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WHY

WHY. ARGENTINA. MARCH 2019. ARGENTINA HAS STRONG FUNDAMENTALS. High quality human capital. Educated middle class and qualified labor force #1 in English Proficiency and #2 in Human Capital Index in Latin America. Vast availability of natural resources.

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WHY

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  1. WHY ARGENTINA MARCH 2019

  2. ARGENTINA HAS STRONG FUNDAMENTALS High quality human capital Educated middle class and qualified labor force #1 in English Proficiency and #2 in Human Capital Index in Latin America 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 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 2 • *Source: World Economic Outlook, IMF

  3. GOVERNMENT HAS IMPLEMENTED SPECIFIC MEASURES TO IMPROVE BUSINESS CLIMATE National Productive Plan. Key reforms and initiatives INSERTION TO THE WORLD ENERGY & INFRASTRUCTURE INNOVATION & TECHNOLOGY OPEN COMPETITION • More than 60 markets for 100 products opened or re-opened • Argentina hosted G20 Summit 2018 • Renewable energy tenders oversubscribed • New Public-Private Partnership (PPP) law • Strong incentives to train technology professionals • Specific incentives for software development • Antitrust law • SME Promotion law TAX & FISCAL EFFICIENCY COST OF CAPITAL EASE OF DOING BUSINESS LABOR COSTS • Income tax reduction plan in execution • Reduction of revenue tax in provinces • Capital Markets Law • Sovereign financial needs met until end of 2019 • Plan to reduce costs of 1% of GDP by business simplification measures • Instituted process to establish corporations in 1 day (SAS) • Productivity agreements by sector • Reduction of labor risk law 3

  4. HOW WE CAN HELP We promote the internationalization of Argentine companies and facilitate private investments in Argentina OUR SERVICES: NETWORKING DUE DILIGENCE SUPPORT IDENTIFICATION OF OPPORTUNITIES AND LOCATION FACILITATION IMPROVEMENT OF BUSINESS CLIMATE AFTERCARE 4

  5. ACTIONS ARE IN PLACE TO REACH FISCAL SURPLUS SUCCESSFUL FISCAL AGREEMENT WITH PROVINCES FEDERAL DEFICIT REDUCTION IS ACCELERATING FISCAL SURPLUS BY PROVINCE FIRST HALF 2017 FIRST HALF 2018 9 PROVINCES WITH PRIMARY SURPLUS 20 PROVINCES WITH PRIMARY SURPLUS 5

  6. ARGENTINA’S ECONOMY HAS BECOME MORE COMPETITIVE • ARGENTINA’S CURRENCY DEPRECIATED VS. PEERS AR$ MULTILATERAL EXCHANGE RATE INDEX* 36% Dec-15 Jan-16 Feb-16 Mar-16 Jul-16 Aug-16 Dec-16 Jan-17 Feb-17 Mar-17 Jul-17 Aug-17 Dec-17 Jan-18 Feb-18 Mar-18 Jul-18 Aug-18 Dec-18 Jan-19 Apr-16 May-16 Jun-16 Sep-16 Oct-16 Nov-16 Apr-17 May-17 Jun-17 Sep-17 Oct-17 Nov-17 Apr-18 May-18 Jun-18 Sep-18 Oct-18 Nov-18 Note: Basis 100 dated on Dec 2015. Source: Central Bank of Argentina, ITCRM (Índice de tipo de cambio real multilateral) 6

  7. MORE THAN USD 300 BN OF INVESTMENT OPPORTUNITIES ACROSS SECTORS USD Billion ENERGY & MINING AGRIBUSINESS VALUE ADDED SERVICES INFRASTRUCTURE MANUFACTURE / INDUSTRIAL GOODS 230+ 10+ 5+ 55+ 10+ 7

  8. OPPORTUNITY TO PARTICIPATE IN ARGENTINA’S ENERGY REVOLUTION • 2nd largestshale gas and 4th largest shale oil resource in the world • Opportunitiestopartnerorbid • Roomtobuildmidstreaminfrastructure • Vast offshore potential Vaca Muerta is a highqualityresourcecomparedtootherworldclassbasins 8

  9. NUMEROUS MINING PROJECTS TO BE DEVELOPED • Argentina is one of 3 countries in Lithium triangle • Opportunities in copper, gold, silver, etc. • 750,000 Km2of 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 9

  10. EXCEPTIONAL CONDITIONS AND PLANS FOR RENEWABLE ENERGY • Solar conditions in the North and windconditions in the South amongthebest in theworld • Government law to double renewable capacity to 10 GW by 2025 33 GW 54 GW 10 GW ADDITIONAL CAPACITY 10

  11. TRADITIONAL SECTORS KEEP DRIVING THE ECONOMY AGRIBUSINESS • Represents 15% of GDP and 50% of total exports • Ideal conditions to establish Pulp & Paper plants • Aquaculture program under development  • Argentina recovering beef industry leadership 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. 11

  12. OUTSTANDING OPPORTUNITIES TO PARTICIPATE IN VALUE CHAIN OF SPECIFIC INDUSTRIES MANUFACTURING • Outstanding opportunities to participate in value chain of automotive, renewables and O&G industries • Several engineering & construction opportunities ROSARIO (SANTA FE) CÓRDOBA 11 manufacturing facilities EL PALOMAR (BUENOS AIRES) + 500 ManufacturingCompaniesofauto-parts Air conditioningsystems, suspensionsystems, transmissions, braking and enginecomponents, tires, bateries, oil and air filters, pumps, seats, etc. 12 Sources: ADEFA, ANFAVEA, OICA and Ministryof Labor

  13. OUTSTANDING POSITIONING IN GLOBAL SERVICES • Exceptional talent for high added-value activities • Highly competitive cost structure • Advantageous time zone 10.000+ EMPLOYEES TOP GLOBAL SERVICE FIRMS ALREADY ESTABLISHED SHARED SERVICE CENTERS • 4 OUT OF 11 • “UNICORNS” IN LATAM • ARE FROM ARGENTINA >5000 EMPLOYEES 1000 - 5000 EMPLOYEES 100 - 1000 EMPLOYEES 30+ TECH HUBS ACROSS THE COUNTRY <100 EMPLOYEES 13

  14. ARGENTINA IS THE TOP TOURISTIC DESTINATION IN THE REGION #1 position in LATAM in Country Brand Awareness INTERNATIONAL DOMESTIC Million arrivals 5% CAGR 2015-2018 • Trips: 51.4 Mn • # tourists: 18.2 Mn (41% of population) • Average stay: 5.1 days • Total expenditure (USD): 9.3 Bn Argentina 6.70 Brazil 6.59 Chile 6.45 Peru 4.03 Colombia 4.03 Total expenditure (USD): 5.1 Bn • Hotel and eco/theme park opportunities identified in most provinces • Unprecedentedinvestments in air travel and infrastructureconcluded • Strong government support 1 2 3 Source: SecretaryofTourism / INDEC UNWTO & Central Bank. 14

  15. TELECOMMUNICATIONS PRESENT OPPORTUNITIES OF USD 7 BN+ USD Billion Build a further 20 – 50K “neutral” cell towers to improve network coverage and quality 1 2,000 - 5,000 Develop a regional hub for massive data centers 2 1,000 – 3,000 Complement ARSAT’s fiber optic network connecting homes (last mile) and illuminate ARSAT’s fiber optic network to reach 1,200+ towns 3 1,400 Create a 4th Mobile Network Operator. 10-15 new players acquired MVNO licenses during the past 2 years 4 600 – 1,200 15

  16. UNDER CURRENT ADMINISTRATION, COMPANIES ANNOUNCED INVESTMENTS FOR MORE THAN USD 135BN+ USD Billion Canada 8.2 UK 4.0 Germany 1.2 Spain 5.8 US 8.7 Italy 2.2 Japan 1.0 China 3.8 México 3.3 France 3.6 Brasil 1.9 Argentina 81.0 16 * From 12/11/15 to 07/20/2018. Only includes projects with declared investment amounts.

  17. INVESTMENT ANNOUNCEMENTS BY SECTOR USD Billion 17 * From 12/11/15 to 07/20/2018. Only includes projects with declared investment amounts.

  18. FOR MORE DETAIL ABOUT INVESTMENT OPPORTUNITIES WHERE IN ARGENTINA SELECTED INVESTMENT OPPORTUNITIES WHY ARGENTINA BY SECTOR DOING BUSINESS IN ARGENTINA 18

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

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