21 slides from Telecom Argentina Sa Class B's earnings presentation, November 2023
Slide 1: Telecom Argentina 9M23 & 3Q23 Earnings Release
Telecom Argentina 9M23 & 3Q23 Earnings Release November 2023 Best IR Team – Telecom (2022) - Telecom Argentina
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 9M23 Operational and Financial highlights
OVERVIEW OF OUR 9M23 | Operational and Financial highlights 3 EBITDA MARGIN 9M23 MOBILE PERSONAL PAY 28.8% 3Q23 As of September, 2023 Effective cost management ⇧ 4% y/y 1.6M Data Usage ⇧ 13% Onboarded clients CAPEX LTM U$S 644 MM 9M23 U$S 421 MM BROADBAND 5G 3Q23 October 2023 We acquired 5G spectrum
Slide 5: 9M23 in Figures
9M23 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 2.95 0.85 28.8% U$S BN* U$S BN* 20.8 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 mo
Slide 6: Price increases since 3Q23 and inflation
PRICE INCREASES SINCE 3Q23 5 MOBILE INFLATION Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 9M23: 103.2% Sept. y/y: 138.3% Prepaid Postpaid PAY TV SERVICE REVENUES Δ% Y/Y 138.3% Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 115.6% 104.3% Pay TV subscription services Additional services 94.8% 83.0% Δ% YoY CPI* BROADBAND -
Slide 7: Business evolution in Argentina: Accesses
BUSINESS EVOLUTION IN ARGENTINA | Accesses (in thousands) 6 D% Q/Q suscribers trend Prepaid Postpaid D% YoY 1.2% 1.2% MOBILE 11,403 12,597 0.7% 8,594 8,160 +10.5% 0.6% Increase in total mobile subscribers Prepaid -0.3% -5.1% Total mobile subs. 3Q22 3Q23 Postpaid 3Q22 4Q22 1Q23 2Q23 3Q23 0.1% 0.2% 4,
Slide 8: Revenues breakdown
REVENUES BREAKDOWN 7 SERVICE REVENUES REVENUE BREAKDOWN REVENUES COMPOSITION Million of P$ Other Billion of P$ Handsets D YoY HISTORICAL FIGURES (MODELING 0.8% 7.3% PURPOSES) Fixed & Data Other 9 -8% 96% 9 11.8% Mobile 40.6% Handsets 73 76 +4% Pay TV 678,666 18.0% 346,333 Fixed & Data 139 121 -13% 9
Slide 9: Mobile & Broadband
MOBILE & BROADBAND 8 POSITIVE POSTPAID CLIENTS INFLOW (3Q23) MOBILE DATA USAGE In Thousand / Source: ADB GBOU/ Month +13% Peer 1 Personal Peer 2 1°Place 17 39% 2 Postpaid 8 9 Share of -3 -1 -3 -7 Total Mobile 4.9 5.6 -2 -7 Clients -15 -4 4Q22 1Q23 2Q23 3Q23 3Q22 3Q23 BROADBAND ACCESSES BY NETWORK TE
Slide 10: Regional operations: Paraguay key figures
REGIONAL OPERATIONS 9 Paraguay key figures REVENUES EBITDA -1.7% 0% 156 154 75 75 3Q22 3Q23 3Q22 3Q23 Paraguay SUSCRIBERS1 billetera personal Mobile: 2,4M (+2%) Pay TV: 104k Fintech: 283k Broadband: 264k (+14%) (+12%) (-2%%) Cybersecurity Chile Uruguay Pay TV: 121k1 (-8%) 1 Number of subscribers in
Slide 11: Our digital business ecosystem
OUR DIGITAL BUSINESS ECOSYSTEM 10 Smarthome & domotics initiatives Digital Wallet – with: B2B Provides services, solutions & equipment > 1.6 million onboarded clients Connectivity aimed to: High-speed broadband > P$ 31 BN in clients’ remunerated account balance • Monitoring Security • Benefits in st
Slide 12: Financial highlights: Revenues and EBITDA
FINANCIAL HIGHLIGHTS 11 REVENUES EBITDA Million of P$ Million of P$ HISTORICAL FIGURES (MODELING INFLATION ADJUSTED FIGURES HISTORICAL FIGURES (MODELING INFLATION ADJ. FIGURES PURPOSES) PURPOSES) 29.6% -8% 29.0% 28.7% 28.8% 1.2 35. 0% +98% 1,122,215 1,030,771 1 30. 0% 25. 0% 322,010 297,354 0.8 350
Slide 13: EBITDA 9M22 – 9M23 (IAS 29)
IAS 29 EBITDA 9M22 – 9M23 12 IFRS, Million of P$ YoY Variation 340000 -P$24.656 (-7.7%) 200% 330000 320000 310000 4,607 9,741 12,548 300000 6,934 290000 280000 270000 260000 27,107 5,027 3,690 150% 250000 240000 2,633 2,866 230000 220000 210000 200000 94,077 100% 190000 180000 322,010 170000 160000
Slide 14: Consolidated results
CONSOLIDATED RESULTS 13 OPERATING INCOME (LOSS) NET (LOSS) INCOME IFRS, Million of P$ IFRS, Million of P$, HISTORICAL FIGURES INFLATION ADJUSTED HISTORICAL FIGURES INFLATION ADJUSTED (MODELING PURPOSES) FIGURES (MODELING PURPOSES) FIGURES IAS 29 Adjustment +142% 62,298 150,611 (51,031) 85,164 (61,56
Slide 15: 9M23 Capex highlights
9M23 CAPEX 14 HIGHLIGHTS CAPEX* -17.5% 97 new sites were deployed and another Million of P$ 1,084 sites were upgraded. 178,438 147,222 We expanded our FTTH network over 9M22 IAS 29 9M23 IAS 29 15,297 new blocks. U$S MM** 508 421 Upstream capacity in the HFC network was improved by 11,598 blocks. TEC
Slide 16: 5G auction: 100 MHz in the 3.5 GHz band
5G AUCTION 15 SPECTRUM WE ACQUIRED 100 MHz IN THE 3.5 GHz BAND 5G DRIVERS Enhanced Mobile Broadband + Speed PRICE US$ 350 MM PAID AT THE OFFICIAL FX RATE Increased connected devices capacity Lower latency FINANCING MAINLY FINANCED USING OUR LATEST IDB INVEST LOAN Increased potential for bundling wit
Slide 17: Cash flow: FCF generation
CASH FLOW 16 FCF GENERATION 9M22 FCF GENERATION 9M23 Million of P$ Million of P$ 322,010 297,354 174,881 172,795 2,086 144,878 129,449 147,222 24,749 178,438 1,306 15,429 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF U$S 917 - 508 4 413 - 44 369 850 - 421 71 500
Slide 18: Debt maturity profile
DEBT MATURITY PROFILE 17 Breakdown by instrument* 2023 2024 2025 2026 ≥2027 Total (U$S million) Class 1 Notes 2026 400 400 Cross-Border Notes Class 5 Notes 2025 128 132 261 Vendor Financing 6 16 9 3 0 35 IFC 2016 31 31 25 7 94 We cover almost 50% of our IFC 2019 82 38 120 consolidated foreign debt I
Slide 19: Key figures
KEY FIGURES 18 In U$S Million1 LTM9M23 FY22 Revenues 3,972 4,116 EBITDA 1,093 1,131 CAPEX 644 713 Gross Debt2 2,649 2,648 Cash & Equivalents 389 275 Net Debt2 2,260 2,373 EBITDA-Capex3 449 419 Ratios LTM9M23 FY22 EBITDA Margin 27.5% 27.5% Interest Coverage 10.77 15.16 Gross Debt / EBITDA4 2.42 2.34
Slide 20: Final remarks
FINAL REMARKS 19 We are increasing the pass through of inflation to our revenues while 1 EBITDA in US$ * minimizing the impact in our customer base. EBITDA +2% 1,093 FX +36% Upholding our EBITDA Margin in a challenging context. 1,068 LTM2Q23 LTM3Q23 Resiliency vs. FX depreciation 1 2 Total Debt Comp
Slide 21: telecom | personal | flow
telecom | personal | flow “~~