Invest, Export, Work, Live

Why Uruguay?

Quality of life

Strategic location

Reliable country

Ease of doing business

Talent

Reliable country

Political and Social stability

#1in LAC

URUGUAY

(2019)

#1 Control of corruption

World Bank

#1Multidimensional

Index of Social Protection

ILO

International Transparency WEF

TransparencyEquity

#1 Low corruption

perception

#1 Rule of Law

World Justice Project

#1 Voice and

RepresentativenessWorld Bank

The Economist

Democracy

#1 Democracy

#1 Inclusive

Development

and stable in the long term

Sources: WEO, April 2020.

Sustained growth

Accumulated real GDP growth(Base index 2006=100)

Projections

LATAM

BrazilArgentina

Uruguay

100

120

140

160

180

2007 2009 2011 2013 2015 2017 2019 2021

Uruguay

Chile

LATAM

Brazil

Argentina

2,9%

3,3%

2,5%

0 1 2 3 4

1,3%

0,7%

Average annual growth rate (%)

(2009 - 2019)

0,500,55 0,45 0,40 0,35

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000Uruguay

LATAM

ArgentinaMexicoBrazil

ColombiaEcuador

Peru

Paraguay

Chile

Costa Rica

Gro

win

g in

com

e p

er c

apit

a

Increasing income distribution

Sources: Uruguay XXI based on WEO, April 2019, IMF; Social Panorama of Latin America 2018, Cepal; INE; BCU 2019.

Per capita income 2019(current US$): 17.029Gini Index: 0,39

Average LATAM(current US$): 9.798 Gini index: 0,46

Growth with equityLevel and distribution of income in Latin America(US$ per capita and Gini index, 2019)

BBB- / Baa3Investment

grade

BBB- / Baa2Investment

grade

BBB / Baa2Investment

grade

20142012-2013 2015 - 2018

Sustained improvement of credit rating

Uruguay

Chile

Investment grade

Peru

Colombia

Sources: Uruguay XXI based on UNCTAD and BCU (2019)

FDI stock (% GDP) 1990 - 2019

Reliable country for foreign investment

Main origins of FDI (Stock 2018)

0%

10%

20%

30%

40%

50%

60%

1990 2000 2010-19

49%Uruguay

33%LAC

Netherlands

EEUU

Switzerland Brazil

Chile

Argentina

Finlad

Spain

Sources: Uruguay XXI based on UNCTAD and BCU (2019)

Main host sectors of FDI (2012-2019)

23%Manufacturing

industry

4%Livestock,

Agriculture and Forestry

6%Real estate

activities

22%Financial brokerage

3%Energy

23%Trade

Canada

United States

Mexico

Brazil

Argentina

Chile

European Union

India

China

Japan

Singapore

New Zealand

South Korea

Foreign companies that have chosen Uruguay

What foreign investors say

"Uruguay is a very good place to do business that has been adapting to the needs of world markets, it should be on the short list of places to do business".

Mario Maneyro - Finance Manager - PepsiCo

"We chose Uruguay because of its level of education, the security of the institutional framework, of the economic policy and of the legal framework. But also because of its infrastructure, access to technology and networks, and location".

Soledad Delfante - People Manager - MercadoLibre

"Legal certainty and its skilled workforce. We are convinced that Uruguay is the place to do business. It is very important that companies thinking of investing in Uruguay know that there is institutional support, legal security and skilled labor".

Ana Carina Delgado - General Manager - Megalabs

Market diversification

Sources: Uruguay XXI based on National Directorate of Customs and Free Zones (2019).

United States 7%

Mexico 3%

Canada 0,4%

Argentina 4%

Brazil 13%

Paraguay 1%

NORTH AMERICA EUROPE

21%

AFRICA 5%

SOUTH AMERICA24%

ASIA AND MIDDLE EAST

36%

10%Netherlands 7% PULP

BEEFWOOD AND WOOD PRODUCTS

Italy 4%

Germany 2%

PLÁSTICSMALTADAIRY PRODUCTS

DAIRY PRODUCTSFISHSOY

BEEFSOYPULP

BEEFPULPBEVERAGE CONCENTRATE

China 31%

Thailand 1%Hong Kong 1%

Egypt 1%

Tunisia 0,4%

Argelia 2%

Product diversificationExports of goods and services (2019)

Sources: Uruguay XXI based on National Directorate of Customs and Free Zones (2019) US$ 16 billion

Total Exports

15%BeefLivestock, meat by-products,Fish

21%Non Traditional ServicesTrading, Business Services, ICTs

4%Dairy

4%PlasticsPharma, Chemical industries

4%Other FoodsBeverage Concentrate

16%Tourism Transport

9%OtherAgricultural products, Medical instruments

1% Autoparts

3% TextileWool, Leather

11%AgricultureSoy, Rice, Malta, Wheat, Citrus fruit, Wine, Honey

12%PulpWood, Paper

Infrastructure and logistics

Global Services

Priority sectors for investments and exports

Agrifood

Forestry & Wood

Infrastructure

Logistics

Life Sciences

Corporate Services

IT Industries

Architecture and Engineering

Creative Industries

Cultural Industries

Furniture and fashion design

Agribusiness

Exporter of reliable foodstuff

Appliedtechnology

Sustainableproduction

Safefood

Leadershipin exports

Uruguay producesfood for

millionpeople30millionpeople50

It has the capacityto feed

Agribusiness

Agricultural machinery

Forestry & Wood

Veterinary supplies

Exporter ofGlobal Services

Source: Elaborated by Uruguay XXI based on Balance of Payments of the Central Bank of Uruguay - BCU (March 2019).

US$ 3,446 million

Trade

43%Business Services

39%

Creative Services

2%

ICTs

12%Financial Services

4%

8,6% GDP

US$ 2,1 billion in income

Sources: Uruguay XXI based on the World Tourism Organization, MINTUR and INE (2018)

More than one visitor per resident

Arrival of international tourists to South America(Tourists/population 2017)

Venezuela Brazil Bolivia Ecuador Colombia Peru Paraguay Argentina Chile Uruguay

2% 3% 9% 10%24% 35% 36%

103%

14%13%

Leader in generation of clean energies

Sources: Uruguay XXI based on National Directorate of Energy, UTE and Yale University (2018).

97%renewable

sources

US$ 7,8billion in

investmentin energy

infrastructure (2010/16)

38%wind

power

#3in LATAM

(environmental performance index)

State-of-the-art connectivity

InfrastructureBest Data Center in Latin America (2016).

Submarine cable connection Uruguay- Brazil- USA.

#1 in Latin America

Adoption of ICTs (2018 - WEF).

Electronic government in Latin America (UN) and #7 in the world (D9).

Universal access of companies to optical fiber.

#10 in the world in percentage of homesconnected by optical fiber.

Strategic location

São Paulo

Asunción

Buenos Aires Montevideo

Transportationtime

Porto Alegre

Rio de Janeiro

Santiago

Buenos AiresPorto AlegreRío de JaneiroSão PauloAsunciónSantiagoLimaPanamaBogota

1.00 h1.30 h

2.40 hs2.30 hs2.00 hs2.30 hs4.30 hs7.30 hs6.15 hs

24 hs24-48 hs72-96 hs72-96 hs72-96 hs72-96 hs

Lima

Nueva YorkGMT -4

San PabloGMT -3

MadridGMT +2

LondresGMT +1

UruguayGMT -3

Panama

Bogota

Transportation time by truck does not includeaverage time in customs.

Strategic Location

Business platforms

Logistics

Regional distribution

Commerce & Services

Trading / ProcurementSales / SSC / HQ

Innovation

Tech solutionsR & D

Manufacturing

Agribusiness - Renewables - Turism & Rec.

Equipment

Life Sciences

IT

KPO

Ease of doing business

Only one tax system throughout the whole

territory

Without limits for the endowment of foreign

capital in companies

Free exchangemarket

Equal treatment forforeigners andlocals

No local counterpart isrequired, no prior authorization or registration

No restrictions forthe repatriation ofprofits

Ease for doing business

* The Corporate Income Tax (IRAE) exists only at the national level (25%).

Investment promotionregime

Other exemptions

Exemption from corporateincome tax*20% to 100% of theamount invested.

Value Added Tax (VAT)

Import taxes or fees

Net Worth Tax

+6,200Approved

projectsMillion dollars

+17,100

Projects by sector(Foreign Companies)

Foreign and domestic investment

Sources: Uruguay XXI based on UNASEP, MEF and COMAP.

Investment PromotionProjects (2008 - 2018)

Projects of foreign companies

42%

68%Industry

16%Service

4%Agriculture

7%Trade

5%Turism

2009 2010 2011 2012 2013 2014 2015 2016 2017 20182008

500

1000

1500

2000

2500

3000

3500

Mill

ion

s o

f USD

ForeignDomestic

Incentives for exporters

Temporary admission

VAT exemption(direct and indirect)

Predetermined taxrefund

International Agreements

Users 100% exempted from:Corporate Income TaxNet worth TaxImport TaxesAny other tax present or future*

IndustrialLogisticServicesMixed

* Companies that are free zones users must pay social security contributions for their Uruguayan employees.

Free zones

Free ports and airports

Carrasco International Airport, the only free airport in South America

The only free ports in the Atlantic coast of South America

Goods exempted from domestic taxes and imports charges.Free transit of good without permits or formal procedures.Exemption of net worth tax and Corporate Income Tax for foreign legal entities.Automation in a wide range of operations.

Social Interest Housing (Act)Important exemptions intended to the construction ofhousing for low and middle income families.

Industrial ParksThe users of Industrial Parks obtain additional benefits: Corporate Income Tax deduction increased by 15%, tax credit on employer social security contributions for five years.

Public-Private Partnership (Act)Road, railway, port and airport infrastructure.Social infrastructure.Energy infrastructure of waste disposal and treatment.

Other relevant regulations

SocialRegimes

Biotechnology

Forestry

Energy generation

Hydrocarbons

Electronic industry

Tourism

Shared Services Centers

Car or autoparts

Software

Others

Trade and investment treaties

Bilateral Investment Treaty

Bilateral Investment +Double Taxation treaties

Double Taxation Treaty

Market Access Preferences

Double Taxation + Market Access treaties

Bilateral Investment + Market Access treaties

All treaties

Uruguay

Talent

1st country in the world in providing laptops to 100% of its students and teachers of public primary and secondary schools

Free delivery of tablets and internet to low-income seniors citizens.

Plan Ceibal Plan Ibirapitá

Universal Digital Inclusion

Uruguay has the highest literacy rate in all of Latin

America: 98%

#1

Source: Ministry of Education and Culture (Ministerio de Educación y Cultura), UdelaR Census, Uruguay XXI.

Free high-quality education at all levels87% of university students are from public universities.

High language skillsMore than 75% of university students read English and 55% speak it. 36% read Portuguese, and 21% speak it.

Talent development

and government supportCompetitive talent

AdaptabilityFlexibility and ease of workers to adapt to new processes.

SalariesCompetitive in comparision with the region.

IncentivesSubsidies to companies for customized training programmes.

Quality of life

Inclusive Development and Growth

South America (WEF)

Social Development2018 Indexes

Inclusion

Social Inclusion IndexSouth America (Américas Quarterly)

#1#1

#1 #1

#1

#1

Prosperity IndexLatin America (Legatum Institute)

Prosperity

Index of Best JobsLatin America (BID)

Gender Equity IndexLatin America (PNUD)

Quality of LifeLatin America (Mercer)

Opportunities

Montevideo is the city with the best quality of life in Latin America

(Mercer, 2020)

#1

Invest, Export, Work, Live