Slide 1: Telecom Argentina 1Q22 Earnings Release Presentation
Telecom Argentina Telecom Argentina 1Q22 EarningsCompany ReleasePresentation – 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 1Q22 Operational and Financial highlights
OVERVIEW OF OUR 1Q22 Operational and Financial highlights We have achieved an EBITDA Margin of 34.7% for the first We are currently negotiating the refinancing of our main quarter 2022 debt maturity this year which amounts to USD140MM Our annual capex for 2022 will be closer to USD600mm We have laun
Slide 5: 1Q22 in Figures
1Q22 IN FIGURES Revenues EBITDA EBITDA Margin 1.1 U$S BN* 0,4 U$S BN* 34.7% Million mobile Million 20.2 subscribers in Argentina 3.5 Million Pay TV subscribers 4.2 broadband subscribers Million Of broadband 2.3 Million fixed subscribers * * 2.1 convergent unique clients 50% 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% 1Q22 Inflation: Housing water, electricity and other fuels 9.4% 16,1% Restaurants and hotels 9.0% Healthcare 8.0% Recreation and culture 7.3% Mar-22 Inflation: Home furnishing
Slide 7: Price Increases During 2022
PRICE INCREASES DURING 2022 Jan-22 Apr-22 Jan-22 Apr-22 Postpaid Pay TV Mobile Mobile +15%* +11%** Pay TV subscription +13% +12%*** services Prepaid Additional Up to Mobile +16%* +11% services 15% +12% Jan-22 Apr-22 Jan-22 Apr-22 Broadband Broadband xDSL services +16% +12% Fixed Voice Basic +16% +12
Slide 8: Business Evolution in Argentina
BUSINESS EVOLUTION IN ARGENTINA Accesses (In thousands) Mobile Prepaid Postpaid 10,930 11,851 8,312 +8,4% YoY - Prepaid Increase in postpaid and 7,866 prepaid segments +5,7% YoY - Postpaid 1Q21 1Q22 Broadband 4,172 4,238 Steady performance, +1,6% YoY growing on HFC and FTTH 1Q21 1Q22 3,525 3,535 Acc
Slide 9: Revenues Breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUES BREAKDOWN Million of P$ Handsets Other -8,6% 6.8% 0.8% Fixed & Data 12.6% Mobile 38.7% 119,612 109,378 Pay TV 18.6% 1Q21 IAS 29 1Q22 IAS 29 Broadband 22.5% REVENUES COMPOSITION Billion of P$ 45.4 47.3 26.4 27.1 21.8 25.9 14.8 18.4 8.0 8.4 1.0 0.9 Mobile B
Slide 10: Mobile & Broadband
MOBILE & BROADBAND POSITIVE POSTPAID CLIENTS INFLOW(LTM1Q22) MOBILE DATA USAGE In Thousand GBOU/ MONTH Source: ADB Postpaid Share of +16% 41% Total Mobile Peer 1 Personal Peer 2 7 Clients 2 2 1 9 0 4 4 16 7 11 14 12 11 12 11 8 8 8 7 -1 -2 1 -2 5 4.3 5.0 -8 -9 -6 -6 -10 -12 -12 -14 -13 -10 -12 -19 -1
Slide 11: Overview of Our Networks
OVERVIEW OF OUR NETWORKS ➢ BROADBAND NETWORK Almost HFC FTTH • The best coverage in the country 60 % HHPP • Great performance in terms of throughout the country speed 85 Mbps 88 Mbps Average Speed Average Speed ➢ MOBILE NETWORK • We continue being the fastest Almost 98% Best Upload Speed network in
Slide 12: Paraguay
PARAGUAY Revenues EBITDA Revenues Breakdown Million of U$S Million of U$S Internet 17% Others +2% +4% 12% TV 8% Núcleo (Paraguay) Data 67.5% 51 52 23 24 6% Voice 15% Browsing 1Q21 1Q22 1Q21 1Q22 42% Subscribers Fixed Network Internet subscribers (as of March - 22) Capacity (in thousands) (thousands
Slide 13: Personal Pay – Highlights
PERSONAL PAY – HIGHLIGHTS Growth stage value proposal TPN 76,209 109,814 ➢ Benefits in strategic shops Onboarded Clients Total (supermarket, cinemas, restaurants, gas stations) Payment Number 5.1x vs Dec - 21 ➢ The best Fintech to perform recharges for a prepaid customer (cashbacks, recharge increas
Slide 14: 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% -8% 37.8% 35.8% 36.4% 128.036 70, 000 34.7% 117.372 60, 000 35. 0% 6,792 50, 000 46.602 40.691 30. 0%
Slide 15: IAS 29 EBITDA 1Q21 – 1Q22
IAS 29 EBITDA 1Q21 – 1Q22 YoY -P$5.911 (-13%) Variation 60000 200% IFRS, Million of P$ 50000 150% 983 372 1,938 1,916 57 1,366 40000 1,440 100% 10,234 430 439 30000 46,602 24% 50% 20000 40,691 -9% -1% 2% -5% -5% -13% -10% -21% 0% 10000 -28% 0 -50% EBITDA 1Q21 Ss. Revenues & Handsets Handsets Costs L
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 +35% 94% +70% -85% 25,383 18,8
Slide 17: 1Q22 Capex
1Q22 CAPEX CAPEX* -25% HIGHLIGHTS Million of P$ 7 new sites were deployed, more than 20 22,034 were built and another 180 sites were 16,536 upgraded 1Q21 IAS 29 1Q22 IAS 29 U$S MM** 198 164 We added 2.537 FTTH blocks considering expansions and overlay over TECHNICAL CAPEX BREAKDOWN our HFC network U
Slide 18: Cash Flow
CASH FLOW FCF GENERATION 1Q21 FCF GENERATION 1Q22 Million of P$ Million of P$ 46,602 40,691 20,176 19,725 22,034 16,536 4,392 451 14,726 14,005 9,429 721 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF YoY Variation IFRS, Million -P$5.720 U$S 178 -149 133 -6 126 4
Slide 19: Key Figures
KEY FIGURES In P$ Millions LTM1Q22 FY21 Revenues 483,204 493,868 EBITDA 148,191 154,102 Gross Debt** 298,448 309,226 Cash & Equivalents 46,593 35,558 Net Debt** 251,855 273,668 Capex 93,800 99,298 EBITDA-Capex* 54,392 54,805 Ratios LTM1Q22 FY21 EBITDA Margin 30.7% 31.2% Interest Coverage 10.17 8.33
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% 18.3% 18.4% 16.8% 17.2% 2.7% 13.9% 14.5% 14.1% 1.7% 1.8% 1.9% 1.3% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Gross Debt / LTM EBITDA Net Debt / LTM EBITDA 2.0
Slide 21: Debt Maturity Profile as of March 2022
DEBT MATURITY PROFILE AS OF MARCH 2022 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 28 28 14 7 1 76 IFC Loan 13 20 31 31 25 7 126 IFC New Loan 44 88 82 38 253 IIC Loan 17 17 35 Term Loan du
Slide 22: telecsm | personal | flow
telecsm | personal | flow “~~