RENEWABLE ENERGY: MINAS GERAIS BUSINESS OPPORTUNITIES

9,2%

Sources: IBGE, RAIS

MINAS GERAIS A BIG STATE, WITH GREAT POTENTIAL

INTERNATIONAL REPRESENTATIONS6 General Consulates 3 International Schools 31 Honorary Consulates 1 Consular Corps 8 Chambers of Commerce

COST EFFICIENCYLiving costs on average:

20.6 Million of inhabitantsPopulation size similar to Australia

Land size larger than France

63% of the National GDP is condensed in just 800 km2

of the national GDP 2014:

US$ 133,26 BiSimilar to Chile or Czech Republic

11% of Brazil’s industrial workers

Second largest in the country

3rd Brazilian industrial GDP 2014:

US$ 36,75 Bi25%

cheaper than Rio de Janeiro

29% cheaper than

São Paulo

LOGISTICS: CLOSE TO EVERYTHING THAT INTEREST YOUR COMPANY IN BRAZIL

DIRECT INTERNATIONAL FLIGHTS – To Europe, United States and other Latin American destinations.

JUST AN HOUR FLIGHT FROM SÃO PAULO, BRASÍLIA AND RIO DE JANEIRO – The country’s main economic, political and touristic centers.

LATIN AMERICA’S FIRST AEROTROPOLIS – Logistics advantages for hi-tech companies. – Industrial airport (less time for shipment). – BH Airport managed by Flughafen Zürich.

MAJOR BRAZILIAN HIGHWAY SYSTEM(13% OF THE NATIONAL TOTAL)

2ND MAJOR RAILWAY SYSTEM

INTERNATIONAL AIRPORT

MANY REGIONAL AIRPORTS

INDUSTRIAL AIRPORT

5 DRY PORTS(IN LAND CUSTOMS)

5

2nd highest concentration of students in the country 15% of engineering students in Brazil

The highest concentration of Federal Universities 11 Federal Universities 45 Private Universities 2 State Universities Best Business School in Latin America*

UFMG: Federal University of Minas Gerais is the federal University with the largest number of engineering students in the country More than 5.000 students

UFMG: leader in patents 439 national patents 89 international patents Highest concentration of Sciences and Engeneering Courses

UFMG: worldwide known• Best Brazilian University in teaching quality• Most of the Masters and PhD programs at UFMG have the

highest grade in CAPES Ranking (National Institute)• One of the Top 400 Universities of The World 2nd Best

Ranked in Brazil / Shanghai Ranking - 2014

Federal Education Institutes throughout the state

MINAS GERAIS TALENT POOL ECOSYSTEM

Main Players (R&D)

Federal Universities

Technology Parks

Science and Technology Institutes

Technological Innovation Centers

10,26% of the national students enrolled at universities

2nd

state in the country in enrollments

10%of Brazilians Researchers

Sources: IBGE, RAIS

Sources: IBGE, RAIS * Financial Times Ranking, Shanghai and Folha de São Paulo Ranking

MINAS GERAISENERGY FACTS AND FIGURES

10%of total power generation companies in the country

Largest quartz reserves of Brazil, which, in turn, holds the largest reserves in the world

2nd

largest energy consumer market in Brazil

2nd

largest concentration of Brazilian energy-intensive industries

Food and beverage, steel and metals, pulp and paper

Wind and Solar Potential: Above the national average

16%Brazilian Industrial energy consumption

Sources: Sources: RAIS/MTE

OPPORTUNITIESMarket stimulated by recent energy auctionsLarge demand for solar panels produced internally

2012

3 uni.

75

424

1.731

1.230.00

2013x577

x710

2014

2015

2024

OPPORTUNITY - DISTRIBUTED GENERATIONMICRO AND MINI DISTRIBUTED GENERATION UNITS IN BRAZIL

MINAS GERAISBrazilian largest number of micro and mini distributed generators connections, corresponding to 19% of total

Sources: Aneel

NORTH OF MINAS GERAIS NATURAL POTENTIAL AND TAX INCENTIVES

SOLAR RADIATION North Region of Minas Gerais presents values of daily solar radiation (annual average) comparable to the best regions of the world, for example, Daggett (CA). Moreover, seasonal fluctuations are smaller

INCOME TAX REDUCTION 75% of income tax reduction

SHIPPING MERCHANT MARINE ADDITIONAL EXEMPTION Focuses on machinery import rates, implements and raw materials used

REINVESTMENT OF 30% INCOME TAX It can be used in modernization projects or equipment complement

GOODS WITH AN ACCELERATED DEPRECIATION BOUGHT FOR INCOME TAX CALCULATING

• Resources for investments in infrastructure in the SUDENE area, public services and productive enterprises with large germination of new businesses and new productive activities

• Up to 80% of the project total investment

• New credit line for photovoltaic systems

• Financing up to 100% of the project value

WIND POTENTIALNorth Region of Minas Gerais presents wind speeds (annual average) that easily exceed the 7.5 m/s to 75m high, giving thus a great potential (of about several gigawatts) for the region

SUDENE AREATAX INCENTIVES

DEVELOPMENT FUND

CREDIT LINE

Sources: Atlas Solarimétrico CEMIG

enrollments in engineering courses

enrollment in electrical engineering courses

102.000

MINAS GERAIS ENERGY TALENT POOL AND R, D&ISKILLED LABOR R, D&I

• Best Brazilian university in quality of education

• Second best Brazilian Electrical Engineering course

• Best Brazilian Control and Automation Engineering course in market valuation

• Second best Brazilian mechanical engineering course, in market valuation

SENAI Institute of Innovation - Business Center of Development and Innovation of Electrical and Electronics Industry

• Largest laboratory complex in Latin America facing the electrical and electronic industry, in Itajubá, south of Minas Gerais

• Created in November 1997, consolidated as a reference laboratory in the national scenario of studies and research in solar energy

• One of the first Minas Gerais buildings fully constructed in accordance with the guidelines of bioclimatic architecture

• Develops, since 2002, research on bioclimatic architecture area, electrical and mechanical engineering

• 8 laboratories

EXCEN (Centre of Excellence in Energy Efficiency) - UNIFEI

NEST (Center of Excellence in Thermoelectric and Distributed Generation) - UNIFEI /CEMIG

CDTN (Nuclear Technology Development Center) - UFMG

QUALITY AND ELECTRICAL COMPATIBILITY CENTER (C-QCE) - UNIFEI/CEMIG

UFMGGREEN SOLAR – study group on solar energy PUC-Minas/CEMIG

CPEI (research center on intelligent energy) CEFET-MG/CEMIG

FOUR OTHER PROMINENT RESEARCH CENTERS

CEFET-MG / GIZ (German international cooperation agency for sustainable development)CEFET-MG, Federal Center of Technological Education and GIZ (Germany) has an agreement for the joint development of specialized disciplines and students exchange for training in the energy efficiency field

PUC-MINAS• Largest Catholic university in the world

• Best Brazilian Control and Automation Engineering course in market valuation

UNIFEI - Federal University of Itajubá• Among the top 10 Minas Gerais universities

• Among the top 15 Brazilian electrical engineering courses

16.400

Sources: INEP/MEC, Ranking Folha de São Paulo 2016

MINAS GERAISENERGY BIG PLAYERS

• Largest supplier of energy to the country’s free customers, with 25% market share

• One of the largest Brazilian energy generators

• Responsible for the operation of 120 plants (86 hydroelectric, 3 thermal and 32 wind)

• Installed capacity of 8.5 Gigawatts

• 16 consecutive years in the Dow Jones Sustainability index (only in the energy sector in Latin America)

• Cities of the Future Project–Smart Grids: New concept of power distribution and relationship with consumers

• Association between Cemig and Light, two important players in the Brazilian electric sector

• Providing cutting-edge solutions for utility companies, combining engineering and information technology

• Applied research center, a branch of «centre suisse d’electronique et de microtechnique»

• First Brazilian reference center and one of the first in applied research in the world, in rapid prototyping and manufacturing products with printed organic electronics. In the ceramic microcircuit sector, this is the only company of the Americas with nonmilitary focus

• Most modern plant in the world in the development of organic and hybrid photovoltaic (OPV/DSSC), which has the great advantage of being flexible

• The German multinational acquired the local company Senergy in 2012, leader in energy measurement solutions, smart metering, and now offering software and services to reduce electrical losses

• Industrial coworking for Internet of Things companies

• Sharing resources, technology aggregation and generation of innovation

• Pilot stage in operation: chip encapsulation and board assembly

• Spanish multinational, will invest about R$ 3.4 billion in solar energy production in Minas Gerais

• Installation of four plants in Minas Gerais, one in Pirapora, in the North of the state, ranked as the largest solar plant in Latin America and the third in the world

• Italian multinational company with 3 plants in Minas Gerais

• Biogas energy plant, from landifill

• One of the largest producers of steel lattice towers for application in power transmission lines

• Factory in the metropolitan region of Belo Horizonte

MINAS GERAISENERGY BIG PLAYERS

QUALIFIED PROFESSIONALCOST EFFICIENCY

Fonte: RAIS/MTE

83

100500

100

RESEARCH AND DEVELOPMENT MANAGER AND ENGINEERING AND TECHNOLOGY RESEARCHERSThe average wage of these professionals in Minas Gerais is 35% lower than the average of the states of Rio de Janeiro and São Paulo

ELECTRONICS ENGINEERSThe average wage of these professionals in Minas Gerais is 21% lower than the average of the states of Rio de Janeiro and São Paulo

ELECTRICITY AND ELECTRONICS TECHNICIANSThe average wage of these professionals in Minas Gerais is 17% lower than the average of the states of Rio de Janeiro and São Paulo

ELECTRO-ELECTRONIC FACILITIES SUPERVISORS AND WORKERSThe average wage of these professionals in Minas Gerais is 20% lower than the average of the states of Rio de Janeiro and São Paulo

MinasRio and S. Paulo average

65

100500

100

79

100500

100

80

100500

100

Manufactured products tax exemption (IPI), and also exemption for PIS/PASEP and Cofins, for photovoltaic panels and other components that produces renewable energy, produced in the country

ICMS tax reduction (18% to 12%) - cables and towers for electric use

ICMS tax credit granted to the establishments with solar energy generation, transmission and marketing

ISS tax reduction to be negotiated with the municipality

TAX INCENTIVES

WELFARE: BH, A BETTER CITY TO LIVE AND INVEST

*per 100.000 inhabitants**per 1.000 inhabitants

Sources: PNUD, IPEADATA, Brazil Medical Demography Survey

BETTER HEALTHCARE SYSTEM

INFANT MORTALITY (2010) PER 1,000 LIVE BIRTHS

HEALTH ESTABLISHMENTS* (2009) DOCTORS (2015) **

BH 12,95 43 6,75RJ 13,02 32 6,28SP 13,15 21 4,65

BELO HORIZONTE CITY GLOBAL PLAYER

HDI

0,62

0,7

0,75

0,8

0,85

0,9

INTERNATIONALSCHOOLS

American School

Maple BearCanadian School

Torino FoundationItalian School

BH RJ SP

Income HDI (2010)

0,841 0,84 0,8430,856

0,8450,855

Longevity HDI (2010)

0,737

0,7190,725

Education HDI (2010)

ENTREPRENEURSHIP ENVIRONMENT IN BELO HORIZONTE

BELO HORIZONTETECHNOLOGICAL PARK – BH TEC

A CITY OF ENTREPRENEURSA City of Entrepeneurs

Rio de Janeiro

Florianópolis

PortoAlegre

GoiâniaVitória Belém

São PauloCuritiba

BeloHorizonte

Access to Capital

Human Capital Innovation

The five best cities for each indicator were selected.

BHTEC

FIEMG

Government UFMG

BHTEC MAIN SECTORS Biotechnology

Electronics

IT

TRIPLE HELIXEmerging Cluster

Private Nonprofit Civil Association, with scientific, technological, educational and cultural matters

A condo that houses companies dedicated to research and that produce new technologies. It also houses public and private centers for research and development

Next to the UFMG´s Campus, which facilitates the interaction between business and academy. It´s about 20 minutes from downtown, 40 minutes from International Airport and 10 minutes from Pampulha Airport

1

2

3

EXPANSION PROJECT

Source: Endeavor Index of Entrepreneurs Cities 2014

FIEMG’S EXPAND PROGRAM CAN PROVIDE ASSISTANCES TO INVESTORS REGARDING THE FOLLOWING ISSUES:

INVEST AND DO BUSINESS IN MINAS GERAIS WITH FIEMG

ONE STOP SHOP100% CHARGE FREE

Business Intelligence Services Foreign Trade

Trade Promotion Training

Labour Relations Innovation and Technology

Intellectual Property Support Environmental Projects

Fiscal and Tax Questions Institutional Affairs

Strategic Partnership with State Government for site location,

funding and incentives

invest@fiemg.com.br+55 (31) 3263-4486+55 (31) 3263-4720