Brazil Report 04 2009

SPECIAL ADVERTISING SECTION

BRAZIL

Golden Brazil Tempts Investors Economic powerhouse continues to offer a wealth of investment opportunities.

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est known for sun, samba and soccer, Brazil has much more to offer investors as its economy continues to power ahead, fueled by strong performances from its key sectors. Robust, decade-long growth in key areas such as health, education, sanitation, agriculture, and industrial engineering, have propeled the country of 180 million people to become into one of the world’s most important economies.

This series of positive results is being generated by high levels of exportled growth in sectors such as coffee, ethanol, aircraft, automobiles, iron ore, textiles and footwear. Production-related, long-term foreign direct investment (FDI) totaled more than U.S.$200 billion in 2008, while the country has expanded its presence in global financial and commodity markets. Its massive labor pool has high-literacy rates, and lower social classes now enjoy improved access to better quality medical care.

Founded in 1921, Hospital Sírio-Libanês is Brazil’s leading philanthropic institution with a global reputation for its pioneering practices. A hi-tech center of medical excellence, the hospital has room for 300 patients, with its highly-trained workforce generating the capacity for up to 50 surgical procedures a day, along with 2,000 types of diagnostic examinations. Significant investment in new technology allows Sírio-Libanês to specialize in more than 40 forms of medical SIDERURGY

METALLURGY

PAPER & CELLULOSE

PETROLEUM

care, many of them complex health treatments such as oncology, neurology, cardiology, renal therapy, and urology.

Ivette Rizkallah, President, Hospital Sírio-Libanês

The hospital is creating a suite for neurological surgery with a nuclear magnetic resonance that only a few hospitals in the world can offer, while a new U.S.$195 million hospital center, boasting nearly 300 beds, will open in 2012. Led by corporate superintendent, Dr. Gonzalo Vecina Neto, the reputation of the São Paulo-based hospital is further enhanced by the superb relationship that exists between doctors and patients. “There has been a great evolution and transformation of the health-care sector in Brazil,” says Dr. Neto. “The country has a large population and there is a lot of demand on the limited resources.

This has led to the private health-care sector collaborating with the public health-care sector to fulfil citizens’ needs.”

Hospital Sírio-Libanês is now one of the most highly regarded medical centers in the world, with increasing numbers of foreigners choosing to benefit from its excellent clinical standards and cutting-edge TRANSPORT

CEMENT

MINING

ENERGY

CHEMICALS

MAINTENANCE

Brazil is the country, ENESA is the partner.

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SPECIAL ADVERTISING SECTION technology. A growing choice for those patients from Europe and the U.S. seeking specialized care, the hospital has created an international relations area to enhance its appeal to health tourists. “Over Dr. Gonzalo Vecina Neto, Corporate Superintendent, Hospital Sírio-Libanês

the past few years, Brazil has attracted many foreigners for plastic surgery,” says Hospital SírioLibanês president, Ivette Rizkallah. “Our hospital mainly attracts international patients in the areas of oncology and cardiology. Brazil has great potential in the health tourism industry, thanks to its first-class hospitals, equipment and medical services, together with professional medical care.” Dr. Neto agrees: “It is often cheaper for foreign patients to come here as our treatments are 40% to 50% cheaper than in the U.S.,” he says.

While health care remains one of the most high-profile sectors, the sanitation industry is playing a vital part in the long-term sustainable growth and development of the economy and social conditions.

Characterized by its world-class services, efficiency, and reliability, Companhia de Saneamento Básico do Estado de São Paulo (SABESP) supplies 60% of São Paulo State’s population with clean water, providing supplies to 366 of the region’s 645 cities. The state-owned sanitation giant is also responsible for the sewage systems and industrial waste water networks in those cities, with the region’s rapidly increasing population placing a heavy demand on its operations.

With more than 26 million customers, the firm is the world’s fifth largest company based on client numbers. A substantial investor in new technology, infrastructure and staff, SABESP has created more than 700,000 jobs in the past decade as part of a U.S.$2.65 billion expansion drive. In 2007, it posted a profit of U.S.$437 million on revenue of U.S.$2.2 billion and invested U.S.$402 million. The company is also involved in various awareness programs aimed at

Anhanguera

Brazilian’s best colleges

IESB’s Campus Norte, in Brasília. For more information visit www.iesb.br

reducing water wastage and is set to expand its presence to other parts of Brazil following recent changes to government legislation. “Our vision sees a jump forward in sanitation levels in São Paulo State over the next 10 years,” says SABESP president, Gesner de Oliveira Filho.

“We are already looking forward to operating in new municipalities in the state, along with metropolitan areas in other regions. We are slowly establishing partnerships in order to expand our operations in the near future, although São Paulo will remain the center of investment.

“One of our major initiatives and investments is a public private partnership to amplify the availability of drinking water and we are also preparing a package of services and technologies to enable people to reduce their water wastage. BESP will do well and we expect to keep on growing profitably and sustainably in the short, medium and long run. We have three main challenges in the foreseeable future, which are: increasing investment to U.S.$655 million; avoiding market credit in favor of multi-lateral credit; and eliminating the remaining inefficiencies of an organization that, in the past, was not ready for competition.”

High-quality, affordable education

Brazil’s education sector has also undergone major changes in recent years and is now regarded as one of the best among the world’s emerging economies on the back of heavy investment and the

www.unianhanguera.edu.br

DESPITE THE TRANSPARENCY OF THE WATER, THERE ARE PEOPLE WHO DON’T SEE WHAT IS BEHIND THE WORK OF SABESP.

Sabesp. Caring for the environment with transparency.

Everything that Sabesp does, it does thinking about our quality of life. And this goes far beyond treating the water that comes to your home. The work of Sabesp is caring for the environment as a whole. And we insist on it is quite clear for you. Clear, clean and crystalline. Protection of water resources, sewage treatment and environmental solutions are just some of the activities of Sabesp. Providing one of the best treated water in the world is only a result of this work.

AF-SABESP ANUNCIO INGLES TRANSPARENCIA 177x84.indd

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SPECIAL ADVERTISING SECTION introduction of successful initiatives. Founded in 1998, the Instituto de Educaçaõ Superior de Brasília (IESB) is a leading provider of education and research courses and activities in a range of subjects, with an emphasis placed on innovation and vanguard. The Brasília-based institution has more than 8,000 students learning subjects that include law, communication, international relations, technology, engineering, management, and tourism. This year, it will open a state-ofthe-art, U.S.$24 million, technology-oriented university in the capital.

Combining theory with practice, IESB’s principal goal is to maintain the highest possible educational standards through the creation of a supportive environment conducive to the learning of new knowledge and skills. “IESB is an institution that is 100% focused on quality and that always invests in the best equipment for its students,” says general director, Eda Coutinho Machado de

prices, rapidly-growing Anhanguera Educacional is one of the leading private organizations aimed at post-secondary students. Based in São Paulo State, the firm offers 48 degree programs—mainly at bachelor’s level—covering law, business, health, engineering, and other applied social sciences. Its multi-campus business model is used by tens of thousands of students and numbers at some campuses are growing by as much as 60% year-on-year. It also boasts 22,000 online students, a number that is predicted to increase tenfold by 2014.

“Anhanguera is an educational system, a network,” states CEO Antonio Carbonari Netto. “What makes us different is the system we provide, our size, and a centralized administration that diminishes our management costs and allows students to benefit from reduced fees, which makes our tuition affordable for everyone. In a nutshell, we allow the lower class to upgrade its

“It is cheaper for foreign patients to come here as our treatments cost 40% to 50% less than in the U.S.” Dr. Gonzalo Vecina Neto, Hospital Sírio-Libanês, São Paulo Souza. “Our focus is toward providing great support to those with limited opportunities.

Our mission is to stimulate the creativity of the student and our philosophy is based on the quality of the educational service provided to the generation of the future, rather than the quantity. We do not want to become a huge university, but we do want to transform ourselves into a university center that is based on quality. We have to continue moving towards innovation.”

IESB is also open to FDI as it looks to increase its partnerships with overseas entities.

The institute offers courses in partnership with educational establishments in other nations, meaning students receive degrees in both countries. “We would like to increment the number of foreign investors,” adds de Souza. “We want to grow further, particularly in the online area, as we believe it will play an important role in the development of the institute and country.”

Gesner de Oliveira Filho President, SABESP

With a commitment to delivering high quality courses at affordable

purchasing power to that of the middle class through an increase in intellectual knowledge and practical skills. Our focus is towards social integration and to creating today the citizens of tomorrow.”

As Brazil’s economy and population continues to grow, so does its reliance on firms like ENESA Engenharia S.A. to construct the general infrastructure and engineering foundations to support them. Founded in 1977, the company builds, assembles, and maintains operations across vital industries such as oil, iron ore, energy, cement, mining, biofuels, and petrochemicals.

Combining intelligence with experience and expertise, ENESA is going from strength to strength and boasts a backlog of contracts even amid the global economic recession.

Such projects include the construction of the world’s third largest hydroelectric plant in western Brazil, and a key hydroelectric facility in the country’s north west. ENESA invests significantly in new equipment and technology, as well as its 10,000-strong work force. Its mission is to provide solutions, security, quality, reliability, and technology in the sectors of electromechanical assembly and industrial maintenance. “The Brazilian market has a lot of potential and foreign investors

BRAZIL will see ENESA as a great partner with an excellent track record of successfully working throughout Brazil,” states CEO Sérgio Ferreira de Laurentys. “We have good cash flow and do not need capital from banks. We have U.S.$8.9 million in cash and use our own capital to fund our projects. We have grown by 50% a year on average over the past 10 years and have already achieved unimaginable results. We work hard to ensure quality for our clients and are already the partner of choice, both nationally and internationally.”

Undoubtedly Brazil’s most important industry, agriculture generates more than 40% of its total exports and provides jobs to hundreds of thousands of people. The sector produces a third of the nation’s gross domestic product and Brazil is becoming a major player in global food and biofuel markets, thanks to heavy investment in new technology. Key agribusiness categories include sugar, soya bean, citrus fruits, grains, and beef.

Agrenco Group is a leading player in this rapidly moving sector, supplying integrated solutions to clients and partners through its operations in finance, storage, logistics, exports, and tracing. The company distributes goods in 30 countries in Europe and Asia, but despite such a strong performance, the worldwide slow-down has resulted in banks drastically reducing Agrenco’s working capital. The group is now exploring other options of external financing.

“We are a solid, well-structured and, potentially, a highly profitable group, looking for external financing in order to continue our sustainable profitable growth trajectory,” says Marco Antonio de Modesti, Co-CEO & CFO. Business Focus

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