2023, it expects to produce 600 million vaccine doses Emilio Ribas Institute is internationally recognized for its infectious diseases treatment

Source: State Government; Butantan Institute; Emilio Ribas Institute

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Urban security The largest police force in Latin America

Fleet of 35,000 police vehicles

Presence in the 645 municipalities of the state

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The state is looking for more investment partnerships in the next years…

São Paulo was home for the WEF Latin America in 2018

Enel invested 1.5 billion USD in the acquisition of the energy distribution company of São Paulo in 2018

A cooperation agreement was signed in 2018 between Brazil and the China Chamber of Commerce to promote bilateral business

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… And there’s never been a better moment to invest in São Paulo

São Paulo is already recognized as the best place for investment in Latin America by vehicles of international credibility:

Reasons for this credibility rely on: • Cost-benefit • Transparency • Business environment Our management is committed to provide maximum support and agility to international investors willing to invest in the state development: Liaison between organs of all governmental instances to ensure simplicity in the process Initiatives to increase the security of investors Strong support of state agencies dedicated to investments in the state Source: InvestSP

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Services for investors

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Site Location (Greenfield, Brownfield, Warehouses, Expansions)

Tax, Environmental and Infrastructure Advisory

Investment Facilitation

Tailor-Made Projects

No Cost for Investors

Non-Disclosure Agreement

Credit options

DESENVOLVE SP supports projects in line with the United Nation’s Sustainable Development Goals (SDG), targeting social and economic inequality reduction and promoting social welfare DESENVOLVE SP’s loan portfolio reached almost USD 358 million in 2018. For 2019, the loan portfolio scheduled is close to USD 468 million Credit Lines

Innovation

Working Capital

Public Sector

Machinery and Equipment

Investment Projects

Source: DesenvolveSP

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SĂŁo Paulo State Government We are ready for business

/ governosp

www.sp.gov.br

global.sp.gov.br