Proexpo Plant, Riga Latvia

Tresmontes LucchettiTresmontes Lucchetti

Who is Tresmontes Lucchetti (Proexpo)?

Why Riga?

Proexpo´s Plant

Tresmontes Lucchetti: OverviewTresmontes Lucchetti: Overview Tresmontes Lucchetti: OverviewTresmontes Lucchetti: Overview

Who is Tresmontes Lucchetti (Proexpo)?

Why Riga?

Proexpo´s Plant

Tresmontes Lucchetti: OverviewTresmontes Lucchetti: Overview

EXPLORA PATAGONIA

Tresmontes Lucchetti: Tresmontes Lucchetti: Our CompanyOur Company.

Tresmontes Lucchetti is a leading company in the production and trade of food and consumer goods, with Latin America as its main objective market.

For 118 years Wide international presence: 27 countries 2.054 people 13 productive plants in 4 countries

2011 Revenues MMUS$480 approx.

Tresmontes Lucchetti: Our CompanyTresmontes Lucchetti: Our Company

BEBIDAS INSTANTANEAS FRIAS:UN CASO EXITOSO

ChileChile

ArgentinaArgentina

BoliviaBolivia

ColombiaColombiaEcuadorEcuador

ParaguayParaguay

PeruPeru

UruguayUruguay

VenezuelaVenezuela

MéxicoMéxico

EEUUEEUU

PanamáPanamáCosta RicaCosta Rica El SalvadorEl Salvador

GuatemalaGuatemala

HondurasHonduras

NicaraguaNicaraguaRep. DominicanaRep. Dominicana

UcraniaUcrania

PoloniaPoloniaLituaniaLituania

BielorrusiaBielorrusia

UzbekistanUzbekistanGeorgiaGeorgia

LatviaLatvia RusiaRusia

TMLUC in 27 countries

Tresmontes Lucchetti: Our Company.Tresmontes Lucchetti: Our Company.Creation and develpment of succesful categories and brands

Tresmontes Lucchetti trade in Eastern Europe is operated through a Latvian company: Proexpo.

Since 1992 Presence in 8 countries 1 productive plant in Riga, Latvia

Tresmontes is currently redirecting its focus towards the Mexican market, thus the decision to dispose of our asset in Riga.

Tresmontes Lucchetti: Our CompanyTresmontes Lucchetti: Our Company

Who is Tresmontes Lucchetti (Proexpo)?

Why Riga?

Proexpo´s Plant

Tresmontes Lucchetti: OverviewTresmontes Lucchetti: Overview

• Historically, Latvia has been one of the main transit points for both north-south and east-west trade flows. Its location remains central to strategically relevant transportation flows connecting major world economies like the USA, European Union, Russia, the CIS and the Far East.

• The city of Riga is the perfect gate for business in the Eastern hemisphere. With boarders to the west to the Gulf of Riga and the Baltic Sea, to Estonia in the north, Russia (east), Belarus (south-east) and Lithuania (south)

• Latvia's geographical location is particularly significant for the Russian market. The strategic location of the capital Riga, including its own consumer market potential, offers opportunities for development within the Baltic States and is the reason that numerous international companies have located their Baltic States' head offices there.

Strategic LocationStrategic Location

• In terms of logistics, Latvia is one of the best locations to establish a business in Northern Europe. Riga itself is the largest city in the Baltic States and is ideally located at the centre of the region.

• The Baltic Sea is served by the ports of Liepaja, Ventspils and Riga, two of which remain ice-free throughout the year. All the harbors and cities are connected to an extensive rail and road network, which offers the flexibility and capacity needed for speedy transfer of goods to Russia, CIS, Central Asia and China.

• The Trans-Siberian railway connects Riga with Moscow by the shortest and most direct route and importantly, the two countries share a common railway gauge, an infrastructure base that is facilitating growth in the flow of trade.

Logistic CapabilitiesLogistic Capabilities

Distance to:

• Estonian border – 120 km

• Lithuanian border – 75 km

• Belarusian border – 300 km

• Russian border – 300 km

• Moscow – 842 km

• Stockholm – 550 km

• Rotterdam – 2000 km

Logistic CapabilitiesLogistic Capabilities

• Latvia has one of the highest percentages of university students per capita world wide. Over 85% of Latvians speak Russian, and 70% of people under 40 speak English. German and Scandinavian languages are also widely spoken.

• Latvia offers one of the lowest tax rates in the EU combined with additional tax allowances within the Special Economic Zones and state support programs. Latvia’s corporate income tax rate is at a flat rate of 15% and dividends to EU citizens are not taxed. Personal income tax is also at a low flat rate of 26%

• Growth in exports and imports, started in 2010, was also recorded during 2011.

• Given relatively low rent rates and suitable premises, Russian companies are using Latvian warehouses as a transshipment point for the goods traffic between EU and China.

Other relevant factsOther relevant facts

Who is Tresmontes Lucchetti (Proexpo)?

Why Riga?

Proexpo´s Plant

Tresmontes Lucchetti: OverviewTresmontes Lucchetti: Overview

• Proexpo´s Plant is located in Riga, Latvia.

• Proexpo owns the buildings, which are set in two different land lots belonging to two families :– Burago Family 56,242 m2 – Wannag Family 8,856 m2

• The buildings have an area of approximately 40,000 m2, where we can find two main bodies (There are other buildings):– Productive body: Approximately 23,000 m2 (Burago)– Administration body: Approximately 7,000 m2 (Wannag)

General FactsGeneral Facts

• We have two different lease agreements for the two land lots.– Wannag Family Contract termination in December 31, 2016– Burago Family Contract termination in February 18, 2027

• Both agreements are subject to renegotiation at expiration.

• Wannag family is willing to sell their land lot (Negotiations are in place for a combined sale).

• Burago agreement is very advantageous in terms of rent and renovation at expiration.

General FactsGeneral Facts

• Location: The plant is located about 5-10 minutes from Riga´s center.

• A lot of commercial activity is developing nearby the plant (mall, hotels, museum, etc.)

• Currently, most of the buildings space is being leased as offices, shops, gym, warehouses, etc. (15,000 mts2 approximately).

• Approximately 9,000 mts2 are currently available for new leases

• Proexpo´s operation currently uses 18,000 mts2.

Other informationOther information

• Two different types of valuation of the property were performed:

– An independent valuer estimated (in 2010) the value of the buildings. They considered different factors such as location, current contracts with land owners, age of the construction, etc.:

• Administrative Building: €1,609,000 (Wannag)• Productive Building (and others): €6,353,000 (Burago)• Total: €7,962,000

• Estimation of the future cash flows generated by the potential lease of the buildings:

– Estimated present value: App. €10 million

• Another valuation of the building is currently being done

ValuationValuation