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INVESTOR PRESENTATION July 2019

July 17, 2019

● On the path to a balanced fiscal budget ○ Primary fiscal deficit has been coming down consistently through a decline in spending in

real terms, on its way to reach a primary fiscal balance in 2019.

○ Fiscal consolidation at the central administration level has not been achieved at the expense

of Provincial finances. On the contrary, the consolidated fiscal position of the provinces is in

a surplus.

● Relative price distortions are being fixed ○ Subsidy reductions, particularly in the energy sector, have reduced distortions in relative

prices, generating the appropriate incentives for industrial and export development.

○ In contrast with 2018, the foreign sector accumulates nine consecutive months of trade

surplus, contributing to a sharp reduction in the current account deficit for 2019.

● Boosting competitiveness on a systemic basis ○ Modernization of the domestic capital markets regulatory framework is contributing

towards generating an environment that will increase the channeling of domestic savings.

○ Government capital spending, particularly in the area of transportation, has been

strategically geared towards increasing Argentina’s productivity and competitiveness.

Executive summary

2

1. Fiscal update

2. Macroeconomic Update

3. Systemic Competitiveness

a. Domestic Capital Markets

b. Energy

c. Infrastructure

Fiscal target is being met

ACCUMULATED PRIMARY RESULT

% of GDP

4

4 consecutive years of consistently improving fiscal results

since the beginning of the current

administration.

INTERANNUAL GROWTH OF INCOME AND SPENDING In percentage

Income grows systematically above spending

24 months of consecutive higher growth in income over primary spending.

32 points Of growth gap between inter-

annual income growth and

spending growth in June.

5

NATIONAL PRIMARY SPENDING (NON FINANCIAL PUBLIC SECTOR) ON A CASH BASIS

Annual Growth in percentage

Real spending has been falling for almost 20 consecutive months

19 consecutive

months of continued reductions in

government primary spending.

12% was the drop in year-over-year

spending in real terms for June

2019.

6

Primary fiscal balance will be achieved in 2019

PRIMARY RESULT

As % of GDP

It’s been 10 years since the last time the national

government achieved a primary

balance.

7

Government spending is at the lowest level in 10 years

NATIONAL PRIMARY SPENDING (SPNF)

As % of GDP

8

Primary spending has fallen every year in this administration

PRIMARY SPENDING

Inflation-adjusted pesos, % Change

9

Provinces have converted fiscal deficits into surpluses

AGGREGATE PROVINCIAL FISCAL RESULT

In millions of pesos

10

Almost every province has improved its fiscal performance...

PROVINCIAL PRIMARY RESULTS

As percentage of revenues

6 Provinces had a primary surplus in 2015.

17 Provinces had a primary surplus in 2018.

11

…measured on a primary and financial basis

PROVINCIAL FINANCIAL RESULTS

As percentage of revenues

6 Provinces had a financial surplus in 2015.

11 Provinces had a financial surplus in 2018.

12

Provinces are increasingly responsible for their fiscal performance

PROVINCIAL TAX REVENUES

As percentage of national tax revenues

13

1. Fiscal update

2. Macroeconomic Update

3. Systemic Competitiveness

a. Domestic Capital Markets

b. Energy

c. Infrastructure

Monetary policy has yielded a reduction in FX volatility

NOMINAL EXCHANGE RATE

Pesos per dollar

15

Monetary base has been reduced significantly in real terms

MONETARY BASE + LEBAC + LELIQ

Million ARS of May-2019

CENTRAL BANK INTEREST BEARING LIABILITIES

As a proportion of international reserves

16

2,000

2,500

3,000

3,500

4,000ene

feb

mar

abr

may

jun

jul

ago

sep

oct

nov

dic

2015 2016 2017 2018 2019

Economic activity is recovering

17

Growth of exports has resumed since 2016

TOTAL EXPORTS

LTM in USD bn

18

Total

Without grains & oilseeds

Nine months of trade surpluses reverted the trade balance

TRADE BALANCE

LTM in USD Bn

19

Sectorial evidence of growth in exports

Fuente: INDEC

OIL & GAS

USD mm

TRUCKS (PICK-UPS)

USD mm

NON - TRADITIONAL MINING

USD mm

BEEF

USD mm

20

1. Fiscal update

2. Macroeconomic Update

3. Systemic Competitiveness

a. Domestic Capital Markets

b. Energy

c. Infrastructure

Converting USD debt to pesos

LETES AND LECAPS HELD BY PRIVATE INVESTORS USD bn equivalent

22

Conservative maturity profile

LECAPS MATURITIES HELD BY PRIVATE INVESTORS ARS Bn

23

LETES AND LECAPS HELD BY PRIVATE INVESTORS USD bn equivalent

Debt securities payments by creditor type

24

Only 30% of bond maturities coming due in 2020 are

denominated in hard currency.

Digitalization have simplified domestic capital market access

COMPANIES HAVING ACCESS TO CAPITAL MARKETS FINANCING

Number of Issuers

The number of companies obtaining

capital markets financing has grown

by +33%.

Source: CNV. Note: Trustees include only those companies not registered as issuers with the CNV. SMEs placing checks and promissory notes in the secondary market are not included.

SMEs’ access to financing in

the capital markets has

Doubled.

25

More investors in mutual funds thanks to access simplification

INVESTORS IN MUTUAL FUNDS

Total count of registered accounts 5X is the number of times that the investor

base has grown since 2015.

Source: CNV based on information provided by CAFCI and ACDI

+570 thousand investors have been added to the mutual funds

market between 2015 and 2019.

+260 thousand investors through were added through

digital platforms.

26

Stronger market structure through the composition of players

EVOLUTION OF REGULATED AGENTS BY CNV

Number of registered entities

Note: Neither brokerage agents, nor collective investment agents are included. Source: CNV.

+60 % has the number of agents

ruled by CNV grown between

2015 and 2019.

More financial

release Thanks to an increase in the

number of agents.

27

1. Fiscal update

2. Macroeconomic Update

3. Systemic Competitiveness

a. Domestic Capital Markets

b. Energy

c. Infrastructure

ENERGY SUBSIDIES

Percentage of GDP

Energy subsidies remain on a reduction path

29

The energy trade deficit has been wiped out

ENERGY TRADE BALANCE

USD Bn

30

Market prices stabilize with reduced Government participation

NATURAL GAS DOMESTIC PRICE AND GOVERNMENT PARTICIPATION

In USD/MMBTU

31

Natural gas exports are taking off

MONTHLY NATURAL GAS EXPORTS 2018 - APRIL 2019

MCM/DAY

32

The renewable energy segment is underway

140 projects in commercial

operation and construction entailing a

total investment of USD 7.2 Bn and

generating 4,790 MW

In commercial operation

Under construction

Number of projects

Power capacity

Estimated investment

USD 1.8 Bn USD 5.4 Bn

1.200 MW 3.580 MW

42 98

33

1. Fiscal update

2. Macroeconomic Update

3. Systemic Competitiveness

a. Domestic Capital Markets

b. Energy

c. Infrastructure

We are building the roadways that were not being built before

The kilometre of asphalt costs 53%

less than in 2015 in the

construction of highways and 35%

less in the construction of roadways

Highway kilometres on which works are carried out

Average for the period 2003-2015 vs. 2015-2019

x10

Improvements reduce between 9% and 12% of total export costs

35

Double carriage trucks are reducing transportation costs

We have authorized the use of climbed-load and

double carriage trucks in more than

40 thousand km of national roads and

138 thousand km of provincial roads

+30% to 60% of load than a conventional

truck

-30% in transportation costs

36

Trains have been improved to reduce transportation time

Belgrano cargas freight traffic reached its

high since 1994 as it carried 2,079 million

tonnes during 2018

+ 80% 2015-2018

Annual freight transportation on Belgrano Cargas (‘000 tons)

In 2015, transporting a load from Salta took 15 days Now, it takes half of that and in 2020, it will only take 3 days

Exports Cost per container in USD

- 61%

Imports Cost per container in USD

- 17%

Elimination of TAP obligation

Reduction of sweeping and cleaning costs (-66%)

Elimination of Port Support Area

Reduction of trailer tariff

Elimination of enclosing

Port procedures simplification has reduced costs

KEY

RESOLUTIONS 38

USD 200 M in annual saving in grain ports

● 30% of tariff reduction of pilotage and towage services through maximum tariffs.

● Up to 50% of tariff reduction for stowage thanks to increase in competitiveness .

● We have opened tug competitiveness: USD28,000 vs. USD7,000 at present.

● Mooring Tariff reduction by 50%.

● Elimination of Draft Survey obligation.

● Elimination of the obligation to hold inspection by SENASA (6 USD/ton).

● Extra cost for phytosanitary inspection has been eliminated (Frontier Sanitation) for by-products, flours and oils (USD20,000 per ship).

● Work has been done with Customs for dredges to avoid coming out to move throughout Argentine interports (300,000 USD per movement).

39

18 years 4 years

Modernization of 90% of the country’s airports

COMPLETED RUNWAYS

NEW TERMINALS

NEW LIGHTING SYSTEMS

NEW CONTROL TOWERS

7

7

7

1

13

20

29

7

40

Flights revolution: connecting the provinces

94 Domestic flight

connections

29 Not going

through

Buenos Aires

153 +63%

Domestic flight

connections

57 +97%

Not going

through

Buenos Aires

December 2015 May 2019

More federalism Proportion of passengers not connecting through Buenos Aires Jan-May.

Today, more Argentines

travel within the country

without needing to stop

over in Buenos Aires

41

Flights revolution: connecting the provinces and the world

92 International flight

connections

15 Not going

through Buenos

Aires

125 +36%

International flight

connections

39 +160%

Not going

through

Buenos Aires

December 2015 May 2019

Arrival of low cost international airlines

42

Roadway works to improve the quality of life

69% of urban buses in

the Greater Buenos

Aires travel through a

Metrobus system

Metrobus La Matanza

Travel time is reduced

by 30%

117 Metrobus systems in the country

●15 completed

●2 under construction

are used by 2.3 M users every day

43

INVESTOR PRESENTATION July 2019