1. SEPTEMBER 10 - 13th, 2014 Private Vineyards Owners’ Conference Growing Grapes in Argentina 1

2. 2 AGENDA A.Winegrape Growing Overview B.Your Vineyard: Technical & Economic aspects C.What do we do?

3. 3 Farming Costs

4. 4 Growing Grapes in Argentina

5. 5 Grape Growing Business Grape Production Costs Direct Labor

6. 6 Grape Growing Business Direct Labor $ 5.6

7. 7 Grape Growing Business A - GRAPE PRODUCTION COSTS Direct Labor Services Direct Labor

8. Manual Harvest Video. 8 Grape Growing Business

9. Machine Harvest Video. 9 Grape Growing Business

10. Machine Harvest: 8593 kgs / hour Manual Harvest: 119 kgs / hour 10 Grape Growing Business

11. 11 Grape Growing Business Agrochemicals & Supplies

12. Machine Harvest: 8593 kgs / hour Manual Harvest: 119 kgs / hour Wine Camps..… 23 kgs / hour 12 Grape Growing Business

13. 13 Grape Growing Business U$S 0.091/kg U$S 0.225/kg U$S 0.045/kg

14. 14 Grape Growing Business 1.LEDs projects infrared light 2.Light reflected and captured 3.Sensors decode reflected light 4.Detection and Spray the weed Herbicide

15. 15 Grape Growing Business

16. 16 Grape Growing Business Herbicide 4-6 applications per year 1.05 l/acre per application U$S 55.2 / acre / year

17. 17 Grape Growing Business Herbicide 4-6 applications per year 1.05 l/acre per application U$S 55.2 / acre / year U$S 11,07 / acre / year Per year

18. 18 Grape Growing Business S.A. #2 S.A. #1

19. 19 Grape Growing Business GPS data Tractor #3 - New Holland TT 3880 ParametersFrom Service Area #1From Service Area #2 Engine ON – (hours)8.068.08 Trip – (hours)0.960.39 Vineyard – (hours)7.107.69 Area – (Acres)8.159.09 Fuel Consumed – (lts)23.123.3 AnalysisSA #1SA #2DifferenceU$S annual savings Fuel consumed / hour (lts)2.86 lts2.88 lts+0.02 lts / hourN/A Hours spent / acre0.98 hs0.88 hs-0.1 = 6 minutes less U$S 20,742.85 Fuel consumed / acre (lts)2.83 lts2.56 lts-0.27 lts / acre U$S 3,360.30

20. Revenues Yields – Grape Price – Quality (?) 20 Grape Growing Business

21. 21 Grape Growing Business YIELD (kilograms / acre) 1.Terroir 2.Varietal 3.# of Vines / acre (lineal meters per acre) 4.Farming strategy - quality (?)

22. 22 Grape Growing Business Kg/acre (New Goal) Kg/acre - Actual Kg/acre (Original Goal)

23. Price 23 Grape Growing Business 1.Market - Export trends, Demand, Statistics (Volume vs $) an increasing demand for icon and ultra premium wines. 2.Varietal – Malbec vs Torrontes 3.Commercial Strategy – Partnerships – long / mid term deals. 4.Grape Quality (?) -

24. 24 Grape Growing Business Wine export evolution by volume and U$S

25. 25 Grape Growing Business

26. 26 Grape Growing Business The Vines of Mendoza Catena La Rural Chandon Alta Vista Michelini Achaval Clos de los 7 Flichman Trapiche Cobos Norton Dona Paula Ruca Malen