Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Merger or Acquisition (July 2017)
14 slides from Telecom Argentina Sa Class B's merger presentation, Jul 7, 2017
Slide 1: Telecom / Cablevisión: Creating a leading multi-platform communications provider in South America
TELECOM 7 July 2017 Cablevision / Creatinga leading multi-platform communications provider in South America
Slide 2: Disclaimer
Disclaimer This presentation may include statements that could constitute forward-looking statements, including, but not limited to Telecom Argentina’s (the “Company”) and it’s management expectations for the Company’s future performance, revenues, income, earnings per share, capital expenditures, d
Slide 3: Transaction overview
Transaction overview The Boards of Telecom Argentina S.A. (“TEO”) and Cablevisión S.A. (“CBV”) have approved a merger-of-equals transaction whereby the two companies combine operations to be at the forefront of the communications industry in Latin America TEO is one of the leading wireless and fixe
Slide 4: Transaction Summary and Capital Ownership
Transaction Summary and Capital Ownership Transaction summary Simplified ownership structures Telecom Argentina S.A. will Pre-transaction structure1 incorporate Cablevisión Class B shares – Total Float S.A. in an all stock Fintech Former Nortel Fintech transaction Pref. Stock ANSeS Float5 CVH Tele
Slide 5: Transaction rationale
4 Transaction rationale 1 Enhancing the ability to better serve our customers Enhanced scale and access to innovations that are driving global telecommunications and multi-product customer service 2 Strengthening Telecom’s position in an evolving market Leadership across product categories and abi
Slide 6: Joining our forces
Joining our forces Over 20mm mobile customers Best NPS and high brand recognition in video and broadband Strong B2B strategy (data management, High capacity broadband network with cloud, etc.) strong presence across the largest cities of Argentina Strong brand recognition of Personal Pay TV client b
Slide 7: Vision and strategic highways of growth for the combined company
Vision and strategic highways of growth for the combined company Vision Create the leading company in convergent solutions that will fulfill the digital life of people and facilitate the digital operations of enterprises and corporations Strategic Highways Mobile Data Center Capabilities • › • • › •
Slide 8: Combined company synergies
Combined company synergies Opex optimization: Savings on rental to other operators in the south and connectivity cost synergies Billing and collection cost savings Cross benefits from Advertising savings technological SG&A optimization exchange of know- Reduction in mobile and fixed mainte
Slide 9: Key figures
8 Key figures Revenues (LTM 1Q17) – US$ Bn1 EBITDA (LTM 1Q17) – US$ Bn1 Others EBITDA margin Services 28.2% 36.1% 31.1% 3.7 0.5 5.9 3.2 1.8 2.2 1.0 0.8 Telecom Cablevision + Pro-forma Telecom Cablevision Pro-forma + Combined revenues breakdown (LTM 1Q17)1 Combined clients by segment in Argentina Dev
Slide 10: Combined Net Debt as of March 31, 2017
Combined Net Debt as of March 31, 2017 In Ar$ Bn TEO CBV Combined Financial Assets 6.2 3.3 9.5 Financial Debt IFC Loan – US$ 400mm (6.0) (1) - (6.0) Notes/Bonds in US$ US$ 78mm (TA) / US$ 500mm (CV) (1.2) (1) (7.7) (8.9) Notes in Ar$ - $ 1,442mm (1.4) (1) - (1.4) Bank Loans in Ar$/US$/Guaranies (0.4
Slide 11: Closing remarks
Closing remarks Enhances our ability to better serve our customers Creates the first fully convergent Telco in Argentina Combines two of the best telecom operators in Argentina with a strong subscriber base and best network quality and coverage Improves financial flexibility to carry out require
Slide 12: Grupo Telecom / Cablevisión
GRUPO TELECOM Cablevision
Slide 13: Appendix
Appendix GRUPO Cablevision 12 TELECOM ablevisio!
Slide 14: Calculation of Exchange Ratio
Calculation of Exchange Ratio Telecom Argentina S.A. shares1 969,159,605 Telecom Argentina S.A. resulting ownership in combined entity 45% New total shares outstanding 2,153,688,011 Shares to be given to Cablevisión S.A. shareholders 1,184,528,406 Total shares outstanding of Cablevisión S.A. 120,000
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