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Investor Presentaiton

CORPORATION At this point the economy rests on quite strong fundamentals... Inflation has been at historically low levels ... 12-month IPCA inflation and inflation targets (%) 17 15 IPCA Inflation 13 (12.5) 11 T 5 3 Center of the target range . enabling the central bank to lower the steering rate Central bank steering rate % 30 * Since January 2009, the central bank has cut SELIC by 500 bp to 8.75% to stimulate the economy* 25 20 20 15 Upper limit 10 5 Lower limit 0 1 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09e Dec-10e Dec-11e 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009F 2010F 2011F → Selic interest rate (%) Unemployment continues to decline... Unemployment rate (%) 11.0 10.5 10.0 9.5 Seasonally adjusted 9.0 8.5 8.0 7.5 7.0 Original 6.5 6.0 Mar-06 Nov-06 Jul-07 Mar-08 Nov-08 Jul-09 Mar-10e Dec-10e while industrial confidence is approaching pre-crisis levels Industrial confidence index 132 Current Status Index 122 112 Expectations Index 113.5 412.2 111.0 102 92 Industrial Confidence Index 82 72 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Additionally, the central bank has injected R$99.8 billion of liquidity into the banking system by cutting reserve requirements. Source: Credit Suisse research and forecasts Dec-2009; the shown forecasts are in line with other investment banks © Wärtsilä WÄRTSILÄ
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