London, December 2008

Rosario Board of Trade

Investing in the Hidrovía Business opportunities in the waterway

system linking the heart of South America

with the Atlantic Ocean

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Summary of ContentsSummary of Contents

• Institutional presentation of the Rosario Board of Trade.

• Economic information of the Paraguay-Paraná waterway.

• Business opportunities.

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Rosario Board of Trade (BCR) Background

Non-profit organization founded in August 1884 More than 950 members. Main goals:

Promote and enhance the trading of grains, oilseeds, other agricultural products and by-products as well as bonds, stocks, certificates and several types of securities.To offer the ideal environment to meet the requirements of all trading markets. Provide the adequate framework to carry out legitimate, legal and safe transactions.

Chairman of the Board: Jorge E. Weskamp.

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BCR

ROFEXGrain spot

market

ArgentinaClearing

Rosario Valores S.B.

Rosario Fiduciaria

ROSGANStock

Exchange

Markets and related entities

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Rosario Grain Spot Market

Traded volumes

Soybean: 80% of the national productionCorn: 40% of the national productionWheat: 30% of the national productionSunflower seed: 20% of the national production

160 authorized traders

It is one of the most important spot markets in the world.

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ROFEX

The Mercado a Término de Rosario SA (ROFEX) was founded in 1909. It is the biggest futures market of Argentina in traded volume. New daily volume record of USD 440 millions in US dollar contract. Traded products

Agricultural: soybean, corn y wheat (ROSAFE Soybean Index, wheat, corn),

Financial Derivatives: US Dollar, Boden 2012, BADLAR, CER. 28° in the FIA futures world ranking The Rosario Board of Trade holds 18.50% of the ROFEX shares.

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Mercado de Valores de Rosario S.A.

Created in 1927, it is the oldest public limited corporation in the country. Traded products: stocks, government and corporate bonds, trust fund’s

securities, debentures, deferred payment checks, etc. It is the second most important stock market in the country. Shareholders: 50 companies and brokers.

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ROSGAN

The Mercado Ganadero S.A. (ROSGAN) was created in 2008.The auctions are broadcasted on TV for the whole country.The offers for the auctions can be made either at the trade floor or by

phone.All the traders watch the offered cattle lots on TV. Those traders who are

not present at the trade floor operate by phone following the auction process by TV.

The main advantage of this market is that there is not need to transport the animals until they are sold.

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Rosario Valores Sociedad de Bolsa S.A.

Its trading activities began in 1998. Main goal: that the transactions originated by the Mercado de Valores

de Rosario’s brokers can be negotiated also in the Mercado de Valores de Buenos Aires (MERVAL).

It is the fifth stock broker in the MERVAL traders ranking. The Rosario Board of Trade owns15% of this company.

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Rosario Fiduciaria S.A.

Trustee and funds’ administrator.

It started its commercial activities in 1993.

It currently holds the fifth place in the trust funds national ranking.

ShareholdersMercado de Valores de Rosario: 52,5%ROFEX: 42,5%Rosario Board of Trade: 5%

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Argentina Clearing SA

• Argentina Clearing SA was founded in 1999.• Its main goals are:

Registration, offsetting, settling and guarantee of futures and options contracts.

Administration of the margin calls.• The Rosario Board of Trade owns 48% of this company

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Arbitration Board and Arbitration Court

Court of General Arbitration

Arbitration Board on Vegetable Oils and

By-products

BCR

Grain Arbitration Board

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Grain Arbitration Board

Was founded in 1899 - the oldest of the country in this kind - with the purpose of solving disputes on cereals contracts.

The Grain Arbitration Board stands for the impartiality, criteria independence and capability in its role as an arbitration court.

This board acts as an arbitral arbitrator and as amiable peacemaker in an inquiry or litigation arousing between associates and third parties or between third parties performing a grain transaction and, finally, rules.

It rules on disputes over quality and condition, under consultation or comparison of grain samples.

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Court of General Arbitration

It was created in 1992.

It is a private arbitration court, able to intervene in any type of commercial dispute when required by the involved parties once the conflict has developed or when it is included in the terms of the agreement.

The parties do not to be members of the Rosario Board of Trade to appeal to this arbitration court and they are free to elect one or two arbitrators.

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Arbitration Board on Vegetable Oils

and By-products

It was founded in 1950.

Act as an arbitration court in disputes arousing from vegetable oils and by-products transactions.

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Laboratories

It is one of the most important laboratories in the country (400,000 samples / year)

Its main laboratories are:

Cereals and oilseeds commercial physical testing. Seeds physical and botanical testing and varieties identification. Chemical for products, by-products and vegetable oils. Molecular Genetics (GMO). Wheat quality. Soils, fertilizers and glifosate. Commercial analysis – cereals and oilseeds. Special analysis (water, microtoxines and others).

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Economic information of the

Paraguay-Paraná waterway

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Shipments at the Hidrovia Shipments at the Hidrovia Paraguay-ParanáParaguay-Paraná

(2007)(2007)Clinker; 3%

Vegetable oils; 3%

Grains; 5%

General cargo; 5%

Fuel; 17%

Minerals; 28%

Byproducts; 39%

Total in 2007 => Tonnes 14,800,000

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0

1

2

3

4

5

6

Byproducts Minerals Fuel Grains General cargo Clinker Vegetable oils

Tonn

es (M

)Shipments at the Hidrovia Shipments at the Hidrovia

Paraguay-ParanáParaguay-Paraná(2007)(2007)

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Why is Rosario so important for Why is Rosario so important for the Argentinian grain market?the Argentinian grain market?

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Because Rosario is in the centre of the crop area

Why is Rosario so important Why is Rosario so important for the Argentinian grain for the Argentinian grain

market?market?

Soybean Seeded AreaCrop year 2006/07

Seeded Area as a Percentage of de County Area

Source: Bolsa de Comercio de Rosario

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Why is Rosario so important Why is Rosario so important for the Argentinian grain for the Argentinian grain

market?market?• Because the main agroindustrial export complex of Argentina is

located in the metropolitan area of Rosario.

• Its fluvial front, with exit to the Atlantic Ocean, stretches for 60 kilometers and has a guaranteed dredging of 34 feet.

• 74% (115,000 tonnes a day) of the domestic crushing capacity is placed in Rosario and its surroundings.

• More than 75% of the national agroindustrial exports are shipped through the up river Paraná terminal ports. This year these exports will be around USD 18,000 million.

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Crushing capacity - Year 2007-Crushing capacity - Year 2007-

230

175155

130

0

50

100

150

200

250

Tonn

es (T

hous

ands

)

China USA Argentina Brasil

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Up River Terminal PortsUp River Terminal Ports(from(from Arroyo Seco to Timbúes) Arroyo Seco to Timbúes)

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Annual ship movementAnnual ship movement(Rosario and San Lorenzo Ports)(Rosario and San Lorenzo Ports)

0200400600800

1.0001.2001.4001.6001.8002.0002.2002.4002.600

2000 2001 2002 2003 2004 2005 2006 2007 2008E

San Lorenzo Rosario Total

+ 51%

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Grains, vegetable oils and Grains, vegetable oils and byproducts byproducts

shipments by terminal ports shipments by terminal ports (2007)(2007)

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 5,5 6,0 6,5 7,0 7,5 8,0 8,5 9,0 9,5 10,0

Planta Guide

Serv.Portuarios-Term.3

Tránsito - Toepfer

Arroyo Seco - Toepfer

Timbúes - Noble

Timbúes - Dreyfus

ACA

Serv.Portuarios-Term. 6 y 7

Villa Gob.Galvez - Cargill

Nidera

Dempa/Pampa - Bunge

Punta Alvear - Cargill

San Benito - Molinos

Vicentín

Gral.Lagos - Dreyfus

Quebracho - Cargill

Terminal 6

Tonnes (M)

Grains Oils Byproducts

Total: 58.3 million tonnes

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Shipments by terminal ports Shipments by terminal ports ( 9 months 2007 - 9 months 2008)( 9 months 2007 - 9 months 2008)

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 5,5 6,0 6,5 7,0 7,5 8,0 8,5 9,0

Planta GuideServ.Portuarios-Term.3

Noble -TimbúesToepfer - Tránsito

Topefer - Arroyo SecoACA

Dreyfus - TimbúesCargill - V.G.Galvez

Serv.Portuarios-Term. 6 y 7Nidera

Bunge - Dempa/PampaCargill - Punta Alvearl

VicentínMolinos Río de la Plata

Dreyfus - Gral.Lagos Cargill - Quebracho

Terminal 6

Tonnes (M)

up to 09/2007 up to 09/2008

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Production and transportationProduction and transportation

By truckBy truck72 million Tn72 million Tn

By trainBy train14 million Tn14 million Tn

By bargeBy barge1 million Tn1 million Tn

INTERNALINTERNALCONSUMPTIONCONSUMPTION

20 MILL TN

PRODUCTS CONSUMPTION

12 MILL TN

PRODUCTION +PRODUCTION +INITIAL STOCKINITIAL STOCK

95 MILL TN

EXPORTATIONEXPORTATION75 MILL TN

BYPRODUCTS37 MILL TN

GRAINS38 MILL TN

VEGETABLE OILS2 MILL TN

OTHERS10 MILL TNFARM FARM

CONSUMPTIONCONSUMPTION8 MILL TN

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Freight RatesFreight Rates(grains and byproducts)(grains and byproducts)

0,0000,0050,0100,0150,0200,0250,0300,0350,0400,0450,0500,0550,0600,0650,0700,0750,0800,0850,0900,095

Truck (300 km.) Train (500 km.) Barge (500 km.) Barge (1,200 km.)

USD

/Tn

/Km

USD0.090

USD0.045

USD0.035

USD0.017

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Maritime Freight RatesMaritime Freight Rates(from Rosario to China and (from Rosario to China and Rotterdam) Rotterdam)

0102030405060708090

100110120130

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(*)

USD /

Tn.

TO CHINA TO ROTTERDAM

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Argentina is ranked:Argentina is ranked:

• First as by-products and oil of soybean exporter.

• Second as corn exporter.

• Second as by-products and oil of sunflower seed exporter.

• Third as soybean exporter.

• Seventh as food exporter.

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ForecastsForecasts

2008 – 2009 Crop (million tonnes)• Soybean 48 / 50• Corn 15 / 16• Wheat 9 / 10 • Sorghum 3 • Sunflower seed 4• Total 79 / 83

2015 – 2016 Crop• Total production => 122 million tonnes • Exports => 95 million tonnes

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Reasons to invest in the Reasons to invest in the area area

Abundant natural resources.

A privileged geographic location.

An adequate infrastructure.

Developed and competitive port infrastructure.

Qualified human resources.

Great economic potential.

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Business OpportunitiesBusiness Opportunities

Agriculture and LivestockAgricultureLivestockBeef productionMilk productionApicultureOrganic products

IndustryAgri-food exporter complexOleaginous complexMilk and Meat complexIron and Steel Agricultural machinery cluster

TourismTransport equipmentScience, Technology and Innovation

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