#1Financial Program April 5, 2019 Ministerio de Hacienda Presidencia de la Nación#2. . Executive summary Liquidity balances at the Treasury remain at historical high levels as a result of higher than anticipated roll over rates during 1Q19. The refinancing during 1Q19 of a portion of the stock of LECAPS through instruments that mature beyond 2019 have reduced the required roll over rate to 35% of LECAPS with maturities in 2019. Roll over rates in USD LETES have been close to 100% in 1Q19; however, as the refinancing has been done through instruments that mature within 2019, the required roll over rate remains at 46% for the year as a whole. Financing is fungible, a higher roll over rate in LECAPS would reduce the roll over rate required in LETES. The combined average roll over rate can be as low as 40%. A 67% average roll over rate would eliminate net financing needs for 2020 due to higher than anticipated cash balances. Although the financial program for 2019 does not contemplate any intra-public sector net financing, during 1Q19 certain net amortization payments were made that shall be refinanced through placements during the rest of the year. The Treasury has announced its currency conversion program under which the Central Bank will sell USD60 million per day for a total of USD9.6 billion, through daily auctions until late 2019. The sale of USD by the Treasury is driven by the projection of peso-denominated expenditures and the currency composition of the anticipated financing. The sale of USD does not impact the financial strength of the Treasury's position, only the currency composition of its cash balances. USD-denominated market securities maturing in 2020 represent only 35% of total maturities of bond instruments for the year. 2#3Financial Program 2019 USD Bn 2019 2019 Needs (excl. Letes) 23.7 Sources (excl. Letes) 35.8 Primary deficit 0.0 Initial cash balance 4.7 Plan Gas 2017 0.6 Public Sector 1Q Refinancing 3.8 Interest (private, IFIs, financial public sector) 11.6 IMF 22.5 Principal payments (private) 8.5 Private financing 0.5 International Bonds 2.8 International markets 0.0 Global '19 2.8 Domestic Bonds Bonar '24 ARGDUO '19 2.8 Domestic market 0.0 1.1 1.5 Other 0.2 Repo 2.9 Repo 0.5 IFIs Principal Payments 3.0 IFIs (ex-IMF) 4.3 IADB + World Bank + CAF 1.3 IADB + World Bank + CAF 4.1 Other 0.1 Other 0.2 Paris Club 1.6 Paris Club 0.0 Letes (private) Letes in USD LECAPS and LECERS (ARS) Nota: Totals may not add up due to rounding of intermediate figures. 19.3 Letes (private) 7.8 9.9 Letes in USD 4.5 9.4 LECAPS and LECERS (ARS) 3.3 3#4Financial Program 2020 USD Bn 2020 2020 Needs (excl. Letes) 27.3 Sources (excl. Letes) 27.3 Primary deficit -5.2 Initial cash balance 0.6 Plan Gas 2017 0.6 Interest (private, IFIs, financial public sector) 15.2 IMF Principal payments (private) 13.7 Private financing International Bonds 0.4 International markets 5.9 17.8 0.0 CHF Bond '20 0.4 Domestic Bonds Bonar '24 Bonar '20 Bopomo '20 ARGDUO '20 11.1 Domestic market 1.1 2.5 Refinancing New financing 16.3 11.1 5.2 2.0 1.6 Bogato '20 1.1 Boncer '20 0.5 Bonte 2020 (banks only) 2.0 Others 0.3 Repo IFIs Principal Payments Letes (private) 2.2 3.0 Repo IFIs (ex-IMF) 1.5 3.0 Letes in USD LECAPS and LECERS (ARS) Nota: Totals may not add up due to rounding of intermediate figures. 9.5 Letes (private) 9.5 4.5 Letes in USD 4.5 5.0 LECAPS and LECERS (ARS) 5.0 4#5Principal payments by bondholder type USD bn 2019 Public Sector Private Sector Total Bonds in foreign currency 0.2 3.9 4.1 BIRAD/USD/6.25%/04-22-2019 (Global '19) 0.0 2.8 2.8 BONAR/USD/8.75%/2024 0.2 1.1 1.3 Bonds in ARS 3.0 1.7 4.7 BONAR DUAL/DLK/4.5%/06-21-2019 (ARGDUO) 0.5 1.5 2.0 BONCER/ARS/4.25%+CER/04-15-2019 1.3 0.0 1.3 BONAR/ARS/BADLAR+300bps/06-10-19 OTHER 0.4 0.0 0.4 0.8 0.2 1.0 2020 Bonds in foreign currency BIRAF/CHF/3.375%/12-10-2020 BONAR/USD/8.75%/2024 BONAR/USD/8%/08-10-2020 BONAR 2020/USD/29-05-2020 Bonds in ARS 2.8 4.0 6.8 0.0 0.4 0.4 0.2 1.1 1.3 0.5 2.5 3.0 2.1 0.0 2.1 5.2 7.5 12.7 BOTAPO/BOPOMO 21-06-2020 0.4 2.0 2.4 BONAR DUAL 2020/ARGDUO/4.5% 0.0 1.6 1.6 BOGATO/CER+4%/06-03-2020 0.0 1.1 1.1 BONTE 2020/26%/21-11-2020 (Bank Reserve Requirements) 0.8 2.0 2.8 BONCER/2.25%/28-04-2020 2.9 0.5 3.4 BONAR/BADLAR+325/01-03-2020 0.3 0.1 0.4 BONAR/BADLAR+300/23-12-2020 0.8 0.0 0.8 OTHER 0.0 0.2 0.2 Note: FX rate: ARS/USD 42,0 for 2019 and 44,3 for 2020. Totals may not add up due to rounding of intermediate figures. 5#6Converting USD debt to pesos Letes and Lecaps held by private investors (USD bn) Letes USD Lecaps ARS $15,1 $14,8 $13,8 $13,0 $11,8 $11,2 $10,7 ARS386 ARS411 ARS415 ARS412 $10,1 $10,1 $10,1 $9,7 $9,9 ARS367 ARS350 ARS202 ARS81 ARS85 ARS81 ARS81 ARS115 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 6#7Conservative maturity profile USD Letes maturities held by private investors (USD mm) $1.008 $1.016 $852 $731 $716 $627 $575 $444 illi $858 $829 $632 $563 $474 12-Apr-19 26-Apr-19 10-May-19 24-May-19 14-Jun-19 28-Jun-19 26-Jul-19 16-Aug-19 30-Aug-19 13-Sep-19 27-Sep-19 11-Oct-19 25-Oct-19 ARS Lecap maturities held by private investors (ARS bn) $73 $74 $38 $37 $34 $67 $60 $47 $40 $16 12-Apr-19 30-Apr-19 10-May-19 31-May-19 28-Jun-19 30-Sep-19 31-Oct-19 28-Feb-20 30-Apr-20 31-Jul-20 7#8Policy emphasis on domestic capital market development Government securities ✓Increase visibility of financial strategy ✓ Anticipate 2019 auction calendar ✓ New market makers program starting in January 2019 Regulatory environment ✓Increase deductibility levels for life-insurance or retirement savings ✓ Eliminate tax barriers on closed-end mutual funds for SMEs financing Increase visibility of reforms in place - - Digital onboarding Qualified investor definition Securitization of digital assets ON Simples 8#9Healthier structure of domestic market Growing number of advisors and reduction in the number of brokers 167 21 AP + AA (Fin. Advisors) AGGI AN ALYC (Brokers) 405 454 8 11 59 59 348 289 291 Dec-15 Dec-18 Mar-19 6#10Mutual fund industry transformation Replacing Lebacs Assets under management (ARS bn) and number of accounts $800 $700 $600 $500 $400 $300 $200 $213 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 600.000 566.146 $737 $698 500.000 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 400.000 $557 300.000 Oct-18 Dec-18 Feb-19 0 200.000 100.000 10#11Fiscal tightening put in perspective Primary spending of the non-financial central administration (% of GDP) -7.3% of GDP 24,9% 24,0% 23,2% 22,1% 22,6% 21,0% 19,5% 19,6% 19,7% 20,2% 17,6% 16,2% 15,4% 13,1% 12,5% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 11#12Fiscal tightening in real terms Change in primary spending (y/y in real terms) 5,9% 3,3% 6,9% 6,7% 4,1% -0,8% -3,0% -8,9% -11,3% 2011 2012 2013 2014 2015 2016 2017 2018 (e) 2019 (e) 12#13Exports performance Exports (LTM, USD millions) $90.000 $85.000 $80.000 $75.000 $70.000 $65.000 $60.000 $55.000 $50.000 dec-10 apr-11 aug-11 dec-11 apr-12 aug-12 dec-12 apr-13 aug-13 dec-13 apr-14 aug-14 dec-14 apr-15 aug-15 dec-15 apr-16 aug-16 dec-16 apr-17 aug-17 dec-17 apr-18 aug-18 13 dec-18 $62bn Feb-19#14Sectorial evidence of export growth Oil & Gas - USD mm Trucks - USD mm $5.000 $5.000 $4.054 40% $4.217 $4.000 90% $4.000 $3.292 $3.010 $3.000 $3.000 $2.373 $2.590 $2.129 $1.979 $2.000 $2.000 $1.000 $1.000 $0 $0 2015 2016 2017 2018 2015 2016 2017 2018 Non-Traditional Mining - USD mm - Beef exports – USD mm $3.000 $2.500 $2.325 $2.500 73% $2.445 116% $2.000 $2.000 $2.016 $1.603 $1.500 $1.416 $1.480 $1.500 $1.074 $1.249 $1.000 $1.000 $500 $500 $0 $0 2015 2016 2017 2018 2015 2016 2017 2018 14#15Improvements in productivity and comptetitiveness Regulatory changes improving business development conditions Simplified incorporation of new companies (1 day) Single Window for International Trade ("VUCE") ✓ Pre-export burocracy fully digitalized ✓ Simplified Exports (up to 300 kg or USD600k a year) Reduce requirements to export services and food Elimination or simplification of several registers ✓ Fully digitalized car transfers Digital background check ✓ Simplified procedures for small tax payers (3M individuals) Digital ID Digital state records (birth, marriage, death certificates) Customs insurance (three days) Annual freight transportation on Belgrano Cargas - Northern line ('000 tons) 2.500 2.000 1.500 1.000 500 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 15#16Ministerio de Hacienda Presidencia de la Nación