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Investor Presentaiton

26 How to INVEST in São Paulo STATES 27 STRATEGIC SECTORS FOR INVESTMENT São Paulo State receives investments in all economic sectors. It has an extremely diversified market, with emphasis on 11 strategic sectors for investments. Find more about their potentialities bellow. Airplane manufactured by Embraer, one of the largest aerospace companies in the world. Aerospace and Defense The world aerospace industry is constituted by a small number of global actors, among which Embraer. Over 40 years old, Embraer is one of the largest aerospace companies in the world and its headquarters are in São José dos Campos, São Paulo. This sector employs 23 thousand people in Brazil and 26% of the its employees have a bachelor's degree, against 6% of the transformation industry. This sector invests heavily in research and development and has cooperation projects with 23 information technology and communication centers, 12 of which are in São Paulo State. In 2010, the aerospace industry accounted for 7.9% of the exports from São Paulo and its major market was the European Union. Highlights: Largest aerospace industry in the Southern Hemisphere; ⚫Industrial activity of high technology and added- value; • Embraer imports 80% of its inputs. Excellent opportunity to develop the supply chain in the state, with high added-value and exporting potential; Companies in the Brazilian aeronautic productive chain receive financing through the Pro Aeronautics Program of the BNDES (Brazilian Development Bank); * In Brazil, São Paulo State accounts for 98% of the personnel employed and 99% of the Industrial Transformation Value (VTI) in the aeronautic industry. Automotive The Brazilian automotive complex has factories in nine states, 40% of which are in São Paulo, cradle of the national automobile industry, which has attracted, in the last ten years, approximately USD 17 billion in investments. In the automotive parts sector, the share of São Paulo's industry has been increasing compared to the country's total. Brazil has 1,859 companies and 2,227 local units (Brazilian Institute of Geography and Statistics - IBGE, 2008), and 40% of these units are in São Paulo. The State accounts for 63% of the Industrial Transformation Value (VTI) and 56% of the employed people in the sector. Highlights: • Brazil is the 6" largest producer of vehicles in the world; • São Paulo accounts for over 47.9% of the Brazilian production; • Forecast of production increasing from 3.5 million units in 2009 to 5 million units in 2012; • Leader in the flex fuel technology, with possibilities to develop, on a commercial scale, hybrid and ethanol powered 2nd generation vehicles; • Incentives from the "Pró-Veículo" Program (further information in the chapter "Tax Incentives"). Biotechnology Brazilian biodiversity represents a great potential for the country to develop the biotechnology sector, one of the most promising sectors in the economy and that has grown sharply in the last years. The companies in this area can be divided in seven categories: human health (diagnosis kits, vaccines, remedies and artificial skins etc.); animal health (diagnosis kits, vaccines, embryo transfers etc.); agriculture (plant cloning, molecular diagnosis, genetic improvement etc.): environment (bioremediation, effluent treatment and degraded areas); bioenergy, inputs (enzymes, DNA extraction kits); and miscellaneous (diagnosis kits for human and animal diseases). São Paulo State is a leader in this sector, with 38% of Brazil's bioscience companies and 39% of biotechnology companies. Highlights: Brazil has the greatest biodiversity in the planet, with wide arable land, cutting edge agroindustrial technology, solid structure for research in farming and developing biotechnological processes; • Leadership in genetic sequencing: • One of the major bioethanol producers in the world; • São Paulo State has an important role in the replacement of gasoline for biofuel-generated energy; Unrivaled location for clinical assays and the development of new medication. Vaccine laboratory of the Butantan Institute.
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