11th BRAZIL INVESTMENT FORUM | Principais players do mercado Argentino e da América Latina

Summary

In this 2025 Brazil Investment Forum, industry leaders discuss Argentina's economic outlook, emphasizing opportunities in banking, real estate, telecommunications, and energy. As inflation decreases and economic activity grows, there are prospects for industry growth, particularly in personal loans and digitalization. Real estate is also resilient, with rising prices and optimistic projections fueled by new mortgage models. Telecommunications face competition and technological changes, but consolidation and digital transformation offer growth. Energy investments, like the $2.5 billion Bakaram Morta extraction project, hold significant export potential. Leaders highlight ongoing expansion strategies and regional growth in key sectors.

Takeaways

• 😀 Argentina's banking industry has a low penetration rate, offering significant growth opportunities, especially if inflation continues to decrease and economic activity grows.
• 😀 SuperVL is focusing on customer growth, particularly in personal loans and asset-backed loans, and expanding its digital platform with new investment opportunities and integration of retail platforms.
• 😀 Argentina's real estate market has shown resilience despite economic volatility, with property prices increasing by 10-20%, particularly in areas like Porto Mado, due to government reforms and inflation-linked mortgages.
• 😀 The telecommunications sector in Argentina is highly competitive, with a need to adapt to technological changes and disruptors like new satellite companies and OTTs.
• 😀 The recent acquisition of Telefonica in Argentina is seen as a strategic move to strengthen market share and revenue, with plans to enhance connectivity and services across the country.
• 😀 EGS is investing $2.5 billion into the transformation of its Bakaram Morta plant, which will extract additional products like propane and ethane, with the potential for significant export opportunities worth over $3 billion.
• 😀 The long-term outlook for TGS involves diversifying its revenue streams, with a focus on non-regulated business activities to drive growth and improve company margins over the next few years.
• 😀 Aros has grown significantly over the past 4-5 years, achieving strong EBITDA growth and market share in the region, even amidst economic challenges.
• 😀 Aros’ success is attributed to its 4D strategy (digital, delivery, drive-thru, development) and the popularity of its app, which competes with delivery aggregators in certain markets.
• 😀 Aros plans to expand its digital platform in markets like Mexico, where digital adoption in the restaurant industry has room for growth, thus driving same-store sales and margin improvements.

Q & A

What is the outlook for Argentina's banking industry in the coming years?

Argentina's banking industry shows strong growth potential, as it has low loan and deposit penetration compared to other countries in the region. With inflation expected to continue declining and economic activity growing, multiple years of growth in the industry are anticipated.

How is SuperVL focusing on growth in Argentina?

SuperVL is focusing on expanding its customer base, offering asset-backed loans, and growing its personal loan offerings, particularly for pension customers. The company is also continuing its digitalization efforts, integrating its retail investment platform within the SuperVL app to build an ecosystem.

What is the price trend in Argentina's real estate market?

Real estate prices in Argentina have been resilient despite challenges such as inflation and capital controls. Prices for used apartments average around $2,500 per square meter, with new apartments in desirable areas averaging $3,000, and top-tier areas reaching $5,000 per square meter. Prices have increased by 10-20% in the last year.

What role do mortgages play in Argentina’s real estate market?

Argentina's mortgage market is underdeveloped, with mortgage-to-GDP ratios below 1%. However, with the introduction of inflation-linked mortgages and a pro-market administration, the sector is poised for growth. These new mortgage models are expected to boost the real estate sector and make housing more accessible.

What challenges are faced by the telecommunications industry in Argentina?

The telecommunications industry in Argentina faces competition from new technologies such as satellite companies and OTT services. Additionally, there is constant pressure to stay ahead in terms of technological advancements and maintain leadership in a competitive market.

How has the acquisition of Telefonica impacted the telecommunications market in Argentina?

The acquisition of Telefonica has strengthened the market position by enabling a market repair, upscaling connectivity, and improving services for Argentine consumers. This acquisition aligns with the broader strategy of consolidating market share and revenue in the telecommunications sector.

What is EGS's major investment project in Argentina?

EGS is investing $2.5 billion in a project aimed at converting a conditioning plant into an extraction plant at Bakam Morta. This project will produce propane, butane, and ethane, with the potential to export more than $3 billion worth of products, creating significant opportunities for growth.

How will EGS’s project impact Argentina's energy sector?

EGS’s project will reduce Argentina's reliance on domestic consumption of propane, butane, and ethane, while opening up significant export opportunities. The project also contributes to shifting EGS’s revenue structure, with a focus on non-regulated earnings, expected to comprise over 70% of EBITDA in the coming years.

What has been the recent performance of Aros, and how is the company positioned for future growth?

Aros has seen significant growth, with EBITDA reaching a record $500 million, compared to around $250-$290 million in 2018 and 2019. The company's success is attributed to its 4D strategy (digital, delivery, drive-thru, and development) and its leading digital platform in the region.

What are the main drivers of growth for Aros moving forward?

Aros will continue to grow through its focus on digitalization, the expansion of delivery services, drive-thru offerings, and the regional expansion into markets like Mexico, where there is room to modernize the restaurant sector. These efforts will improve same-store sales growth and margin improvement, particularly in non-Brazil markets.