Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — FY2023 Earnings Presentation
22 slides from Telecom Argentina Sa Class B's earnings presentation, March 2024
Slide 1: Telecom Argentina FY23 & 4Q23 Earnings Release
Telecom Argentina FY23 & 4Q23 Earnings Release March 2024
Slide 2: Disclaimer
DISCLAIMER 1 This presentation does not constitute an offer to sell or the solicitation of any offer to buy any securities of Telecom Argentina S.A. (the “Company”), in any jurisdiction. Securities may not be offered or sold in the United States absent registration with the U.S. Securities Exchange
Slide 3: Disclaimer
DISCLAIMER 2 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 abil
Slide 4: Overview of our FY23: Operational and Financial highlights
OVERVIEW OF OUR FY23 | Operational and Financial highlights 3 EBITDA MARGIN MOBILE PERSONAL PAY FY23 4Q23 as of December 2023 28.1% ⇧ 4% y/y +2 MM Effective cost management & better Data Usage ⇧ 11% onboarded clients pass trough of inflation to revenues #2 Fintech in Argentina considering total remu
Slide 5: FY23 in Figures
FY23 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 2.5 0.7 28.1% U$S BN* U$S BN* 21.0 3.4 4.1 Million mobile Million pay TV Million broadband subscribers in Argentina subscribers** subscribers 2.9 2.3 46% Million fixed Million convergent of broadband clients subscribers *** unique clients are also mobi
Slide 6: Price Increases since 4Q23
PRICE INCREASES SINCE 4Q23 5 MOBILE Monthly price increases in line with inflation Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 INFLATION Prepaid Postpaid FY23: 211.4% Jan-24: 20.6% PAY TV SERVICE REVENUES Δ% Y/Y Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 211.4% Pay TV subscription services Additional s
Slide 7: Business Evolution in Argentina: Accesses
BUSINESS EVOLUTION IN ARGENTINA | Accesses (in thousands) 6 Δ% Q/Q suscribers trend Prepaid Postpaid Δ% Y/Y 1.2% 1.2% 1.2% MOBILE 11,567 12,860 8,677 8,144 +11.2% 0.7% 0.6% Increase in total mobile subscribers. Prepaid -6.1% Total mobile subs. 4Q22 4Q23 Postpaid 4Q22 1Q23 2Q23 3Q23 4Q23 0.1% 0.2% 4,
Slide 8: Revenues Breakdown
REVENUES BREAKDOWN 7 SERVICE REVENUES REVENUES BREAKDOWN REVENUES COMPOSITION Million of P$ Billion of P$ Mobile Δ Y/Y HISTORICAL FIGURES (MODELING PURPOSES) 40.3% Other 18 19 +6% Other 108% 0.9% Handsets Handsets 151 153 +1% 7.4% Broadband 1,045,989 502,556 Fixed & 21.8% Fixed & Data 277 244 -12% D
Slide 9: Core Business: Mobile, Broadband, Pay Television
CORE BUSINESS 8 MOBILE BROADBAND PAY TELEVISION ✓ Almost 98% 4G/LTE Almost 65% of Argentina’s homes urban coverage and is our IP video platform, are passed throughout our network. great NPS. with the best experience ✓ Positive clients inflow. 85% of clients with speeds ≥ 100 Mb ✓ Mobile data usage +
Slide 10: Regional Operations: Paraguay key figures
REGIONAL OPERATIONS 9 Paraguay key figures REVENUES EBITDA EBITDA -1.7% -2% Margin 49% 210 206 103 101 Net debt to EBITDA FY22 FY23 FY22 FY23 0.03x Paraguay SUSCRIBERS* billetera personal Mobile: 2.3M (+4%) Pay TV: 106k Fintech: 288k Broadband: 274k (+16%) (+12%) (-1%) Cybersecurity Chile Uruguay Pa
Slide 11: Our Digital Business Ecosystem
OUR DIGITAL BUSINESS ECOSYSTEM 10 - B2B Connectivity Our Digital Wallet Smarthome & domotics initiatives High-speed broadband + 2 million onboarded clients (+176% y/y) Provides services, solutions & equipment Security aimed to: Cybersecurity solutions + P$ 110BN in clients’ remunerated account balan
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS 11 REVENUES EBITDA Million of P$ Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) -9% 29.1% 28.1% 1.2 35. 0% 27.6% 27.5% +110% 2,270,728 2,059,101 1 30. 0% 25. 0% 623,998 579,396 0.8
Slide 13: IAS 29 EBITDA FY22 – FY23
IAS 29 EBITDA FY22 – FY23 12 IFRS, Million of P$ Y/Y Variation 660000 -P$44,602 (-7.1%) 200% 650000 640000 30,925 630000 620000 610000 9,134 600000 26,269 590000 580000 570000 16,171 560000 550000 16,934 540000 54,368 530000 150% 520000 510000 500000 490000 16,742 480000 1,760 470000 460000 450000 4
Slide 14: Consolidated Results
CONSOLIDATED RESULTS 13 OPERATING INCOME (LOSS) NET LOSS IFRS, Million of P$ IFRS, Million of P$ HISTORICAL FIGURES INFLATION ADJUSTED FIGURES HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) (MODELING PURPOSES) IAS 29 Adjustment +170% 85,136 (109,942) 230,053 (249,687) (125,065) (6
Slide 15: FY23 Capex Highlights
FY23 CAPEX 14 HIGHLIGHTS CAPEX* +22.9% Million of P$ 483,198 229 new sites were deployed and another 173,373 1,418 sites were upgraded. 393,209 309,825 We expanded our FTTH network over FY22 IAS 29 FY23 IAS 29 15,297 new blocks. 5G Spectrum CAPEX U$S MM** 713 598 Upstream capacity in the HFC network
Slide 16: Cash Flow
CASH FLOW 15 FCF GENERATION FY22 FCF GENERATION FY23 Million of P$ Million of P$ FCF Generation FY23 623,998 579,396 (ex-5G spectrum) in US$ MM** 717 407 401 6 383 74 316,477 284,938 EBITDA CAPEX * WK & OFCF Taxes FCF Others 31,539 155,713 150,592 393,209 85,688 5,121 483,198 59,515 EBITDA CAPEX * W
Slide 17: Key Figures
KEY FIGURES 16 In U$S Million1 FY23 FY22 Revenues 2,547 4,116 EBITDA 717 1,131 CAPEX3 598 713 Gross Debt2 2,632 2,648 Cash & Equivalents 344 275 Net Debt2 2,288 2,373 EBITDA-CAPEX3 119 419 Ratios FY23 FY22 EBITDA Margin 28.1% 27.5% Interest Coverage 9.91 13.4 Gross Debt / EBITDA4 3.67 2.34 Net Debt
Slide 18: Main Impacts in Our Figures and Debt
MAIN IMPACTS IN OUR FIGURES AND DEBT 17 The FX increase of +132% in one day in Dec-23 impacted our figures measured in US dollars*. FX VS. INFLATION EBITDA NET DEBT Devaluation in real terms Partial impact Almost constant The magnitude and 1,093 2,260 2,288 The 5G spectrum has Dec, 13th: -34% FX +13
Slide 19: Debt Maturity Profile
DEBT MATURITY PROFILE | Principal payments 18 Breakdown by instrument* 2024 2025 2026 2027 ≥2028 Total (U$S million) Cross-Border Notes Class 1 Notes 2026 400 400 Class 5 Notes 2025 128 132 261 Vendor Financing 17 10 3 1 31 We cover over 50% of IFC 2016 31 31 25 7 94 our consolidated debt IFC 2019 8
Slide 20: FX Resiliency: Balance Sheet
FX RESILIENCY 19 BALANCE SHEET Assets Liabilities US$ 2.8 Bn* in Physical assets → PP&E Denominated valued in In P$ P$ Valued in US$ 50% Liabilities Denominated Cash position → ≈ 80-90% in US$ assets 60% Assets with In U$S market value Shareholders’ In U$S Equity INCOME STATEMENT & FLOWS of our inte
Slide 21: Final Remarks
FINAL REMARKS 20 1 EBITDA Margin Upholding our EBITDA Margin in a challenging context. 1 28.1% 27.5% In the fixed segment, we managed to stabilize our customer base in a strong competitive environment FY22 FY23 2 TEO avg. cost of debt UST 10y Investing in new technologies - 5G & FTTH - to improve ou
Slide 22: telecom | personal | flow
telecom | personal | flow “~~