Slide 1: Company Presentation
TELECOM ARGENTINA Company Presentation August 2020
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 notice
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: Agenda
AGENDA 01 02 03 BUSINESS FINANCIALS Q&A HIGHLIGHTS 3
Slide 5: Mid Year Highlights
MID YEAR HIGHLIGHTS Revenues EBITDA EBITDA Margin 1,861 U$S mm* 679 U$S mm* 36.5% Million mobile 18.8 subscribers in Argentina 3.5 Million Pay TV subscribers Million Million 4.1 broadband subscribers 3.0 fixed voice subscribers Million Of broadband 1.8 convergent unique clients 43% clients with mobi
Slide 6: IT Transformation Projects
IT TRANSFORMATION PROJECTS DIGITAL CORE IMPLEMENTATION In June, the Company consolidated its backend processes and core capabilities, involving Backend Transformation +6,000 users trained through webinars and internal trainings. NEW CRM & DIGITAL EXPERIENCE #Fan The third and fourth migrations of ou
Slide 7: Revenues Breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUES BREAKDOWN Million of P$ Million of P$ -1% 5,0% 0,3% 15,3% 37,7% 126.457 124.658 20,1% 1H19 IAS 29 1H20 IAS 29 21,6% REVENUES COMPOSITION Mobile Broadband Pay TV Billion of P$ Fixed & Data Handsets Other 49,4 45,7 28,4 30,6 28,6 26,4 20,1 21,1 6,5 8,8 0,4
Slide 8: Drivers of Growth
DRIVERS OF GROWTH MOBILE DATA USAGE POSITIVE CLIENTS INFLOW (1H20) In Thousand Source: ADB Postpaid +20% Share of Total 41% Mobile Clients in 479 452 Argentina 27 3.3 4.0 Port in Port out Net 2Q19 2Q20 Peer 1 Personal Peer 2 BROADBAND SPEEDS FLOW BOXES In Thousand Includes of clients with Flow’s cli
Slide 9: Latest Developments – ENACOM & BCRA
LATEST DEVELOPMENTS – ENACOM & BCRA In May, due to COVID-19 our industry has agreed jointly with ENACOM to freeze the tariffs of our products until the end of August 2020. In addition, both the inclusive plans and the reduced services mentioned below will be provided to clients. In the case of t
Slide 10: Inflation Evolution
INFLATION EVOLUTION Weighing within the index Food and non-alcoholic beverages 27.0% YoY Inflation: Transport 11.0% 42.8% Clothes and Shoes 9.9% Housing water, electricity and other fuels 9.4% Restaurants and hotels 9.0% Healthcare 8.0% Recreation and culture 7.3% Quarterly Home furnishing and maint
Slide 11: Revenues and EBITDA Evolution
REVENUES EBITDA Million of P$ Million of P$ Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes) Figures -3% +54% +5% 135,272 131,158 37,0% 36,5% +43% 70000 34,3% 33,6% 6.420 35% 47.823 47,852 60000 45,453 30% 50000 1.719 25% 15.
Slide 12: IAS 29 EBITDA 1H20 – 1H19
IAS 29 EBITDA 1H20 – 1H19 YoY IFRS, Million of P$ Variation +P$2,399 (+5.3%) Ss. Revenues & other Handsets Administrative Commercialization EBITDA 1H19 incomes Sales Handsets Costs Operative Expenses Expenses Expenses EBITDA 1H20 150% 59000 1.799 3.621 765 130% 45.453 95 47.852 2.222 2.315 110% 4900
Slide 13: Collections and Non Performing Debt
COLLECTIONS AND NON PERFORMING DEBT COLLECTIONS PER CHANNEL 68% 65% 65% The Company has done an important effort to 52% 56% 50% convince its clients to start paying on a virtual 50% 48% 44% basis. Before the COVID-19 lockdown, 30% 32% 35% 35% of our clients used to pay us in cash. Jan-20 Feb-20 Mar-
Slide 14: Consolidated Results
CONSOLIDATED RESULTS 9M18 IAS 299M19 IAS 29 ∆$ ∆% D&A $ 33,807 $ 38,820 $ 5,013 15% OPERATING INCOME NET INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes)
Slide 15: Capex
CAPEX INVESTMENTS INCLUDING RIGHTS OF USE 2Q20 HIGHLIGHTS Million of P$ -34% More than 39 new sites were deployed, and more than 390 were modernized. 34.433 22.766 2,400 FTTH blocks and 2,300 1Ghz. HFC blocks were enabled. 1H19 IAS 29 1H20 IAS 29 TECHNICAL CAPEX BREAKDOWN The capacity plan of the HF
Slide 16: Cash Flow
CASH FLOW FCF GENERATION 1H19 FCF GENERATION 1H20 Million of P$ Million of P$ 45,453 -30,953 47,852 -18,998 -3,348 25,506 -724 24,782 5,770 20,270 -1,142 19,128 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF YoY Variation IFRS, Million +P$5,654 MM U$S 272 -270 36
Slide 17: Key Figures
KEY FIGURES In P$ Million LTM1H20 FY19 Revenues 265,130 269,244 EBITDA 89,961 87,562 Gross Debt 183,200 172,657 Cash & Equivalents 52,168 30,864 Net Debt 131,032 141,793 Capex* 61,300 73,255 EBITDA-Capex* 28,661 14,307 Ratios LTM1H20 FY19 EBITDA Margin 33.9% 32.5% Interest Coverage 6.35x 7.17x Gross
Slide 18: Debt Breakdown as of June 2020
DEBT BREAKDOWN AS OF JUNE 2020 U$S P$ GUA Total (U$S) (million) (million) (million) (million) Class A Notes 2021 465 - - 465 Class I Notes 2026 400 400 Ve n d o r F i n a n c i n g 94 - - 94 IFC Loan 250 - - 250 IFC New Loan 310 - - 310 IIC Loan 63 - - 63 Te r m L o a n d u e 2 0 2 2 140 - - 140 Deu
Slide 19: Liability Management (August 2020)
LIABILITY MANAGEMENT (AUGUST 2020) • Exchanged for 32% in cash and 70% par to par Notes due 2025. • Holders validly tendered U$S362.2MM (77.74% of the outstanding NOTES DUE 2021 2021 Notes). • Total cash consideration paid: U$S 119.2MM* • The Noteholders’ Meeting held on August 5 approved certain am
Slide 20: Proforma Debt Maturity Profile
PROFORMA DEBT MATURITY PROFILE Total (U$S) Breakdown by Instrument* 2020 2021 2022 2023 2024 2025 2026 (million) Class A Notes 2021 104 104 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 15 29 29 18 3 94 IFC Loan 50 100 100 250 IFC New Loan 88 88 88 45 310
Slide 21: Investor Relations Contact
Investor Relations Contact Telephone: (5411) 4968 3628 E-mail: relinver@teco.com.ar