Why invest in Argentina? Naturally Talented to Meet Global Market Needs October 2009

Why invest in Argentina? Argentina offers investors: Solid foundations for sustainable growth and profitability Highly skilled, innovative and entrepreneurial labor force Abundance of natural resources, biodiversity and environmental sustainability Access to a large regional market and a springboard to the world Diversified economy to meet global market needs Rich cultural heritage and remarkable quality of life Modern infrastructure and quality connectivity Public sector supportive of investment Argentina’s Investment Development Agency A winning formula to succeed in your business

Solid foundations for sustainable growth and profitability

Highly skilled, innovative and entrepreneurial labor force

Abundance of natural resources, biodiversity and environmental sustainability

Access to a large regional market and a springboard to the world

Diversified economy to meet global market needs

Rich cultural heritage and remarkable quality of life

Modern infrastructure and quality connectivity

Public sector supportive of investment

Argentina at a glance (2008) Argentina’s Investment Development Agency Area: 2,780 km² Population: 40.6 million GDP: US$326.8 billion GDP per capita PPP: US$14,413 FDI: US$8.9 billion Exports: US$82.1 billion Imports: US$67.5 billion

Solid foundations for sustainable growth and profitability

Vigorous Expansion Six consecutive years of rapid economic growth at an accumulated rate of 8.5% per year Argentina’s Investment Development Agency Source: ProsperAr based on INDEC Fastest growing economy in Latin America Selected Economies: GDP growth 2003-2008

Argentina’s Investment Development Agency Balanced Accounts Argentina maintained twin surpluses for six consecutive years and is the only country in the region expected to maintain them in 2009 and 2010 Source: ProsperAr based on INDEC and “Regional Economic Outlook 2009”, IMF Current and Fiscal Account Surpluses (as a percentage of GDP) Argentina IMF's Current Account Projections 2009-2010 (as a percentage of GDP)

A Resilient Economy Lower debt levels and record-high international reserve accumulation contribute to a more stable and predictable economy, even in the current global context Source: ProsperAr based on the Ministry of Economy and the Argentine Central Bank Public Sector External Debt (% of GDP) International Reserves (in billions of US$) Argentina’s Investment Development Agency

Dynamic Investment Process In 2008, the highest investment rate in constant prices in the last 30 years was achieved Source: ProsperAr based on INDEC Sustained growth in the investment rate (2003-2008) Fundamental pillar for a sustainable economy and an increasing production capacity Gross Fixed Capital Formation as % of GDP (in current and constant prices) Argentina’s Investment Development Agency

Sustained growth in the investment rate (2003-2008)

Fundamental pillar for a sustainable economy and an increasing production capacity

Argentina’s Investment Development Agency Global Crisis, Global Impact The financial and economic crisis has impacted developing economies through two main channels: financial and commercial Financial channel: Global credit crunch: Lack of liquidity and expensive financing Risk aversion and “flight to quality” behavior Growing uncertainty leading to lower investment levels and postponement of investment projects Commercial channel: Lower global trade flows negatively affecting exports Reductions in prices, particularly commodities Global FDI fell 14.2% in 2008 and 44% during the IQ2009 Cross-border M&A sales in developing countries fell 34.7% during the IQ2009 Global trade volumes are expected to contract by 12.2% in 2009 Emerging economies are expected to suffer a 6.5% fall in their exports Source: ProsperAr based on UNCTAD and World Bank

Financial channel:

Global credit crunch: Lack of liquidity and expensive financing

Risk aversion and “flight to quality” behavior

Growing uncertainty leading to lower investment levels and postponement of investment projects

Commercial channel:

Lower global trade flows negatively affecting exports

Reductions in prices, particularly commodities

Global FDI fell 14.2% in 2008 and 44% during the IQ2009

Cross-border M&A sales in developing countries fell 34.7% during the IQ2009

Global trade volumes are expected to contract by 12.2% in 2009

Emerging economies are expected to suffer a 6.5% fall in their exports

Impact of the Global Crisis on Foreign Direct Investment In line with the rest of the world, FDI in Argentina contracted for the first time in the IVT 2008 and again in the IT 2009 and the IIT 2009 Source: ProsperAr based on UNCTAD and CEPAL. Foreign Direct Investment (% Change, IQ 2009) Argentina’s Investment Development Agency -47.6 50.7 Argentina -44.0 -14.2 World % Change IT2009 vs. IT2008 % Change 2008 vs. 2007 During the IIT2009, FDI experienced a 88.1% reduction from the same period in 2008. Hence, FDI fell by 63.6% during the IS2009.

During the IIT2009, FDI experienced a 88.1% reduction from the same period in 2008.

Hence, FDI fell by 63.6% during the IS2009.

Impact of the Global Crisis on Gross Fixed Capital Formation Investment in Argentina also contracted for the first time in the IVT 2008 and again in the IT 2009 and the IIT 2009 Source: ProsperAr based on UNCTAD and CEPAL. Gross Fixed Capital Formation (% Change, IQ 2009) Argentina’s Investment Development Agency During the IIT2009, GFCF fell by 10.7% from the same period in 2008. Hence, investment suffered a 12.3% year-on-hear reduction in the IS2009. -10.7 -14.2 Argentina % Change IIT2009 vs. IIT2008 % Change IT2009 vs. IT2008

During the IIT2009, GFCF fell by 10.7% from the same period in 2008.

Hence, investment suffered a 12.3% year-on-hear reduction in the IS2009.

Argentina’s Investment Development Agency Impact of the Global Crisis on Foreign Trade Argentina recorded a smaller decline in exports compared with the major economies of the region and the world Sources: ProsperAr based on INDEC, SECEX , Central Bank of Chile, National Bureau of Statistics of China, Ministry of Development, Brazil’s Secretariat of Foreign Trade, Australian Bureau of Statistics, Centre of International Economy and IMF Exports (% Change, I Semester 2009) *Figures from EU (27) and Canada correspond to the first five months. The decline in exports of manufactured goods is also lower in Argentina than in the major economies

The decline in exports of manufactured goods is also lower in Argentina than in the major economies

High Levels of Profitability Firms reached high levels of profitability in historic terms during the 2004-2008 period Argentina’s Investment Development Agency Source: ProsperAr based on Balance of Payments data and Survey of Big Companies INDEC Net margin of the top 500 companies in Argentina (as a % of sales) FDI return on assets (profits as a % of FDI Stock)

Rapid Increase in FDI FDI recorded great dynamism over the past six years and showcased in 2008, for the third consecutive year, a higher average than the 90s (net of privatizations) Source: ProsperAr based on INDEC Foreign Direct Investment (FDI) (in millions of US$) 23,988 US$5,300 Argentina’s Investment Development Agency

Greenfield Investment Destination In 2008, Argentina was the 3rd greenfield investment destination in Latin America and 2nd in South America, identified as one of the most attractive markets with highest international potential Source: FDI Intelligence and British Ministry of Commerce and Investment *Ranking excludes the BRIC countries. The world report is elaborated by the British Ministry of Commerce and Investment based on the opinion and perspective of more than 560 management executives of international companies. Main FDI Greenfield Investment Destinations (2008) Argentina’s Investment Development Agency Country # of projects Mexico 346 Brazil 245 Argentina 115 Colombia 73 Chile 64 Other 263 Saudi Arabia 10 Argentina 9 South Africa 8 Poland 7 Singapore 6 Indonesia 5 Ukraine 4 United Arab Emirates 3 Mexico 2 Vietnam 1 Country Markets with high potential growth for investors identified by the British Ministry of Commerce and Investment*

Recent Investments High profitability reassures big players to increase their commitment and attracts more leading companies to invest in Argentina Argentina’s Investment Development Agency

Highly skilled, innovative and entrepreneurial labor force

Human Capital Highly skilled and talented labor force Argentina’s Investment Development Agency Ranked 1st in Guggenheim research fellowships, receiving the largest number of scholarships in Latin America (2009) Over 85,000 graduates from higher education programs and 6,100 postgraduates per year 106 universities throughout the country Ranked 4th in the Global Entrepreneurship Monitor (2008) Ranked 5th worldwide in terms of quantity of ‘Think Tanks’ and nominated as a Regional Think Tank Hub by the University of Pennsylvania (2008) Source: ProsperAr based on World Bank, GEM 2008 and University Yearbook 2009, Ministry of Education Gross Entry Ratio to Tertiary Education (% of new entrants)

Ranked 1st in Guggenheim research fellowships, receiving the largest number of scholarships in Latin America (2009)

Over 85,000 graduates from higher education programs and 6,100 postgraduates per year

106 universities throughout the country

Ranked 4th in the Global Entrepreneurship Monitor (2008)

Ranked 5th worldwide in terms of quantity of ‘Think Tanks’ and nominated as a Regional Think Tank Hub by the University of Pennsylvania (2008)

Science, Talent and Creativity A leader in the region Argentina’s Investment Development Agency Advertising Industry: One of the three best places in the world to look for ideas according to the Gunn Report 2008 Research & Development: Highest number of patents per million inhabitants in Latin America registered with the U.S. Patent and Trademark Office over the past whole 45 years Source: Human Development Report 2007/08, United Nations, United States Patent and Trademark Office Researchers (per million inhabitants) Country 1990-2005 United States 4,605 Spain 2,195 Argentina 720 Chile 444 Mexico 268 Brazil 344 Colombia 109

Advertising Industry: One of the three best places in the world to look for ideas according to the Gunn Report 2008

Research & Development: Highest number of patents per million inhabitants in Latin America registered with the U.S. Patent and Trademark Office over the past whole 45 years

A Tradition of Research Excellence Number one in Latin America and forth in the developing world in terms of science related Nobel Prizes Recent awards received by Argentine scientists and researchers An Argentine scholar was the only Latin American to receive one of the 18 foreign associate positions granted by the National Academy of Sciences of the United States in 2008. The Maxime Becher medal, granted every 3 years by the US Mathematics Society, was awarded to an Argentine mathematician in 2008. Argentines received the highest number of Guggenheim Foundation awards in Latin America; 13 out of the 36 awarded in 2008. Argentina received the L´Oréal-Unesco for Women in Science Award for the Latin American region for two consecutive years (2007-2008). Two Argentine physicists were honored by the Nobel Physics Laureate George Smoot in 2006. Bernardo Houssay Nobel Prize in Physiology or Medicine 1947 For his discovery of the course of the catalytic conversion of glycogen. Luis F. Leloir Nobel Prize in Chemistry 1970 For his discovery of sugar nucleotides and their role in the biosynthesis of carbohydrates. César Milstein Nobel Prize in Physiology or Medicine 1984 For his theories concerning the specificity in development and control of the immune system and the discovery of the principle for production of monoclonal antibodies. Argentina’s Investment Development Agency Source: ProsperAr based on CONICET, The Nobel Prize Organization and Argentine press releases.

Recent awards received by Argentine scientists and researchers

An Argentine scholar was the only Latin American to receive one of the 18 foreign associate positions granted by the National Academy of Sciences of the United States in 2008.

The Maxime Becher medal, granted every 3 years by the US Mathematics Society, was awarded to an Argentine mathematician in 2008.

Argentines received the highest number of Guggenheim Foundation awards in Latin America; 13 out of the 36 awarded in 2008.

Argentina received the L´Oréal-Unesco for Women in Science Award for the Latin American region for two consecutive years (2007-2008).

Two Argentine physicists were honored by the Nobel Physics Laureate George Smoot in 2006.

High Returns on Knowledge Produced Argentine scientists are the most prolific in terms of knowledge production in the region (as measured by science publications) Argentina’s Investment Development Agency Science Publications per 100 Full Time Researchers (Full-time or equivalent - 2007 or last available year) Science Publications per Million Dollar Spent in R&D (2007 or last available year) Source: ProsperAr based on the Argentine Center of Information on Science and Technology (CAICYT).

Outstanding Performance, Today and Tomorrow The most innovative country in South America Argentina’s Investment Development Agency Innovation Prospects Ranking 2009-2013 (Position: highest=1, lowest=82) Source: ProsperAr based on Innovation Index, Economist Intelligence 2004/2008 Ranked as the most innovative country in South America and one of the best in the developing world

Rising Capacities and Greater Capabilities Remarkable labor productivity gains Argentina’s Investment Development Agency Source: ProsperAr based on INDEC +30% Labor Productivity (Index 2003=100)

Entrepreneurship Argentina ranks fourth on the Global Entrepreneurship Monitor (2008) Global Entrepreneurship Monitor Ranking (2008) Source: ProsperAr based on GEM 2008 Large group of talented and motivated entrepreneurs Business schools have international prestige in the field Argentina’s Investment Development Agency

Large group of talented and motivated entrepreneurs

Business schools have international prestige in the field

Abundance of natural resources, biodiversity and environmental sustainability

Size, Abundance and Variety To enjoy and develop Argentina’s Investment Development Agency 8th largest country in the world, 2nd in Latin America 9th largest agricultural area in the world 32 million Ha of forests 4,500 km of exploitable mining resources 4,700 km along the Atlantic Coast with rich fisheries 3rd largest fresh water reservoir in the world, the Guaraní Aquifer (shared with Brazil, Paraguay and Uruguay) Source: ProsperAr based on United Nations Food and Agriculture Organization (FAO), CIA World Factbook, and other sources

8th largest country in the world, 2nd in Latin America

9th largest agricultural area in the world

32 million Ha of forests

4,500 km of exploitable mining resources

4,700 km along the Atlantic Coast with rich fisheries

3rd largest fresh water reservoir in the world, the Guaraní Aquifer (shared with Brazil, Paraguay and Uruguay)

Diverse Energy Sources Outstanding natural resources to fuel growth Argentina’s Investment Development Agency Vast oil and gas resources with exploration opportunities Hydraulic energy generates 38% of the total electricity Growing wind and solar energy production Three nuclear power generation plants One of the top five biofuel producers worldwide Incentives for renewable energy production under Law 26,190 (2006) Source: ProsperAr based on United Nations Food and Agriculture Organization (FAO), CIA World Factbook, and other sources

Vast oil and gas resources with exploration opportunities

Hydraulic energy generates 38% of the total electricity

Growing wind and solar energy production

Three nuclear power generation plants

One of the top five biofuel producers worldwide

Incentives for renewable energy production under Law 26,190 (2006)

From High Peaks to Blue Lakes Varied terrenes Argentina’s Investment Development Agency Exuberant beauty and extraordinary flora and fauna can be found throughout Argentina. Visitors are captivated by the deep blue lakes, high mountain peaks, large salt pans, paleontological sites, fertile valleys, snow-covered volcanoes, subtropical rain forests, crystal-like glaciers, white deserts, long rivers, boundless flat lands and vibrant cities.

Exuberant beauty and extraordinary flora and fauna can be found throughout Argentina.

Visitors are captivated by the deep blue lakes, high mountain peaks, large salt pans, paleontological sites, fertile valleys, snow-covered volcanoes, subtropical rain forests, crystal-like glaciers, white deserts, long rivers, boundless flat lands and vibrant cities.

From the Warm North to the Cold South Multiple climates Argentina’s Investment Development Agency The North : warm; from subtropical with a wet season to tropical without a wet season; including tropical highland. The Center : moderate temperatures; influenced by the ocean, moderately arid; the Pampas grassy plains. The West and South Center : Patagonian cold temperatures; arid mountains and plains. The South : cold, arid and windy; humid in the far South; high mountain snow.

The North : warm; from subtropical with a wet season to tropical without a wet season; including tropical highland.

The Center : moderate temperatures; influenced by the ocean, moderately arid; the Pampas grassy plains.

The West and South Center : Patagonian cold temperatures; arid mountains and plains.

The South : cold, arid and windy; humid in the far South; high mountain snow.

Eco-Intelligent Growth Committed to environmental sustainability Argentina’s Investment Development Agency 174,000 km² of protected areas (6.4% of national territory) Source: ProsperAr based on Yale Environmental Sustainability Index and World Development Indicators, WB Yale Environmental Performance Index (Position: highest=1, lowest=149)

Access to a large regional market and a springboard to the world

An Internationally Recognized Choice One of the fastest growing FDI destinations in the world Argentina’s Investment Development Agency Growing FDI (in billions of US$) Source: ProsperAr based on International Accounts, INDEC and UNCTAD 2 nd South American FDI destination for greenfield projects (2008) FDI Inflows Growth 2008 World -14.2 % Developed economies -29.2 % Developing economies 17.3 % Latin America & Caribbean 13.2% Argentina 50.7 %

An Economy Integrated to the Region and the World Leading multinational companies operate in Argentina, many of them with a long-term vision and commitment Argentina’s Investment Development Agency Top 50 Transnational Corporations with a presence in Argentina Nearly 2,000 TNCs (half of the Fortune 100). Many TNCs operating with a long-standing tradition and long-term vision

Going Global Leading Argentine companies operating internationally Argentina’s Investment Development Agency Top 50 Local Multinationals CLISA

Open Economy Rising trade flows Argentina’s Investment Development Agency Exports ↑ 19% (average annual growth rate 2003-2008) Imports ↑ 29% (average annual growth rate 2003-2008) Source: ProsperAr based on INDEC Rising Exports and Imports of Goods and Services (in billions of US$)

A Global Opportunity A gateway to Latin America’s largest markets and a springboard to the world Argentina’s Investment Development Agency Main trade agreements: Trade negotiations underway include an agreement with the South African Customs Union (SACU), countries of the Gulf Cooperation Council and Morocco; a more comprehensive agreement with the European Union (EU); a trade preference agreement with India; and a free trade agreement with Israel (in process). Source: ProsperAr based on IMF MERCOSUR: Customs Union Members : Argentina, Brazil, Uruguay, Paraguay Associates : Bolivia, Chile, Colombia, Ecuador, Peru, Venezuela Mercosur member countries GDP per capita (PPP dollars 2008) GDP: US$1.9 trillion Population: 241 million inhabitants

Linked Up International synergies for global integration WORLD TRADE ORGANIZATION : Founding member G-20: Argentina and Brazil are the only two members representing South America Investment Protection and Promotion Treaties : 59 bilateral investment treaties ALADI ( Latin American Integration Association) provides the institutional framework for regional integration, promoting the creation of an area of economic preferences in the region, with the ultimate goal of establishing a common Latin American market. Members : Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela and Cuba. Argentina’s Investment Development Agency

WORLD TRADE ORGANIZATION : Founding member

G-20: Argentina and Brazil are the only two members representing South America

Investment Protection and Promotion Treaties : 59 bilateral investment treaties

ALADI ( Latin American Integration Association) provides the institutional framework for regional integration, promoting the creation of an area of economic preferences in the region, with the ultimate goal of establishing a common Latin American market.

Members : Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela and Cuba.

Open Society Auspicious environment for business to thrive Argentina’s Investment Development Agency Open Society Commitment to democracy and freedom Free of religious, ethnic and armed conflicts Map of Freedom 2008 Argentina is a free country with a high degree of political and civil freedom, according to the findings of the Freedom House 2008 survey. The survey concluded that more than half of the world does not enjoy full freedom. Source: Freedom House FREE PARTLY FREE NOT FREE

Open Society

Commitment to democracy and freedom

Free of religious, ethnic and armed conflicts

Diversified economy to meet global market needs

Producing Variety Widely diversified economy Argentina’s Investment Development Agency GDP by Sector (% of GDP, 2008) Source: ProsperAr based on INDEC Real estate & business services 11% Wholesale & retail trade 12% Education, health & community services 13% Manufacturing industry 21% Agriculture, livestock, forestry & fishing 10% Transport, storage & communications 8% Government 6% Construction 6% Financial intermediation 5% Mining 4% Hotels & restaurants 3% Electricity, gas & water 1%

Investment Opportunities Across Sectors in Argentina Argentina’s Investment Development Agency Agro-Industry, Wine & Biofuels Manufactured Goods with Added Value or Design Biotechnology Pharmaceuticals & Health Professional Value-Added Services Creative Industries Software & Information Technology Mining & Forestry Tourism

Agro Industry Leading global producer & exporter of food commodities and products Argentina’s Investment Development Agency Argentine Share in Global Exports and Global Position (export % and position) Source: ProsperAr based on FAO data

Agro Industry High agricultural efficiency and productivity Argentina’s Investment Development Agency Soybean Production Yield (Hectograms/Hectare, 2007) Wheat Production Yield (Hectograms/Hectare, 2007) Source: ProsperAr based on FAO

Agro Industry Booming exports & innovation Argentina’s Investment Development Agency 16% of the total expenditure on innovative activities is for agro industry 8% of the manufacturing’s R&D investments are agro-industry related 55 biotech firms are working to further develop the country’s Food & Beverage industry Source: ProsperAr based on INDEC R&D Applied to the Value Chain Rising Manufactured Exports of Agricultural Origin (in billions of US$)

16% of the total expenditure on innovative activities is for agro industry

8% of the manufacturing’s R&D investments are agro-industry related

55 biotech firms are working to further develop the country’s Food & Beverage industry

Wine Industry Unique terroir, tradition and freedom to innovate Argentina’s Investment Development Agency Source: National Vitiviniculture Institute (INV) Wine Exports (in millions of US$ and in million of liters) 5th largest producer in the world 7th largest domestic market 7th largest exporter in the world Fastest growing exporter in the world (22.3% per year, 2002-2008)

Wine Industry Quality-Value advantage positions Argentine wines globally Argentina’s Investment Development Agency Traditional and High Potential Markets Growing Sophistication and Value Added Export Growth by Price Segment compound annual growth rate (2002-2008) Glass-Bottled Wine Exports by Country Destination (2008) Source: Wine of Argentina and Wine Area Russia 1.2%

Biofuels A green powerhouse: competitive production of renewable & clean energy Argentina’s Investment Development Agency Projection of Top Five Biodiesel Producers in 2010 (share in total production %) Source: World Ethanol and Biofuels Report by the Consulting Company F.O. Lichts Investment Incentives Biofuels: accelerated depreciation of income tax and early return of VAT for capital goods and equipment. Competitive advantage based on abundant and high-quality natural resources, qualified human resources and existing industrial capacity.

Competitive advantage based on abundant and high-quality natural resources, qualified human resources and existing industrial capacity.

Biofuels Strong international and domestic demand Projected Rise in International Demand Argentina’s Investment Development Agency Source: ProsperAr based on the Energy Secretariat Diesel, easily replaceable by biofuel (biodiesel), leads domestic fuel consumption accounting for 66% of total consumption. Argentine Biofuel Law 26,093 (2006) establishes mandatory biofuel mixes (5%) by 2010. Countries with mandatory biofuel (biodiesel) mixes European Union Brazil United States Japan Canada Projected Diesel Consumption (in thousands of m 3 ) Estimated growth rate: 3,5%

Diesel, easily replaceable by biofuel (biodiesel), leads domestic fuel consumption accounting for 66% of total consumption.

Argentine Biofuel Law 26,093 (2006) establishes mandatory biofuel mixes (5%) by 2010.

Countries with mandatory biofuel (biodiesel) mixes

European Union

Brazil

United States

Japan

Canada

Manufactured Goods with Added Value or Design Attractive selection of investment opportunities Agencia Nacional de Desarrollo de Inversiones Auto Parts Industry Developed and innovative industry with a long tradition in the country. International leading companies with presence in Argentina: Fiat, Ford, General Motors, Mercedes Benz, Peugeot-Citroën, Renault, Toyota, Volkswagen, Iveco and Scania. Great opportunity for growth in auto parts to complement regional and global demand in the automotive industry which is increasing in sophistication and innovation. Success case: Rafaela, Santa Fe (Basso) is a leading world producer and exporter of valves. Agro Industrial Machinery and Precision Instruments Major agro machinery cluster with more than 100 years of expertise, 40,000 employees (80% skilled labor) and 650 factories. Know-how to produce innovative equipment for new agronomic practices like “Direct Sowing”. A growing production of high-tech precision agro components .

Auto Parts Industry

Developed and innovative industry with a long tradition in the country.

International leading companies with presence in Argentina: Fiat, Ford, General Motors, Mercedes Benz, Peugeot-Citroën, Renault, Toyota, Volkswagen, Iveco and Scania.

Great opportunity for growth in auto parts to complement regional and global demand in the automotive industry which is increasing in sophistication and innovation.

Success case: Rafaela, Santa Fe (Basso) is a leading world producer and exporter of valves.

Agro Industrial Machinery and Precision Instruments

Major agro machinery cluster with more than 100 years of expertise, 40,000 employees (80% skilled labor) and 650 factories.

Know-how to produce innovative equipment for new agronomic practices like “Direct Sowing”.

A growing production of high-tech precision agro components .

Manufactured Goods with Added Value or Design Attractive selection of investment opportunities Agencia Nacional de Desarrollo de Inversiones Manufactured goods with design: sailboats, cruisers and vessels High quality and international recognition. Over 25 years exporting to developed countries mainly the European and Asian markets. Integrated value chain: 120 builders of sailboats, cruisers, vessels, inflatable boats, equipment and all necessary services for the production and maintenance of a wide range of boats. Installed capacity of 700,000 m 2 and occupying 700,000 people. Nuclear, Spatial and Industrial Engineering INVAP: technology-based company dedicated to developing advanced technology in nuclear, aerospace, medical and industrial sectors. In 2000 won an international tender, beating specialized companies from countries like Canada, Germany and France for a 20 MW reactor power, which was sold for approximately US$200 million. The reactor is used for scientific research in the fields of health, environment and industry and the production of radioisotopes for medicinal purposes, catering to Australia, New Zealand and Southeast Asian market. IMPSA: global company dedicated to producing solutions for power generation from renewable resources.

Manufactured goods with design: sailboats, cruisers and vessels

High quality and international recognition.

Over 25 years exporting to developed countries mainly the European and Asian markets.

Integrated value chain: 120 builders of sailboats, cruisers, vessels, inflatable boats, equipment and all necessary services for the production and maintenance of a wide range of boats.

Installed capacity of 700,000 m 2 and occupying 700,000 people.

Nuclear, Spatial and Industrial Engineering

INVAP: technology-based company dedicated to developing advanced technology in nuclear, aerospace, medical and industrial sectors.

In 2000 won an international tender, beating specialized companies from countries like Canada, Germany and France for a 20 MW reactor power, which was sold for approximately US$200 million.

The reactor is used for scientific research in the fields of health, environment and industry and the production of radioisotopes for medicinal purposes, catering to Australia, New Zealand and Southeast Asian market.

IMPSA: global company dedicated to producing solutions for power generation from renewable resources.

Pharmaceutical Industry Long standing tradition, innovation and rising potential Argentina’s Investment Development Agency Source: Argentina Industrial Chamber of Pharmaceutical Laboratories (CILFA) Growing Sales & Exports (in millions of US$) Highest local market share of domestic labs in comparison with other Latin American countries. Local labs in Argentina account for 56% of local sales while domestic firms in Brazil account for 25%, 24% in Uruguay, and 12% in Mexico. Two companies included in the Ranking of the 19 Argentine Multinationals (ProsperAr-Columbia). Market Share of International & National Labs in Argentina +69% +134%

Highest local market share of domestic labs in comparison with other Latin American countries.

Local labs in Argentina account for 56% of local sales while domestic firms in Brazil account for 25%, 24% in Uruguay, and 12% in Mexico.

Two companies included in the Ranking of the 19 Argentine Multinationals (ProsperAr-Columbia).

Health Industry Applied knowledge Argentina’s Investment Development Agency The rate of clinical trials per 100,000 inhabitants is 1.45, nearly double the average (0.79) in Latin America. Competitive advantages due to solid hospital infrastructure and hi-tech equipment. Creation of the clinical trial registry in 2009: critical tool for researchers, experts, patients and donors. Focus on the more advanced phases of clinical trials. Source: ProsperAr based on CEPAL (2008) and CAEME +170% Share of Clinical Trials by Phase (in %) Clinical Research Investments in the Pharmaceutical Industry (in millions of US$) Phase I 1% Phase II 18% Phase IV 68% Phase III 13%

The rate of clinical trials per 100,000 inhabitants is 1.45, nearly double the average (0.79) in Latin America.

Competitive advantages due to solid hospital infrastructure and hi-tech equipment.

Creation of the clinical trial registry in 2009: critical tool for researchers, experts, patients and donors.

Focus on the more advanced phases of clinical trials.

Biotechnology Applied research and first-class scientists Argentina’s Investment Development Agency More than 35 bioscience research institutes operating in private companies and universities Highest number of biotechnology companies per capita in Latin America Leader in GMO applications accounting for 17% of world GM crop area Integrated with industrial production (agricultural and pharmaceutical industries) High-calibre scientists and researchers Two biotechnology companies included in the Ranking of the 19 Argentine Multinationals (ProsperAr-Columbia) Source: Biotec Sur, International Service for the Acquisition of Agri-biotech Applications (ISAAA) and Bisang, Gutman, Lavarello, Sztulwark and Diaz (2006) Biotechnology Investment Incentives: accelerated depreciation of income tax and early reimbursement of VAT intended to reduce payments in the first years in purchase of capital goods and related equipment Biotechnology Sales (by type)

More than 35 bioscience research institutes operating in private companies and universities

Highest number of biotechnology companies per capita in Latin America

Leader in GMO applications accounting for 17% of world GM crop area

Integrated with industrial production (agricultural and pharmaceutical industries)

High-calibre scientists and researchers

Two biotechnology companies included in the Ranking of the 19 Argentine Multinationals (ProsperAr-Columbia)

Professional Value Added Services High quality at competitive costs Argentina’s Investment Development Agency Source: ProsperAr based on Balance of Payments data, INDEC, Deloitte Global Shared Services Survey 2009 and Global Services Magazine Cultural & Entertainment (US$419 mn) IT (US$770 mn) Business, Professional & Technical (US$3,7oo mn) According to Deloitte’s latest Global Shared Services Survey, 265 leading global firms from all sectors, rank Argentina as the fifth best location for outsourcing services for it’s labor quality and availability, just below the US, India, UK and China (2009) Buenos Aires as the 14th most attractive city in the emerging world for outsourcing activities (“Global Services” index) A location with the presence of leading companies: Globant, Atento, Teletech, Teleperformance, Motorola, Microsft, HP, IBM, Citibank, Repsol, CapGemini, Tata Consulting and Nextel Record Levels of Exports of Value Added Professional Services = US$4.9 billion (2008)

According to Deloitte’s latest Global Shared Services Survey, 265 leading global firms from all sectors, rank Argentina as the fifth best location for outsourcing services for it’s labor quality and availability, just below the US, India, UK and China (2009)

Buenos Aires as the 14th most attractive city in the emerging world for outsourcing activities (“Global Services” index)

A location with the presence of leading companies: Globant, Atento, Teletech, Teleperformance, Motorola, Microsft, HP, IBM, Citibank, Repsol, CapGemini, Tata Consulting and Nextel

Professional Value Added Services Strong advantages make Argentina a global center for skilled outsourcing Argentina’s Investment Development Agency Source: ProsperAr based on Balance of Payments data, INDEC, ATKearney Consulting and Global Services Magazine Minimal time difference with the US and main European cities High penetration and best English levels in the region (Cambridge ESOL exams) Other languages spoken: Italian, German, Portuguese and French Cultural similarities with European markets Competitive costs World renowned creativity (advertising and design) Native Spanish speakers reaching out to a population of 500 million people that speak the language worldwide Argentina Time Zone = GMT -3 hours

High penetration and best English levels in the region (Cambridge ESOL exams)

Other languages spoken: Italian, German, Portuguese and French

Cultural similarities with European markets

Competitive costs

World renowned creativity (advertising and design)

Native Spanish speakers reaching out to a population of 500 million people that speak the language worldwide

Software and IT Industry Thriving growth driven by innovative local firms and leading global companies Argentina’s Investment Development Agency Growing Software Production & Exports (in millions of US$) Source: ProsperAr based on Cessi and INDEC +364% +152% 1,600 software companies (60% SMEs) Young and dynamic sector: 40% of the SMEs started operations after 2002 and 85% after 1991 In 2008 exports accounted for 28.6% of total sales and 55% of all software companies export Leading international presence: IBM, NEC, Siemens, Google, Oracle, SAP, Intel, Motorola and Sabre Holdings According to The Economist's technological ranking, Argentina surpasses Mexico, Colombia and Peru and ranks 3rd in Latin America after Brazil and Chile (2009)

1,600 software companies (60% SMEs)

Young and dynamic sector: 40% of the SMEs started operations after 2002 and 85% after 1991

In 2008 exports accounted for 28.6% of total sales and 55% of all software companies export

Leading international presence: IBM, NEC, Siemens, Google, Oracle, SAP, Intel, Motorola and Sabre Holdings

According to The Economist's technological ranking, Argentina surpasses Mexico, Colombia and Peru and ranks 3rd in Latin America after Brazil and Chile (2009)

Software and IT Industry Talented labor force and public support Argentina’s Investment Development Agency Source: ProsperAr based on Cessi and other sources Córdoba Santa Fe Mendoza Tandil Mar Del Plata Buenos Aires Gualeguaychú Rosario Available and affordable high skilled labor force 243 IT degrees offered locally Some 70,000 students enrolled in university-level informatics programs Public-Private cooperation networks Software Promotion Law (2004) Diverse attractive locations IT Industry Investment Incentives: 10-year tax stability; tax credit up to 70% of employers’ contributions; 60% reduction in income taxes. IT Hot Spots

Available and affordable high skilled labor force

243 IT degrees offered locally

Some 70,000 students enrolled in university-level informatics programs

Public-Private cooperation networks

Software Promotion Law (2004)

Diverse attractive locations

Creative Industry Diverse and attractive segments Argentina’s Investment Development Agency HOT SECTORS Advertising Publishing Audiovisual Design Fashion Videogames Music

Creative Industry A flourishing cluster Argentina’s Investment Development Agency Advertising Export boom : US$500 million in 2007, double 2002 values Cultural GDP Source: ProsperAr based on The Gunn Report 2008. (*) Note: Gunns Blazing tallies all awards given under the various labels of Integrated, Mixed Media, Innovative, Content and Contact, Titanium, and other advertising award categories; Frapa (The Format Recognition and Protection Association) Source: ProsperAr based on SINCA. Argentina, leading television content exporter: 4th exporter in TV contents wordlwide Argentina in Top 3 : One of the three best places in the world to look for ideas. And one of the three best to produce them, according to The Gunn Report. The Gunn Report 2008 The most awarded countries in the world in 2008 TV & Cinema Print Interactive Gunns Blazing(*) Total U.S. (1) 149 52 91 39 331 Great Britain (2) 124 39 45 4 212 Argentina (3) 99 21 2 7 129 Germany (4) 47 35 31 6 119 Japan (5) 42 1 60 14 117 2005 2006 2007 Annual growth rate 19.6% 18.6% 15.0% As a % of total GDP 2.6% 2.8% 3.0%

Tourism Magnificent cultural experiences and a striking geography attract global tourism Argentina’s Investment Development Agency Rising Tourism Expenditures (in millions of US$) Source: Tourism Secretariat Tourist arrivals (in millions of people) One of the most exciting and diverse tourist destinations in Latin America offering from wine tourism to eco-friendly adventures Buenos Aires ranked in the top 5 cities to visit in the world for 3 consecutive years (Travel & Leisure, 2009) Buenos Aires ranked #1 gay friendly city by Out Traveller Magazine Excellent hotel infrastructure throughout the country Exquisite gourmet dining & restaurants

One of the most exciting and diverse tourist destinations in Latin America offering from wine tourism to eco-friendly adventures

Buenos Aires ranked in the top 5 cities to visit in the world for 3 consecutive years (Travel & Leisure, 2009)

Buenos Aires ranked #1 gay friendly city by Out Traveller Magazine

Excellent hotel infrastructure throughout the country

Exquisite gourmet dining & restaurants

Mining Industry Natural advantage and strong incentives Argentina’s Investment Development Agency Source: Mining in Numbers 2008, Mining Secretariat In figures… Mining Investment Incentives: 30-year tax stability, exemption from tariffs on imports of capital goods among other tax benefits 2003 2008 Accumulated growth rate 2015 projected Investments (millions of US$) 224 1,771 748% 10,079 Exports (millions of US$) 1,119 3,558 241% 7,330 Exploration (meters drilled) 170,000 500,000 201% NA Direct employment (inhabitants) 19,000 40,000 110% 87,250 Production (GPV in millions of US$) 1,383 4,554 253% 9,476

Forestry Growing opportunities Argentina’s Investment Development Agency Source: ProsperAr based on INDEC Trade database . Timber exports (in millions of US$) Endowed with large and varied extensions of primary forests, ranging from subtropical forests in the North to coniferous forests in the South. Forestry Investment Incentives: 30-year tax stability, extendable to up to 50; early VAT return; special depreciation for income tax

Endowed with large and varied extensions of primary forests, ranging from subtropical forests in the North to coniferous forests in the South.

Rich cultural heritage and remarkable quality of life

Create, Experience, Enjoy! Exciting and dynamic culture Rich urban life with an endless array of cultural activities: 928 museums, 2,813 theaters and 448 cinemas. Buenos Aires chosen World Book Capital 2011 by UNESCO with 2,191 public libraries. Argentina is the World Capital for enjoying Soccer and Polo, and has talents such as Ginobili in the NBA, Del Potro in Tennis and Los Pumas in rugby. For golf lovers, the country offers golf courses amidst mountains, on sea coasts, in jungle regions, in the forest or even in the city. Argentina’s Investment Development Agency

Rich urban life with an endless array of cultural activities: 928 museums, 2,813 theaters and 448 cinemas.

Buenos Aires chosen World Book Capital 2011 by UNESCO with 2,191 public libraries.

Argentina is the World Capital for enjoying Soccer and Polo, and has talents such as Ginobili in the NBA, Del Potro in Tennis and Los Pumas in rugby.

For golf lovers, the country offers golf courses amidst mountains, on sea coasts, in jungle regions, in the forest or even in the city.

Live Argentina Remarkable living standards Argentina has the highest quality of life index in the region, right after Canada and the UK, taking the 21st position from a total of 194 countries surveyed (International Living 2009) Argentina is ranked in the High Development category of the Human Development Report and is ranked 2nd in Latin America (UNDP 2009) Buenos Aires was nominated as the best city to live in Latin America (The Economist 2009) Buenos Aires, together with Berlin and Montreal, was appointed as City of Design under the UNESCO Global Alliance's Creative Cities Network Argentina’s Investment Development Agency

Argentina has the highest quality of life index in the region, right after Canada and the UK, taking the 21st position from a total of 194 countries surveyed (International Living 2009)

Argentina is ranked in the High Development category of the Human Development Report and is ranked 2nd in Latin America (UNDP 2009)

Buenos Aires was nominated as the best city to live in Latin America (The Economist 2009)

Buenos Aires, together with Berlin and Montreal, was appointed as City of Design under the UNESCO Global Alliance's Creative Cities Network

Share Argentina Celebrating cultural richness and diversity Ranked first in the region in UNDP Gender-related development Index (2008) Buenos Aires ranked as the number one worldwide gay friendly city in Out Traveler Magazine (2008) The country offers world-class health services at the most competitive costs and caters for international education with bilingual schools and universities responding to numerous cultures. Argentina’s Investment Development Agency

Ranked first in the region in UNDP Gender-related development Index (2008)

Buenos Aires ranked as the number one worldwide gay friendly city in Out Traveler Magazine (2008)

The country offers world-class health services at the most competitive costs and caters for international education with bilingual schools and universities responding to numerous cultures.

Explore Argentina Breathtaking views, magnificent natural scenes UNESCO World Heritage Sites ✓ Iguazu Falls & National Park, recently chosen as world best attraction (The Guardian, 2009) ✓ The Perito Moreno Glaciers ✓ Jesuit Missions of the Guaranis ✓ Archaeological site Cueva de las Manos, and the Pinturas River Canyon ✓ Vald es Peninsula ✓ Ischigualasto and Talampaya Natural Parks ✓ Jesuit Block and Estancias of C ordoba ✓ Quebrada de Humahuaca Argentina’s Investment Development Agency Source: ProsperAr based on UNESCO

UNESCO World Heritage Sites

✓ Iguazu Falls & National Park, recently chosen as world best attraction (The Guardian, 2009)

✓ The Perito Moreno Glaciers

✓ Jesuit Missions of the Guaranis

✓ Archaeological site Cueva de las Manos, and the Pinturas River Canyon

✓ Vald es Peninsula

✓ Ischigualasto and Talampaya Natural Parks

✓ Jesuit Block and Estancias of C ordoba

✓ Quebrada de Humahuaca

Modern infrastructure and quality connectivity

A Road to Success Modern infrastructure connecting Argentina within and beyond its borders Argentina’s Investment Development Agency Source: ProsperAr based on CIA world fact book and Ministry of Federal Planning, Public Investment and Services 31,909 km of railways, 9th in the world 231,374 km of roadways, 23rd in the world 25 sea ports and 38 river ports 11,000 km of waterways, 12th in the world 58 airports, 23 of them international Pipelines: Gas: 28,138 km Oil: 5,939 km Refined products: 3,629 km

31,909 km of railways, 9th in the world

231,374 km of roadways, 23rd in the world

25 sea ports and 38 river ports

11,000 km of waterways, 12th in the world

58 airports, 23 of them international

Pipelines:

Gas: 28,138 km

Oil: 5,939 km

Refined products: 3,629 km

Modern Connectivity Advanced and competitive telecommunications Argentina’s Investment Development Agency Source: ProsperAr based on CIA world fact book and National Communications Commission Showcases the highest broadband penetration in the region with 8.8% according to Cisco's Barometer (2008) Modern and competitive network, in a highly deregulated market Highest mobile and fixed-line density in South America Ranked 18th worldwide in terms of Internet usage, with 3.8 million hosts and more than nine million users Broadband Penetration in Latin America (in %) Venezuela: 3.6% Brazil: 5.2% Uruguay: 7.6% Argentina: 8.8% Colombia: 4.1% Peru: 2.7% Chile: 8.8%

Showcases the highest broadband penetration in the region with 8.8% according to Cisco's Barometer (2008)

Modern and competitive network, in a highly deregulated market

Highest mobile and fixed-line density in South America

Ranked 18th worldwide in terms of Internet usage, with 3.8 million hosts and more than nine million users

Committed to Improvement National Plan to boost infrastructure capacity Argentina’s Investment Development Agency Source: ProsperAr based on Ministry of Federal Planning, Public Investment and Services The National Strategic Plan for Infrastructure 2003-2011 aims to increase: Gas transport-distribution by 30% Electric energy generation by 72% Transport network by 69% The Key Investment areas are: Energy Gas transport Electricity generation & transport Transport infrastructure Roads Railways Waterways Ports Airports Living conditions Water works, sewage and irrigation Homes Health and Education Increasing Infrastructure Budget (in billions of US$)

The National Strategic Plan for Infrastructure 2003-2011 aims to increase:

Gas transport-distribution by 30%

Electric energy generation by 72%

Transport network by 69%

The Key Investment areas are:

Energy

Gas transport

Electricity generation & transport

Transport infrastructure

Roads

Railways

Waterways

Ports

Airports

Living conditions

Water works, sewage and irrigation

Homes

Health and Education

Public sector supportive of investment

Welcoming Investors Protection and equal rights for foreign investors Equal treatment and rights extended to foreigners, guaranteed by the Argentine Constitution Equal treatment for local and foreign investors Foreign investors may: Remit abroad liquid profits arising as a return on their investment as well as repatriate their investment Avail themselves of any of the legal forms of incorporation foreseen by Argentine legislation Make use of domestic credits and loans with the same rights and under the same conditions as domestic companies of domestic capital Access all sectors of economic activity as there are no activities reserved exclusively for local enterprises Argentina’s Investment Development Agency

Equal treatment and rights extended to foreigners, guaranteed by the Argentine Constitution

Equal treatment for local and foreign investors

Foreign investors may:

Remit abroad liquid profits arising as a return on their investment as well as repatriate their investment

Avail themselves of any of the legal forms of incorporation foreseen by Argentine legislation

Make use of domestic credits and loans with the same rights and under the same conditions as domestic companies of domestic capital

Access all sectors of economic activity as there are no activities reserved exclusively for local enterprises

Horizontal Incentives: Apply to all economic sectors or activities Investment Promotion Law (No. 26,360): early VAT return and/or accelerated depreciation for capital goods and infrastructure projects 0% tariff on imports of capital goods 0% tariff on imports of goods which are part of a large investment project For every new job created, 50% reduction on employers’ contributions during the first year of employment and a 25% reduction in the second year Others: FONTAR, FONSOFT, SEPyME programs, plans to foster employment, and export promotion plans (for further details please see “Investment Incentives” published by ProsperAr) Attractive Incentives Support for your investments Argentina’s Investment Development Agency

Horizontal Incentives:

Apply to all economic sectors or activities

Investment Promotion Law (No. 26,360): early VAT return and/or accelerated depreciation for capital goods and infrastructure projects

0% tariff on imports of capital goods

0% tariff on imports of goods which are part of a large investment project

For every new job created, 50% reduction on employers’ contributions during the first year of employment and a 25% reduction in the second year

Others: FONTAR, FONSOFT, SEPyME programs, plans to foster employment, and export promotion plans (for further details please see “Investment Incentives” published by ProsperAr)

Attractive Incentives Support for your investments Argentina’s Investment Development Agency Sectoral Incentives: Automotive industry: cash reimbursement based on local content; tariff free access to Brazil and Mexico. Software: 10-year tax stability; tax credit up to 70% of employers’ contributions; 60% reduction on income taxes. Biofuels and biotechnology: accelerated depreciation of income tax and early return of VAT for capital goods and equipment intended for the project. Mining : 30-year tax stability; exemption from tariffs on imports of capital goods among other tax benefits. Forestry: 30-year tax stability, extendable to up to 50; early VAT return; special depreciation regime for income tax. Infrastructure : incentives for public-private partnerships (PPP´s). Oil and gas exploration and exploitation: early VAT refund, income tax reductions.

Sectoral Incentives:

Automotive industry: cash reimbursement based on local content; tariff free access to Brazil and Mexico.

Software: 10-year tax stability; tax credit up to 70% of employers’ contributions; 60% reduction on income taxes.

Biofuels and biotechnology: accelerated depreciation of income tax and early return of VAT for capital goods and equipment intended for the project.

Mining : 30-year tax stability; exemption from tariffs on imports of capital goods among other tax benefits.

Forestry: 30-year tax stability, extendable to up to 50; early VAT return; special depreciation regime for income tax.

Infrastructure : incentives for public-private partnerships (PPP´s).

Oil and gas exploration and exploitation: early VAT refund, income tax reductions.

Regional Incentives: Local stimulus programs and support for infrastructure investments Exemptions from provincial taxes for a determined period of time Gross income Stamp taxes Property tax Financial support for infrastructure investments and purchase of relevant equipment Subsidized rates for public utilities Attractive Incentives Support for your investments Argentina’s Investment Development Agency

Regional Incentives:

Local stimulus programs and support for infrastructure investments

Exemptions from provincial taxes for a determined period of time

Gross income

Stamp taxes

Property tax

Financial support for infrastructure investments and purchase of relevant equipment

Subsidized rates for public utilities

ProsperAr Professional assistance for your business to succeed in Argentina Providing timely and relevant information on business sectors and geographical locations in Argentina Help identify investment and innovation opportunities in strategic sectors Troubleshoot red tape and obstacles; facilitate the whole investment process Assist in building partnerships between foreign investors and local companies Our group of professionals will gladly assist you by: Argentina’s Investment Development Agency

Providing timely and relevant information on business sectors and geographical locations in Argentina

Help identify investment and innovation opportunities in strategic sectors

Troubleshoot red tape and obstacles; facilitate the whole investment process

Assist in building partnerships between foreign investors and local companies

Argentina Naturally Talented to Meet Global Market Needs To learn more about how investing in Argentina can benefit you, please contact us: www.prosperar.gov.ar [email_address] + 5411-4328-9510 Argentina’s Investment Development Agency