Telecom Argentina S A : Earnings Release 3Q20

TELECOM

ARGENTINA

Earnings Release

November 2020

This presentation may contain statements that could constitute forward-looking statements, including, but not limited to (i) the Company's expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; (ii) the continued synergies expected from the merger between the Company and Cablevisión S.A. (or the Merger); (iii) the implementation of the Company's business strategy; (iv) the changing dynamics and growth in the telecommunications and cable markets in Argentina, Paraguay, Uruguay and the United States; (v) the Company's outlook for new and enhanced technologies; (vi) the effects of operating in a competitive environment; (vii) the industry conditions; (viii) the outcome of certain legal proceedings; and (ix) regulatory and legal developments. Forward- looking statements may be identified by words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "will," "may" and "should" or other similar expressions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by forward-looking statements. These factors include, among others: (i) the Company's ability to successfully implement our business strategy and to achieve synergies resulting from the Merger;

1. the Company's ability to introduce new products and services that enable business growth; (iii) uncertainties relating to political and economic conditions in Argentina, Paraguay, Uruguay and the United States, including the policies of the new government in Argentina; (iv) the impact of political developments, including the policies of the new government in Argentina, on the demand for securities of Argentine companies; (v) inflation, the devaluation of the peso, the Guaraní and the Uruguayan peso and exchange rate risks in Argentina, Paraguay and Uruguay; (vi) restrictions on the ability to exchange Argentine or Uruguayan pesos or Paraguayan guaraníes into foreign currencies and transfer funds abroad; (vii) the impact of currency and exchange measures or restrictions on our ability to access the international markets and our ability to repay our dollar-denominated indebtedness; (viii) the creditworthiness of our actual or potential customers; (ix) the nationalization, expropriation and/or increased government intervention in companies; (x) technological changes; (xi) the impact of legal or regulatory matters, changes in the interpretation of current or future regulations or reform and changes in the legal or regulatory environment in which the Company operates, including regulatory developments such as sanctions regimes in other jurisdictions (e.g., the United States) which impact on the Company's suppliers; (xii) the effects of increased competition; (xiii) reliance on content produced by third parties;

1. increasing cost of the Company's supplies; (xv) inability to finance on reasonable terms capital expenditures required to remain competitive; (xvi) fluctuations, whether seasonal or in response to adverse macro-economic developments, in the demand for advertising; (xvii) the Company's ability to compete and develop our business in the future; (xviii) the impact of increased national or international restrictions on the transfer or use of telecommunications technology; and (xix) the impact of the outbreak of COVID-19 on the global economy and specifically on the economies of the countries in which we operate, as well as on our operations and financial performance. Many of these factors are macroeconomic and regulatory in nature and therefore beyond the control of the Company's management. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned or projected. The Company does not intend and does not assume any obligation to update the forward-looking statements contained in this document. These forward-looking statements are based upon a number of assumptions and other important factors that could cause our actual results, performance or achievements to differ materially from our future results, performance or achievements expressed or implied by such forward-looking statements. Readers are encouraged to consult the Company's Annual Report on Form 20-F and the periodic filings made on Form 6-K, which are periodically filed with or furnished to the United States Securities and Exchange Commission, as well as the presentations periodically filed before the Argentine Securities and Exchange Commission (Comisión Nacional de Valores) and the Buenos Aires Stock Exchange (Bolsas y Mercados Argentinos), for further information concerning risks and uncertainties faced by the Company.

D I S C L A I M E R

1

The Company has accounted for the effects of inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores ("CNV"), which establishes that the restatement for inflation will be applied to the annual financial statements, for intermediate and special periods ended as of December 31, 2018 inclusive. Accordingly, the reported figures corresponding to 9M20 include the effects of the adoption of inflationary accounting in accordance with IAS 29. On the other hand, in order to ease the understanding and analysis of the earnings evolution by its users, additional figures of the income statements are included, which are non-restated for inflation and which were used as the base for the information presented in constant pesos.

D I S C L A I M E R

2

AGENDA

01		02		03

BUSINESS

FINANCIALSQ&A

HIGHLIGHTS

3

9M20 HIGHLIGHTS

Revenues	EBITDA	EBITDA Margin
2.7 U$S Bn*	1.0 U$S Bn*	35.8%

Million mobile

18.7 subscribersArgentina in

Million

4.2 broadbandsubscribers

Million

1.8 convergent unique clients

3.6	Million Pay TV
subscribers

Million

2.9 fixed voice subscribers

Of broadband

43% clients with mobile bundle

• Figures in constant pesos as of September 30, 2020 converted at the BNA ask FX rate (76.18)

4

9M20 HIGHLIGHTS

Telecom has been able to refinance and reduce an important portion of its debt. Exchanged its 2021 bond plus refinanced debt with Multilaterals.

Our capital structure has been improved and our future debt maturities have been extended.

OPEX have been reduced substantially and our collections have improved since a 67% of our clients are paying us on a digital basis.

Our collection period has been normalized when compared to the delays we had at the beginning of the pandemic.

The local soccer activity will return in the 4Q thus improving our revenues. In addition, we are working on other projects such as IOT, Fintech, Club Personal, that will be added to our revenues.

We continue being under a scenario where we cannot increase prices. However, what we have done with our financial debt, capex, and relationship with our clients has allowed us to be resilient to this situation.

5

Our Target: Digital Transformation

Creating a new ecosystem of platforms and applications that allow the generation of new services leveraged on the scalability of connectivity.

Digital, more efficient and with better time to market.

Collaborative		DevOps & Agile
Working Environment
Methodology
IOT	IT Transformation
	Projects
	Cloudification	Big Data

6

IT TRANSFORMATION PROJECTS

#Fan

BSS Transformation

NEW CRM & CONVERGENT PLATFORM

The 7° migration to our new CRM system was completed, adding 1.3 million lines.

We achieved 5 migrations during the pandemic, which were the largest in the industry.

A total of 6.7 million subs can enjoy this new digital experience.

Switch

New Digital Experience Program

DIGITAL CHANNEL FRONT END

E-Commerce and Self Service solutions that give our B2C customers a convergent and omnichannel experience.

We achieved our first releases both for App and Web.

All clients that are being migrated to #FAN have access to Switch.

7

IT TRANSFORMATION PROJECTS

Cloud Foundation

PUBLIC CLOUD PLATFORM INTEGRATION

Enhances the Company's physical datacenters with higher virtual cloud capacity. Greater efficiency, process automation and business flexibility.

Cloud Adoption Framework

Eleven applications including a payments microsite are hosted in the AWS cloud.

S/4 HANA IMPLEMENTATION

Backend Transformation

Sustainable and scalable back office operating model.

Successful implementation of S/4 HANA, modernization of backoffice systems & processes.

8

BUSINESS EVOLUTION IN ARGENTINA

Accesses

(In thousands)

Increase in

postpaid

participation

Steady

performance

Recovery based

on Flow over FTTH/xDSL

Reduction but at a

slower pace

(includes IP lines)

11.441			Prepaid		Postpaid
				10.924
7.533		7.730

3Q19

3Q20

4.1444.173

3Q19

3Q20

3.2913.344

3Q19

3Q20

3.3403.215

3Q19

3Q20

+2.6% YoY

-4.5% YoY

+0.7% YoY

+1.6% YoY

-3.7%YoY

9

REVENUES BREAKDOWN

SERVICE REVENUES	REVENUES BREAKDOWN
Million of P$
Million of P$
-4%	5,4% 0,3%
	15,3%

38,3%

204.441 197.044

																	19,6%
		9M19 IAS 29		9M20 IAS 29
REVENUES COMPOSITION																	21,2%
											Mobile		Broadband				Pay TV
Billion of P$
															Fixed & Data		Handsets				Other
79,7	74,9	44,1	49,0	40,8	45,6
									34,2
												32,0
																	11,2	13,7		0.6	0.7
			Mobile			Broadband			Pay TV	Fixed & Data				Handsets				Other
												9M20 IAS 29		9M19 IAS 29

Figures may not sum up due to rounding

10

DRIVERS OF GROWTH: MOBILE & BROADBAND

POSITIVE CLIENTS INFLOW (9M20)

MOBILE DATA USAGE

In Thousand									Postpaid
Source: ADB
								41%	Share of Total
7								Mobile
40	11	14					9	1		Clients
				1
20	22	21	24	7	22
	7	15
			-3		10
			-10	-18	-8	-24	-23
	-31	-36	-18	-14
-47

+22%

3.4 4.1

Jan-20Feb-20Mar-20Abr-20	May-20Jun-20Jul-20Aug-20Sep-20	3Q19	3Q20
		Peer 1		Personal		Peer 2

BROADBAND ACCESSES BY NETWORK TECHNOLOGY	BROADBAND SPEEDS
In Thousand
										+37% YoY	58%	of clients with
48	54		56			60	66	≥ 50 Mb
1.438	1.384		1.319		1.278	1.240	-14% YoY
			33%					58%
2.657	2.685		2.698		2.756	2.867	+8% YoY
												67%					42%
3Q19	4Q19	1Q20		2Q20	3Q20
			HFC		xDSL		FTTH
							3Q19		<50 Mb		≥50 MB	3Q20

11

DRIVERS OF GROWTH: FLOW

FLOW BOXES & APP

In Thousand

Flow is our IP video platform

with the best experience

94MM	18%	Flow App
Views during	82%	Flow Box
3Q20
5MM	9.65 hours
Connected devices	Average usage per client
	during 3Q20

									1.202	1.170	1.307
						1.021	1.048	1.078
873	926		971	956

3Q19

4Q19

1Q20

2Q20

3Q20

November:Integration of Disney + to Flow's Platform

(Includes Flow's clients over FTTH and xDSL networks)

Boxes		App	12

DRIVERS OF GROWTH: PARAGUAY

Revenues

Million of U$S

+4%*

Núcleo
(Paraguay)	136	142
67.5%

9M19 IAS 29 9M20 IAS 29

Subscribers

(as of Sep-20)

2.2mm

275k 20k

118k 62k

Internet

EBITDA

Million of U$S

+17%*

53 62

9M19 IAS 29 9M20 IAS 29

Fixed Network

Capacity

(thousands homes passed)

+89%

447

236

Sep-19Sep-20

Revenues Breakdown

	6,9%	8,0%
	12,2%
Browsing
9,9%
Voice
Data
TV
Internet 20,5%
Others

42,5%

Internet subscribers

(in thousands)

3.5x 118

34

Sep-19Sep-20

* Revenues +9% and EBITDA +23% in local currency.

13

INFLATION EVOLUTION

YoY Inflation:

36.6%

Quarterly

Inflation:

7.7%

Weighing within the index

Food and non-alcoholic beverages	27.0%
Transport	11.0%
Clothes and Shoes	9.9%
Housing water, electricity and other fuels	9.4%
Restaurants and hotels	9.0%
Healthcare	8.0%
Recreation and culture	7.3%
Home furnishing and maintenance	6.4%
Other goods and services	3.5%
Alcoholic beverages and tobacco	3.5%
Communications	2.8%
Education	2.3%

14

	REVENUES					EBITDA
	Million of P$					Million of P$
Historical Figures	Inflation Adjusted		Historical Figures	Inflation Adjusted
(modeling purposes)	Figures				(modeling purposes)	Figures
					-5%				+46%		+2%
+38%		218,182	208,220	34,1%	36,2%		33,3%	35,8%
				80.304	18.325								72,708	74,455
														25.727	5.792
137.878		189.895				46.981	68.663
								9M19			9M20	9M19 IAS 29	9M20 IAS 29
	9M19	9M20	9M19 IAS 29 9M20 IAS 29
			IAS 29 Adjustment							IAS 29 Adjustment	EBITDA Margin

SERVICE REVENUES	EBITDA EVOLUTION
Million of P$
Million of P$

Historical Figures	Inflation Adjusted	-5%
(modeling purposes)	Figures		-8%
			-4%
+39%		204,441	197,044
				133.765
		75.213	17.404		+2%
		208.220
129.228	179.640
					74.455
9M19	9M20	9M19 IAS 29 9M20 IAS 29	Revenues	Operating Costs	EBITDA
	IAS 29 Adjustment			before D&A	15

EBITDA EVOLUTION & REDUCTION OF OPERATING EXPENSES

												YoY
IFRS, Million of P$					+P$1,747 (+2.4%)					Variation
													150%
89000
											805		130%
79000	72.708	7.397					1.682	1.319	1.530	2.808	74.455
			2.876	705		110%
			2.565	3.004
69000
													90%
59000
													70%
49000
													50%
39000						10%
												30%
29000		-4%			-7%		-7%	-8%	-12%		5%		10%
19000			-19%	-29%						-17%			-10%
9000													-30%
-1000													-50%
	EBITDA 9M19 Ss. Revenues &	Handsets	Handsets Costs	Labor Costs	ITX Costs	Fees for	Taxes	Commisions & Programming &	Others*	EBITDA 9M20
		other income	Sales				services,		Adv	content costs
							maintenance
	EBITDA Margin					and materials
	33.3%			+1.2%	+0.5%	-0.5%	+0.3%	+0.3%	+0.4%	+1.0%	-0.7%	35.8%

AS % OF	3%	19%	4%	10%	8%	5%	7%	8%
REVENUES

* "Others" includes bad debt expenses and other costs

Figures may not sum up due to rounding	16

COLLECTIONS AND NON PERFORMING DEBT

COLLECTIONS PER CHANNEL

		68%	65%	65%	66%	66%	67%
50%	52%	56%
50%	48%	44%
		35%	35%	34%	34%	33%
		32%

Jan-20Feb-20Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20

Digital		In Person

67% of our clients pay on a virtual basis.

NON PERFORMING DEBT EVOLUTION - RETAIL

2,8%		3,1%			3,6%			3,9%
			2,8%			2,6%
2,0%		2,1%
1,8%		2,0%			1,9%			1,3%
	Jan-20	Feb-20	Mar-20	Apr-20	May-20	Jun-20	Jul-20	Aug-20	Sep-20
TOTAL 2.4%		2.4%			2.7%			2.3%

* Non performing debt ratio: Mobile and Fixed Telephony = (NP debt expense / Billing of 120 days), Cable TV and Internet = (NP debt expense / Billing of 30 days)	17

CONSOLIDATED RESULTS

OPERATING INCOME

IFRS, Million of P$, Percentage

Historical Figures	Inflation Adjusted
(modeling purposes)	Figures
IAS 29 Adjustment
+59%		-1%
	19,672	19,393

42.657

26.866

-7.194-23.264

	9M19	9M20	9M19 IAS 29	9M20 IAS 29
OPERATING
INCOME	19%	22%	9%	9%
MARGIN

NET LOSS

IFRS, Million of P$, Percentage

Historical Figures	Inflation Adjusted
(modeling purposes)	Figures

-1.249

-11.684

-17.347

-22.330

9M19

9M20

9M19 IAS 29 9M20 IAS 29

18

CAPEX

CAPEX*

Million of P$

-37%

55.236

34.980

9M19 IAS 29 9M20 IAS 29

TECHNICAL CAPEX BREAKDOWN

45%

36%	11%
	8%
Network and Technology	Installations and CPE
International Capex	Other

3Q20 HIGHLIGHTS

More than 50 new sites were deployed and more than 300 were modernized.

1,400 FTTH blocks were enabled, reaching more than 180 thousand new HHPP during 9M20.

We continue to replace our copper networks with fiber.

The capacity of more than 440 nodes of the HFC access network was expanded, mainly through segmentation of service areas.

Personal's network achieved the Highest Excellent Consistent Quality and fastest median download and upload speed in Argentina (according to an independent crowdsourced data company)

* CAPEX considers investments in PP&E and Intangible Assets

19

CASH FLOW

FCF GENERATION 9M19	FCF GENERATION 9M20
Million of P$	Million of P$

72,708	-55,236				74,455	-34,980
		16,638	34,110	-1,847	32,263		-691	38,784	-1,138		37,646
EBITDA	CAPEX *	WK & Others	OFCF	Taxes	FCF
					EBITDA	CAPEX *	WK & Others	OFCF	Taxes	YoY	FCF
					IFRS, Million					Variation
						+P$5,383 MM

U$S
954		-725		218		447		-24		423		977		-459		-9		509		-15		494
MM**

IFRS, Million

* CAPEX considers investments in PP&E and Intangible Assets

YoY

Variation

+U$S71 MM

* *Figures in constant pesos as of September 30, 2020 converted at the BNA ask rate (76.18)

20

KEY FIGURES

	In P$ Million	LTM Sep-20	FY19
	Revenues	279,892	289,854
	EBITDA	96,012	94,265
	Gross Debt**	171,151	185,416
	Cash & Financial Investments	39,438	33,227
	Cash & cash equivalents	21,092	31,284
	Fin. investments in bonds & notes	16,453	1,666
	Fin. investments in local managed funds	1,109	78
	Fin. investments in time deposits & others	784	199
	Net Debt**	131,713	152,189
	Capex*	58,607	78,863
	EBITDA-Capex*	37,405	15,402
	Ratios	LTM Sep-20	FY19
	EBITDA Margin	34.3%	32.5%
	Interest Coverage	6.61x	7.17x
	Gross Debt / EBITDA	1.78x	1.97x
	Net Debt / EBITDA	1.37x	1.62x
				21
* CAPEX considers investments in PP&E and Intangible Assets		** Excludes NDF

LIABILITY MANAGEMENT (AUGUST AND SEPTEMBER 2020)

NOTES DUE 2021

NOTES DUE 2025

• Exchanged for 32% in cash and 70% par to par Notes due 2025.
• Holders validly tendered U$S362.2 MM (77.74% of the outstanding 2021 Notes).
• Total cash consideration paid: U$S 119.2 MM*
• The Noteholders' Meeting held on August 5 approved certain amendments to the 2021 Notes' Indenture.
• Amount: U$S 388.9 MM.
• Coupon: 8.5% semi-annual.
• Amortization: 33% in 2023, 33% in 2024 and 34% in 2025.

NEW MONEY

IFC LOANS

IIC + IDB LOANS

• U$S 135.4 MM mainly to refinance the Deutsche Bank loan.
• Extension of 85% of the principal to be paid in 2021 (between 24 - 48 months).
• Prepayment of the remaining 15%.
• Extension of 85% of the principal to be paid in 4Q20 and 2021 (between 24 - 66 months).
• Prepayment of the remaining 15%.

U$S

329.3

MM

*Includes accrued interest and related expenses

22

DEBT MATURITY PROFILE AFTER LIABILITY MANAGEMENT

Breakdown by Instrument*	2020	2021	2022	2023	2024	2025	2026	2027	Total (U$S)
(million)
C l a s s	A N o t e s	2 0 2 1		104							104
C l a s s	1 N o t e s	2 0 2 6							400		400
C l a s s	5 N o t e s	2 0 2 5				128	128	132			389
V e n d o r F i n a n c i n g	7	28	29	18	4				86
I F C L o a n				100	85					185
I F C N e w L o a n				88	88	82	38			297
I I C L o a n				25	21					46
Te r m L o a n d u e 2 0 2 2			140						140
F i n n v e r a		6	11	11	11	11	11	6		68
I D B L o a n				110	84	20	15	11	3	242
N ú c l e o ( G U A )			9	9	9	26	14			67
L o c a l N o t e s ( A R S )		58							58
O t h e r	( A R S )		9	130							139
To t a l			21	341	512	444	271	211	417	3	2,221

BREAKDOWN BY CURRENCY	9	9
(U$S mm)*
	9
	9	187	503	436
	145

U$S		ARS		GUA
26	14	417
245
197	3

13
2020	2021	2022	2023	2024	2025	2026	2027

*Figures may not sum up due to rounding.

23

LATEST REGULATORY DEVELOPMENTS

• In May, due to COVID-19 our industry has agreed jointly with ENACOM to freeze the price of our products until the end of August 2020.
• In August, Decree N° 690/2020 further extended said freeze until December of 2020, while also declaring ICT services as essential public services.
• In addition, both the inclusive plans and the reduced services mentioned below will be provided to clients. In the case of the reduced services, these will only be provided to clients who have not paid their invoices on time.

CLIENTS WITH	<3% of total clients	RECOVERY RATE	>70%
REDUCED SERVICES

INCLUSIVE PLANS 1

REDUCED SERVICES 2

Mobile	Includes 500MB of mobile internet data, messaging apps	Limited browsing to .edu.ar, .uba.ar, .gob.ar, gov.ar domains and
(WhatsApp) -textonly-, 500 SMS, 300 minutes of calls	websites	educ.ar	and	codoacodo.com.ar,	messaging	app
Postpaid	within our network and 50 minutes available for other	(WhatsApp) -textonly-, 300 SMS, 300 minutes of calls within our
	operators' networks.	network and 50 minutes available for other operators' networks.
Mobile	Includes messaging apps (WhatsApp) -textonly-, 300	Includes messaging app (WhatsApp) -textonly-, 300 SMS, limited
SMS, 100 minutes of calls within our network and 50	browsing to .edu.ar, .uba.ar, .gob.ar, gov.ar domains and websites
Prepaid	minutes available for other operators' networks. Credit	educ.ar and codoacodo.com.ar, 100 minutes of calls within our
	will remain available for not less than 30 calendar days.	network and 50 minutes available for other operators' networks.
Broadband	Speed of 5Mbps.	Speed up to 2Mbps.
Pay TV		Access to 64 channels.
Fixed Voice		300 minutes of calls to other fixed lines.

Estimated impact of reduced services on overall ARPU

	9M20
-3.4%	Mobile

-1.3%	Broadband
-0.6%	Pay TV
-3.5%	Fixed Voice

1 Under request with fixed prices until December 31, 2020
2 Guarantees connectivity with price maintenance until December 31, 2020	24

Investor Relations Contact

Telephone: [phone]

E-mail: [e-mail]