THE POTENTIAL OF THE BRAZIAN THE POTENTIAL OF THE BRAZIAN MARKET MARKET

Fábio Becker Aranha

GENERAL CHARACTERISTICSGENERAL CHARACTERISTICS

- Sales are unstable and depend on political / economical condicions.

- Multinacional companies manufacture products mostly in Brazil for all of Latin America.

- A great exchange rate variation, also generates difficulties for both: exporters and importers lift companies.

EXISTING INSTALLATIONS

400.000

Population 210 Million

new installations 11.000 / ano *

new installations 90% BIGs international companies 10% local SME

Maintenance market share

65% BIGs international companies 35% Local SME

number of personnel

25.000

* After economic crisis (2014 - 16.000 units)

BRAZILBRAZIL

Historical facts:Historical facts:

1906 – First elevator in Brazil – Palácio das Laranjeiras – Rio de Janeiro.1919 – Elevadores Atlas (Villares) – The biggest Brazilian lift company was started.1926 – Otis arrives in Brazil1934 – Otis first factory in Brazil1937 – Schindler arrives in Brazil1945 – New big brazilian lift company - Elevadores SUR – (Rio Grande do Sul)1999 – Schindler bougth Atlas (even nowadays still use name Atlas Schindler)1999 – Thyssen bougth SUR and the brazilian branch of Kone 2000 – The standart Mercosul MN 207 (EN81-1) was published2001 – ELEB Elevadores do Brasil - (Otis second brand) bougth about 50 SME2013 – AEM – Mercosul Elevator association was formed.2013 - Mitsubishi bough Lgtech and start MELCO in Brazil2013 – Orona bouth AMG (Brazilian distributor) 2014 – Hyundai – Lauched a factory in São Leopoldo – RS

2015 – economic crisis and president impeachment. Big players gave up Brazil:

2016 – Hyundai fired half of our personnel and stopped production

2017 – Mitsubish (MELCO) sold to Otis

2018 – Atlas Schindler celebrated 100 years in Brazil

- Kone planed come back to Brazil

Historical facts:Historical facts:

Brazilian potential

In 70 year - 10 times more people linving in citiesIn 1950: 18 million - in 2018: 180 million

- Emerging market contry;- The eighth largest economy in the world;- The sixth largest population;- Demand for accessibility and save energy.

Housing defict:6.000.000 houses are neededSource: (CBIC- Camara Brasileira Industria da Construção / Ministério das Cidades)

Serious social problems:Serious social problems:

- 3.2 million buildings in precarious areas and irregular settlements were exposed to catastrophes.(The Brazilian Institute of Geography and Statistic(IBGE)

- No less than a third of the almost seven million inhabitants in Río de Janeiro live in the thousands of favelas in the “Marvellous City”

- In São Paulo, many workers spend five hours a day travelling to and from work.

Demand for Accessibility Demand for Accessibility

- In 2017 the elderly population reached more than 30 million.

- The forecast for 2060 indicates that a quarter of the population will be senior (58 million)

An estimated 15% of the Brazilian population has some physical disability

** Federal law requires buildings to adapt to.

SÃO PAULO- City population – 12 million - Metropolitan population: 21.3 million

MAIN CITIESMAIN CITIES

RIO DE JANEIRO - City population – 6.5 millions- Metropolitan population: 12.3 millions

MAIN CITIESMAIN CITIES

BELO HORIZONTE- City population – 2.5 millions- Metropolitan population: 5.9 millions

MAIN CITIESMAIN CITIES

BRASILIA- City population – 3 million- Metropolitan population: 4.3 million

MAIN CITIESMAIN CITIES

PORTO ALEGRE- City population – 1.5 million- Metropolitan population: 4.2 million

MAIN CITIESMAIN CITIES

RECIFE- City population – 1.6 million- Metropolitan population: 4.0 million

MAIN CITIESMAIN CITIES

FORTALEZA- City population – 2.6 million- Metropolitan population: 4.0 million

MAIN CITIESMAIN CITIES

CITY POPULATION(million)

METROPOLITAN POPULATION(million)

SÃO PAULO 12.0 21.3 RIO DE JANEIRO 6.5 12.3BELO HORIZONTE

2.5 5.9

BRASILIA - DF 3 4.3PORTO ALEGRE 1.5 4.2RECIFE 1.6 4.0FORTALEZA 2.6 4.0

MAIN CITIES - MAIN CITIES - SUMMARYSUMMARY

MAINMAIN STANDARDSSTANDARDSMERCOSUL – STANDARDS (NM – NORMA MERCOSUL)

NM 207 - 1999 - Elevadores elétricos de passageiros -Requisitos de segurança para construção e instalação. (Equivalent – EN-81 1/2)NM313_Acessibilidade_Deficientes (accessiblity)

NM 195-1999 ESCADAS ROLANTES E ESTEIRAS ROLANTES - EscalatorsNM 267-2001 ELEVADORES HIDRÁULICOS PARA PASSAGEIROS - HidraulicNM 196_99 - Elevadores de passageiros e monta-cargas - Guias para carros e contrapesos - Perfil T

** AMN Asociacion Mercosur Normalizacion http://www.amn.org.br/

BRAZIL (NBR Norm Brazil )

NORMA NBR15597 - MODERNIZAÇÃO DE ELEVADORES (SNEL) Safety Norm Existing lift

NBR 16042 - ELEVADORES ELÉTRICOS SEM CASA DE MÁQUINAS (MRL)NBR 10982-1990 ELEVADORES ELÉTRICOS DISPOSITIVOS DE OPERAÇÃO E SINALIZAÇÃO;NBR 15655-1 PLATAFORMAS DE ELEVAÇÃONBR13994_Elevadores_ transporte_pessoa_portadora_deficiência

http://www.amn.org.br/

Equivalent EN-81-20/50 – will be published in the end of 2019

Mandatory two years after published

NBR – 16756 - Remote Alarm (EN 81-28 equivalent) published in April/2019* Not mandatory

BRAZILBRAZIL

Main associations:

SECIESP - groups multinational and independent elevator companies that carry out manufacture, installation and maintenance – State of São Paulo.

SECMIERJ - independent elevator companies that carry out manufacture, installation and maintenance – State of RIO DE JANEIRO

SECIEMG - independent elevator companies that carry out manufacture, installation and maintenance – State of MINAS GERAIS

SECIEB - independent elevator companies that carry out installation and maintenance – State of BAHIA.

EXPO ELEVADOR - BRAZILEXPO ELEVADOR - BRAZILTHE MOST IMPORTANT EXHIBITION IN LATIN AMERICA

2020 - JULY - 14, 15, 16th São Paulo

** more informations: Stand in Interlift - Hall 6 booth 6007

FOREIGN COMPANIES THAT ARE ALREADY WORKING IN BRAZIL

1996 – started doing business in Brazil with a local office2000 – First factory2016 – Second factory (Londrina PR)

1968 – started doing business in Brazil1975 – factory in Boituva (São Paulo)

2013 – Bougth Eco Sistemas (brazilian company)and started selling imported products 2017 – started local production

1996 – started doing business in Brazil with local office1997 -Branch in Brazil (PR)

Sales representative

2012 – started doing business in Brazil with local office2014 – started local production

2017 – started doing business in Brazil with local office

FOREIGN COMPANIES THAT ARE ALREADY WORKING IN BRAZIL

2005 – factory (4000 m2)2010 – factory upgrade (13.000m2)2020 - planned investments US$ 5 million

2012 - sales representative (before by Wittur)

* Mac Puarsa moved to Chile.*

Sales representative

FOREIGN COMPANIES THAT ARE ALREADY WORKING IN BRAZIL

2008 – bussiness representative.

2009 – Distribution center

FOREIGN COMPANIES THAT ARE ALREADY WORKING IN BRAZIL

1968 – Started doing business in Brazil1990 – starts to sell inverters in Brazil

1974 – Brazilian branch

2012 - Started doing business in Brazil

FOREIGN COMPANIES THAT ARE ALREADY WORKING IN BRAZIL

Created in 2013, AEM will aim to work for economic development and technological development of the national vertical transportation industry in Mercosur. The lines of work were identified as priorities:

- Exchange of relevant information among organizations;

- Defend skilled labor and technological sovereignty in the region;

- Jointly monitor commercial production and industry performance;

- Propose measures and policies to the states to promote national added value;

- Tackle regional training, technology and innovation projects.

AEM – MERCOSUL LIFT ASSOCIATIONAEM – MERCOSUL LIFT ASSOCIATION

IMEETINGS - AEMMEETINGS - AEM

Members:Members:

CAFAC (Argentine Chamber of Manufacturers of Elevators and its Components)ADIMRA (Metallurgical Industry Association of Argentina) ITEEA (Institute of Technological Studies and Lift Education)

SECIESP (Union of Lifts Maintenance and Conservation Companies of the State of São Paulo)

SECMIERJ (Union of Companies of Conservation, Maintenance and Installation of Elevators of Rio de Janeiro),

SECIEMG ( Maintenance and Installation of Lifts in Minas Gerais)

ARGENTINAEXISTING INSTALLATIONS

250.000

Population 45 Millionnew installations 3.500 /anonew installations 85% local 15% BIGs

international companiesMaintenance market share

10% BIGs 90% Local SME

number of personnel

12.000

ARGENTINAARGENTINA

ARGENTINA – NEWARGENTINA – NEW INSTALLATIONSINSTALLATIONS

*The Argentine associations predict a 25% decrease in the production of lifts in 2018.

* Argentina is the only country in the region that has a strong local manufacturing sector, with 1,500 companies directly involved in the vertical transport industry.

250.000 lifts, of which 150.000 are located in Buenos Aires.

ARGENTINAARGENTINA

Vertical Transport Test Laboratory (ETV) of the INTI Vertical Transport Test Laboratory (ETV) of the INTI

- In 2012 the new laboratory has the function of technically checking the lifting elements, using latest the safety standards.

- As of 2015, all the safety components of the lifts must have a mandatory certification conferred by the INTI. (domestic and imported products)

INTI – The Only technology laboratory able to certify in Latin America (Argentina)

SUMMARYSUMMARYPOPULATION EXISTING NEW INSTALLATIONS

INSTALLATIONS PER YEAR

ARGENTINA 44.938.000 250.000 3.600

BRAZIL 210.458.000 400.000 11.000

BOLIVIA 11.470.000 27.000 400

COLOMBIA 50.133.000 38.000 2.500

CHILE 19.107.000 30.000 1.500

ECUADOR 17.201.000 ** 400

PARAGUAY 7.152.000 ** 100

URUGUAY 3.600.000 14.000 250

VENEZUELA 32.220.000 ** **

PERU 32.500.000 10.000 900

GUIANAS 790.000 ** **

SURINAME 575.000 ** **

TOTAL 430.144.000 759.000 20.650

COUNTRY

JOIN WEFWORLD ELEVATOR FEDERATION

Langfang City (China)April - 2019

EUROPEAN UNION – MERCOSUL AGREEMENTEUROPEAN UNION – MERCOSUL AGREEMENT

* The EU is Mercosur's number one trade and investment partner.

* EU exports to Mercosur were €45 billion in goods in 2018 and €23 billion in services in 2017.

* The EU is the biggest foreign investor in Mercosur with a stock of €381 billion, while Mercosur’s investment stock in the EU amounts to €52 billion in 2017.

* While the relationship is very substantial both exporters and potential investors face barriers in Mercosur markets.

The goal of the new EU-Mercosur trade deal is to:

Remove these barriers and help EU firms – especially smaller ones – to export more

Strengthen worker’s rights and ensure environmental protection, encourage companies to act responsibly,

The agreement represents a win-win for both the EU and Mercosur, creating opportunities for growth and jobs for both sides.

12,561 German companies that export to Mercosur.

72% The share of German companies exporting to Mercosur that are small and medium-sized enterprises.

Exports and Imports:

Mercosur is Germany's 10th biggest trade partner outside the EU.

€ 15.4 billion The value of German exports to Mercosur.

€ 6.3 billion The value of German imports from Mercosur.

SAME PROBLEMS / SIMILAR CHALLENGESSAME PROBLEMS / SIMILAR CHALLENGES

ACESSIBILITY

SAFETY FOR TECHNICIANS

OLD LIFTS

TECHNICAL TRAINING

SAFETY FOR TECHNICIANS

SAVE ENERGYINCREASE IN THE ELDERY

SAFETY FOR USERS

FÁBIO BECKER ARANHA

Fábio Aranha

FÁBIO E. BECKER ARANHA

Engineering degree at Polytechnic in São Paulo University – current President of AEM (Mercosul Lift association) , former president of the São Paulo state elevator companies union (SECIESP) and founding partner of Infolev, a Brazilian company specialized in the development of vertical transport automation technologies.

CONTACT:

fabio.aranha@elevadoresmercosul.comfabio@infolev.com.br

55 11 9.8256-0008

Phone: 55 11 3383-1911Adress: Rua Sara de Souza,152São Paulo – SPBrazil

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