The Argentine experience

Nexia Umbrella group meeting 15 - 16 March 2012 - LondonNexia Umbrella: Argentina | © KINE Consulting – Bavastro, Delavault & Asociados

Content

• Our organization.

• Why we have an Umbrella.

• Practice and territory coverage.

• Our legal entity profile.

• Success stories.

Nexia Umbrella group meeting 15 - 16 March 2012 - LondonNexia Umbrella: Argentina | © KINE Consulting – Bavastro, Delavault & Asociados

Our organization

Nexia Umbrella group meeting 15 - 16 March 2012 - London

NEXIA in Argentina

Abelovich, Polano & Asociados

NEXIA ArgentinaUmbrella

(Since 1993)

Independent firms

(Since Dec. 2007)

José Piccardo & Asociados

Nexia Umbrella: Argentina | © KINE Consulting – Bavastro, Delavault & Asociados

Why we havean Umbrella

Nexia Umbrella group meeting 15 - 16 March 2012 - London

Our country geography• +40 Mill. inhabitants• 2.8 Mill sq. km.

Macroeconomics• 70% economic activity and population

located in central region.• Top 1000 enterprises = 70% GDP• S&MB: +27000 with turnover between

0,25MUSD and 35MUSD

Microeconomics• Expansion costs optimization.• Ability to detect business opportunities • Regional economic specialisation:

agribusiness, mining, services and manufacturing.

Nexia Umbrella firms officesJurisdictions served by Nexia Umbrella firms

Nexia Umbrella: Argentina | © KINE Consulting – Bavastro, Delavault & Asociados

Practice and territory coverage

Nexia Umbrella group meeting 15 - 16 March 2012 - London

Bavastro Delavault & Asociados

Brihet & Asociados

Mladineo & Asociados

KINE Consulting

Dell’Aqua López &

Asociados

Chiarotti Consulting

Palumbo Nieto &

Asociados

Hector Nervi & Asociados

• Audit• Tax• Forensic

accounting• Insolvency

• Audit• Tax• Litigation

support

• Audi• Tax• Corp.

Governance

• Corporate Finance

• Operations Mgnt.

• IT leverage• Value

creation

• Audit• Tax

• Audit• Tax• Corporate

Finance

• Audit• Tax• Insolvency

• Audit• Tax

NEXIA Umbrella Organization

• City of Buenos Aires

• Suburbs of City of Buenos Aires

• Whole country

• Province of Buenos Aires (excluding suburbs of City of Buenos Aires

• Province of Santa Fe

• Province of Córdoba

• Province of Mendoza

• Province of Río Negro

• Province of Chubut

Pra

ctic

eT

erri

tory

• City of Buenos Aires

• Suburbs of City of Buenos Aires

• Province of La Pampa

• City of Buenos Aires

• Suburbs of City of Buenos Aires

Nexia Umbrella: Argentina | © KINE Consulting – Bavastro, Delavault & Asociados

Our legal entity profile

Nexia Umbrella group meeting 15 - 16 March 2012 - London

Government boards and operating procedures Before TodayExecutive Board• 5 members –partner of firms• 2 years – 2 periods maximum• Frequency meetings (physical presence)• Frequency meetings (conference call)

YesAll BA city firms

Ad hocAd hoc

YesAll country

QuarterlyMonthly

General Partners Meeting: voting power• 1 vote per firm• 1 vote per ARS100K

YesNo

NoYes

Expense contribution:• Based on each firm turnover

Yes Yes

Technical committees Ad hoc Permanent

Nexia Umbrella: Argentina | © KINE Consulting – Bavastro, Delavault & Asociados

Success stories

Nexia Umbrella group meeting 15 - 16 March 2012 - LondonNexia Umbrella: Argentina | © KINE Consulting – Bavastro, Delavault & Asociados

Case Source firm

Umbrella

BD&A KINE PN&A HN&A

Andes Energia plc. – Listing in AIM (2007)• Field work in Province of Mendoza• Field work in Province of Chubut• Short & Long Form Report• Working Capital ReportAndes Energia plc. – Double listing in BASE (2009Oil & Gas investments valuation (2008, 2010)On going work• Support review annual consolidated report• Annual reconciliation AR GAAP vs IFRS

Smith & Williamson X

XX

X

XX

XXXX

X

X

X

XX

X

TELMEX Group Argentina – Post Merger Integration of 3 companies (voice, Data Center, e-business) (2007)

Mladineo & Asociados

X