Slide 1: Earnings Release
Earnings Release August 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: Inflation adjustment accounting note
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: Highlights
Highlights We have achieved an EBITDA Margin of 34% for the Our subsidiaries in Paraguay and Uruguay are performing first semester strongly We have decided to increase our 2021 annual capex We have launched our first integrated report for the year to +USD650mm 2020, demonstrating our strong commitme
Slide 5: 1H21 in Figures
1H21 IN FIGURES Revenues EBITDA EBITDA Margin 1,881 U$S mm* 640 U$S mm* 34.0% Million mobile 19.3 subscribers in Argentina 3.5 Million Pay TV subscribers Million Million fixed 4.2 broadband subscribers 2.6 subscribers** Million Of broadband 2.0 convergent unique clients*** 47% clients with mobile bu
Slide 6: Price Increases as of June 2021
PRICE INCREASES AS OF JUNE 2021 All Pay TV services Mobile +10% Mobile plans with 1Gb of mobile data Pay TV +10% including Premium services Mobile plans with +10% more than 1Gb of mobile data +10% Football pack Broadband services with Broadband +15% speeds up to / equal to 25Mbps (mainly Fibertel Fi
Slide 7: Business Evolution in Argentina
BUSINESS EVOLUTION IN ARGENTINA Accesses (In thousands) Prepaid Postpaid Increase in 11,175 11,202 +5.6% YoY 7,629 8,054 postpaid participation +0.2% YoY 2Q20 2Q21 4,107 4,234 Steady +3.1% YoY performance, growing on HFC 2Q20 2Q21 3,500 3,545 Recovery based +1.3% YoY on Flow 2Q20 2Q21 3,205 3,185 Re
Slide 8: Revenues Breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUE BREAKDOWN Million of P$ Handsets Other -11% 7.2% 0.2% Fixed & Data 14.4% Mobile 37.6% 187,236 167,085 Pay TV 19.8% 1H20 IAS 29 1H21 IAS 29 Broadband 20.9% REVENUES COMPOSITION Billion of P$ 74.2 67.6 42.6 39.6 37.5 35.7 25.9 30.2 12.9 9.8 0.4 0.6 Mobile Br
Slide 9: Mobile & Broadband
MOBILE & BROADBAND POSITIVE POSTPAID CLIENTS INFLOW(LTM1H21) MOBILE DATA USAGE In Thousand Source: ADB Postpaid Share of Total +12.2% 42% Mobile 1 Clients 24 9 7 1 1 4 1 22 13 17 0 15 14 7 -8 6 2 8 -14 9 -10 8 8 -9 11 -1 -10 8 -12 3.8 4.2 -24 -23 -19 -19 -8 -38 1H20 1H21 Jul-20 Aug-20 Sep-20 Oct-20
Slide 10: Paraguay
PARAGUAY Revenues EBITDA Revenues Breakdown Million of U$S Million of U$S Internet 14% Others +7%* +16%* TV 13% 8% Núcleo Data (Paraguay) 6% 67.5% 97 103 41 48 Voice 16% Browsing 1H20 1H21 1H20 1H21 43% Subscribers Fixed Network Internet subscribers (as of June-21) Capacity (in thousands) (thousands
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUES EBITDA Million of P$ Million of P$ Historical Figures (modeling purposes) Inflation Adjusted Figures Historical Figures (modeling purposes) Inflation Adj. Figures 37.0% 36.5% +32% 196,999 -9% 35.3% 34.0% 180,018 100 000 164,847 35. 0% 71,873 900 00 15,171 800 00 72,261
Slide 12: IAS 29 EBITDA 1H21 – 1H20
UPDATED IAS 29 EBITDA 1H21 – 1H20 YoY IFRS, Million of P$ Variation -P$10,619 (-14.8%) 71,873 80000 200% 70000 61,254 956 4,702 481 150% 60000 3,170 1,474 265 131 967 -20,151 -2,614 50000 100% 40000 33% 40% 50% 30000 -11% -4% -4% -1% -5% 20000 -7% -7% -31% 0% 10000 0 -50% EBITDA1H20 Ss. Revenues & H
Slide 13: Consolidated Results
CONSOLIDATED RESULTS OPERATING INCOME NET (LOSS) INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes) Figures IAS 29 Adjustment +18% -76% 2,945 34,522 29,365
Slide 14: 1H21 Capex
1H21 CAPEX CAPEX* HIGHLIGHTS Million of P$ +15% 81 new sites were deployed, and more 28,535 32,893 than 1,000 sites were upgraded 1H20 IAS 29 1H21 IAS 29 +4,000 FTTH blocks were commercially U$S MM** 298 344 enabled and another 4,000 blocks were built TECHNICAL CAPEX BREAKDOWN Upstream capacity incr
Slide 15: Cash Flow
CASH FLOW FCF GENERATION 1H20 FCF GENERATION 1H21 Million of P$ Million of P$ 71,873 28,535 61,254 32,893 5,029 38,309 1,087 37,222 3,018 830 25,343 24,513 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF YoY Variation IFRS, Million -P$12,709 U$S 389 -344 265 -9 25
Slide 16: Key Figures
KEY FIGURES In P$ Millions LTM2Q21 FY20 Revenues 360.948 377.929 EBITDA 118.310 128.929 Gross Debt 240.285 250.900 Cash & Equivalents 50.943 31.577 Net Debt 189.342 219.323 Capex* 74.196 69.838 EBITDA-Capex* 44.114 59.091 Ratios LTM2Q21 FY20 EBITDA Margin 32,8% 34,1% Interest Coverage 8,33 7,16 Gros
Slide 17: Debt Maturity Profile as of June 2021
DEBT MATURITY PROFILE AS OF JUNE 2021 Total (U$S) Breakdown by Instrument* 2021 2022 2023 2024 2025 2026 >=2027 (million) 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 16 33 23 9 2 85 IFC Loan 100 85 185 IFC New Loan 88 88 82 38 297 IIC Loan 25 21 46 Te r
Slide 18: Telecom
TELECOM il,