Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q2 2022 Earnings Presentation
22 slides from Telecom Argentina Sa Class B's earnings presentation, August 2022
Slide 1: Telecom Argentina Company Presentation
Telecom Argentina Company Presentation August 2022 Best IR Team – Telecom (2022) Telecom 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 2
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 2Q22 Operational and Financial highlights
OVERVIEW OF OUR 2Q22 Operational and Financial highlights Our EBITDA Margin during 1H22 was 30.6%. We continue We have launched Ubiquo, our cybersecurity company to perform cost management to reduce the impact of rising labor costs We have acquired the company Negocios y Servicios S.A Our capex for
Slide 5: 1H22 in Figures
1H22 IN FIGURES Revenues EBITDA EBITDA Margin 2.1 U$S BN* 0.6 U$S BN* 31% Million mobile Million 20.1 subscribers in Argentina 3.5 Million Pay TV subscribers 4.2 broadband subscribers Million Of broadband 2.2 Million fixed subscribers * * 2.1 convergent unique clients 50% clients also are mobile cli
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% 1H22 Inflation: Housing water, electricity and other fuels 9.4% 36,2% Restaurants and hotels 9.0% Healthcare 8.0% Recreation and culture 7.3% Jun-22 Inflation: Home furnishing
Slide 7: Price Increases During 2022
PRICE INCREASES DURING 2022 Jan-22 Apr-22 Jul-22 Jan-22 Apr-22 Jul-22 Postpaid Pay TV +15%1 +11%2 +13%3 subscription +13% +12%4 +12%4 Mobile Mobile Pay TV services Up to Prepaid +16%1 +11% +7% Additional +12% +12% Mobile services 15% Jan-22 Apr-22 Jul-22 Jan-22 Apr-22 Jul-22 Broadband Basic Broadban
Slide 8: Business Evolution in Argentina
BUSINESS EVOLUTION IN ARGENTINA Accesses (In thousands) Mobile Prepaid Postpaid 11.202 11.694 8.368 +4,4% YoY - Prepaid Increase in postpaid and 8.054 prepaid segments +3,9% YoY - Postpaid 2Q21 2Q22 Broadband 4.234 4.228 Steady performance, -0,1% YoY growing on HFC and FTTH 2Q21 2Q22 3.545 3.517 Acc
Slide 9: Revenues Breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUE BREAKDOWN Million of P$ Handsets Other -10% 6,4% 0,8% Fixed & Data 12,6% Mobile 39,2% 273.990 247.527 Pay TV 18,5% 1H21 IAS 29 1H22 IAS 29 Broadband 22,4% REVENUES COMPOSITION Billion of P$ 103,7 109,6 59,3 61,6 58,5 48,8 42,5 33,4 17,1 21,2 2,2 1,9 Mobile
Slide 10: Mobile & Broadband
MOBILE & BROADBAND POSITIVE POSTPAID CLIENTS INFLOW(LTM2Q22) MOBILE DATA USAGE In Thousand GBOU/ MONTH Source: ADB Postpaid Share of +14% 42% Total Mobile Peer 1 Personal Peer 2 Clients 2 2 10 4 7 29 9 21 14 4 12 11 12 11 16 7 13 8 7 5 1 -12 -2 -12 -6 -14 -13 -19 -10 -2 -6 -10 -16 -12 -14 -11 -18 -3
Slide 11: Paraguay
PARAGUAY Revenues EBITDA Revenues Breakdown Million of U$S Million of U$S Internet 18% Others +4% 12% TV 8% Núcleo (Paraguay) 104 104 Data 67.5% 48 50 6% Voice 15% Browsing 1H21 1H22 1H21 1H22 42% Subscribers Fixed Network Internet subscribers (as of June - 22) Capacity (in thousands) (thousands hom
Slide 12: Personal Pay
PERSONAL PAY Onboarded Clients Highlights x3,1 234.958 TPN ➢ Our mobile clients can always use Personal Pay without 294,726 consuming data Total x5,1 Payment Number 76.209 ➢ The best Fintech for our prepaid and postpaid customers 14.799 (cashbacks, recharge increases, saving in monthly bill payments
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 +40% 295.198 -10% 35,2% 34,0% 264.577 150 .000 31,2% 30,6% 35, 0% 130 .000 100.445 30, 0% 33.412 130.351 11
Slide 14: IAS 29 EBITDA 1H21 – 1H22
IAS 29 EBITDA 1H21 – 1H22 YoY -P$19.599 (-19,5%) Variation IFRS, Million of P$ 200% 110000 100000 2.780 150% 3.858 90000 2.665 1.715 80000 2.914 2.484 2.602 26.463 70000 100% 60000 4.158 2.792 50000 100.445 50% 15% 80.846 5% 40000 -10% -9% -19% -11% -10% 30000 20000 -20% -18% -26% 0% 10000 0 -50% EB
Slide 15: Evolution of Our Main Business Drivers 1H22
EVOLUTION OF OUR MAIN BUSINESS DRIVERS EVOLUTION OF INFLATION, SERVICE REVENUES, SERVICE COSTS AND SALARIES Inflation 1H22 Service Revenues Service Costs Salaries Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Price Increases Note: takes into account the evolution of monthly figures during
Slide 16: 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 +24% -198% 42.943 31.879 34.52
Slide 17: 1H22 Capex
1H22 CAPEX CAPEX* -28,3% HIGHLIGHTS Million of P$ 30 new sites were deployed, more than 53.939 40 were built and another 500 sites were 38.693 upgraded 1H21 IAS 29 1H22 IAS 29 We expanded our FTTH network over U$S 3,125 new blocks. Additionally, we MM** 431 309 performed an overlay with FTTH in 2,81
Slide 18: Cash Flow
CASH FLOW FCF GENERATION 1H21 FCF GENERATION 1H22 Million of P$ Million of P$ 100.445 80.846 41.241 35.701 39.880 38.693 32.092 53.939 5.265 1.361 6.452 3.609 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF YoY Variation IFRS, Million -P$7.788 U$S 318 -309 285 -29
Slide 19: Key Figures
KEY FIGURES In U$S Million* LTM2Q22 FY21 Revenues 4,382 4,626 EBITDA 1,287 1,443 Gross Debt*** 2,703 2,900 Cash & Equivalents 210 333 Net Debt*** 2,492 2,567 Capex 808 930 EBITDA-Capex** 479 513 Ratios LTM2Q22 FY21 EBITDA Margin 29.4% 31.2% Interest Coverage 12.4 8.3 Gross Debt / EBITDA 2.10 2.01 Ne
Slide 20: Evolution of Key Ratios
EVOLUTION OF KEY RATIOS Bad Debt / Revenues CAPEX* / Revenues 4,1% 3,6% 3,8% 3,6% 20,1% 18,5% 18,4% 16,8% 17,2% 18,3% 2,7% 13,9% 14,5% 14,1% 14,6% 2,4% 1,7% 1,8% 1,9% 1,3% 1Q20 1H20 9M20 FY20 1Q21 1H21 9M21 FY21 1Q22 1H22 1Q20 1H20 9M20 FY21 1Q21 1H21 9M21 FY21 1Q22 1H22 Gross Debt / LTM EBITDA Net
Slide 21: Proforma Debt Maturity Profile
PROFORMA DEBT MATURITY PROFILE Breakdown by Instrument* 2022 2023 2024 2025 2026 >=2027 Total (U$S million) Class 1 Notes 2026 400 400 Class 5 Notes 2025 128 128 132 389 Vendor Financing 19 29 15 8 1 72 IFC 2016 13 20 31 31 25 7 126 IFC 2019 44 88 82 38 253 IFC 2022 17 34 34 101 184 IIC Loan 17 17 3
Slide 22: telecsm | personal | flow
telecsm | personal | flow “~~