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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
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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
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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
15
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 [email protected]