Magical Moments Annual Report and Financial Statement As of December 31, 21 / th Fiscal Year (Free translation from the original in Spanish for publication in Argentina) Report 58th Fiscal Year MESSAGE FROM OUR PRESIDENT In the international context, the econoic actiit n the other hand, the Agribusiness diision continues has eaened and, according to the IMF, the groth ith its groth strateg, beneting ro conditions rate or 2018 as 3., although that groth as oered b Argentina in agroindustrial atters and not unior aong dierent econoies. This is due strengthening copetitie adantages that ertical to certain shortter actors, including trade tensions integration gies to ass consuption businesses beteen aor poers and the ost restrictie nancial that Arcor roup has in Argentina. conditions in an adanced econoies. In 2018, e ent on consolidating the historic agreeent According to CACs preliinar balance sheet, reached ith Mastellone eranos .A., a leading in 2018, the econoic groth in atin Aerica as a copan in the anuacture and areting o dair hole as estiated at 1.1, hich iplies a slight products. In anuar 2018, an inestent o 5.24 illion slodon copared to 1.3 the preious ear. (euialent in Argentine pesos) as ade, and in une 2018, soe shareholders o Mastellone eranos As regards Argentina, a serious drought signicantl .A. inored the intended to sell part o the parcel reduced gross domestic product and agricultural o shares or a total o 6.8 illion . As a result o exports, and the signicant dealuation o the Argentine both eents, the participation o both Arcor .A.I.C. peso since id2018 has ueled inflation, aecting and Bagle Argentina .A. in the capital o Mastellone doestic consuption and inestor condence. In eranos .A. aounted to 42.6466. In addition, as this context, the IMF reported a 2.6 contraction in o August an agreeent began in order to goern the Argentine econoic groth in 2018. distribution and marketing of the product portfolio of a erensia in Boliia. nder this panoraa o the 2018 national and international aret hich ou a go in depth ieise, in une, in order to eep the groups international in the report o these Financial tateents, Arcor goal, an agreeent as reached to ae an inestent roup ends the ear ith an increase in the leel together ith rupo ebcor, one o the largest ood o consolidated sales, expressed in hoogeneous distribution copanies in Angola, in order to set up there currenc, regarding the preious ear. an industrial plant or seets and biscuits. This ill be the rst plant that Arcor roup sets up outside atin Most o our businesses abroad increased in sales America and will allow us to deepen our presence in olues and turnoer, iproing the perorance the Arican aret. Another releant eent in 2018 as, the had in recent ears. Although in 2018 Argentinas ithout a doubt, the alliance beteen Arcor roup and mass consumption businesses showed a decrease in aboratorios Bagó, hich represents the association o sales olues, as regards the general decline in the two Argentine companies that decided to share their doestic aret, the olue loss as loer than experiences and traector in the orld o ood and the aret aerage, thans to the ipleentation o health to create iple, a line o dietar suppleents coercial actions, the strength and diersit o the that helps to incorporate in a practical a the necessar brands in the groups portolio. nutrients that a be lacing in dail ood. As or the acaging diision, ro the purchase Finall, since the launch o the 20162020 ustainabilit o rupo ucaor, the ocus as on eeping the trateg, Arcor roup continues to or ith the r aret share in corrugated cardboard in Argentina. coniction o generating triple econoic, social and It was also oriented to the growth of multiwall paper enironental alue in counities here it is present. sacs and export o irgin ber papers, due to the uring 2018, businesses and corporate areas prooted iproeent o the countrs copetitieness 83 initiaties in 13 ustainabilit perational lans. during the last ear. In addition, e hae ade great progress in ters o 2 | Annual Report and Financial Statements the Actie ie and ealth ating strateg to position this copan as a benchar or health eating. e also continue to iproe the nutritional proles of our products and enter new categories aligned ith current trends. All these initiaties reflect the peranent eolution o our copan and encourage us to continue groing and innoating in order to contribute to iproing the ualit o lie in our societ. uis. A. agani Arcor Group’s President 3 A LEADING MULTINATIONAL GROUP In 1951, a group o oung entrepreneurs et in the cit o Arroito, proince o Córdoba, Argentina, ith the drea o producing ualit ood accessible to consuers around the orld. Toda Arcor is a leading ultinational group that oers ood or all oents o the da and occasions o consuption, and reaches ore than 120 countries. Nutritious Currentl, Arcor roup is ade up o three business diisions: Consuer breakfast Food roducts (Food, Chocolates, Cooies, Conectioner, Icecreas, Baed oods and Functional roducts), Agribusiness and acaging. Thans to sustainable anageent hich goes through all the areas o the copan and our alue chain e deelop leading brands that reach Delightful people all oer the orld. e hae business oces in the Aericas, snacks urope and Asia, and ore than 40 industrial plants in atin Aerica. CONSUMER Varied lunch PRODUCTS Delicious Because e beliee that eating is nourishing, gratiing and bonding, dessert e oer ore than 1,200 ualit, delicious and health products to to share accopan people ro all oer the orld at eer oent o the da. e proote health liestles based on a aried and balanced diet, based on a strateg that has three pillars: "Alliances and knowledge Energetic creation" ith the scientic counit or the deelopent o health afternoon products iproeent o the nutritional proles o our "product snack portfolio" and entr into ne categories and "communication and promotion" to reach all our target audiences ith our essage. Family dinner FOOD CCAT COOKIES CFCTIY FROZEN FCTIA CT: CT ICCAM A BAKED GOODS From Argentina to the World The Agribusiness diision ais to add alue to agroindustrial processes to proide ne and better solutions to dierent industries that assue coitent to ualit in all their products. e hae e production units and seen industrial iling ards. At Ingenio a roidencia, e hae the capacit to produce 150,000 tons o sugar, and e generate 11 M o reneable energ through sugar cane bagasse. e are one of the main corn processors in Argentina and one of the national leaders in the production o ethl alcohol ro cereals or the beerage and cosetics industr. of ground sugar cane per year of ground corn per day of alcohol produced per day. of milk produced per day. The acaging diision o Arcor roup leads the cardboard, paper and flexible pacaging aret in Argentina and has a strong presence in the region it is the ost iportant pacaging solutions copan in the outhern Cone. Through Cartocor, Conerflex and ucaor, Arcor oers its custoers innoatie and sustainable pacaging solutions at the oreront o orld aret trends. It stands out or its special ephasis on custoer serice, peranent innoation, productiit, ualit, and preseration o the enironent. of m2 of of our recycled paper per year. corrugated cardboard per year. of flexible material per year. own for forestry development. ARCOR GROUP TODAY Main KG manufacturer of of products employees. VIRGIN produced PAPER daily. for packaging in Argentina. MORE THAN LARGEST One of the PRODUCER OF RECYCLED LARGEST PAPER SUGAR INDUSTRIAL in Argentina and PRODUCERS an important in Argentina. PLANTS model in South in Latin America. America. Argentina's BUSINESS World- LEADING OFFICES Class Retail In Argentina, Uruguay, DISTRIBUTION FOOD Paraguay, Bolivia, COMPANY Colombia, Ecuador, MODEL Mexico, the United States, Spain and China. | Annual Report and Financial Statements + + We reached EXPORTS ST WORLD to more than PRODUCER points of sale OF HARD in the region. COUNTRIES CANDIES. for million dollars. ARGENTINE One of the LEADER LARGEST in the production PRODUCTS MILK OF LAUNCHED PRODUCERS CORRUGATED ANNUALLY. in Argentina. CARDBOARD. ST Investment over LEADING MAIZE ALFAJOR FLOUR MILLION AND CEREAL PRODUCER USD COMPANY in Argentina. in the last 6 years. in the region ARCOR IN THE WORLD Presence in more than 120 countries*. IT TAT TA RUSSIA MXIC CC BIC INDIA GEORGIA CIA BULGARIA ISRAEL SPAIN AA TIA TAIA ITAIA MIA AAB MIAT SAUDI ARABIA T A BARBADOS ATIA CONGO ATAIA A BRAZIL ALGERIA EL SALVADOR CI AMBIA CTA ICA BOLIVIA MAMBI ATMAA URUGUAY MAAACA AITI PARAGUAY ANGOLA AMAICA CMBIA CABO VERDE T IC PERU CAM AAMA GUYANA TAFICA MIICA TIIA A REPUBLIC TBA NICARAGUA IAM Main countries listed. | Annual Report and Financial Statements Commercial Offices SOUTH AMERICA SOUTH AMERICA ARCOR S.A.I.C. ARCOR S.A.I.C. BUENOS AIRES, CÓRDOBA, ARGENTINA ARGENTINA T T SOUTH AMERICA SOUTH AMERICA SOUTH AMERICA INDUSTRIA DOS EN UNO UNIDAL ECUADOR S.A. ARCOR ALIMENTOS DE COLOMBIA LTDA. , BOLIVIA S.A. BOGOTÁ, COLOMBIA SANTA CRUZ DE LA , SOUTH AMERICA SOUTH AMERICA SOUTH AMERICA ARCORPAR S.A. VAN DAM S.A. GAP REGIONAL SERVICES ASUNCIÓN, PARAGUAY MONTEVIDEO, URUGUAY S.A. MONTEVIDEO, NORTH AMERICA NORTH AMERICA ARCOR USA INC. UNIDAL MÉXICO S.A. , . DE C.V. MÉXICO D. F., MÉXICO EUROPE ASIA ARCOR A.G. (S.A. LTD.) ARCOR TRADING BARCELONA, ESPAÑA (SHANGHAI) CO., LTD. , PLANTS IN LATIN AMERICA MEXICO MUNDO DULCE Toluca, tate o Mexico BRAZIL ARCOR PERU ecie, ARCOR Ipouca, Chanca, Pernambuco uaral BAGLEY Capinas, BAGLEY São Paulo antiago, Metropolitan BAGLEY