WHY ARGENTINAFEBRUARY 2019

ARGENTINA HAS STRONG FUNDAMENTALS

Large and diversified economy

3rd largest GDP in LatAm, USD 475 Bn*

3rd highest GDP per capita (PPP), USD 20,500

~43 Mn pop (~60% under 35). Access to 270 Mn pop in Mercosur

Vast availability of natural resources

8th largest country in the world, with 53% of agricultural land

Top global exporter of soybean, corn, lemon, lithium, among others

750.000 Km2 of high potential mining areas and 340 projects at initial stage

2nd largest shale gas and 4th largest shale oil reservoirs in the world

*Source: World Economic Outlook, IMF

High quality human capital

Educated middle class and qualified labor force

#1 in English Proficiency and #2 in Human Capital Index in Latin America

2

National Productive Plan. Key reforms and initiatives

GOVERMENT HAS IMPLEMENTED SPECIFIC MEASURES TO IMPROVE BUSINESS CLIMATE

• Capital Markets Law

• Sovereign financial needs met until end of 2019

• Renewable energy tenders oversubscribed

• New Public-Private Partnership (PPP) law

COST OF CAPITAL

ENERGY & INFRASTRUCTURE

• Productivity agreements by sector

• Reduction of labor risk law

• Antitrust law

• SME Promotion law

LABOR COSTS

OPEN COMPETITION

• Income tax reduction plan in execution

• Reduction of revenue tax in provinces

• More than 60 markets for 100 products opened or re-opened

• Argentina hosted G20 Summit 2018

TAX & FISCAL EFFICIENCY

INSERTION TO THE WORLD

• Strong incentives to train technology professionals

• Specific incentives for software development

• Plan to reduce costs of 1% of GDP by business simplification measures

• Instituted process to establish corporations in 1 day (SAS)

INNOVATION & TECHNOLOGY

EASE OF DOING BUSINESS

3

MORE THAN USD 300 BN OF INVESTMENT OPPORTUNITIES ACROSS SECTORS

USD Billion

55+

INFRAESTRUCTURE

ROADS & HIGHWAYS 17

RAILWAYS 11

AIRPORTS & PORTS 6+

WATER & SANITATION 6

TELCO NETWORKS 5+

REAL ESTATE 5+

URBAN MOBILITY 4

OIL & GAS 170

MINING 30+

RENEWABLE ENERGY 15

HYDRO POWER 10

THERMAL ENERGY 6

NUCLEAR ENERGY 2

POWER GRID 3

IRRIGATION 5

ANIMAL PROTEIN 4

FORESTRY / PULP 2

AQUACULTURE 1

AUTOMOTIVE INDUSTRY

FOOD & BEVERAGE

CONSUMER PRODUCTS

MACHINERY & EQUIPMENT

BASIC MATERIALS

TOURISM

PROFESSIONAL SERVICES

BIOTECHNOLOGY

PHARMA

SOFTWARE DEVELOPMENT

230+

ENERGY & MINING

10+

AGRIBUSINESS

10+

MANUFACTURE / INDUSTRIAL GOODS

5+

VALUE ADDED SERVICES

4

ACTIONS ARE IN PLACE TO REACH FISCAL SURPLUS

FEDERAL DEFICIT REDUCTION IS ACCELERATING SUCCESSFUL FISCAL AGREEMENT WITH PROVINCES

FISCAL SURPLUS BY PROVINCE

-4.3%-3.9%

-2.4%

0.0%

1.0%

2016 2017 2018 2019 2020

PRIMARY FISCAL SURPLUS, % OF GDP

FIRST HALF 2017 FIRST HALF 2018

9 PROVINCES WITHPRIMARY SURPLUS

20 PROVINCES WITHPRIMARY SURPLUS

5

ARGENTINA’S ECONOMY HAS BECOME MORE COMPETITIVE

ARGENTINA’S CURRENCY DEPRECIATED VS. PEERS

Note: Basis 100 dated on Dec 2015.Source: Central Bank of Argentina, ITCRM (Índice de tipo de cambio real multilateral)

10098

159

136

May

-16

Ap

r-1

6

Dec

-15

Oct

-16

Au

g-1

6

Mar

-16

Jan

-16

Ap

r-1

7

Feb

-16

Mar

-17

Jun

-18

Jul-

17

Jun

-16

Jul-

16

Jan

-18

Sep

-16

No

v-1

6

No

v-1

7

May

-17

Dec

-16

Jan

-17

Feb

-17

May

-18

Oct

-17

Au

g-1

7

Dec

-17

Jul-

18

Jun

-17

Au

g-1

8

Sep

-18

Feb

-18

Oct

-18

Sep

-17

No

v-1

8

Ap

r-1

8

Dec

-18

Mar

-18

Jan

-19

36%

AR$ MULTILATERAL EXCHANGE RATE INDEX*

6

OPPORTUNITY TO PARTICIPATE IN ARGENTINA’S ENERGY REVOLUTION

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• 2nd largest shale gas and 4th largest shale oil resource in the world

• Opportunities to partner or bid

• Room to build midstream infrastructure

• Vast offshore potential

DESIRED VACA MUERTA HAYNESVILLE MARCELLUS EAGLE FORD WOLFCAMP

TOC (%) >2 3-10 0.5-4 2-12 3-5 3

THICKNESS (M) >30 30-450 60-90 10-60 30-100 200-300

RESERVOIR PRESSURE (PSI) HIGH 4,500-9,500 7,000-12,000 2,000-5,500 4,500-8,500 4,600

Vaca Muerta is a high quality resource compared to other world class basins

NUMEROUS MINING PROJECTS TO BE DEVELOPED

• Argentina is one of 3 countries in Lithium triangle

• Opportunities in copper, gold, silver, etc.

• 750,000 Km2 of high potential mining areas

• 183,000 Km2 of already granted mining rights

- 25 advanced prospects

- 14 production mines

GOLD

COPPER

URANIUM

POLYMETALLIC

LITHIUM

LEAD-ZINC

IRON

PROSPECTIVE AREAS

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EXCEPTIONAL CONDITIONS AND PLANS FOR RENEWABLE ENERGY

• Solar conditions in the North and wind conditions in the South among the best in the world

• Government law to double renewable capacity to 10 GW by 2025

64%43%

30%

27%

2015

10%

2%20%

2015 2025 (projected)

% OF POWER CONSUMED

THERMAL HYDRO NUCLEAR RENEWABLES

10 GWADDITIONALCAPACITY

33 GW 54 GW

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OUTSTANDING POSITIONING IN GLOBAL SERVICES

• Exceptional talent for high added-value activities

• Highly competitive cost structure

• Advantageous time zone

4 OUT OF 11 “UNICORNS” IN LATAMARE FROM ARGENTINA

>5000 EMPLOYEES

1000 - 5000 EMPLOYEES

100 - 1000 EMPLOYEES

<100 EMPLOYEES

30+ TECH HUBS ACROSS THE COUNTRY

10.000+ EMPLOYEESTOP GLOBAL SERVICE FIRMS ALREADY ESTABLISHED SHARED SERVICE CENTERS

10

ARGENTINA IS THE TOP TOURISTIC DESTINATION IN THE REGION

INTERNATIONAL

Total expenditure (USD): 5.1 Bn

#1 position in LATAM in Country Brand Awareness

DOMESTIC

• Trips: 51.4 Mn

• # tourists: 18.2 Mn (41% of population)

• Average stay: 5.1 days

• Total expenditure (USD): 9.3 Bn

Source: Secretary of Tourism / INDECUNWTO & Central Bank.

Argentina 6.70

Brazil 6.59

Chile 6.45

Peru 4.03

Colombia 4.03

Million arrivals

5% CAGR 2015-2018

• Hotel and eco/theme park opportunities identified in most provinces

• Unprecedented investments in air travel and infrastructure concluded

• Strong government support

1

2

3

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TRADITIONAL SECTORS KEEP DRIVING THE ECONOMY

• Outstanding opportunities to participate in value chain of automotive, renewables and O&G industries

• Several engineering & construction opportunities

MANUFACTURING

• Ideal conditions to establish Pulp & Paper plants

• Aquaculture program under development

• Argentina recovering beef industry leadership

AGRIBUSINESS

CUYO:WINE, DRIED FRUIT.

CENTER/EAST:SOY, WHEAT, CORN, SUNFLOWER, PEANUT. CATTLE RAISING

PATAGONIA:FISH. FRUIT.

NORTHWEST:SOY, CORN, SUGAR CANE

NORTHEAST:RICE, SOY, CORN, YERBA MATE, TEA. FORESTRY. CITRUS INDUSTRY.

CÓRDOBA

EL PALOMAR(BUENOS AIRES)

ROSARIO(SANTA FE)

+ 500 Manufacturing Companies of auto-parts

11 manufacturing facilities

Air conditioning systems, suspension systems, transmissions, braking and engine components, tires, bateries, oil and air filters, pumps, seats, etc.

Sources: ADEFA, ANFAVEA, OICA and Ministry of Labor 12

4th MOBILEOPERATOR + MVNOs

FTTH + REFEFO

DATA CENTERS

CELL COVERAGEEXPANSION (TOWERS) 2,000 - 5,0001

2

3

4

1,400

1,000 – 3,000

Build a further 20 – 50K “neutral” cell towers to improve network coverage and quality

Complement ARSAT’s fiber optic network connecting homes (last mile) and illuminate ARSAT’s fiber optic network to reach 1,200+ towns

Develop a regional hub for massive data centers

600 – 1,200Create a 4th Mobile Network Operator.10-15 new players acquired MVNO licenses during the past 2 years

TELECOMMUNICATIONS PRESENT OPPORTUNITIES OF USD 7 BN+

USD Billion

13

UNDER CURRENT ADMINISTRATION, COMPANIES ANNOUNCED INVESTMENTS FOR MORE THAN USD 135BN+

Canada8.2

US8.7

México3.3

Argentina81.0

Brasil1.9

UK4.0

Germany1.2

Spain5.8

France3.6

Italy2.2 China

3.8

USD Billion

* From 12/11/15 to 07/20/2018. Only includes projects with declared investment amounts.

Japan1.0

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INVESTMENT ANNOUNCEMENTS BY SECTOR

55.5

12.610.6 9.8 9.1 8.5 7.7 6.7 5.4

3.5 2.9 1.6 1.3 0.4

OIL &

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USD Billion

* From 12/11/15 to 07/20/2018. Only includes projects with declared investment amounts. 15

OUR SERVICES:

We promote the internationalization of Argentine companies and facilitate private investments in Argentina

HOW WE CAN HELP

IDENTIFICATION OF OPPORTUNITIES AND

LOCATION

NETWORKING DUE DILIGENCE SUPPORT

FACILITATION IMPROVEMENT OF BUSINESS CLIMATE

AFTERCARE

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FOR MORE DETAIL ABOUT INVESTMENT OPPORTUNITIES

SELECTED INVESTMENT OPPORTUNITIES

WHERE IN ARGENTINA

WHY ARGENTINA BY SECTOR

DOING BUSINESS IN ARGENTINA

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Phone: +54 11 5239 4490welcome@investandtrade.org.ar