Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q4 2018 Earnings Presentation
26 slides from Telecom Argentina Sa Class B's earnings presentation, March 2019
Slide 1: Telecom Argentina Earnings Release March 2019
TELECOM a TELECOM ARGENTINA Earnings Release March 2019
Slide 2: Disclaimer
DISCLAIMER This presentation may include statements that could constitute forward-looking statements, including, but not limited to, the Company's and it’s management expectations for the Company's future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity a
Slide 3: Disclaimer
DISCLAIMER The merger between Telecom and Cablevision was considered an inverse acquisition under IFRS 3 (Business Combinations], with Cablevisidn being the surviving entity for accounting purposes. Thus, for the purposes of preparing the consolidated financial statements of Telecom Argentina as of
Slide 4: Agenda
AGENDA MACRO OVERVIEW STRATEGY BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 5: Agenda: Macro Overview
AGENDA [[facrooverviw STRATEGY BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 6: Macro evolution so far and where we stand
PRE-EVENT CURRENCY EVENT 1 STABILIZATION 1 41,25 2741 3772 35,95 28,85 — 1865 1965 20, 2015 2054 24,96 Dec17 Jan48 Feb8 Mar-l8 Apri8 Source: Bloomberg May-18 Jungs JuH8 Augl8 Sepi8 Argentina classified as “highly inflationary”: Application of IAS 29 65% MACRO -EVOLUTION SO FAR AND WHERE WE STAND: F
Slide 7: Macro evolution: activity, consumption, unemployment
PRE-EVENT CURRENCY EVENT STABILIZATION 8 R 1 I 1 [4 ! s6 YO) L} 4Qi7 1a18 ! 2018 sa18 | > 4Q18E Source: INDEC & Bloomberg Consensus l —— 8% ! 40% 38% | ! 1 i] 96% o> I a ———_ 30% I c> 9.0% et INEMPLOYMEN MACRO - EVOLUTION so 1 I 1 SO FAR AND WHERE ' WE STAND: 4ai7 rol 2018 3018 1 1 ! T I 1 i) i) 1 t
Slide 8: Agenda
AGENDA | MACRO OVERVIEW 11 BUSINESS HIGHLIGHTS FINANCIALS Q&A
Slide 9: Company Transformation
COMPANY TRANSFORMATION TELECOM 4PLAY NPS PROVIDER [did , CUNY ee LEADERS ISION AND STRATEGY COVERAGE & CONVERGENT NETWORK SYSTEMS & CAPACITY SERVICES
Slide 10: Vision and Strategy
VISION AND STRATEGY the first trials of bundled services in certain areas of the country v Implementation of q TELECOM ia, Y Significant NPS improvement over the year, mainly in the mobile services COVERAGE & NETWORK CAPACITY Y Biggest sites deployment inthe history of the Company Y Continuous expan
Slide 11: Agenda
AGENDA | MACRO OVERVIEW ||| STRATEGY TPUSNESSHGHIGHIS ||| FINANCIALS Q&A 10
Slide 12: Business highlights: revenues, EBITDA, subscribers
avec P$168.1bn | EBITDA P$564bn Margin:33.5% Fixed Voice ARBU: $219 Broadband ARPU: $623 ARPU Pay TV ARPU: $696 Mobile ARPU: $174 Mobile subs in Argentina : 18.6mm y S Y SUBSCRIBERS figjggeeseameauil 2.2mm Fixed Voice: 3.5mm - |] 4G cuents Pay TV:3.5mm LJ {permonth] CORPOR. ATE > OnDecember 28, 2018
Slide 13: Results by segment (P$ million)
In P$ Million Figures may not sum up due to rounding
Slide 14: Revenue and EBITDA evolution
200,00 20% 190,00 18% 180,00 16% 170,00 14% 160,00 12% 150,00 10% 140,00 08% 130,00 06% 120,00 04% 110,00 02% 100,00 00%
Slide 15: Subscribers and ARPU evolution
In Million 15% 760 13% 710 11% 660 09% 610 07% 560 05% 510 03% 460 01% 410 -01% 360 In Million In Thousand 15% 880 13% 780 11% 09% 680 07% 580 05% 03% 480 01% -01% 380
Slide 16: Capex evolution and breakdown
ICAPEX EVOLUTION | TECHNICAL CAPEX BREAKDOWN | CAPEX BREAKDOWN Million of PS CAPEX: © O 39.938 42.480) Fixed mMobile m Other ™AccessCapex Other Capex Continuous aN RSSUM HB ENOTES las2arr7 18298 SITES REGIONAL DEPLOYMENT Cs to improve our network and PATA 23% Toe 25% | Bos } ~S Ne LITORAL Despite th
Slide 17: Agenda
AGENDA MACRO OVERVIEW STRATEGY || BUSINESS HIGHLIGHTS 11 SS || Qaa 16
Slide 18: IAS 29: Financial statements adjusted for inflation
IAS 29 FINANCIAL STATEMENTS ADJUSTED FOR INFLATION IAS 29 establishes the conditions under which an entity shall restate its financial statements if it is located in an economic environment considered to be “hyperinflationary”. A cumulative inflation rate over three years approaching or exceeding 10
Slide 19: Consolidated proforma figures
70000 31% 60000 26% 50000 21% 40000 16% 30000 11% 20000 06% 10000 0 01% *Consolidated Proforma figures
Slide 20: Consolidated Proforma figures
Consolidated Proforma figures
Slide 21: Operating income and net income
OPERATING INCOME NET INCOME IFRS, Million of P$, Percentage In million of PS FYI7IAS 29 FYI8 IAS 29 A$ FYITIAS 29 FYI8IAS 29 Operating Income $17,715 $21,257 $3,542 Financial Results $3,886 —_-$18,795_-$ 22,681 5% D&A $36,883 $35, $1772 Financial expenses on debt $3192 -$ 33,972 -$ 37,164 Other fina
Slide 22: 2017 figures correspond to sum of Cablevision and Telecom
2017 figures correspond to sum of the parts of Cablevisión and Telecom
Slide 23: Debt in USD million
In USD Million (*) On February 11, 2019 the Company canceled the final amount outstanding under the Original Syndicated Loan for U$S 100 million with its own funds.
Slide 24: Telecom Achievements
ACHIEVEMENTS TELECOM 8 ACHIEVEMENTS Operational and financial reticence tomanage the crisis Sustained profitability amid an adverse context NPS improvement, mainly in the mobile segment Achievement of the necessary funding ata rate inside the sovereign risk il Negotiation of a change in the labor li
Slide 25: Agenda
AGENDA MACRO OVERVIEW STRATEGY BUSINESS HIGHLIGHTS FINANCIALS a 24
Slide 26: Investor Relations Contact
TELECOM Investor Relations Contact Telephone: (541I] 4968 3628 E-mail: relinver@teco.com.ar