From the heart of Argentina to the world

Fernando ReynaBOARD MEMBER

Grupo Edisur’s Strategy

Grupo Edisur ’s StrategyARGENTINEAN MARKET DOING BUSINESS…CONTENTS

Table of contents

ARGENTINEAN MARKETNot only adverse conditionsBut also strong opportunities

DOING BUSINESS IN ARGENTINAFinancing projects without banksPolitical and economic instabilityLack of reliable decision making scenarioNot qualified local partnersSmall market = Small opportunitiesLimited housing access

1

2

ARGENTINEAN MARKET DOING BUSINESS…

Grupo Edisur ’s StrategyCONTENTS

ARGENTINEAN MARKET1

Grupo Edisur ’s StrategyARGENTINEAN MARKET DOING BUSINESS…CONTENTS

Strong opportunities…

Adequate Debt BurdenBy 2010, External Debt Stocks (public and

private) correspond to 49% of GDP, showing a healthy financial status6

5 World Development Indicators & Global Development Finance (2005-2009), The World Bank.6 MECON – Ministry of Economy and Production, Argentina (2010).

7 GJP Morgan, Country Report 2010.8 www.Abeceb.com – Articles on International Trade (August – September, 2010).

Lower financial RiskSovereign debt of Argentina fell to its

lowest level since August 20087

Currency Stability Dollar exchange rate is estimated at $/U$S 4.25 in

2011 (following a hard currency approach to restrain inflation). Foreign Exchange Reserves

yield a 50M U$S record in 2010Consumer expectancy is supporting global growthTotal private consumption has grown at average 8% annual (for 2010). Hard goods purchases have grown near 23% (for national

gods) and 26% (for imported goods)

Record Trade Flows Biggest emerging economies Brazil, Russia,

India and China, count as our principal export’s destinies 8

Sustained Economic GrowthBoth public and private estimates agree that overall activity has recovered, forecasts stand

close 5% 5

Grupo Edisur ’s StrategyARGENTINEAN MARKET DOING BUSINESS…CONTENTS

But also strong opportunities…ja

n

feb

mar ap

r

may jun jul

aug

sep

oct

nov

dec

jan

feb

mar ap

r

may jun

Q1 Q2 Q3 Q4 Q1 Q22009 2010

-25%

-15%

-5%

5%

15%

25%

35%

Source: INDEC, Índice Construya

ISAC(Real Estate Growth Public E.)

I. CONSTRUYA(Real Estate Growth Private E.)

Real Estate activity at pre-crisis levelsBoth public and private data show that activity has already reached to

the levels pre-crisis of 2008

After 8 to 12 months of continuous annual growth, Argentina is working again at high levels of activity in the area

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Yrd² Buenos Aires Yrd² Córdoba Yrd² Rosario

Fuente: Indec, DGEyC Córdoba, Dir. Obras Arq. Partic. Municip. Rosario.

Córdoba is the top city generating new private projects

Córdoba achieve not only high levels of activity during the crisis but also greater shares of the real estate market

2009/08Buenos Aires: ▼35%

Córdoba: ▲18%Rosario: ▼18%

ARGENTINEAN MARKET DOING BUSINESS…

Grupo Edisur ’s StrategyCONTENTS

DOING BUSINESS IN ARGENTINA2 Rough challenge

Financing Projects without banks

Bank represent only 4%

Due to the strength of its credit rating and its commercial skills, the company use alternative financing sources for it’s projects.

EDISUR STRATEGY

Pre Sales48%

Venture Capital 19%

Equity29%

! ALTERNATIVE FINANCING SOURCES

Political and economic instability

EDISUR STRATEGY! CREATE OPPORTUNITIES IN A VOLATILE MARKET

HIGH INFLATION LEVEL Properties as a value protection

WEAK RETIREMENT SYSTEM

A way to ensure savings in the future

OTHER ATTRACTIVE INVESTMENT

OPPORTUNITIES

Properties reveal as more profitable and certain than others options

EDISUR STRATEGY! MARKET KNOWLEDGE

Lack of reliable

studies and statistics

Market analysisSpecials Reports

Newsletter

Customer-focused growth

EDISUR STRATEGY

! INTEGRAL BUSINESS MODEL

Absence of institution

al investors

Financing & Feasibility

Project Design

Development

PromotionSales

Administration &

Management

Post-sales &Customer Loyalty

Age

Housing needs

705020 30 40 6010

Undeveloped market

EDISUR STRATEGY! PRODUCTS DIVERSITY Different residential categories to meet the needs and preferences throughout the life cycle.

Plots andHouses

GatedCommunities

Condominiums

Buildings

Plots and HousesGated communitiesBuildingsCondominiums

EDISUR STRATEGY! TO DEVELOP A POTENTIAL MARKET

Limited housing access

DEMAND80,000

SUPPLY20,000

60,000 families per year

without own house

Middle Income Market

New financing and investment system

360 apartments with amenities

Payments from U$S 363

high-impact urbanhousing development3

1

urban development lots1,30

0of developed living spaces

203,000 yr²

in development11,111

yr²

Built in different categories

670 acLots in immediate urbanization800

More than

1,500

And we have just celebrated

our 10th anniversary

| 10 years |

developing the city

owners