BACX | Inversores data room

The Argentine Carbon Exchange is the first in the Americas and the first in the country to be created exclusively as a carbon trading platform with the objective of being recognized by investors and clients as the most compliant and lowest risk on the planet. After two years of analysis of the global market, the following strategy was established based on 4 pillars:

Secured Transactions

Reliable Ratings

Proven Technology

Premium Assets

Alexia Rosenthal, Tanoira Cassagne contacto: arosenthal@tca.com.ar

Pablo Verra, Lockton

contacto: pablo.verra@lockton.com.ar

Rosana Beben, Orson Capital

contacto: rbeben@orsoncapital.com

INVESTORS

Latin America has always been among the leading developers of carbon projects: the region currently generates more than 20% of the global supply of carbon credits for voluntary markets and is the world leader in Solutions Based on Nature (NBS) credits, producing more than two thirds of all NBS credits in circulation.

In the region, the voluntary carbon market is the most relevant. Currently, Brazil and Peru are the recipient countries with the largest number of outstanding NBS credits, followed by Indonesia.

Globally, demand for these credits is projected to grow significantly, driving prices up to 15 times higher by 2050. CAF has estimated that, in Latin America, voluntary demand for carbon credits could increase at least 15-fold by 2030 and 100-fold by 2050.

Context of Carbon Markets in Latin America

GHG emissions trading systems in the Region

The map presents a geographical overview of carbon pricing in LATAM, covering both national CPIs implemented or under development in the region and international cooperation initiatives under Article 6 of the Paris Agreement.

The first ETS in Latin America and the Caribbean (LAC), has been launched by Mexico with its pilot Emissions Trading System (ETS) program.

Latin American Carbon Exchanges: strategic partners

Green Carbon Exchange (GCX) has a strategy to develop Carbon Exchanges in Latin America through which carbon credits can be traded in the Voluntary Market, articulating with actors with local and international recognition and experience.

Exclusive and unrivaled technology from the world's only regulated Digital Carbon Exchange.

Comprehensive carbon credit securities insurance for clients and risk insurance for investors.

The largest global Commodities Broker with over 80,000 clients for OTC mandates.

Mandate for trading with the

Regular Stock Exchanges for the

purchase of shares and for

outbound trading with the

international Regular Stock

Exchanges.

Why a Carbon Stock Exchange in Argentina?

At present, Argentina has few projects within the carbon market but a great potential for projects and to exploit this potential, financial tools are needed to reach all sectors and thus fund the transition to an emission-free economy.

To this end, as a voluntary carbon market, BACX offers financial instruments to invest in the ecological transition towards the reduction of greenhouse gas emissions and replace with quality carbon credits that allow for compensation at the national and international level.

This initiative takes on particular relevance in Argentina where key economic sectors, such as food, mining, energy, steel and derivatives, are highly vulnerable to the demands of climate action.

Thus, by providing instruments that encourage the transition to more sustainable production models, BACX will help large companies and SMEs to reduce their impacts and finance technological improvements to achieve carbon neutrality.

Capital Structure of BACX

The share capital is currently distributed as follows:

71% to Green Carbon Exchange (GCX)

29% owned by legal entities

Up to 30% of GCX shares will be offered to an investment fund, a local bank, a company that provides the first high quality carbon credits in the country and a market with a recognized track record.

BACX Strengths

We are a team of respected interdisciplinary professionals with vast experience both locally and internationally whose core values are leadership, integrity and commitment to drive the carbon market opportunities in the country and globally.

The only Digital Carbon Exchange in the world with secured transactions between bidders and offerors through LOCKTON, a company of recognized trajectory, setting a new standard of compliance in the protection of both transactional risk and project risk in global markets.

BACX operates through a state-of-the-art technology platform provided by ACX (with high efficiency proven globally) that ensures transparency, accessibility, liquidity and security in operations and allows credits to be displayed for offsets that are allowed in regulated markets worldwide.

Carbon credits with investment grade ratings granted by BeZero, an internationally recognized agency, will be traded on the stock exchange.

Already has secured a significant volume of high quality carbon credits in Argentina.

The Argentina Carbon Fund (ACF) was created as a vehicle to facilitate access to financing for the certification of credits to be traded and whose fund management will be in charge of a local financial institution of local prestige.

Our Group in the Media

BeZero partners with Green Carbon Exchange

BeZero Carbon will be the official ratings provider of carbon credits transacted on the Argentine Carbon Exchange (BACX), the Paraguayan Carbon Exchange (BPCX) and the Ecuadorian Carbon Exchange (BECX).

Lockton partners with BACX and CFC to launch first exchange-traded, insured carbon credit transactions in Latin America

Lanzaron la primera Bolsa Argentina para el Mercado de Carbono: en qué consiste

Es una plataforma innovadora que facilita el comercio de créditos de carbono entre los actores que buscan reducir sus emisiones de gases de efecto invernadero. Tiene como objetivo impulsar la transición hacia una economía verde en el país y el mundo

Who we are

Board of Directors

Alejandro Guerrero, President

Aleandra Scafati, Vice President

Adrian Cosentino, Director

Alejandro Wyss, Director

One seat for Seed Investor Bank

One seat for the Developer Carbon Credits Investor

One seat for Investor Local Exchange

Risk Committee

Alejandro Guerrero

Finance Committee

Adrian Cosentino

Technical Committee

Aleandra Scafati

Technology Committee

Alejandro Wyss

Assistant

Executive Director

External Agency

IT manager

Communication Manager

Sales Representative

Social Media Manager

Seed Funding by the Capital Fund + Bank

USD325k

5% of shares

USD500k

5% of shares

The seed funding guarantees 12 months of operation, licenses and memberships

with a reserve fund while the Carbon Exchange is being capitalized.

BACX capitalization: in funds and carbon credits

Argentina Carbon Fund: main features

Operations, Working Team, Exclusive Licenses and Memberships

Commissions and Fees

Carbon Credits Capitalization

Carbon Credits Commercialization

The contributing partner of carbon credits produced in Argentina will complete its commitment during its emissions to reach 100,000 carbon credits at a value of US$15 each. This valuation of $1.5M on 10% of the shares gives a balance sheet value of $15M. None of these assets can be touched until the next phase of acquisition by International Exchanges, Local Exchanges, Banks or Investment Funds.

With 150,000 carbon credits in escrow that will have BBB ratings or higher, they will be protected with insurance policies and will be used to open 500 accounts for companies (they will have to open their accounts by purchasing 300 credits each at $20 per unit to avoid the annual BACX fee). This will guarantee the circularity strategy of offsetting carbon credits produced in the country between 2025 and 2027.

100K tCO2e

14K tCO2e

10% of shares

Immediately

20%

commission on carbon credits issued*.

*Revenues in kind for BACX: 5M carbon credits

15%

commission on the total amount issued**

**Revenue for BACX: 15M on a projected total issuance of 25M credits at 5 dollars

BACX's partner bank will act as Fund Manager for the construction of a $25 million Fund to develop the Argentine carbon market with premium loans and a focus on Nature Based Projects (NBS), Livestock and Forestry (ALM). These loans will be financed from the beginning under BACX supervision targeting AA or AAA rating and with insurance policy for international markets. With a maximum ticket size of $2 million to landowners. This will have the largest analysis done in the country on carbon potential in 23 provinces.

25M

50K tCO2e

2025

2026

2027

BACX will operate in the voluntary carbon market with the following sources of income.

Commissions it will receive for intermediation in the trading of carbon certificates.

Revenues from the incorporation of credits to the ACF.

value on carbon credits contribution

value on ACX exclusive license

value on future sales

BACX Valuation

Methodology: was valued applying a discounted cash flow model, under conservative assumptions of volume and prices of C02 certificates to be traded on the platforms, including the value contributed by ACX and other intangibles.

Capital: part of the BACX shares will be integrated into carbon credits, which provides additional value to the exchange by having assets that can be offered and traded through the exchange.

Revenues: operating revenues are linked to (i) commissions charged for certificate transactions traded and settled through the BACX platforms, (ii) the commission for structuring and technical assistance to the ACF (5 million carbon credits), and (iii) fees for technical assistance and advisory services to companies with projects eligible to issue certificates.

Costs: In addition to human resources, infrastructure and operating costs necessary to support a growing trading volume, insurance costs are also included, among others.

Capex: The main concept is the ACX license by virtue of the strategic alliance to have the advanced technology necessary for the business. The rest of the concepts are not so representative in the cost structure.

Base scenario: conservative prices per ton CO2 and a 15% commission for each certificate traded are assumed.

Tax impact: Under analysis with legal and accounting advisors.

valuation = 58M

EXIT

An exit through acquisition is foreseen in the next 36 months at the most with a target of bidders focused on International Stock Exchanges, Local Stock Exchanges, Banks or Investment Funds that buy 90% of the total shares with the Argentine Carbon Exchange in operations.

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