Download - KGN Presentation (Institucional)
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Outlook – Investment Opportunities
Made by Leonardo Slhessarenko and Gabriel Prado de Barros
Executive Summary
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Overview of Brazil’s Economy
Overview of Mato Grosso’s Economy
Expertise
Business Opportunities
Financial Transactions
Legal System
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Overview of Brazil’s Economy
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Overview of Brazil’s Economy
Seventh largest economy in the world
Brazil has an export-oriented economy
Extensive natural resources, agricultural diversity and manufacturing production
Issues: Bureaucracy, corruption and weak infrastructure
Opportunities: Average US Dollar to Brazilian Reais is R$3.8 to $1 (10/15/2015)
Source: World Bank and economia.uol.com.br/cotacoes/cambio/dolar-comercial-estados-unidos/?historico
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Average US dollar to Brazilian Reais
USD/BRL 3.8 - 10/15/2015
Source: World Bank and economia.uol.com.br/cotacoes/cambio/dolar-comercial-estados-unidos/?historico
In 2015 the biggest appreciation of the dollar in the history of Brazilian Reais was recorded
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Commodities global ranking
Source: USDA, FAO, IBGE. World production: USDA harvest 12/13
World production of Grains & Oilseed
Brazil in the world ranking
1st 2nd 3rd 4th
1st 19,6% 2nd 16,4% 3rd 10,1% 4th 6,6%
5th
• Coffee
• Orange juice
• Sugar Cane
• Soybeans
• Beef
• Poultry
• Corn
• Milk
• Grape
• Pork
• Cotton
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Increase of agricultural area
Source: FIESP/ICONE IMEA
Increase of 23 millions acres for the next years
Brazil still has room to grow
Acres
Millions
128
151Millions
Acres
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Projection by 2022
Source: FIESP/ICONE IMEA
Bill
ions
T
Mill
ions
T
Agriculture Production
Livestock Production 14%44%
Projections: Cotton, rice, barley, beans, wheat, soybeans, corn, sugarcane.
Brazil's favorable climate allows for two crop per year
Brazil’s arable land has more growth potential than any other country
10 10
Costs linked to production
75% of Costs Are Linked to US$
Lower % of Fixed Costs
Fixed16%
Variable84%
US$75%
Reais25%
Key Highlights
Fertilizers are acquired through bank financing; equivalent amount of soybean is immediately pre-sold to lock-in operating margins
Leasing contracts are governed by a number of soybeans bags per hectare, aligning costs to production revenue
Supply contracts for chemicals are guaranteed by cotton sales, creating a natural hedge for one of the largest production costs
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Overview of Mato Grosso’s Economy
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Brazil’s commodities leader
Source: CONAB, IBGE e Imea
Mato Grosso accounts for 9% of the world’s total soybean production
Mato Grosso accounts for 3.9% of the world’s cotton production (9 th largest worldwide)
The State of Mato Grosso produced over 52 million tons of total commodities in 2014/15
The State of Mato Grosso is the largest overall exporter in Brazil’s Midwest and one of the largest in Brazil
1st
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Mato GrossoAgribusiness GDP compared to other studies developed for other States
14Source: Imea
Mato GrossoShare in Revenue
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Mato GrossoDevelopment of agricultural production
Area (millions Ha) Production (millions Tons)
Source: Imea
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Mato GrossoTotal agro production for the next years (tons)
Source: Imea 2012
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Conservation Unities – 6%Preservation areas by producers - 41%Agricultural – 9%Pasture – 27%Others uses – 2%Cities of Mato Grosso
Natives Lands – 15%
Other States
Land Uses & Occupation
Mato GrossoLand uses & occupation
Source: Imea 2014
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Expertise
The Dealmaker
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1. Find an Opportunity “Client”
2. Analyze and Evaluate Offering Guarantees
for both sides 1. Find Capital
2. Capital and ROI Strategies
3. Retain Client or Exit
Strategy
3. Create strategy to Raising Capital
OPPORTUNITY
INVESTMENT