Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — 4Q21 Earnings Presentation
23 slides from Telecom Argentina Sa Class B's earnings presentation, March 2022
Slide 1: Telecom Argentina 4Q21 Earnings Release
Telecom Argentina Telecom Argentina 4Q21 Earnings Release Company Presentation – September 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
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: Overview of our FY21 Operational and Financial highlights
OVERVIEW OF OUR FY21 Operational and Financial highlights Our main brands were consolidated under Telecom, Telecom Our subsidiary in Paraguay is very solid. Revenues and Personal, and Flow EBITDA in hard currency continued increasing Our prices were increased according to local inflation Our main de
Slide 5: FY21 in Figures
FY21 IN FIGURES Revenues EBITDA EBITDA Margin 4.1 U$S BN* 1.3 U$S BN* 31.2% Million mobile Million 20.1 subscribers in Argentina 3.6 Million Pay TV subscribers 4.2 broadband subscribers Million Of broadband 2.4 Million fixed subscribers * * 2.1 convergent unique clients 49% clients also are mobile c
Slide 6: Inflation Evolution
INFLATION EVOLUTION Weighing within the index Food and non-alcoholic beverages 26.9% Transport 11.0% Clothes and Shoes 9.9% FY21 Inflation: Housing water, electricity and other fuels 9.4% 50,9% Restaurants and hotels 9.0% Healthcare 8.0% Recreation and culture 7.3% Jan-22 Inflation: Home furnishing
Slide 7: Price Increases During 2021 and January 2022
PRICE INCREASES DURING 2021 AND JANUARY 2022 2021 Jan-22 2021 Jan-22 Mobile Postpaid Mobile plans +50% +15%* Pay TV Pay TV subscription services +43% +13% Up to Up to Up to Prepaid Mobile 50% +16%* Additional services 49% 15% 2021 Jan-22 2021 Jan-22 Broadband xDSL services +42% +16% Broadband Fixed
Slide 8: Business Evolution in Argentina
BUSINESS EVOLUTION IN ARGENTINA Accesses (In thousands) Mobile Prepaid Postpaid 10.722 11.925 8.205 +11,2% YoY - Prepaid Increase in postpaid and 7.711 prepaid segments +6,4% YoY - Postpaid 4Q20 4Q21 Broadband 4.158 4.248 Steady performance, +2,2% YoY growing on HFC and FTTH 4Q20 4Q21 3.546 3.563 Ac
Slide 9: Revenues Breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUE BREAKDOWN Million of P$ Handsets Other -7,7% 7,0% 0,5% Fixed & Data 13,8% Mobile 37,9% 428.665 395.697 Pay TV 19,4% FY20 IAS 29 FY21 IAS 29 Broadband 21,3% REVENUES COMPOSITION Billion of P$ 161,1 171,1 90,8 97,0 89,9 82,6 58,9 68,8 29,8 26,6 2,3 1,9 Mobil
Slide 10: Mobile & Broadband
MOBILE & BROADBAND POSITIVE POSTPAID CLIENTS INFLOW(FY21) MOBILE DATA USAGE In Thousand GBOU/ MONTH Source: ADB Postpaid Share of +8% 41% Total Mobile Peer 1 Personal Peer 2 6,7 Clients 1,0 2,0 16,5 6,8 1,4 2,4 0,3 3,9 13,9 12,4 12,3 11,4 10,8 10,6 2,3 7,6 9,4 7,6 8,0 -0,9 8,1 -1,7 4,4 1,4 -1,7 3,9
Slide 11: Overview of Our Networks
OVERVIEW OF OUR NETWORKS ➢ BROADBAND NETWORK ➢ FLOW EXPERIENCE ➢ MOBILE NETWORK The best coverage network in the Flow is a meeting point for Fastest network in the country with great performance in entertainment country* with: terms of speed HFC Almost 98% Video 4G/LTE urban coverage 81 Mbps Average
Slide 12: Paraguay
PARAGUAY Revenues EBITDA Revenues Breakdown Million of U$S Million of U$S Internet +11% +22% TV 15% Others 8% 9% Data Núcleo 7% (Paraguay) 186 206 100 67.5% 82 Voice 16% FY20 FY21 FY20 FY21 Browsing 45% Subscribers Fixed Network Internet subscribers (as of December-21) Capacity (in thousands) (thous
Slide 13: 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 34,3% 34,1% +39% -7% 200 .000 31,9% 31,2% 455.234 35, 0% 425.493 180 .000 155.301 30, 0% 132.767 160 .000 6
Slide 14: IAS 29 EBITDA FY20 – FY21
IAS 29 EBITDA FY20 – FY21 YoY -P$22.534 (-15%) Variation IFRS, Million of P$ 180000 200% 170000 160000 7.654 150000 1.648 150% 3.227 2.004 1.494 140000 130000 1.725 398 120000 110000 32.968 4.158 3.558 100% 100000 90000 80000 155.301 70000 25% 132.767 50% 60000 -8% 12% 4% -6% 50000 -10% -1% -6% -5%
Slide 15: Evolution of Our Main Business Drivers
EVOLUTION OF OUR MAIN BUSINESS DRIVERS EVOLUTION OF INFLATION, SERVICE REVENUES, SERVICE COSTS AND LABOR COSTS DURING 2021 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% -10,0% -20,0% Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Inflation Service Revenues Serv
Slide 16: Consolidated Results
CONSOLIDATED RESULTS OPERATING INCOME (LOSS) NET INCOME (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 +22% -109% 9.940 63.167
Slide 17: FY21 Capex
FY21 CAPEX CAPEX* +1,7% HIGHLIGHTS 2021 Million of P$ 212 new sites were deployed, and more than 2,221 sites were upgraded 84.124 85.550 FY20 IAS 29 FY21 IAS 29 We expanded our FTTH network over 10.600 U$S new blocks. Additionally, we performed an MM** 819 833 overlay with FTTH in 4.400 blocks of ou
Slide 18: Cash Flow
CASH FLOW FCF GENERATION FY20 FCF GENERATION FY21 Million of P$ Million of P$ 155.301 132.767 586 71.763 68.897 56.336 54.066 84.124 2.866 9.119 2.270 85.550 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF YoY Variation IFRS, Million -P$14.831 U$S 671 -833 548 -22
Slide 19: Key Figures
KEY FIGURES In P$ Millions FY21 FY20 Revenues 425,493 455,234 EBITDA 132,767 155,301 Gross Debt** 266,736 301,389 Cash & Equivalents 30,635 35,960 Net Debt** 236,101 265,429 Capex 85,550 84,124 EBITDA-Capex* 47,217 71,177 Ratios FY21 FY20 EBITDA Margin 31.2% 34.1% Interest Coverage 8.33 7.16 Gross D
Slide 20: Evolution of Key Ratios
EVOLUTION OF KEY RATIOS Bad Debt / Revenues CAPEX / Revenues 4,1% 3,8% 3,6% 3,6% 20,1% 18,5% 18,3% 18,4% 16,8% 17,2% 13,9% 14,5% 1,7% 1,8% 1,9% 1,3% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Gross Debt / LTM EBITDA Net Debt / LTM EBITDA 2,05 1,82 1,78 2,04 2,03
Slide 21: Debt Maturity Profile as of December 2021
DEBT MATURITY PROFILE AS OF DECEMBER 2021 Total (U$S) Breakdown by Instrument* 2022 2023 2024 2025 2026 >=2027 (million) Class 1 Notes 2026 400 400 Class 5 Notes 2025 128 128 132 389 Vendor Financing 35 25 11 4 77 IFC Loan 25 20 31 31 25 7 139 IFC New Loan 88 88 82 38 297 IIC Loan 17 17 35 Term Loan
Slide 22: 2021 Transactions
2021 TRANSACTIONS Telecom Argentina - Class 8 Núcleo (Paraguay) - Series IV Núcleo (Paraguay) - Series V Notes due 2025 Notes due 2028 Notes due 2031 $8.708.598.672 Gs.130.000.000.000* Gs.120.000.000.000** 133.628.950 UVA January 20, 2021 March 10, 2021 March 10, 2021 Telecom Argentina - Export cred
Slide 23: telecsm | personal | flow
telecsm | personal | flow “~~