Slide 1: Telecom Argentina 4Q22 & FY22 Earnings Release
Telecom Argentina 4Q22 & FY22 Earnings Release March 2023 Best IR Team – Telecom (2022) - Telecom Argentina
Slide 2: Disclaimer
DISCLAIMER 1 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
Slide 3: Disclaimer
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
Slide 4: Overview of our FY22: Operational and Financial highlights
OVERVIEW OF OUR FY22 | Operational and Financial highlights 3 Our EBITDA Margin during FY22 was 27.5%. Main Our mobile subscriber base continues to grow, with a pressure comes from our labor cost, which was strong postpaid performance. Mobile data usage mitigated by our cost management in other item
Slide 5: FY22 in Figures
FY22 IN FIGURES 4 REVENUES EBITDA EBITDA MARGIN 4.1 1.1 27.5% U$S BN* U$S BN* 20.2 3.5 4.1 Million mobile Million pay TV Million broadband subscribers in Argentina subscribers subscribers 3.0 2.1 52% Million fixed Million convergent of broadband clients subscribers * * unique clients are also mobile
Slide 6: Inflation Evolution
INFLATION EVOLUTION 5 Weighing within the index Food and non-alcoholic beverages 26.9% Transport 11.0% FY22 Inflation: Clothes and Shoes 9.9% 94.8% Housing water, electricity and other fuels 9.4% Restaurants and hotels 9.0% Jan-23 Inflation: Healthcare 8.0% 6% Recreation and culture 7.3% Home furnis
Slide 7: Price Increases during 2022 and 2023
PRICE INCREASES DURING 2022 and 2023 6 FY22 Inflation : 94.8% Jan 22 : 6% MOBILE JAN-22 APR-22 JUL-22 SEP-22 NOV-22 JAN-23 MAR-23 Postpaid Mobile +15%1 +11%2 +13%3 +18% +17% +18% +9% Prepaid Mobile +16%1 +11% +7% Up to 16% Up to 20% +17% +14% PAY TV JAN-22 APR-22 JUL-22 OCT-22 JAN-23 MAR-23 Pay TV s
Slide 8: Business Evolution in Argentina: Accesses
BUSINESS EVOLUTION IN ARGENTINA | Accesses (in thousands) 7 Prepaid Postpaid D YoY MOBILE 11,925 11,567 Increase in postpaid segment 8,205 8,677 -3.0% Prepaid and in our recharging prepaid client base +5.7% 4Q21 4Q22 Postpaid 4,248 4,116 BROADBAND Growth in HFC and FTTH accesses, partially offsettin
Slide 9: Revenues Breakdown
REVENUES BREAKDOWN 8 SERVICE REVENUES REVENUE BREAKDOWN REVENUES COMPOSITION Million of P$ Billion of P$ D YoY Other Handsets 6.7% 0.8% Other 4.5 5.8 +28% -12% Fixed & Data 12.2% Handsets 58.0 48.6 -16% Mobile 40.2% Fixed & Data 114.8 89.0 -22% 770,790 Pay TV 680,561 18.0% Pay TV 160.8 130.9 -19% Br
Slide 10: Mobile & Broadband
MOBILE & BROADBAND 9 POSITIVE POSTPAID CLIENTS INFLOW (FY22) MOBILE DATA USAGE In Thousand / Source: ADB GBOU/ Month +20% Peer 1 Personal Peer 2 1°Place 6 43% 33 63 44 Postpaid 6 17 -3 Share of -5 -15 Total Mobile -38 5.1 -58 -50 Clients 4.2 1Q22 2Q22 3Q22 4Q22 FY21 FY22 BROADBAND ACCESSES BY NETWOR
Slide 11: Paraguay
PARAGUAY 10 REVENUES EBITDA REVENUES BREAKDOWN Million of U$S Million of U$S Broadband +0.5% +2% 18% Others 11% Pay TV 8% 67,5% Núcleo (Paraguay) 209 210 101 103 Mobile FY21 FY22 FY21 FY22 63% SUBSCRIBERS FIXED NETWORK INTERNET SUBSCRIBERS (As of December- 22) CAPACITY (In thousands) (Thousands home
Slide 12: Personal Pay
PERSONAL PAY 11 HIGHLIGHTS & NEW FEATURES ONBOARDED CLIENTS The best Fintech for our customers 728,617 without consuming mobile data X49 Benefits in strategic shops 20% are clients from other Interest remuneration on our clients' telco operators account balance 14,799 New client loyalty program Dec-
Slide 13: Company Strategy
COMPANY STRATEGY 12 • Maintain our client base and lead in revenue share (NPS – prices) CORE • Increase the eficiency of our network & operations CAPITAL BUSINESS • Our assets - Unlock value STRUCTURE • Regionalization • Fintech - Personal Pay • Risk reduction DIGITAL • Smarthome o Cross border expo
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS 13 REVENUES EBITDA Million of P$ Million of P$ HISTORICAL FIGURES (MODELING INFLATION ADJUSTED FIGURES HISTORICAL FIGURES (MODELING INFLATION ADJ. FIGURES PURPOSES) PURPOSES) 150 000 31.9% 31.2% -12% 35. 0% 27.6% 27.5% +51% 149 999.8 30. 0% 828,831 729,182 149 999.6 25. 0% 258,6
Slide 15: IAS 29 EBITDA FY21 – FY22
IAS 29 EBITDA FY21 – FY22 14 IFRS, Million of P$ YoY Variation 260000 -P$58,241 (-23%) 200% 250000 240000 230000 2,022 220000 210000 10,650 7,274 150% 3,348 200000 190000 6,291 7,790 180000 170000 7,832 90,229 160000 3,799 100% 9,420 150000 140000 130000 120000 258,621 110000 200,380 50% 100000 9000
Slide 16: Consolidated Results
CONSOLIDATED RESULTS 15 OPERATING INCOME NET (LOSS) INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage HISTORICAL FIGURES INFLATION ADJUSTED HISTORICAL FIGURES INFLATION ADJUSTED (MODELING PURPOSES) FIGURES (MODELING PURPOSES) FIGURES IAS 29 Adjustment +35% 19,362 63,167 85,164 (
Slide 17: FY22 Capex
FY22 CAPEX 16 CAPEX* HIGHLIGHTS Million of P$ -24.2% 195 new sites were deployed and more 166,646 than 1,400 sites were upgraded 126,269 FY21 IAS 29 FY22 IAS 29 We expanded our FTTH network over 10,600 new blocks. Additionally, we U$S MM** 941 713 performed an overlay with FTTH in 6,600 blocks of ou
Slide 18: Cash Flow
CASH FLOW 17 FCF GENERATION FY21 FCF GENERATION FY22 Million of P$ Million of P$ 258,621 200,380 109,739 105,317 101,628 91,500 4,422 166,646 17,764 10,128 126,269 27,489 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF U$S 1.293 -833 89 549 -22 527 1.131 -713 155
Slide 19: Key Figures
KEY FIGURES 18 In U$S Million* FY22 FY21 Revenues 4,116 4,142 EBITDA 1,131 1,293 CAPEX 713 833 Gross Debt*** 2,648 2597 Cash & Equivalents 275 298 Net Debt*** 2,373 2,298 EBITDA-Capex** 419 459 Ratios FY22 FY21 EBITDA Margin 27.5% 31.2% Interest Coverage 15.2 8.3 Gross Debt / EBITDA 2.34 2.01 Net De
Slide 20: Proforma Debt Maturity Profile
PROFORMA DEBT MATURITY PROFILE 19 Breakdown by Instrument* 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 29 16 9 2 56 IFC 2016 20 31 31 25 7 114 IFC 2019 88 82 38 208 IFC 2022 17 34 34 101 185 IIC Loan 17 17 35 Finnvera
Slide 21: 2022 Transactions
2022 TRANSACTIONS 20 Telecom Argentina – Export credit Telecom Argentina – Class 12 facility guaranteed by EDC Notes due 2027 US$22,722,400 2022 TRANSACTIONS Up to US$ 23,367,200 (pesos – dollar linked) January 3, 2022 March 9, 2022 Telecom Argentina – Class 13 Telecom Argentina – IFC Loan Notes due
Slide 22: Environmental, Social and Governance - ESG
ENVIRONMENTAL, SOCIAL AND GOVERNANCE - ESG 21 ENVIRONMENTAL SOCIAL GOVERNANCE Our target for Renewable Energy 22% by the end of 2023 2022 Independence 100% of our audit committee is independent Δ% (2022 VS. 2021) Compensation Tied to performance Total Energy Consumption (in GJ) -7% Electricity consu
Slide 23: telecom | personal | flow
telecom | personal | flow “~~