Transregional

Sales

BRAZIL

BRAZIL

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 BRAZIL
Transregional
Sales

Language: Portuguese
Area: 8,512,000 sq. km

Population: 167 million

Literacy rate: 74%
BRAZIL

Population (Million Inhabitants):

GDP: USD 557 billion (1999)
12.000 10.100
10.000
8.000 6.000
6.000
4.000 2.160
2.000
2.020
1.320
GDP per capita: USD 3,000
0
São Rio de Belo Brasília Porto
Paulo Janeiro Horizonte (capital) Alegre
Source: IBGE site (1999 data)

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 CULTURAL MAP
Transregional
Sales

Population % % Urban Literacy

Region Cultural Influence
(Million Inh.) Population Population Rate (%)
North 11,3 7% 58% 66% Portuguese / Native Indians
Northeast 46,8 28% 61% 57% Portuguese / African
Portuguese / Italian /
Southeast 70,8 43% 88% 85%
Japanese / German
South 24,8 15% 74% 85% Italian / German
Central-West 12,7 7% 81% 79% All
Brazil 166,4 100% 72% 74%
Source: IBGE site (1999 data)
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 ECONOMIC MAP
Transregional
Sales

Per capita Tax Revenue -

GDP Energy
Region GDP (%) Income Participation
(US$ billion) Consumption (%)
(US$ 1,000) per State (%)
North 22,9 4% 1,8 4% 5%
Northeast 72,1 13% 1,3 14% 16%
Southeast 322,6 58% 4,1 60% 58%
South 96,7 17% 3,5 15% 16%
Center-West 42,5 8% 3,0 7% 5%
Brazil 556,8 100% 3,0 100% 100%
Source: IBGE site (1999 data)
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 ECONOMIC MAP
Transregional
Sales

Latin America Map

GDP (US$ billion, 1998)
Mexico

557

Venezuela 486

Colombia Brazil

283

173

92 102
67
São Paulo
Chile State

Argentina Brazil São Paulo Argentina Chile Colombia Venezuela Mexico

State

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 BRAZIL
Transregional
Sales

• Mercosul Leader in terms of Exports and Economy

• Brazil is the world´s second largest receptor of foreign investments.
Main sources:
- USA - Spain - Holland - France
- Germany - Japan - Portugal - Switzerland
- United Kingdom - Italy

• Brazilian companies are at the forefront of a quality culture. More

than 6,500 companies are ISO9000 certified
Other
• Brazil’s annual exports exceed US$ 50 billion: Asia
Countries
European
13%
12% Comunity
Export 29%
Destinations Others -
Latin
America USA
Mercosul 22%
10% 6
14%
Port of Santos, São Paulo Transregional
Sales

Brazil’s Main Port

55% of Brazil’s GDP
Main port for the states of São Paulo,
Minas Gerais, Mato Grosso, Mato Grosso
do Sul, Goiás, Paraná and Mercosul
members (Bolivia & Paraguay)

40% of national production

Its business area concentrates most of the
agricultural production for export and the
most important industrial centers

45% of the Brazilian market

The area it serves concentrates almost half
of Brazilian consumers

27% of foreign trade

Santos moves more than one-fourth of the
products traded by the country within the
international market in terms of value
(US$ 97.3 trillion)

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 Transregional
Sales

Successful Export Cases

1. Embraer
2. Embraco

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 Transregional
Sales

Case 1
EMBRAER

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 EMBRAER
Transregional
Sales

• Embraer is the fourth largest aircraft manufacturer in the

world:
1. Airbus 2. Boeing
3. Bombardier 4. Embraer

• Embraer is Brazil’s largest exporter and the leader of the

worldwide regional aviation industry

• In 1994, after downsizing from 13,000 to 10,000

employees, Embraer upgraded its core of technical
expertise, hiring 500 engineers in the process

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 EMBRAER
Transregional
Sales

• Embraer is ISO9000 certified for all processes

• Embraer’s R&D culture is exemplified by its recent

investment history (US$):
1999 145 million
2000-2004 1.1 billion (including its new facility in São Paulo state)

• In July 2000, Embraer entered a strategic partnership with

Mentor Graphics Logical Cable, an acknowledged leader in
avionics technology

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 EMBRAER Transregional
Sales

AMX-T Trainer Jet

• Preferred choice for training
pilots for 4th generation
fighters (F22 Raptor Fighter
and Joint Strike Fighter)

EMB 312 Tucano

• Basic/advanced turboprop,
two-seat military trainer
aircraft designed to simulate
fast jets
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 EMBRAER Transregional
Sales

Source of Revenue
100%
11% “EMBRAER MUSCLES IN”
15% FIRM ORDERS FOR 50-SEAT JETS
90% 30%
80% 40 38 38

70% 35 32
30 30
30
60%
25
50% 89%
85% 20
40% 70% 15
30% 10

20% 5
0
10%
93 94 95 96*
0% Bombardier Embraer
1996 1997 1998
* FIRST 9 MONTHS
International Domestic Data: Business Week - Oct, 1996

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 EMBRAER Transregional
Sales

Main Customers: Customer Country

Continental Express USA
Trans States Airlines USA
United Express - USA Wexford USA
InterCanadian Canada
British Regional Airlines United Kingdom
Proteus Airlines France
Regional Airlines France
Flandre Air France
ERA Spain
Rheintalflug Austria
EMB 120
Rio Sul Brazil
LOT Poland
American Eagle - USA Luxair Luxemburg

Air Forces: American

British
Italian
ERJ 145
French
Brazilian
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 Transregional
Sales

Case 3

EMBRACO

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EMBRACO - A Brazilian World Leader Transregional
Sales

• A leading industry in hermetic compressors

– Exports to more than 80 countries

• Acknowledged quality culture

– Worldwide customer preference = 75%
– Global market share = 24%
– All facilities are ISO9000 certified
– Investments in R&D (1999): US$ 20.5 million
– Joinville plant became ISO 14001 certified in 2000

• Global manufacturing presence:

- Brazil - Italy
- China - Slovakia
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 EMBRACO - Business Snapshot Transregional
Sales

Embraco - Net Sales (US$) million Embraco - Market Share (1999)

682 Others
700 14% Embraco
600 519 529 24%

500 414 Danfoss

12%
400

300

200
Tecumseh
Electrolux
100 14%
21%
0 Matsushita
96 97 98 99
15%

• 9,000 employees worldwide

• Technical team of more than 300 engineers
• Pioneer in the development of CFC-Free compressors
• 20 laboratories and research centers
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