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Economic Outlook 2015

A prospect for recovery

March/2015

• Brazil as a global player

• Political scenario

• Economic scenarios

− 2015 Key-points

− Economic activity

− Income and wages

− Foreign sector

− Money market

− Financial market

− Public sector

− Investments

− Agriculture

− Industry activity

− Services

Index

• Global scenarios

− USA

− Europe

− Latin America

− China

− India

− Russia

− Japan

− Southeast Asia

− Commodities

Note: All decimals are described in the Brazilian format. So in this presentation the use of “.” to represent thousands, instead of “,” which represent decimals.



A country with resources

“Your ancestors must have pleased God that he has given you

so much. I envy you”

Zhao Zhyang, Chinese Prime Minister in 1985 on his visit to Carajás mine, delighted with the

abundance of natural resources in Brazil.



Member Firms and DTTL: Insert appropriate copyright (Go Header & Footer to edit this

text) 4

Brazil as a global player


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3. Select ’OK’ Brazil as a global player Economic activity

5

Nominal GDP US$ Billions

2014

17.404

10.366

4.613

3.827

2.985

2.852

2.249

2.159

2.158

1.959

71.543 Source: Research – Deloitte (based on EIU data.)

1

2

3

4

5

6

7

8

9

10

• USA, the highest nominal GDP in US$ globally,

representing 25% of the total.

• China now accounts for 14% of the total, also

appearing as the highest GDP PPP (purchasing

power parity) today.

• EIU forecasts indicate that China will overtake the

US by 2050 also in Nominal GDP

• Brazil lost the 6th position as the world's largest

economy in 2013, and remained as the 7th also in

2014. EIU indicates that in the next two years India

may surpass Brazil

• Canada, which appears as the 11th among the

largest economies, is expected to overtake Russia

in 2015 due to the unstable scenario in the

European country.

• Even with the current unstable political or economic

situation, the IMF holds the prospects that Brazil

could become the 5th largest economy by 2050.



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3. Select ’OK’ Brazil as a global player Natural resources

6

Mining

Agriculture

Oil and

gas

Water

resources

3rd

1st

11st

Position in the global

production ranking

Iron ore

Niobium

Gold

SWOT

Social indicators

12nd

34th

10th

Oil

Natural gas

Shale gas

Renewable

resources

Drinking

water

Sanitation

1st

3rd

112nd

Soy

Wheat

Maize

1st

23rd

1st

1st

1st

3rd

Coffee

Sugar cane

Beef

8,5 million Km2.

7% of the entire

global territory

203 million

people,

3% of global

population

92,5% of illiteracy rate

Gini

Index 51,9

HDI 0,74

Life expectancy

74 years

S W

O T

Source: IMF, CIA World Factbook, US Geological Survey, ONU, FAO, IBGE, Bacen and EIU. Last available data.

Largest player in commodities,

agricultural products and basic

manufactured goods.

America's second largest

economy.

Low productivity

Large deficit in infrastructure

Social issues still loss-

making.

Diversification in the export

tariff and new business

partners;

Investment in alternative fuels.

Instability in China;

Fall in the commodities

prices

Investor distrust.

154th total ranking

79th total ranking

Production of minerals, oil and gas reserves, potential water resources

5th highest globally




text) 7

Economic scenario




text) 8

2015 Key-points



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3. Select ’OK’

9

Key-points

for 2015 in

Brazil

Market

confidence

Infrastructure

demand

Falling

commodity

prices

Low

unemployment

rate

Increased

basic

interest rate

Inflationary

pressure

Rising food prices;

Increase in the cost of electricity;

Water scarcity;

Tax adjustments.

Inflation target and expected

increase in the US interest rates.

Shortage of man-power;

Maintenance of consumption;

Pressure on prices.

Project prioritization

Steady increase in social and

economic demand in infrastructure.

The lower demand from China,

India and Europe will require

greater efforts of large national

companies to keep their sales;

Market value drop of exporting

companies and lower liquidity for

the stock market;

Need for new business

partnerships.

Searching for better transparency and fiscal control;

Best management practices of public and private companies;

Maintenance of the "economic tripod" (foreign exchange, inflation,

fiscal).

Business Key-points




text) 10

Economic activity



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3. Select ’OK’ Economic activity Gross Domestic Product

11

4.0

6.0 5.0

-0.2

7.6

3.9

1.0

2.3

0.1 0.4

1.8 2.0 2.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Real GDP % Variation – end of the year

2.1 2.4 2.7

3.0 3.2 3.7

4.1 4.4 4.8

5.2 5.6

6.0 6.5

7.1

0.9 1.1 1.4 1.7 1.6 2.1 2.5 2.2 2.2 2.2 2.3 2.4 2.5 2.7

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Thousands Nominal GDP

US$ Trillions

R$ Trillions

16

9 10

11

7 7 8

7

5

1980 1990 2000 2005 2010 2015 2020 2030 2050

Position of Brazil among the largest

global economies - Nominal GDP

Source: Research-Deloitte (based on BACEN, Focus, EIU and IMF). 2015-2018 forecast.

After a slow growth of the Brazilian economic

activity, the market remains pessimistic for the

coming years.

The expectation is that 2015 remains on

stand-by, waiting for the government

responses in the first quarter compared to the

steps to be taken regarding the economic

support.

Exchange rate

devaluation



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3. Select ’OK’ Economic activity Consumer price index

12 Source: Research-Deloitte (based on Central Bank and IBGE data). 2015-2018 forecast.

The price of food and housing in the country were the hardest hit by the inflation increase. Agricultural commodities and manufactured goods also

had a significant price increase in the transfer to the consumer.

The fight against inflation in the country, without a deterioration in interest and public sector, will be the main challenge of Dilma during this year.

All that is conducive to sustainable growth in the medium term.

Food

-4

-2

0

2

4

6

8

10

-0.2 0 0.2 0.4 0.6 0.8 1

% v

ar.

p.y

.

% var. p.m. (dec)

Inflationary % Variation over goods and services

Volume of the bubble based on the average% price variation in the last 3 years

Health

Larger inflationary

trend

Communication

Household

goods

Education

Clothing

Transports

Consumption Household

3.1

4.5

5.9

4.3

5.9 6.5

5.8 5.9 6.4 6.5

5.7 5.5 5.5

0

1

2

3

4

5

6

7

8

9

10

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

IPCA inflation target

Limite superior Meta da inflação

Limite inferior IPCA %

Upper limit

Lower limit

Inflation target



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3. Select ’OK’ Economic activity Interest rates

13 Source: Research-Deloitte (based on Central Bank and IBGE data). 2015-2018 forecast.

The main instrument to combat

inflationary growth are the interest rate,

relied on the orthodox economic tripod.

For 2015 the focus is to increase the Selic

gradually during the year, which together

with the reduction of public spending, may

reduce at medium term the rising inflation

in the country.

11.6

7.2 6.3

5.4

3.8

5.5

1.3 2.4

5.0 5.6 5.4

4.6 4.3

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Real interest rates

Relation between Selic rate and Price index (IPCA) - %

Inflationary

“boom”

Speculative expectancy of

falling rates with Levy's

entry in Central Bank

Inflation reach the

goal, decrease on

interest rates Inflow

of foreign capital

12.75

10.25

8.75

9.50

10.75 12.50

9.75

8.50 7,25

9.00

10.50 11.75

12.00 12.50

12.00

11.38

7

8

9

10

11

12

13

14

2009 2010 2011 2012 2013 2014 2015 2016

Interest rates - Selic

% Variation – end of the month



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3. Select ’OK’ Economic activity Exchange rate

14 Source: Research-Deloitte (based on Central Bank, JP Morgan, EMBI +,IBGE). 2015-2018 Forecast.

With the economic growth in mid-2010, the

results of currency appreciation caused a

major incentive for inflow of foreign currency,

leading to an expectation of less than R$/US$

1.80 for 2014.

But with the current unstable political and

economic environment, the real depreciated,

and closed the year at R$/US$ 2.66. 100

200

300

400

500

600

700

Country Risk – EMBI+

Base points

12/31/2014

1.50

1.75

2.00

2.25

2.50

2.75

3.00

3.25

Exchange rate

R$/€

R$/US$



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3. Select ’OK’ Economic activity International reserves

15 Source: Research-Deloitte (based on Central Bank and IBGE data).

17 21 28

54

86

180 194

239

289

352 379 376 374 377

21 28 25

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

International reserves US$ Billions, end of the year

Lower expectative among foreign market.

Fall in commodities exports

17 21 28

54

86

180 194

239

289

352379 376 374

2128 25

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Reservas InternacionaisUS$ Bilhões, no final de cada período

Empréstimos do FMI

Reservas Internacionais

Fonte: Research - Deloitte (a partir de dados do Banco Central).

FMI Loans

International reserves



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3. Select ’OK’ Economic activity Financing the economy

16 Source: Research-Deloitte (based on Central Bank and IBGE data).

Without enough domestic savings to finance investments and promote the growth of national activity, the borrowing requirements of the

Brazilian economy almost tripled, from R$ 56.9 billion after more controlled results of the financial crisis in 2009 to R$ 217.2 billion in 2014.

-50.1

27.3

-56.9

-217.1 10

11

12

13

14

15

16

17

18

19

20

-250

-200

-150

-100

-50

0

50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Savings / GDP (%) (right axis) Net lending (R$ Billions)

National economy net lending

R$ Billions



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3. Select ’OK’ Economic activity National treasure

17 Source: Research-Deloitte (based on National Treasury and EIU data).

Government expenditures on personnel, social programs, investments and administrative costs exceeded revenues in 2014 at R$ 17.2 billion. With

the push of the electoral calendar, expenditures were accelerated and reached R$ 1.03 trillion; the tax revenue, hampered by the weakness of the

economy and tax relief measures, reached R$ 1.01 trillion. The data, resulting in a treasure deficit, should significantly impact the public debt level

over current GDP

100

200

300

400

500

600

700

800

900

1,000

1,100

2006 2007 2008 2009 2010 2011 2012 2013 2014

Net revenue Total expenses

Income and expenses of the National Treasury

R$ Billions

57

61

53 54

59

57

63 65

64 64 64

100% of GDP

Public debt over GDP - %



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3. Select ’OK’ Economic activity GDP Composition - Supply perspective

18 Source: Research-Deloitte (based on Central Bank, EIU and IBGE data). (*) Exempt of taxes and adjusted to 2014..

19%

15%

13% 12%

9%

7%

6%

5%

4% 4%

4% 2% 13%

18%

16%

13%

9%

6%

7%

5%

5% 2%

2% 4%

GDP¨% Composition by activity(*)

2004-2014 • The services sector remains the main thread

from the supply perspective in current GDP.

• Over the past 10 years, the participation

increase of other sectors, Agriculture and

Industry were minimal.

• The service sector represents about 70% of

the Brazilian GDP, fueled mainly by trade,

retail and public activities.

• Individually, the main activity that adds the

most value in the Brazilian economy changed

in the last ten years.

• We can perceive a clear drop in the share of

manufacturing in the Brazilian GDP in the last

10 years.

• Which also shows the increased participation

of public services; rising from 15% to 18%

• The share of trade increase 1 pp. 2004 2014

19%

15%

13%12%9%

7%6%5%4%4%4%2%

Transformation

Health and public administration

Other services

Trade

Real estate

Agropecuária

Intermed. Financeira e seguros

Construção Civil

Transportes, armazenagem e correio

Prod. Distrib. Eletricidade, gás e água

Serviços de Informação

Extrativa Mineral

19%

15%

13%12%9%

7%6%5%4%4%4%2%

Transformação

Adm., saúde e educação públicas

Outros serviços

Comércio

Ativ. Imobiliárias e aluguel

Agriculture

Financial services

Civil Construction

Transports

Eletricity, water and gas

IT

Mining



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3. Select ’OK’ Economic activity GDP Composition – Demand perspective

19 Source: Research-Deloitte (based on Central Bank and iBGE). Quarterly national accounts adjusted for 2014.

60% 19%

17%

4%

60% 21%

16%

-1%

GDP % Composition by activity

2004-2014 • GDP can also be seen from the demand

perspective. Indicating how much the country

has spent to structure their own economy.

• Taking into account household consumption,

government consumption, investment

(calculated by gross capital formation), and the

Trade Balance, we can see that just as in the

supply situation, population consumption is the

"driving force" of the economy also in demand.

• It is important to note the increase of 2% (or

US$ 750 million) in government spending (from

19% to 21%) during the last 10 years, focused

especially in social programs.

• The rest of the matrix composition continued

virtually unchanged if analyzed during 2004-

2014.

2004 2014

48%

15%

14%

13%

10%

Consumption

Government

Investments

Exports

Imports



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3. Select ’OK’ Economic activity GDP Composition - Regional

20 Source: Research-Deloitte (based on Central Bank and iBGE data). National Accounts data. 2012 = Last data available.

The Southeast, and more specifically the state of São Paulo, still is the main driving force

of the Brazilian GDP.

Representing 55% of the total of contributions from all the States.

However, in a period of 10 years, we can see the strong growth in the Northeast region

(raw numbers), and in both North and Centre-West (transformed into a base index 100).

This strong growth is due mainly by the arrival of large companies in these regions and

increased investment in both infrastructure focused on creating economic hubs within

regions.

55%

16%

14%

10% 5%

Southeast

South

Northeast

Centre-West

North

56%

17%

13%

9% 5%

Regional GDP

% Composition

2002 2012

100

120

140

160

180

200

220

2006 2007 2008 2009 2010 2011 2012

North Northeast

Southeast South

Centre-West

Regional growth evolution

Index: 2006 = 100




text) 21

Income and wages



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3. Select ’OK’ Income and wages Unemployment and wages

22

10.5 10.9

9.6

8.3 8.4

7.4 6.8 6.8

5.3 5.2 4.6

4.3 4.3

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Unemployment rate in Brazil End of the year (%)

874 862 908 1,011

1,086 1,162

1,282 1,344

1,515 1,623

1,850 1,967

2,122

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Nominal average income End of the year - R$

240 260 287 338

373 409

461 510

544

622 678

724 788

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Minimum wage End of the year - R$

Source: Research - Deloitte (based on Central Bank and iBGE). Note: Corresponding data from the metropolitan areas of Salvador, Recife, Belo

Horizonte, Rio de Janeiro, Porto Alegre and Sao Paulo.

The unemployment rate in the Brazilian economy has been showing

decline since October 2003, reaching its lowest level in 2014 (4.3%).

This has helped minimum wage appreciation policy that has been

adjusted since 2005 according to GDP variation during the period.



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3. Select ’OK’ Income and wages Economic classes

23

Euromonitor Methodology:

A/B Classes – % breakdown of people with a

gross wage of up to 150% of the average

worker.

C/D Classes – % breakdown of people with a

gross salary between 50% and 150% of the

average worker.

E Class – % breakdown of people with a lower

gross salary 50% of the average worker.

44.9%

44.5% 43.7%

43.0% 42.3%

42.4% 42.7% 43.2% 43.5%

44.0%

41.7% 42.0%

42.6%

43.3% 43.8%

44.9%

45.9%

46.7%

47.7%

48.4%

13.4% 13.5% 13.6% 13.8% 13.9% 14.2%

14.5% 14.7% 15.0% 15.2%

13.3%

15.3%

17.3%

19.3%

21.3%

23.3%

25.3%

38.0%

40.0%

42.0%

44.0%

46.0%

48.0%

50.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Population in each economic class % breakdown

E C/D A/B

Source: Research - Deloitte (based on Euromonitor data).

Among the income indicators, the main highlight is

the increase of population in the middle lasses. The C

and D class increased from 42% to 48% in 9 years.

While the population within income classes A and B

also increased. The share rose from 13% to 15%

between 2005 and 2014.




text) 24

Foreign sector



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3. Select ’OK’ Foreign sector Trade balance

25

Currently imports has been rising above the exports, generating an erosion in the trade surplus in recent years. It is clear to point out that this

trend could create a deficit, especially with the increase in the value of imports, the appreciation of the dollar against the real, but mostly the

increase in commodity prices during 2014, which affected the main Brazilian trade partner: China.

However, in recent months, the price of minerals and agricultural products has fallen sharply, resulting into a turnover into Brazilian trade

balance, which closed the year with a deficit of US $ -4 billion, lower than the expected by the market.

58 60 73

97 119

138 161

161

153

153

256 243 242

225

56 47 48 63

74 91

121

121

173

128

226 223 240

229

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Brazilian trade balance US$ Billions Exportação Importação

Source: Research - Deloitte (based on MDIC data).

Exports Imports



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26

Brazilian export list

2014

Commodities – 63%

Capital and Consumption goods – 28%

Fuel – 7%

Others – 2%

55

80

105

130

155

180

205

Dez 2007 Dez 2008 Dez 2009 Dez 2010 Dez 2011 Dez 2012 Dez 2013 Dez 2014 Dez

Commodity price index Index base (Dec/2006=100)

Preço das Commodities Volume das Exportações

Dec/2014

Source: Research - Deloitte (a based on MDIC, Central Bank and IMF data).

Main exported products - 2014 Main imported products - 2014

18% Soy Mining

14%

10% Oil

8% Transports

material

Beef

7% Electronics Vehicles

19% Fuel and

lubricants

14% Mechanic

equipment

12% 8%

5% Chemicals

Commodities price Exports volume



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3. Select ’OK’

27

Foreign sector Trade balance

Major trading partners of Brazil and its products

Exports

Imports

Both

Source: Research - Deloitte (based on Central Bank, IMF and EIU).

Oil

Iron

Coffee

Diesel

Thrusters

Propane

Electronics

Mobile

Iron ore

Soy

Cars

Cars

Oil

Beef

Beef

Sugar cane

Gold

Iron ore

Soy

Diesel Oil

Electronics

Autoparts

Vehicles

Chemicals

Soy

Iron ore

Pesticides

Fungicides

Machinery

Equipment

Pulp

Coffee

Iron ore

Poultry

Partners with:



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28

The decline in manufactured goods exports to Argentina influenced

directly in the trade balance since the beginning of the year, this is

among the main reasons for the fall in the income results e between

the two countries at the end of the year.

It also resulted into a deficit result of the Brazilian trade balance

account, with the Chinese economic slowdown (and thus the drop in

trade with the country), Argentina was expected to be the major

Brazilian partner this year.

23 25 25

27

16 19

26 27 25

27

13 15

19

26

20

27

34 32 36 35

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports Imports

7 8 11

17

21

31

44 41

46

41

5 8

13

20

16

26

33 34 37 37

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports Imports

10 12

14

18

13

19

23

18 20

14

6 8

10

13 11

14

17 16 16

14

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports Imports

(+) (+) (+) (+)

Results

(+) (+) (+) (+) (+) (+)

Brasil – USA

US$ Billions Brasil – China

US$ Billions

Brasil – Argentina

US$ Billions

Source: Research - Deloitte (based on MDIC data).

(+) (+) (+) (+) (-) (-) (-) (-) (-) (-)

Results (+) (+) (-) (-)

Results

(+) (+) (+) (+) (+) (+)



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3. Select ’OK’ Foreign sector Income and services

29

In 2012, and for the first time since 2000 the balance of

services recorded levels higher than income. Thus

reflecting the output of related resources, basically to

services more than revenues sent abroad, a situation that

remained in the last two years.

This results show a high level on international travel

(outflow of US$ 18.7 billion) and in equipment rental

service delivery (US$ 22.7 billion).

Source: Research - Deloitte (based on Central Bank).

(10) (13)

(17) (19)

(31)

(38) (41)

(47) (49)

(27) (29)

(41)

(34)

(40)

(47)

(35)

(40) (40)

2006 2007 2008 2009 2010 2011 2012 2013 2014

Income and services US$ Billions – Account balance

Serviços

Rendas

-18.7

-22.7 (25.0)

(20.0)

(15.0)

(10.0)

(5.0)

-

2006 2007 2008 2009 2010 2011 2012 2013 2014

Largest accounts of net services US$ Billions

Viagens internacionaisComputação e informaçãoRoyalties e licençasAluguel de equipamentosSeguros

International travel International travel IT services

Royalties and licenses Equipment rental

Services

Income

Insurances



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3. Select ’OK’ Foreign sector Balance of payments

30

The current account recorded in 2014 a US$ 90 billion deficit in total.

This negative result, however, was offset by the increase of financial transactions within the Brazilian accounts (primarily in fixed income

securities), which added to the significant increase in the sale of services and income abroad, thus overlapping the bad result of the trade

balance (deficit) and managing the balance of payments to close the year with a positive result (US$ 10.8 billion), as opposed to 2013 (when

it had a US$ -5.9 billion deficit).

Source: Research - Deloitte (based on Central Bank data).

Balance of Payments

US$ Billions

2009 2010 2011 2012 2013 2014Trade balance 25,3 20,3 29,7 19,4 2,4 -0,3

Net services and incomes -52,9 -70,6 -85,2 -76,5 -86,8 -88,3

Unilateral transfers 3,3 2,8 2,9 2,8 3,4 1,9

Current account -24,3 -47,5 -52,6 -54,2 -81,1 -90,3

Capital and financial account 71,3 100,1 111,9 72,7 74,2 97,7

Errors and omissions -0,3 -3,5 -0,6 0,3 0,9 -1,3

Balance results 46,7 49,1 58,6 18,9 -5,9 10,8

Note 1. Errors and omissions: The exit of credit and debit released in the balance of payments comes from various sources of information, generating in practice, a net-zero. The main reason lies in the discrepancies of

different temporal data sources used. Thus, it becomes necessary to launch of a balancing data of accounts. Errors and omissions lend themselves therefore to compensate for any overestimation or underestimation of

registered components.



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3. Select ’OK’ Foreign sector Foreign direct investment (FDI)

31

FDI showed a slight decrease in 2014 compared with the previous

year, leading to Brazil's fall in the ranking of largest global FDI inflow

(from the 5th position to the 7th).

Nevertheless, the Central Bank and the EIU expect that the FDI

inside the country remains representing 2.9% of GDP from 2013 to

2017. Meaning that the inflow of foreign capital should remain at

about US$ 60 billion in the coming years

33

22 17

10

18 15

19

35

45

26

48

67 65 64 62

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Foreign Direct Investment (FDI) US$ Billions

20%

16%

9% 9%

8%

6%

5%

3%

3% 2%

19%

FDI Inflow Share by country - 2014

NetherlandsUSALuxembourgSpainJapanPortugalFranceSwitzerlandUnited KingdomGermanyOthers

10%

9%

8%

5%

4%

4% 4% 4% 4% 4%

3% 3%

3%

35%

Share by segment - 2014

TradeTelecommunicationsFinancial activitiesVehicles and autopartsChemicalsMetallurgyChemicalsOil and gas extractionMiningInsurancesReal estateFoodIT EquipmentsOthers




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3. Select ’OK’ Foreign sector Brazilian Direct Investment (BDI)

32

The Brazilian Direct Investment abroad showed a growth

resumption during 2014. This result is also a reflection of the

performance of national companies’ investments through the year.

Notwithstanding, the high % share of the country outflow

continues to be inside Fiscal Paradises (mainly represented by:

Cayman Islands, Bahamas, British Virgin Islands, Panama,

Bermuda and Monaco).

2.5 2.8

7.8

3.9

24.4

12.1

18.0

8.5

30.2

23.5

13.7

18.2

24.1

2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Brazilian Direct Investment (BDI) Capital outflow - US$ Billions

44%

18%

12%

9%

8%

1% 4%

BDI Outflow Share by country - 2014

Fiscal ParadisesPortugalUSAAustriaLuxembourgSwitzerlandSpainChileArgentinaUruguayOthers

34%

19% 18%

8%

6%

3%

1% 8%

Share by segment - 2014

Financial Activities

Non-financial holding companies

Telecom

Mining support activities

Metallurgy

Mining

Trade

Oil products

Food

Vehicles

Other

Inverted signal (Debt)





text) 33

Money market



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3. Select ’OK’ Money market Credit loans

34

In 2013 and 2014, credit operations grew more moderately

compared with the expansion at the beginning of former president

Lula’s government in 2003, mainly driven by loans taken by

individuals.

The total credit loans in Brazil during 2014 reached R$ 3.0 trillion,

leading to an increase in the GDP ratio to 59% of the entire value

of the Brazilian nominal revenue during the year.

Source: Research - Deloitte (based on Central Bank data)

Note 1. Credit operations from public and private sector.

29.4 32.7

41.3 41.8 41.2

49.1

53.9 56.0 59.0

2006 2007 2008 2009 2010 2011 2012 2013 2014

Credit loans

Credit / GDP (%)

733 936

1,227 1,414

1,706 2,034

2,368 2,715

3,022

2006 2007 2008 2009 2010 2011 2012 2013 2014

Credit Operations in Brazil R$ Billions



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35

The corporate default rate increased 0.2

percentage points compared with the end

of last year, reaching 2.0% in December

2014, a marginal index if considered the

big directed credit values.

The individual default rate, however,

continues to fall, reaching 4.2% at the

end of the year.

5

10

15

20

25

30

35

40

45

50

2009 2010 2011 2012 2013 2014

Pessoa Física

Pessoa Jurídica

Average interest rate for Corporations and Individuals

% variation at the end of the month

Dez/14

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Default % end of the month

Corporate Individual

Individual

Corporate





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36

The loan approvals had an increase growth in recent years,

mainly promoted to combat the recent economic situation coupled

with the great immersion of a new demographic population in the

middle class, a larger access to credit was given for the purchase

of vehicles and households, especially for individuals.

Companies continue with the main credit facility, the BNDES,

continues to contribute with the highest gross value of all Brazilian

installment system.

5

7

9

11

13

15

17

19

Credit concession by type US$ Billions

Vehicles Real estate

19%

16%

7% 7% 5% 1%

45%

Financiamento BNDES

Imobiliário

Veículos

Rural

Cartão de crédito

Aquisição de bens

Outros

Credit loans by type

% Composition

BNDES

Real estate Vehicles

Credit cards Products acquisitions

Others






text) 37

Capital market



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3. Select ’OK’

50

70

90

110

130

150

170

04/01/2010 29/10/2010 04/08/2011 29/05/12 01/04/13 03/12/2013 19/08/2014

Global stock market Index: 01/02/2010 = 100

Ibovespa Dow Jones Euronext 100 Shanghai

* medido pelo EMBI+ do JP Fontes: Fonte: Banco

Capital market Stock exchange

38

The decline of Ibovespa index can be observed both in its

variations within the country since 2012: (i) Where most recently

the case of the oil and mining listed companies, which held much

of the Ibovespa market value, had a fall over his index to about

52,000 points.

(ii) We can also examine the effect taken into account a index 100

basis in 2010, and see that the European stock markets and North

America, even after crisis surpassed the average value of

Brazilian growth.

Source: Deloitte - Research (based on BM&FBovespa, IPEA data and Shanghai Exchange Market data) .

40

45

50

55

60

65

70

02/01/2012 11/05/2012 06/09/2012 17/01/2013 21/05/2013 17/09/2013 17/01/2014 20/05/2014 16/09/2014

Thousands

Ibovespa index Thousand points

* medido pelo EMBI+ do JP Morgan Fontes: Banco Central

December/2014

Fonte: Banco Central e EMBI

Announcement of the end of US’ QE

Falling prices of oil, gas and

mining listed companies

Fall of the US$

value with the

increase of the

country interest rate.

Polls in Brazilian

election predict a

second Round.

Pessimism in

reported data from

both the Brazilian

and the US economy

by BC and FED.

“Seesaw Effect”

Low prices and average volatility

on listed companies create a

huge wave of speculation and buy

/ sell orders inside the market

Huge decline on

oil companies

price value.

31/12/2014

31/12/2014 31/12/2014 31/12/2014 31/12/2014 31/12/2014 31/12/2014



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3. Select ’OK’ Capital market Stock exchange

39

The number of IPOs in Brazil has fallen considerably since the start of the

unstable economic scenario that started two years ago.

However, Brazil has a very interesting scenario for a restore on the emissions.

According to Edemir Pinto, BM&FBovespa president in an interview for the

Financial Times, Brazil has about 60 IPOs ready to be launched in

the market is the political and economic situation remain stable

throughout the year.

Source: Deloitte - Research (based on BM&FBovespa, CVM and Thomson data).

15 26 21

140

11 8 3 15

52 8 11

12

7 1 17

1

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011 2012 2013 2014

Mill

ions

IPOs Subsequent

Offers

64

12

4

9

Public offering and BM&FBovespa market value evolution

R$ Billions

5

19

10

15

11

14

3

10

15

9

2

1

Market value

3% 1%

47%

13%

7%

10%

4%

15%

Stocks Subscription bonus Audiovisual certificate

CRI Debentures FIDC

FIP Real estate bonds

Type of registered offers

19%

3%

27%

7%

8%

4%

12%

14%

5% 1%

Stocks BDRAudiovisual certificate CRIDebentures Promissory notesFIDC FIPReal estate bonds Other shares and bonds

2007

2014



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3. Select ’OK’ Capital market Stock exchange

40

Much of the decline of investments of IPOs emissions and the

Brazilian stock market in general is due the recently lack of in the

entire political and economic scenario inside the country.

This can be shown by the increase in fixed income investments (less

volatile than the stock market), as well as the significant results of

the National Treasury and Government bonds through 2014.

Source: Deloitte - Research (based on BM&FBovespa and Economatica data).

80

90

100

110

120

1/2/2014 2/2/2014 3/2/2014 4/2/2014 5/2/2014 6/2/2014 7/2/2014 8/2/2014 9/2/2014 10/2/2014 11/2/2014 12/2/2014

Best type of investments in 2014 Index (01/02/14) = 100

Fixed income (CDI bonds) US$ (daily price) Stock market (Ibovespa index)

Gold (daily price) Savings account (daily yield)

10

15

0

5

25

20

32

24

6 6

12 11

2009 2010 2011 2012 2013 2014

Brazilian portfolio evolution US$ Billions

Renda Fixa AçõesFixed income Stock market



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3. Select ’OK’ Capital market Merger & Acquisition

41

329

588

872 938

893

2010 2011 2012 2013 2014

Merger and Acquisitions Number of operations

Source: Deloitte - Research (based on press, TTR and Thomson data). Includes Mergers, Acquisitions, Partnerships, Joint Ventures, OPA, Minority,

PE and VC.

The fall in the number of M&A in 2014 (893) compared to 2013 (938) shows the current economic slowdown of the Brazilian

economy. This decrease should be maintained through the entire year of 2015, as business confidence will focus on identifying

speculation around the new government's direction and how this will impact over the investors and company owners’ business.




text) 42

Public sector



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3. Select ’OK’ Public sector Net debt and primary surplus

43

The Government is moving into the direction of an adoption

for primary surplus in the entire balance (balance sheet

results before payment of debts and interest), this view

appears to be in line with the new competitiveness focus of

the country, adopting crucial measures to remove

infrastructure bottlenecks.

However, the primary balance reached a deficit in their

accounts at the end of 2014, something that had not

happened since November 1998.

Source: Deloitte - Research (based on Central Bank data).

42 45 48 53 49 51 49 49 49 49 52

8 3

-1 -7 -11 -9 -10 -13 -14 -15 -15

51 48 47 45 39 42 39 37 35 34 37

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Dívida interna líquida Dívida externa líquida

Main reasons that justify increased debt over GDP during this period:

- Renegotiation of state government’s debts

- Debts recognitions

- Interest rate increase

Public sector net debt

Central government, state and city governments, state owned

companies - % GDP

3.8 4.1 4.1 2.1 2.8 3.1 2.4 1.9

-0.6

-3.4 -2.2 -1.5

-3.3 -2.5 -2.6 -2.5 -3.3

-6.7

2006 2007 2008 2009 2010 2011 2012 2013 2014

Primário

Nominal

Public sector nominal and primary surplus

Central government, state and city governments, state owned companies - % GDP

(12 months accumulated)

National net debt foreign net debt

Primary



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3. Select ’OK’ Public sector Tax and fees

44

The Brazilian federal revenue has grown substantially in the last 15 years

cycle (an increase of 419% from 2010 to 2014).

Taxes levied on goods (ICMS) and the incidence of income tax on both

individuals and corporations (IR) were the plots that grew the most in overall

taxation value.

The two are also the two main government revenues, with almost 40% of the

total.

Source: Deloitte - Research (based on Federal reserve data).

515 600

676 690

800

939 992

1,101 1,147

2006 2007 2008 2009 2010 2011 2012 2013 2014

Brazil’s annual tax revenue

R$ Billions

21%

17%

17%

11%

6%

2% 2%

24%

ICMS

IR

INSS

COFINS

FGTS

IPI

IOF

Others



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3. Select ’OK’ Public sector Tax and fees

45

But regarding the use of the tax for

the benefit of the country, Brazil still

has a very large gap if compared with

other countries, being one of the

highest rates of GDP (~35%) and

lower use in public services benefits.

(Appearing only in the 30th position of the IRBES

index, calculated by the OECD)

Source: Deloitte - Research (based on Federal Reserve, OECD and UN). Note 1: The IRBES are the results from the sum of the tax burden, weighted

percentage for the importance of this parameter, with the HDI, equally weighted.

20%

25%

30%

35%

40%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Total annual tax on GDP

% GDP

FHC 1 FHC 2 Lula 1 Lula 2 Dilma

0

5

10

15

20

25

30

35

40

45

500

20

40

60

80

100

120

140

160

180

% G

DP

in

ta

xe

s

IRBES index (1) – Return to the society welfare

Difference between the incidence of taxes and benefits in each country

IRBES GAP




text) 46

Investments



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3. Select ’OK’ Investments Investment plans

47 Source: Research - Deloitte (based on National Treasure, press, IPEA/World Bank/ BNDES - *Pezco Microanalysis and National Treasure expectations).

PAC

Companies

2.1

1.5

0.8 0.7 0.9 1.0 0.9 0.8 0.7

0.8

0.4

1.1 1.1 0.6 0.5 0.6 0.6 0.6

2.0

1.5

0.6 0.6 0.6 0.6 0.6 0.6 0.6

0.5

0.2

0.2 0.2 0.2 0.2 0.2 0.2 0.2

1970 1980 1990 2000 2010 2011 2012 2013 *2014

Água e Saneamento

Transportes

Telecomunicações

Eletricidade

Brazilian Infrastructure evolution

% GDP

7.3 11.3

17.9 22.1

28.0

39.3

53.7

68.0

2007 2008 2009 2010 2011 2012 2013 *2014

Disbursements made by PAC I and PAC II – 2007-2014

R$ Billions

5,4

3,6

2,7 2,6 2,3 2,3 2,3 2,2 2,1

Source: Renai and companies websites.

Water and sanitation

Transports

Telecom

Electricity

Company Value (R$ Billions)

Petrobras 236,7

Eletrobras 52,4

Furnas 40,0

Vale 35,7

Trump Organization / EVEN / Salamanca / MRPI 0,81

Louis Dreyfus Commodities (LDC) 0,77

Vanguarda Agro (Gávea Investimentos - JP Morgan) 0,26

Grupo Ultrapar 0,19

Bridgestone / Firestone 0,16

Sumitomo 0,16

ECO 0,15

Bresco 0,14

Prebuild 0,11

Biourja Trending 0,11




text) 48

Agriculture



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3. Select ’OK’ Agriculture

49

Soy complex continue as the main export product of the Brazilian

Agribusiness, with 37% of the total in 2014, followed by beef (20%); sugar and

alcohol with 12%, which has been decreasing its share since 2011 (from 19%

to 12%).

Agricultural production has also increased substantially over the last 10 years,

especially sugar cane, which accounts for about 70% of the production of the

last four season crops, with expected production of 650 thousand grains for

2015.

Source: Research - Deloitte (based on MDIC, USDA and Conab data).

258 292

331 319 331 372 385

452 464 476

0

50

100

150

200

250

300

350

400

450

500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Gross production value of agriculture and livestock US$ Billions

Agricultura Pecuária Agropecuária

21 35 30 17 15 8 3 7

Sugar Coffee Soy Beef Poultry Maize Pork Cotton

Position and share of Brazilian grain production

globally

1st

1st

2nd

2nd

3rd

3rd 4th 5th

37%

20%

12%

8%

8%

3% 3%

3% 2% 4%

Agribusiness: Exports 2014, % Composition

Soy Complex

Meat

Sugar

Paper and Pulp

Coffee

Leather

Tobacco

Lumber

Orange

Others

Agriculture Livestock Agribusiness




text) 50

Industry



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Guides...’


3. Select ’OK’ Industry

51 Source: Research - Deloitte (based on IBGE and FGV data). Seasonally adjusted production and sales.

70

75

80

85

90

95

100

105

Industrial production evolution Index Sep/2008 = 100

Dec/2014

-5.2%

Financial crisis

The low growth of global economic activity especially

for the Brazilian market has put the Brazilian industry

"steps back" inside the international competition.

In this sense, even with the growth of the Brazilian

domestic consumption, domestic production had its

physical production almost stagnant.

These results reflected directly with the difficulty with

the international results in terms of competitiveness.

Mainly with automotive, metallurgy and chemical

industries.

70

75

80

85

90

95

100

105

110

115

120

Industry Confidence Index



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52

Chemicals

Automotive

Metallurgy

Paper and pulp

Maintenance of increased imports

26%

11%

10% 3% 6%

5% 4%

3%

4%

28% 49%

7% 5%

5%

4%

4%

3% 2% 2%

18%

49%

7%5%

5%

4%

4%

3%2%2%

18%

China

Japão

EUA

India

Rússia

Coreia do Sul

Alemanha

Brasil

Ucrânia

Outros

% Global share in steel production

Brazil maintains its same global share even with the fall of 3m tons.

2.4 2.8 3.1 3.1 3.4 3.4 3.4 3.7

3.1

2006 2007 2008 2009 2010 2011 2012 2013 2014

Brazilian automotive production Millions of units

Decrease in the production and storage of vehicles through the end of the IPI.

Source: Research - Deloitte (based on MDIC, Anfavea, World Steel and Ibá data)

2004 2014

Increased production and exports – valued stock market for the sector

companies

0

10

20

30

40

50

2006 2007 2008 2009 2010 2011 2012 2013 2014

Chemical trade balance US$ Billions

Exportações

Importações

8.7 9.0 9.4 9.4 10.0 10.2 10.3 10.4 10.4 10.7 12.0

12.7 13.3 14.2 13.9 14.0

15.1 16.5

2006 2007 2008 2009 2010 2011 2012 2013 2014

Paper and pulp production Million ton Paper Pulp

Exports

Imports

China

Japan

USA

India

Russia

South Korea

Germany

Brazil

Ukraine

Others



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53

Mining

Civil construction

Oil and gas

Energy

8.9 10.6 16.5 13.2

28.9

41.8 30.9 32.5

25.8

2006 2007 2008 2009 2010 2011 2012 2013 2014

Iron ore exports US$ Billions - FOB

Drop in exports of iron ore due to Chinese economic situation.

629 638 663

712 750 768 754 738

823

2006 2007 2008 2009 2010 2011 2012 2013 2014

National production of oil Million barrels

Despite the growing production, Brazil suffers from low oil prices and

management problems with its main producer.

Household deficit

Households without occupation – in Millions

Increased housing deficit, real estate prices still high.

96 100 103

107 113

117 121

127 137

2006 2007 2008 2009 2010 2011 2012 2013 2014 (*)

Installed capacity - gW

Implementation of new technologies, such as wind power; but there will be an

increase into energy prices and possible blackouts.

Source: Research - Deloitte (based on MDIC, ANP, Aneel and Fundação João Pinheiro data) (*) Expectation

6.3 6.3 6.0 5.5 6.0 6.9 7.5 8.1 8.9 9.9 11.7

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015




text) 54

Services



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3. Select ’OK’ Services

55

The retail sales have shown a tendency to growth in

recent years.

Among the reasons that boosted the industry are mainly

increased income of credit, even after the complicated

scenario in recent years.

Other important reasons was the increase in the number

of formal jobs.

Source: Research - Deloitte (based on IBGE, US Census Bureau and Euromonitor data). Seasonally adjusted.

70

80

90

100

110

120

130

140

150

Dez 2004 Dez 2005 Dez 2006 Dez 2007 Dez 2008 Dez 2009 Dez 2010 Dez 2011 Dez 2012 Dez 2013 Dez 2014 Dez

Retail sales evolution Index Sep/2008 = 100

Brasil EUA

Dec/2014

174

214

255 255

329 328 356 348 353

2006 2007 2008 2009 2010 2011 2012 2013 2014

Retail revenue evolution

R$ Billions

Brazil USA



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3. Select ’OK’ Services

56

Healthcare

THL

Technology, Media and Telecom

27 32 37 40 46 54 63 70

80

2006 2007 2008 2009 2010 2011 2012 2013 2014

Brazilian healthcare revenue R$ Billions

Increased growth due a fierce investment inside the sector, especially with generic

drugs and health plans.

2014 WC Investments

R$ 36,7 bn

Tourism legacy +691 thousand tourists

Rio 2016 Investments

R$ 25,6 bn

One of the highlights of 2014 was the increased tourism in Brazil due the World

Cup, which generated a R$797 million revenue just in June/July.

448 711 1,287

2,625 3,293 3,554 3,827

2008 2009 2010 2011 2012 2013 2014

Municipalities covered by 3G in Brazil

~70% of Brazilian municipalities already have 3G technology, which continues

with a moderate expansion, nevertheless some already are adopting 4G

technology. Source: Research - Deloitte (based on Euromonitor, MTUR, Teleco, Abia and Portal da Copa data)

-8.0

-4.0

0.0

4.0

8.0

12.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Services, agriculture and industry GDP % variation yoy.

Agriculture

Industry

Services




text) 57

Global scenario




text) 58

USA



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3. Select ’OK’ USA

59

Much of the analysis of the US economy must be

focused in the results of 2014, when the country got its

most satisfactory scenario since the financial crisis;

particularly given the heated industrial production, which

was intensified by all sectors.

This resulted in a substantial drop in unemployment, led

by increased employment, higher capacity utilization and

a large increase in domestic demand.

Source: Research - Deloitte (based on Bacen/Bloomberg and Federal Reserve).

84 144 222 203 304 229 267 243 203 271 261 353 252

6.7% 6.6%

6.7% 6.6%

6.2% 6.3%

6.1% 6.2%

6.1% 5.9%

5.7% 5.8%

5.6%

0

100

200

300

400

500

5%

6%

7%

Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Creation of new jobs (variation in 1000)

Unemployment rate

USA – Employment indicators

Monthly variation

2.2 2.5

-3.4

-11.3

5.7 3.3 3.8 2.9

4.2 80 81

78

69 74

76 77 78 79

60

65

70

75

80

85

-15

-10

-5

0

5

10

2006 2007 2008 2009 2010 2011 2012 2013 2014

Industrial production x Capacity utilization

Production (% variation end of the year) Capacity utilization (%)



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60

The result of the US GDP in the third quarter of 2014 gives

evidence that the country continues its recovery trend.

Considering the last five quarters, the average rate of the US

economy growth reached 2.8%.

Estimates for 2015 show that the recovery of the US economy

will have an impact over the World economy, the growth of the

United States has to compensate for the slowdown in

China that goes through a process of deceleration.

Source: Research - Deloitte (based on EIU data).

13.9 14.5 14.7 14.4

15.0 15.5

16.2 16.8

17.4 18.2

18.9 19.7

20.7

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Nominal GDP US$ Trillions

2.7 1.8

-0.3

-2.8

2.5 1.6

2.3 2.2 2.4 3.4

2.5 2.4 2.6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Real GDP % variation yoy.

2.5

4.1

0.0

2.8

1.4

3.0

1.8 1.5

0.7

1.8 2.3 2.4 2.2

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Price index % variation (end of the year)



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61

With the end of the US economy adjustment plan (QE -

Quantitative Easing) announced in October 2014, it is expected a

short-term recovery of the country economy through 2015,

indicating that the country might start to reduce its interest rates.

This also helps the global economy during the weakness of the

countries in Europe, China and Japan, leading to expanding

global demand for dollars causing the devaluation of national

currencies.

Source: Deloitte Research - (based on Federal Reserve and Exchange rates data)

4.3 4.3 4.8

4.6

3.7 3.3 3.2

2.8

1.8

2.4 2.5

2.3

4.3

5.3

4.3

0.25 0.25

-4

-3

-2

-1

0

1

2

3

4

5

6

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(PIB) Produto Interno Bruto

Taxa de Juros dos Titulos Federais

Taxa de Juros básicas dos Estados Unidos

USA – GDP, Money market interest rates and Federal bonds

interest rates

% variation yoy.

85

100

115

130 Real-Br Peso-Mex Yuan-Ch

Yen-Jap Euro-Eu Rand-Afr

Conduct of the national currencies against the US$ dollar

US Dollar / National currency - Index 01/01/14=100

GDP

Federal bonds interest rate

Money market interest rate




text) 62

Europe



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3. Select ’OK’ Europe

63

Bulgaria

Czech Republic

Denmark

Hungary

Poland

Romania

Sweden

United Kingdom

Austria, Belgium, Cyprus,

Estonia, Finland, France,

Germany, Greece, Ireland,

Italy, Latvia, Lithuania,

Luxembourg, Malta,

Netherlands, Portugal,

Slovakia, Slovenia, Spain.

European Union

(28 countries)

Euro Zone

(19 countries) European Union

Croatia



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After threatening a risk of default in the public accounts throughout

the entire year of 2012. Greece, Portugal, Ireland and the other

PIIGS (Italy and Spain), showed a slight recovery in their internal

results, mainly by economic plans led by the "troika“, the European

Commission, European Central Bank and International Monetary

Fund.

This culminated in important and very considerable recovery results

of the PIIGS in 2014, which influenced directly on various issues

related to the “Orthodox Economic-Tripod”: public accounts,

exchange rate’s appreciation and nominal GDP growth with inflation

and interest adjustments.

64

4 5 5 4 4 5 5 5 5 5 6 6 6

11 12

14 12 12

13 12 13 13 13 14 15 15 15

17 19

17 17 18 17 18 18 19 20 20 21

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Nominal GDP US$ Trillions European Union Euro Zone

3.3 3.0

0.4

-4.5

2.0 1.6

-0.7 -0.4

0.8 1.3 1.7 1.7 1.6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Real GDP – Euro Zone % Variation yoy.

0.76

0.68

0.72

0.69

0.75 0.77

0.76

0.73

0.80

0.84 0.85

0.83

0.82

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Exchange rate – Euro/US$ End of the year

Source: Research - Deloitte (based on EIU and IMF data)



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The interest rate and inflation reduction, as shown in the

previous slide helped a strong recovery in the Euro Zone,

which had repercussions on the entire European Union.

In European interest rate chart, we can see the trend of

upraise in the interest rated led by the European Central

Bank for the next four years, mainly by the beginning of

the economic recovery in the region.

65

3.1

4.3 4.6

1.2 0.8

1.4

0.6 0.2 0.2 0.1

0.4

1.1

1.9

Interest rates – European Central Bank % variation yoy.

-100%

-50%

0%

50%

100%

150%

2009 2010 2011 2012 2013 2014

Brasil China EUA Europa

Interest rates into selected countries / regions

% variation yoy.

Scenario 1:

Financial Crisis

Fall in the global

interest rates

Scenario 2: Economic disparity

Large gap in the variation of interest rates

between consolidate and emerging

markets.

Scenario 3:

Recovery of Emerging

markets

Scenario 4:

European Crisis

Second global

interest rates fall.

Scenario 5: US and

Europe recovery

Chinese slowdown

and weak economic

situation in Brazil.

1.9

3.1

1.6 0.9

2.2

2.8

2.2

0.8 0.5

1.0 1.3 1.3

1.6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Price index – Euro Zone % variation y.y.

Brazil USA Europe




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3. Select ’OK’ Europe Looking at the net debt results, we can still see that

there is room for improvement within the PIIGS

(Portugal, Ireland, Italy, Greece and Spain),

something that could be pursued with increasing

domestic and industrial credit and incentive tourism

in the region (as happened in 2014), this has

already reduced the unemployment rates in these

countries.

66

0

5

10

15

20

25

30

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Unemployment % variation (end of the year)

Portugal Italy Ireland Greece

Spain Germany France UK

125 128 120

175

92 77

92

40

129 134 112

171

98

75

96 74

Portugal Italy Ireland Greece Spain Germany France UK

Net debt / GDP % Participation

2013 2014

100% GDP

-20

-15

-10

-5

0

5

Portugal

Italy

Ireland

Greece

Spain

Germany

France

UK

2012 2013 2014

% variation of domestic credit of selected

countries





text) 67

Latin America



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3. Select ’OK’ Latin America

68

The deceleration of Latin American Real GDP (2.4% to 1.0%) has

a more cyclical nature than structural. But it was also affected by

the recent slowdown in emerging countries.

However, the region is resistant to possible recession in

developed countries (double-dip recession), thanks to strong

economic fundamentals and a more concise domestic demand,

through access to credit and the expansion of the workforce. But

inflation, however, begins to expand dramatically in Venezuela,

Brazil, Mexico and Argentina.

Source: Research - Deloitte (based on EIU, IMF and Cepal data).

38%

22%

9%

6%

9%

4%

12%

Brazil

Mexico

Argentina

Colombia

Venezuela

Chile

Others

Latin American countries share on region’s GDP

% Participation

3.6 4.2

4.7 4.1

5.3 6.0 5.8 5.9 5.8 6.1 6.4 6.7 7.1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


5.1

6.5

8.1

4.6

6.5 6.8

5.6

7.3

9.3

10.4

8.6

7.8 7.2

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Consumer prices % variation (end of the year)



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3. Select ’OK’ Latin America

69

Brazil is expected to lose share inside Latin America’s

market. According to The Economist, the forecast for 2018

is that the country's participation in the region economy falls

from 48% to 38%, mainly due to Mexican and Colombian

rise in the period.

Even with the reduction in the volume of the Nominal GDP

participation in the continent, Brazil will continue to have a

strong status regarding the inflow foreign capital and market

significance inside the region. 0

2

4

6

8

10

12

14

16

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Unemployment rate % Population

Argentina Brazil Chile Colombia

Mexico Peru Uruguay Venezuela

0

2

4

6

8

10

12

14

16

2012 2013 2014 2015 2016 2017 2018

Real GDP % Variation (end of the year)

Argentina Brazil Chile Colombia Mexico Peru Uruguay Venezuela





text) 70

China



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3. Select ’OK’ China

The Chinese economic scenario has shown a decrease in their real

GDP growth in the last three quarters. Even so, the growth base is

still around 7%, closing the last year at 7.3%.

This result has led China to take economic and fiscal stimulus

measures to "re-leverage" its economy, and has decreased the level

of investment in construction and infrastructure, which has not

generated the expectation of employment, production nor the strong

recovery foreign trade focused on the returned value generation

expected at the beginning of the decade.

71

2.8 3.5 4.5 5.1 5.9

7.3 8.4

9.5 10.4 11.2 12.4

13.5 14.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


12.7

14.2

9.6 9.2 10.4

9.3

7.7 7.7 7.3 7.1 6.7 6.3 6.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


2.8

6.5

1.2

1.9

4.6 4.1

2.5 2.5

1.4 2.4

3.2 3.5 3.4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Consumer prices % Variation (end of the year)

Source: Research - Deloitte (based on EIU data)



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The high leverage of Chinese investments in GDP participation

(at around 46% of the total) mainly caused by the falling

interest rates uprising in 2009, and the strength to infrastructural

growth inside the country has proven that this high number

actually presents unsatisfactory results.

Since this policy was taken, large buildings have become

abandoned, companies are loaded with over-stocked

production and population concentration has created a high

density in only a few cities, such as Beijing, Guangzhou and

Shanghai.

72

2.7 3.4

4.3

1.7

2.7

5.3 4.6

5.0 5.0 4.2 4.4

5.2 5.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Interest rates % Variation (end of the year)

Source: Research - Deloitte (based on EIU and Chinese press News data). Note 1: 7,093 square feets.

46

35 31

28 28 28 25 25 24 22 22

19 18 17 16 12

Investments / GDP % Participation

New South

China

659(1) thousand

m2 abandoned

The “Phantom

Shopping” is a

sample of negative

results caused by

high investment on

GDP.



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Another critical situation that the country has presented is a demographic deficit

of 5-19 years youngsters. The government began to worry about a possible

decrease in the labor force for the next decade, which is already affecting

productivity and could reduce the strong growth prompted by China.

With this, the country is beginning to signing a possibility in an "opening“

situation for couples to have another child. Policy adopted in the early 90s inside

the country to contain the Malthusian population explosion.

73

5

7

9

11

13

15

5.0

5.5

6.0

6.5

7.0

Unemployment rate and productivity % variation (end of the year)

Unemplyment rate Productivity rate

Age

Male Female

Millions

Chinese demographic pyramid - 2014

Population Gap

774

778 781

783

787

791 792

796 799 799 800 799

798 796

794

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

China – Work force

Millions of people

Source: Research - Deloitte (based on EIU and CIA World Factbook data)




text) 74

India



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Guides...’


3. Select ’OK’ India

The growth rate of India is above the world average, both in the

evolution of real GDP (6.0% in 2014 and expected 6.6% in 2015),

and in the evolution of its Nominal GDP, which is expected to triple

in 10 years size, already appearing among the 10 largest economies

in the world.

The good results of the Indian economy contrast with most other

BRIC economies, mainly because both India and Brazil are not

linked by only a single commodity such as Russia (petroleum).

75

0.9 1.2 1.2 1.4

1.7 1.9 1.9 1.9 2.1 2.2 2.6

3.0 3.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


9.3 9.8

4.0

8.3

10.2

6.7

4.7 5.0 6.0

6.6 6.7 6.5 6.5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


Fonte: Research - Deloitte (baseado em dados do EIU)

6.9

7.6

8.0

11.8

9.7 9.4

10.4

8.3

7.6 7.3

6.3 6.2 6.1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018




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Guides...’


3. Select ’OK’ India

The Indian Growth demonstrates two important scenarios of its emerging economy.

First, India stands out for its importance in the export of services. His expertise in IT,

Information Technology and Telecommunications are essential to the use of

outsourcing inside the US and Europe.

(If India appears as the 6th largest economy in service credit exports, and the US 1st, it

owes much to the hand of Indian work, where 66% are expatriates in the country,

and 7% of all CEOs of Silicon Valley are Indians).

The second factor is the easy public access to the Indian food basket, much cheaper

than in neighboring or correlated emerging countries.

76 Source: Research - Deloitte (based on EIU data)

Big Mac Index(2)

US$ 100 Bic Mac amount that can be bought in

selected countries with the same value.

61 40

23 17

Source: Research – Deloitte (based on The Economist Big Mac Index).

(1) GDP PPP = GDP purchasing power parity.

(2) Big Mac Index = s an index calculated on the price of Big Mac in over 100

countries, with the aim of measuring the value of the living cost. Made by The

Economist since 1986.

70 87

104 92 117

139 146 149 162 175 198

222 252

12345678910110

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Exports of services - Credit US$ Billions (end of the year)

Exports India position in the service provide global ranking

(1) GDP PPP (1) country ranking

US$ Millions 2014

China 18.160

USA 17.392

India 7.276

Japan 4.688

Germany 3.651

Russia 3.528

Brazil 3.059

UK 2.555

Indonesia 2.547

France 2.523




text) 77

Russia



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3. Select ’OK’ Russia

The Russian scenario presents a substantial decline in their

accounts and GDP forecast than a few years ago, when they were

seen as one of the most promising BRIC together with Brazil.

Especially if taken into account that the country was the main

supplier of oil and natural gas to Europe.

With a GDP decline scenario for 2014 and 2015, an inflationary

increase of almost 4% for the end of the year and a slow recovery

after this period, Russia starts a backdrop of uncertainty as to

where their economy is leading to; mainly caused by two key

factors: (1) oil prices and (2) War with Ukraine.

78

1.0

1.3

1.7

1.2

1.5

1.9 2.0 2.1 1.9

1.4 1.6

1.8 1.9

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


8.0 9.1

5.5

-7.2

4.1 4.3 3.4

1.3 0.6

-3.5

0.5 2.5 2.0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Real GDP % Variation yoy.

9.0

11.9

13.3

8.8

8.8

6.1 6.6 6.5

10.9

9.2

5.6 5.0 4.9

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


Source: Research - Deloitte (based on EIU data)



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The first factor quoted before is the large recent fall in oil prices,

as Russia is an economy directly correlated with this commodity,

the country has seen the value of the ruble plummet along with

oil prices, as well as an increase in stock and reduction of

international trade material, driven by a large global trade on

shale gas led by the USA.

The country still manages some stability with gas prices, but may

suffer from the "Dutch disease" (1) in the next decade.

79 Source: Research - Deloitte (based on EIU, US EIA, IEA, Bank of Russia and Index Mundi data).

0

200

400

600

800

1000

2007 2008 2009 2010 2011 2012 2013

Evolution of oil imports and shale gas production in the World (Index 2007 = 100).

Importação de petróleo

Produção de gás de xisto

2,500

4,500

6,500

8,500

10,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Oil market in Russia – Thousand barrels per day

Production Exports Stock

0.01

0.02

0.03

0.04

0.05

0

20

40

60

80

100

120

140

Depreciation of the ruble linked to the oil price drop

Oil - US$ per barrel RUB / US$

(1) Dutch-disease: is an economic term that refers

to the relationship between the export of natural

resources and the decline of the manufacturing

sector, mainly caused by an extreme focus in an

economy based on only one natural resource.

Oil imports

Shale gas production



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80 Source: Research - Deloitte (based on EIU, IMF data). Nominal GDP statistics before the war by the IMF (International Monetary Fund), 2012. Statistics of Russia

with Crimean separatists conducted by Research - Deloitte with the Bank of Russia and the Central Bank of Ukraine data.

2.0 2.1 1.9

1.4 1.6 1.8 2.0 2.2 2.1

2.3 2.5 2.7

2.0 2.1 2.3

2.5 2.8

3.0

2012 2013 2014 2015 2016 2017


Russia (Current) Russia (With Crimea and Spearatists annexed) Russia (IMF forecast before the War)

Difference of

US$ 1,2 bn

Key regions in the

Russia-Ukraine War

Separatists

Majority ethnic Russian

regions in favor of

separation

Crimea Situation to

be defined

The second major factor was the recent

war involving Russia and Ukraine due to

the annexation of the Crimea by the

Russians.

The sanctions imposed by the US and EU,

mainly on the country's major

conglomerates have caused a reduction in

the international market, policy and

institutional relations, leading to a much

larger drop in GDP than expected.




text) 81

Southeast Asia



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3. Select ’OK’ Southeast Asia

82

Southeast Asia, especially Indonesia, Singapore and Malaysia has

risen as one of the major emerging economies in recent years.

The high number of foreign investment, the high degree of

industrialization, and constant growth of their GDP has led

economists to believe that this region may have an overall

economic boost of the same proportion of the "Asian Tigers"

(South Korea, Taiwan, Hong Kong and Singapore itself) had in the

late 90s.

Source: Research - Deloitte (based on IMF and EIU data).

35%

12% 15%

12%

14%

12%

Indonesia

Philippines

Thailand

Singapore

Malaysia

Others

Southeast Asian country share in the region’s GDP

% Participation

1.1 1.3

1.5 1.5 1.9

2.2 2.3 2.4 2.5 2.7

2.9 3.1

3.3

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Region Nominal GDP US$ Trillions

-5

0

5

10

15

20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Real GDP % Variation (end of the year)

Indonésia Laos Malásia

Myanmar (Burma) Filipinas Singapura

Tailândia Brunei Camboja

Indonesia

Thailand

Philippines

Malaysia

Singapore

Cambodia



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3. Select ’OK’ Southeast Asia

83

The low cost of labor especially compared to China, where the average

salary of a worker rose 14% in the last ten years has been a key point that

transformed the countries of Southeast Asia in the newer emerging powers.

With the prices in China becoming more expensive, global markets are

pushing Chinese suppliers to build factories in other emerging countries of

Asia. This has increased the confidence of venture capital funds and the

growth in Private Equity to invest (either in M&A, financial investment, new

business or IPOs) in Southeast Asian countries.

Source: Research - Deloitte (based on Deloitte’s PE and VC study and Thomson).

Global confidence in investing in Southeast Asia and other

regions. (Media 1 to 5, with 5 more confident).

Southeast Asia

2014- 3n65

2013- 3,55

2012- 3,41

Southeast Asia – 3,65

Europe – 2,95

Latin America – 2,86

30%

20% 20%

17%

7% 2% 0% 4%

Southeast Asia - Pacific

Europe

USA

China

Japan

Rest of America

Brazil

Others

Global % share of IPOs in 2014 by country

or region

28%

7%

7% 5% 5% 5%

4% 4%

3% 1%

31%

USA

UK

France

Russia

Japan

China

Canada

Germany

Southeast Asia

Brazil

Others

Global % share of M&A in 2014 by country or

region




text) 84

Japan



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3. Select ’OK’ Japan

85

The low growth in Japanese GDP is tied directly to the great debt

that the Government has sustained in recent years, just over 2

times the country's GDP (alarming 230% at the end of 2014).

To control the debt, economists point it that is imperative to take a

considerable increase in government revenue, led mainly by a

significant increase in taxes, which has caused an inflationary

increase and impatience of the population.


4.4 4.4 4.8 5.0

5.5 5.9 6.0

4.9 4.6 4.0 4.0 4.2 4.4

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


1.7 2.2

-1.1

-5.5

4.7

-0.4

1.7 1.6 0.1

1.1 2.0 1.4 1.6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Real GDP % Variation yoy.

0.3

0.7 0.5

-1.7

-0.4 -0.2 -0.1

1.5

2.6

1.6 1.9 2.0 1.7

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018




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3. Select ’OK’ Japan

86

This increase in government revenues should reach about

60% of GDP, almost double the collected today.

Which could lead Japan in a situation with no apparent way

out, with increasingly needs of government spending,

especially with the pension and retirement of the Japanese

population (which is getting older) but at the same time, the

use of policies to control the tax increase has been criticized

by population in the government of former Prime Minister

Yoshihiko Noda.

Source: Research - Deloitte (based on EIU and IMF).

167 162 171 189 193

210 216 224 230 233 238 240 241

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Japanese net debt % GDP

100% GDP

31 31 32 30 30

31 31 32 33 34

35 35 35

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Japanese government revenue from fees and taxes % GDP

60% GDP – necessary to pay the public net debt

25

30

35

40

45

50

0%

20%

40%

60%

80%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Elderly population and their dependency on government pensions

Youth Adults Elders % dependency of elders(right axis)




text) 87

Other countries



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3. Select ’OK’ Other countries General outlook

88

Canada

Cuba

Bolivia

South Africa

Nigeria

Guinea

Venezuela

Egypt

Iran

Syria

Greece

France

Australia

Mexico

Possible

economic

reopening with

the US

Ebola focus. Still

being controlled

Evo Morales resumed the

presidency. He searches

access to the sea through a

century dispute with Chile

With the oil crisis

Maduro had to

reduce the price of

the transfer of

gasoline for the

first time in 17

years

Penetrating question

with the murder of

students and the recent

fight against the

narcotics

Attack of the Boko

Haram and possible civil

war between North and

South, initialized by

jihadists, has

deteriorated the

economy.

Economics and politics deteriorating

after the uprising against Hosni

Mubarak and Mursi, now the

uprising is against Sissi, considered

more authoritative than their

predecessors.

North Korea

Terrorist attack in Charlie

Hebdo in Paris increased

hostility against

immigrants.

Election of Syriza

questions the

troika and

participation in

Euro.

Civil war and the rise of

IS has caused major US

and global interventional

issues.

Recent cyber attacks

accentuated the unstable

political situation with the

US.

In recent negotiation of a

nuclear program with the

US, after the political

opening during 2014

Zuma, in his second term, has

focused primarily on investments

in infrastructure.

Depreciation of the

Canadian Dollar due to

largely be correlated

with the fall in oil prices

Expectation of good

economic growth,

increased domestic

economy, tax cuts and

inflation.

Crisis and conflicts

Economic drivers




text) 89

Commodities



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3. Select ’OK’ Commodities

90

In early 2015 the main products sold by Brazil in the

international market fell.

Wheat declined -10.2%, due to increased global supply

caused by reduced consumption. Cocoa rose by 1.3%

compared to December 2014 and sugar showed a slight

increase of 0.03%. The prices of soybeans and corn

declined again, the average price of corn fell 2.18%

compared to December and 8.6% if compared to January

2014.

Falling soybean prices were 2.9% over December 2014

and over -21% if compared to January 2014.

The coffee fell by 2.4% compared to December 2014 and

had an increase of 43.8% compared to January 2014. On

the global scenario, soy record production in 2014/15 crop

in the United States must be followed by a significant

harvest in Brazil.

There are also fears about China's demand that canceled

US purchases, in addition to decreasing margins for the

production of soybean meal, which should affect the prices

of commodities.

Source: Research - Deloitte based on World Bank, EIU and Index Mundi data).

Agriculture

80

85

90

95

100

105

110

115

120

Agriculture commodity prices Index: Dec 2010=100

Sugar Soy Café Maize WheatCoffee

Price of the main agriculture commodities

2013 2014 2015 2016 2017 2018

Barley (US$/ton) 246,6 167,8 150,0 175,0 200,0 220,0

Cocoa (US cents/lb) 110,6 138,9 128,7 133,8 130,0 125,0

Arabic Coffee (US cents/lb) 139,5 200,2 186,3 202,5 200,0 185,0

Robusta Coffee (US cents/lb) 94,2 100,4 98,5 112,5 120,0 130,0

Cotton (US cents/lb) 90,4 83,1 70,8 69,2 70,0 72,5

Maize (US$/ton) 264,4 205,9 182,5 191,3 200,0 215,0

Palm oil (US$/ton) 856,9 821,3 714,1 660,1 680,0 720,0

Rapeseed oil (US$/ton) 1.079,3 907,3 775,7 749,2 775,0 800,0

Rice (US$/ton) 489,5 423,8 401,3 391,3 400,0 415,0

Sorghun (US$/ton) 243,3 207,2 185,0 200,0 215,0 220,0

Soy (US$/ton) 556,5 501,3 403,8 413,8 430,0 485,0

Sugar (US cents/lb) 17,7 17,0 16,8 18,2 19,8 20,2

Sunflower oil (US$/ton) 1.124,0 901,9 864,9 897,8 950,0 1.000,0

Tea (US$/kg) 2,9 2,7 2,8 2,9 2,9 2,9

Wheat (US$/ton) 321,5 302,7 261,3 272,5 310,0 312,0

Wool (AUS cents/Kg) 1.063,0 1.084,3 1.097,3 1.108,2 1.119,3 1.130,5



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91

According to the IMF commodity Monitoring Report (Jan/15), iron ore

prices are expected to fall 5.3% in 2015 compared to 6.6% decline last

year.

It is also expected a moderate fall in prices of precious metals, due to

negative perception of institutional investors to make investments.

The reduction in demand for commodities from China and India will also

contribute to this decline. The main risk of metal prices remains through

the occurrence of sharp slowdown in the Chinese economy, since the

Asian country accounts for almost half of world metal consumption.

Source: Research - Deloitte (based on Index Mundi and IMF).

Minerals

1,740 1,222 136

13,925

1,967 1,909 1,201

69

15,962

1,630

Aluminio Ouro Minério deFerro

Níquel Prata

2013 2014

Metal commodity prices

40

55

70

85

100

115

130

Dez 2011 Dez 2012 Dez 2013 Dez 2014 Dez

Metal commodity prices Index (Dec/2010 = 100)

Minério de Ferro Alumínio Cobre Níquel Ouro

US$/ton US$/troy oz

US$/dry metric ton

US$/troy oz US$/lb

Aluminum Gold Iron

ore

Nickel Silver

Aluminum Copper Nickel Gold Iron ore

40

55

70

85

100

115

130

Dez 2011 Dez 2012 Dez 2013 Dez 2014 Dez

Metal commodity pricesIndex (Dec/2010 = 100)

Minério de Ferro Alumínio Cobre Níquel Ouro



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92

In a scenario that assumes no further deterioration in the global macroeconomic environment and OPEC refraining from performing new

management of oil supply, in 2015 the prices should keep an average of US$ 53/barrel - 45% lower than in 2014.

The large current oil production capacity points out to an extension in this very gap in low prices for at least a mid-term period, with prices

recovering modestly in 2016. It is estimated that the weakness in oil prices should be extended to other energy markets, particularly natural gas

in Europe and Asia.

The price of European natural gas and Japanese liquefied natural gas (LNG) are expected to fall 15% and 30% respectively in 2015. A

moderate decline on prices are also expected for natural gas and coal in the United States.

Source: Research - Deloitte (based on World Bank and Index Mundi data).

Oil and gas

20

40

60

80

100

120

140

Dez 2009 Dez 2010 Dez 2011 Dez 2012 Dez 2013 Dez 2014 Dez

Monthly evolution on oil and gas prices September/2008 = 100

Financial crisis

apex

Crimea crisis. Russia blocks

the supply of gas

"Returning Point"

Arab spring in Egypt

European crisis and

High oil prices

Oil

Natural gas

Critical decline

on Oil and gas

prices

“War with the

shale-gas”

Saudi Arabia

lower even more

the prices

searching for

competitiveness.

50

60

70

80

90

100

110

120

3

4

5

6Gás Natural Petróleo

Oil and gas prices US$ Dollar

Natural gas Oil




text) 93

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each

of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a

more detailed description of DTTL and its member firms.

http://www.deloitte.com/about

economic outlook 2015 0 general policies ... · so in this presentation the use of “.” to...

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