Slide 1: Earnings Release
Earnings Release March 2021 Best Telecom Services Provider Telecom Argentina – Argentina Best Investor Relations Telecom Company Telecom Argentina - Argentina
Slide 2: Disclaimer
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 continu
Slide 3: Disclaimer: inflation adjustment under Resolution 777/18
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 Decemb
Slide 4: Agenda
AGENDA 01 02 03 BUSINESS FINANCIALS Q&A HIGHLIGHTS 3
Slide 5: FY20 Highlights
FY20 HIGHLIGHTS Revenues EBITDA EBITDA Margin 3.6 U$S Bn* 1.2 U$S Bn* 34.1% Million mobile 18.4 subscribers in Argentina 3.5 Million Pay TV subscribers Million Million 4.1 broadband subscribers 2.8 fixed voice subscribers Million Of broadband 1.9 convergent unique clients 45% clients with mobile bun
Slide 6: Our achievements in 2020
Our achievements in 2020 Leveraging on our Digital Strong OPEX Leader in network to offer transformation & reduction Argentina’s the best connectivity IT projects telecommunications & quad play market Our business has New initiatives: Capital structure been resilient to a IOT, Fintech, Mi improvemen
Slide 7: Strongly leveraged on our network & products
STRONGLY LEVERAGED ON OUR NETWORK & PRODUCTS BROADBAND NETWORK FLOW EXPERIENCE MOBILE NETWORK The fastest and best coverage Flow becomes an Increase in postpaid share network in the country: “entertainment marketplace” Initiating deployment of 5G Flow Now: mobile sites New digital subscription Faste
Slide 8: IT projects & digital transformation
IT PROJECTS & DIGITAL TRANSFORMATION #Fan Cloud Foundation BSS Transformation Cloud Adoption Framework All prepaid lines have been migrated, +10 The electronic wallet of our Fintech initiative million clients are active in #FAN. has been uploaded to the AWS cloud Switch New Digital Experience Progra
Slide 9: 2020 Regulatory events & recent developments
2020 REGULATORY EVENTS & RECENT DEVELOPMENTS March 2020 May 2020 August 2020 ➢ Price freeze until December 31, Decree ➢ Obligation to provide Agreement ➢ Price freeze until Decree 2020. reduced services August 31, 2020. 311/2020 (until Dec-20*) w/ ENACOM 690/2020 ➢ Declares ICT services as essential
Slide 10: Price increases as of January 2021
PRICE INCREASES AS OF JANUARY 2021 Mobile +5% Mobile plans with 1Gb of mobile data. Pay TV +20% All Pay TV services including Premium services (HBO & Mobile plans with FOX). +20% more than 1Gb of mobile data. +25% Football pack. Broadband services with Broadband +10% speeds up to / equal to Fixed Vo
Slide 11: Business evolution in Argentina
BUSINESS EVOLUTION IN ARGENTINA Accesses (In thousands) Prepaid Postpaid Increase in 11,266 10,722 +0.6% YoY 7,666 7,711 postpaid participation -4.8% YoY 4Q19 4Q20 4,123 4,146 Steady +0.6% YoY performance, growing on HFC 4Q19 4Q20 3,294 3,319 Recovery based +0.8% YoY on Flow 4Q19 4Q20 3,303 3,168 Re
Slide 12: Revenues breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUES BREAKDOWN Million of P$ Million of P$ -6% 5.8% 0.4% 15.1% 37.6% 303,030 283,994 19.8% EE19 IAS 29 EE20 IAS 29 21.3% REVENUES COMPOSITION Mobile Broadband Pay TV Billion of P$ Fixed & Data Handsets Other 113.3 111.9 71.7 67.3 64.2 59.6 45.6 51.1 17.6 19.7
Slide 13: Drivers of growth: mobile & broadband
DRIVERS OF GROWTH: MOBILE & BROADBAND POSITIVE MOBILE CLIENTS INFLOW (FY20) MOBILE DATA USAGE In Thousand Source: ADB Postpaid Share of Total +19% 42% Mobile 7 Clients 11 14 1 24 40 1 9 7 20 22 21 24 22 13 17 +200 bps YoY -3 -10 10 -18 7 -8 15 14 6 -19 2 -19 3.6 4.3 -31 -18 -24 -23 -36 -14 -38 -47 4
Slide 14: Drivers of growth: Flow
DRIVERS OF GROWTH: FLOW Flow is our IP video platform with the best experience 70MM 17% Flow App Views during 4Q20 83% Flow Box 5MM 7.70 hours Connected devices Average usage per client during 4Q20 FLOW BOXES & APP In Thousand 1,202 1,307 1,221 1,397 Flow Now: 1,170 971 956 1,021 1,048 1,078 New dig
Slide 15: Drivers of growth: Paraguay
DRIVERS OF GROWTH: PARAGUAY Revenues EBITDA Revenues Breakdown Million of U$S Million of U$S +1%* +14%* 9.0% 7.1% 11.8% Browsing 9.7% Núcleo Voice (Paraguay) Data 67.5% 187 190 73 83 TV Internet 19.9% Others FY19 IAS 29 FY20 IAS 29 FY19 IAS 29 FY20 IAS 29 42.5% Subscribers Fixed Network Internet sub
Slide 16: Inflation evolution
INFLATION EVOLUTION Weighing within the index Food and non-alcoholic beverages 26.9% YoY Inflation: Transport 11.0% 36.1% 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% 4Q20 Home furnishing and maintenanc
Slide 17: Revenues and EBITDA
REVENUES EBITDA Million of P$ Million of P$ Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes) Figures -7% +36% -2% +33% 322,686 301,596 180 000 33.2% 34.3% 32.5% 34.1% 35. 0% 44,315 160 000 128,505 104,942 30. 0% 140 000 120 0
Slide 18: EBITDA evolution & reduction of operating expenses
EBITDA EVOLUTION & REDUCTION OF OPERATING EXPENSES YoY IFRS, Million of P$ Variation -P$2,374 (-2.3%) 150% 139000 130% 104,942 110% 119000 19,036 4,379 562 102,888 2,009 2,641 1,016 3,211 90% 3,502 4,872 2,054 99000 70% 79000 50% 10% 59000 30% -6% 2% -10% -8% -9% -8% -13% 10% -18% 39000 -24% -10% 19
Slide 19: Collections and non-performing debt
COLLECTIONS AND NON-PERFORMING DEBT COLLECTIONS PER CHANNEL 68% 65% 65% 66% 66% 67% 66% 67% 67% DIGITAL 67% 50% 52% 56% CHANNELS 50% 48% We have strenghtened our digital 44% 32% 35% 35% 34% 34% 33% 34% 33% 33% collection channels throughout the year. Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
Slide 20: Operating income & net results
OPERATING INCOME & NET RESULTS OPERATING INCOME NET LOSS IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes) Figures IAS 29 Adjustment +45% -6% 21,503 20,294 -5,293
Slide 21: FY20 Capex
FY20 CAPEX – U$S 662 MILLION CAPEX* Million of P$ 4Q20 HIGHLIGHTS -37% More than 89 new sites were deployed and the capacity and security of more 89,156 than 200 sites was upgraded. 55,372 1,850 blocks were enabled with FTTH FY19 IAS 29 FY20 IAS 29 fixed access technology. U$S 1,059 662 MM** The cap
Slide 22: Cash flow: positive evolution in 2020
CASH FLOW: POSITIVE EVOLUTION IN 2020 FCF GENERATION FY19 FCF GENERATION FY20 Million of P$ Million of P$ 104,942 -89,156 102,888 -55,732 29,282 45,068 -2,374 42,694 1,841 48,997 -1,899 47,098 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF YoY Variation IFRS, Mil
Slide 23: Key figures & ratios
KEY FIGURES & RATIOS In P$ Million FY20 FY19 Revenues 301,596 322,686 EBITDA 102,888 104,942 Gross Debt** 199,673 206,418 Cash & Financial Investments *** 25,196 36,992 Cash & cash equivalents 4,645 2,339 Fin. investments in bonds & notes 6,764 1,856 Fin. investments in local managed funds 10,239 31
Slide 24: Liability management transactions in 2020
LIABILITY MANAGEMENT TRANSACTIONS IN 2020 During 2020, we have cancelled U$S 200 million and refinanced more than U$S 770 million of our financial debt. • Exchanged for 32% in cash and 70% par to par Notes due 2025. NOTES DUE 2021 • Holders validly tendered U$S362.2 MM (77.74% of the outstanding 202
Slide 25: December 2020 & January 2021 financings
DECEMBER 2020 & JANUARY 2021 FINANCINGS Succesful issuance in the local market of peso denominated notes Date of Issuance December 10, 2020 December 10, 2020 January 20, 2021 Denomination Class VI Class VII Class VIII Currency Pesos Amount Issued P$1.9 billion (U$S 23.6 million) P$7.8 billion (U$S 9
Slide 26: Debt maturity profile as of December 2020
DEBT MATURITY PROFILE AS OF DECEMBER 2020 Total (U$S) Breakdown by Instrument* 2021 2022 2023 2024 2025 2026 2027 (million) Class A Notes 2021 104 104 Class 1 Notes 2026 400 400 Class 5 Notes 2025 128 128 132 389 Ve n d o r F i n a n c i n g 30 30 19 5 85 IFC Loan 100 85 185 IFC New Loan 88 88 82 38
Slide 27: Investor Relations Contact
Investor Relations Contact E-mail: relinver@teco.com.ar