ABVCAP Conference: Brazil Post-Crisis, even better! April 12 /13, 2010 – Sofitel – Rio de Janeiro Overview of the Brazilian Private Equity and Venture Capital Industry Prof. Cláudio Vilar Furtado GVcepe – Private Equity and Venture Capital Research Center at FGV – EAESP Graduate School of Business

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$ $ $ $ Research Structured in 3 Modules: PE&VC 2010 Census Investors Inv. VehiclesPortf. Companies Managers

$ $ $ $ Research Structured in 3 Modules: PE&VC 2010 Census Investors Inv. VehiclesPortf. Companies Managers Managers: profile, investment thesis and legal nature and human resources Investments Vehicles: Fundraising, LPs and Investments and Exits Invested companies: Stage, Sector, Location, Size, Turnover, Employment, etc. RESEARCH MODULE 1

PE&VC in Brazil – Dec/2009 Investors Managing Organizations Portfolio Companies US$ 34 bn Committed Capital 140 PE&VC Firms 236 Investment Vehicles 1,747 Professionals and Staff 554 Portfolio Companies From 2005 to 2009: 489 new/follow-on investments 37 backed IPOs (R$31.3bn)

180 PE&VC Managing Organizations 180 PE&VC Managing Organizations 140 surveyed 140 surveyed Research Universe 78% of the industry surveyed

Increasing Presence of Global Players Global, Regional and Emerging Markets Investment Vehicles DLJ AAI Global Advent AIG Cartesian Cartica Capital Darby Overseas Econergy Brasil General Atlantic Intel Capital One Equity Partners Paul Capital The Carlyle Group Actis Autonomy Spinnaker AIG Private Equity (EUA) Darby Overseas (EUA) Electra Capital Partners (Cayman) Franklin Templeton (EUA) Intel Capital (EUA) Itacaré (Ilh Vir) Santander (ESP) Standard Bank (SAF) The Carlyle Group (EUA) Vita Bioenergia (SUI) Global, Regional and Emerging Markets Fund Managers with vehicles strictly dedicated to Brazil Southern Cross GP Investments

Committed Capital Allocated to Brazil current US$ bn NOTE: Allocated committed capital excludes fully divested vehicles and includes REAL appreciation effect on dec/08 base. 21% increase: 2009/2008

Significant Expansion of the PE Asset Class in Brazil Source: BACEN, GVcepe 2x since 2004 Committed Capital as % of GDP

Fundraising 2009 US$ 4.6bn: Domestic R$ 3.3bn (US$1.7bn) and Foreign US$ 2.9bn current US$ bn

Broad Diversification of Investor Base, notably Pension Funds, Parent Orgs., GPs, Family Offices, etc.

Origin of Investors as % of Committed Capital 2009: high concentration in Brazil, U.S. and E.U Sample: 255 reporting vehicles, ¾ of Committed Capital

Increasing Span of GP activity into both Private Equity and Venture Capital Distribution of Investment Vehicles by Type Obs: Venture Capital includes Seed, Early Stage and Later Stage VC. Private Equity includes Growth Capital and Later Stage Sample: 224 vehicles, 88% of population

Strong Expansion of Portfolio Companies, predominantly SMEs 14% p.a. CAGR Nr. of Portfolio Companies

Portfolio Companies 2009 by Sector of Economic Activity Innovative and Technology based sectors predominate Spread in Traditional industries Industry 2009 Nr.% IT and Electronics ,5 Energy and Oil 54 9,7 Civil Construction 52 9,4 Communications 34 6,1 Retail 28 5,1 Agribusiness 25 4,5 Food and Beverages 21 3,8 Transportation and Logistics Services 21 3,8 Pharmaceuticals, Medical and Aesthetics 20 3,6 Financial Services 18 3,2 Biotechnology 15 2,7 Infrastructure 15 2,7 Education 13 2,3 Entertainment/Tourism 11 2,0 Services (Other) 11 2,0 Real Estate 9 1,6 Metallurgy, Mechanical and Electrical Material Industries 7 1,3 Extractive Industries 6 1,1 Chemical Industries 3 0,5 Other Industrial and Services Unidentified Sector ,2 5,8 TOTAL %

Mobilizers programs in strategic areas Complexo Industrial da Saúde Nuclear Energy Tecnologias de Informação e Comunicação Industrial Complex Defense NanotecnologiaBiotecnologia Programs to strengthen the competitiveness Complex Automotive Capital goods Textile and Clothing Madeira and Mobile Higiene, Perfumaria e Cosméticos Construção Civil Complexo de Serviços Biodiesel Industry Naval and Cabotage Leather, Footwear and Artifacts AgroindústriasPlastics OUTROS Programs to consolidate and expand the leadership Complexo Aeronáutico MineraçãoSteelPulp and Paper Petróleo, Gás natural e Petroquímica MeatBioetanol Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Nanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Petróleo, Gás natural e Petroquímica Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Bioetanol Petróleo, Gás natural e Petroquímica Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação MineraçãoBioetanol Petróleo, Gás natural e Petroquímica Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Higiene, Perfumaria e Cosméticos MineraçãoBioetanol Petróleo, Gás natural e Petroquímica Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Construção Civil Higiene, Perfumaria e Cosméticos MineraçãoBioetanol Petróleo, Gás natural e Petroquímica Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Complexo de Serviços Construção Civil Higiene, Perfumaria e Cosméticos MineraçãoBioetanol Petróleo, Gás natural e Petroquímica Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Agroindústrias Complexo de Serviços Construção Civil Higiene, Perfumaria e Cosméticos MineraçãoBioetanol Petróleo, Gás natural e Petroquímica Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação BiodieselAgroindústrias Complexo de Serviços Construção Civil Higiene, Perfumaria e Cosméticos MineraçãoBioetanol Petróleo, Gás natural e Petroquímica Complexo Aeronáutico BiotecnologiaNanotecnologia Complexo Industrial da Saúde Tecnologias de Informação e Comunicação Education and OTHERS BiodieselAgribusiness Complex Services Building Hygiene, Perfumery and Cosmetics Mining Bioethanol Oil, Natural gas and Petrochemicals Complex Aeronautical BiotechnologyNanotechnology Industrial Complex Health Technology Information and Communication 4/6 7/7 13/13 PE & VC PORTFOLIO COMPANIES IN 24/26 SECTORS Source: GVcepe and ABDI - Productive Development Policy (PDP) Private Equity and Venture Capital Investment Activity leverages Industrial Development Policy: presence in 90% of priority government programs

Brazilian PE&VC on the Radar Screen of Global Investors *Preqin **GVcepe Global Fundraising (US$bn)* Region Total North America ,397 Europe Asia and ROW Global ,408 Brazil** ,624 as % of Asia and ROW4,8%6,4%7,2%4,1%17,6%6,5%

Brazilian PE&VC on the Radar Screen of Global Investors: Employment Source: Preqin, Gvcepe CountryEstimated Total Employment US UK7.700 France2.300 Brazil (GVcepe correction)1.700 Germany1.500 Australia1.400 Canada1.400 Japan1.100 India1.000 Hong Kong900 Switzerland900 China (ex. Hong Kong)800 Italy800 Sweden800 Israel600 Netherlands600 Other8.800 Total69.100

$ $ $ $ Research Structured in 3 Modules: PE&VC 2010 Census Investors Inv. VehiclesPortf. Companies Managers Legal structure and LP agreements Investors an LPs: resources origin and category GP: Legal structure and remuneration Performance by Investment Vehicle Vintage, Exits, etc. RESEARCH MODULE 2

$ $ $ $ Research Structured in 3 Modules: PE&VC 2010 Census Investors Inv. VehiclesPortf. Companies Managers RESEARCH MODULE 3 Growth and value creation, jobs and intangibles Patents and Innovation Corporate governance and financial contracts Social and Enviromental Sustainability Exits and Capital Markets Impact

ABVCAP Conference: Brazil Post-Crisis, even better! April 12 /13, 2010 – Sofitel – Rio de Janeiro Your cooperation is crucial to our joint success!!! Thank you Prof. Cláudio Vilar Furtado GVcepe – Private Equity and Venture Capital Research Center at FGV – EAESP Graduate School of Business