WHY ARGENTINAOctober 2019

Large and Diversified Economy

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

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• 3rd largest GDP in Latam. USD 477 B (est. 2019)

• GDP per capita of USD 10,605 (est. 2019)

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

High Quality Human Capital

• +433 highly qualified labor force. +110k STEM graduates

• 1st in Latin America in English Proficiency

ARGENTINA AT A GLANCE

MORE THAN USD 290 B OF INVESTMENT OPPORTUNITIES ACROSS SECTORS

USD B

47

INFRASTRUCTURE

ROADS & HIGHWAYS 17

RAILWAYS 11

AIRPORTS & PORTS 5

WATER & SANITATION 6

TELCO NETWORKS 5

REAL ESTATE 3

OIL & GAS 156

MINING 26

RENEWABLE ENERGY 15

HYDRO POWER 10

THERMAL ENERGY 6

NUCLEAR ENERGY 3

POWER GRID 3

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

219

ENERGY & MINING

7

AGRIBUSINESS

10+

MANUFACTURE / INDUSTRIAL GOODS

5+

VALUE ADDED SERVICES

3

GOVERNMENT HAS IMPLEMENTED SPECIFIC MEASURES TO IMPROVE BUSINESS CLIMATE

4

Insertion to the World

Ease of Doing Business

Energy & Renewables

UE – Mercosur Strategic

Agreement

Knowledge Based Service Law

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COMPETITIVE ADVANTAGES

Argentina closed one of the biggest international agreements, after 20 years of negotiation

Effective access to the European Market

➢ 100% liberalization in industrial goods

➢ 82% liberalization in agriculture and Quotas in almost the remaining 18%

STRATEGIC PARTNER BENEFITS TO COMPANIES SOPHISTICATED CONSUMER QUALITY EXPORTER

2nd export Market USD 9 M1st investor in Argentina USD 35 B

1 of 4 companies export to Europe

15% of our export of food to EU are value added products

Argentine products have competitive prices 50-100% lower

STRATEGIC AGREEMENT UE - MERCOSUR

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

• Opportunities in Lithium, Silver, Gold, Copper, Lead and Zinc

• Argentina is the 3rd world producer of Lithium

• 750.000 Km2 of high potential mining areas

• 183.000 Km2 of already granted mining rights

- 25 advanced prospects

- 17 production mines

• Mining Investment Promotion Law grants 30 years of fiscal stability among other benefits

Short Term Opportunities:

• USD 26 B investments required to build 33 advanced projects.

• At least 17 projects for USD 12.8 B can begin before 2021.

GOLD

COPPER

URANIUM

POLYMETALLIC

LITHIUM

LEAD-ZINC

IRON

PROSPECTIVE AREAS

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TRADITIONAL SECTORS KEEP DRIVING THE ECONOMY: AGRIBUSINESS

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Vast availability of natural resources

• Large extensions of highly productive land

• Fertile territory and abundant availability of water

• Geographic and climatic diversity

Highly professionalized and technologically advanced sector

• Qualified human resources: 45%+ with university degrees

• Cutting-edge technology and advanced management practices,

• Artificial intelligence, machine learning, and robotics continue driving productivity

Internationally recognised reputation for safe, healthy and high-quality foodstuff

• Free from African and Classical swine fever and PRRS

• Free from FMD with vaccination and BSE

Ongoing national infrastructure plan to continue lowering domestic logistic costs

Competitive P/E ratios relative to neighbouring countries

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.

MAIN COMPARATIVE INDICATORS

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WORLD’S LARGEST SOIL COMPLEX

1st Soybean oil exporter

1st Soybean flour exporter

2nd Soybean exporter

1st Biodiesel exporter

OTHER WORLD LEADING EXPORTS

1st Lemon oil exporter

2nd Corn exporter

7th Beef exporter

7th Wheat exporter

OUTSTANDING POSITIONING IN GLOBAL SERVICES

• Exceptional talent for high added-value activities

• Highly competitive cost structure

• Mature Sector (+12 years)

• Fiscal incentives (Knowledge Based Services Law)

• Quality office space with lower than regional average costs

5 OUT OF 16 “UNICORNS” IN LATAMARE FROM ARGENTINA

40+ TECH HUBS ACROSS THE COUNTRY

10.000+ EMPLOYEESTOP GLOBAL SERVICE FIRMS ALREADY ESTABLISHED SHARED SERVICE CENTERS

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1stSoftware Exporter in LATAM50% exported to the US

KNOWLEDGE BASED SERVICES LAW

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• FISCAL STABILITY

• 10 years from 2020 until 2029.

• INCOME TAX AND VAT

• Income tax reduction from 30% to 15%.

• Exclusion from export tariffs and VAT.

• LABOR TAX BURDEN REDUCTION

• Payroll tax reductions

• Transferable tax credit of 1.6 times the tax amount due over the determined non-taxable minimum income.

• EXPORTER FISCAL RELIEF

• Payment on account of taxes charged abroad.

4 MAIN FISCAL BENEFITS

4th MOBILEOPERATOR + MVNOs

FTTH + REFEFO

DATA CENTERS

CELL COVERAGEEXPANSION (TOWERS) 2 – 51

2

3

4

1

1 – 3

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

0.6 – 1.2Create a 4th Mobile Network Operator.10-15 new players acquired MVNO licenses during the past 2 years

TELECOMMUNICATIONS PRESENT OPPORTUNITIES OF USD 7 B

USD B

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ARGENTINA IS THE TOP TOURISTIC DESTINATION IN THE REGION

INTERNATIONAL

*Total expenditure (USD): 5.6 Bn

#1 position in LATAM in Country Brand Awareness

DOMESTIC

• Trips: 45.5 Mn

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

• Average stay: 5.1 days

• Total expenditure (USD): 6.97 Bn

Source: Secretary of Tourism / INDECUNWTO & Central Bank.

1. Argentina 6.94*

2. Brazil 6.62

3. Chile 5.72

4. Peru 4.42

5. Colombia 3.90

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

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2

3

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NEW HOTEL LAW IN BUENOS AIRES CITY

OBJECTIVES

Encourage the development, remodeling and upgrading of the existing hotel square

Generate employment

Foster the economic development of the City

For new establishments: up to 50% of the investment

For existing establishments: up to 60% of the investment

In each case, the invested sum will be computed on the local turnover tax of the establishment

Source: Buenos Aires Investment & Trade Promotion Agency - Invest BA

One of the main touristic and business spots in Latin America

Remarkably well connected, with two of the most important airports and ports in the region

Tourism represents 6.6% PBG of the City

TAX INCENTIVES

BUENOS AIRES CITY

UNDER CURRENT ADMINISTRATION. COMPANIES ANNOUNCED INVESTMENTS FOR MORE THAN USD 153 B

Canada6.2

US11.0

México5.0

Argentina89.0

Brasil1.9

UK4.2

Germany4.1

Spain5.8

France3.9

Italy1.9 China

3.7

USD Billion

* From 12/11/15 to 30/09/2019. Only includes projects with declared investment amounts.

Japan1.0

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Australia4.5

Netherlands4.2

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

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