21 slides from Telecom Argentina Sa Class B's earnings presentation, November 2021
Slide 1: Telecom Argentina 3Q21 Earnings Release
Telecom Argentina Telecom Argentina 3Q21 Earnings Release Company Presentation – 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: Inflation adjustment accounting note
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 3Q21 Operational and Financial Highlights
OVERVIEW OF OUR 3Q21 Operational and Financial highlights Our main brands have been consolidated under Telecom, Our support to our employees in terms of COVID 19 has been Telecom Personal, and Flow and will continue to be a priority We have been able to increase prices during 2021 and therefore to r
Slide 5: 9M21 in Figures
9M21 IN FIGURES Revenues EBITDA EBITDA Margin 3.0 U$S BN* 1.0 U$S BN* 32.6% Million mobile Million 19.5 subscribers in Argentina 3.6 Million Pay TV subscribers 4.2 broadband subscribers Million Of broadband 2.5 Million fixed subscribers * * 2.1 convergent unique clients 49% clients also are mobile c
Slide 6: New Corporate Image & Rebranding
NEW CORPORATE IMAGE & REBRANDING Broadband Mobile ➢ Connection everywhere ➢ Convergence Fixed Voice Pay TV ➢ Meeting point for entertainment ➢ Access to international streaming platforms B2B ➢ Digital solutions for companies and public entities 5
Slide 7: Inflation Evolution
INFLATION EVOLUTION Weighing within the index Food and non-alcoholic beverages 26.9% Transport 11.0% Clothes and Shoes 9.9% YoY Inflation: Housing water, electricity and other fuels 9.4% 52.5% Restaurants and hotels 9.0% Healthcare 8.0% 9M21 Recreation and culture 7.3% Inflation: Home furnishing and
Slide 8: Price Increases of September 2021
PRICE INCREASES OF SEPTEMBER 2021 All Pay TV services Mobile +10% Postpaid Mobile plans Pay TV +8% including Premium services +9% Prepaid Mobile +19% Football pack Broadband services Broadband +10% with speeds up to 25Mbps (mainly xDSL Fixed Voice +10% Basic services services) Broadband services +8%
Slide 9: Business Evolution in Argentina
BUSINESS EVOLUTION IN ARGENTINA Accesses (In thousands) Mobile Prepaid Postpaid 10.924 11.389 +4,3% YoY - Prepaid Increase in postpaid and 7.730 8.133 prepaid participation +5,2% YoY - Postpaid 3Q20 3Q21 Broadband 4.185 4.248 Steady performance, +1,5% YoY growing on HFC and FTTH 3Q20 3Q21 3.568 3.56
Slide 10: Revenues Breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUE BREAKDOWN Million of P$ Handsets Other -9% 7,1% 0,2% Fixed & Data 14,0% Mobile 37,9% 300.436 272.173 Pay TV 19,6% 9M20 IAS 29 9M21 IAS 29 Broadband 21,2% REVENUES COMPOSITION Billion of P$ 121,5 110,9 62,1 67,2 62,1 57,4 48,7 41,1 20,8 17,0 0,7 0,9 Mobile
Slide 11: Mobile & Broadband
MOBILE & BROADBAND POSITIVE POSTPAID CLIENTS INFLOW(LTM9M21) MOBILE DATA USAGE In Thousand GBOU/ MONTH Source: ADB Postpaid Share of +10% 42% Total Mobile Peer 1 Personal Peer 2 Clients 1 24 1 1 11 4 2 22 13 17 7 0 4 14 6 2 8 9 8 -8 8 -9 -1 8 14 -2 1 12 3.8 4.2 -14 -10 -12 -12 -14 -23 -19 -19 -6 -38
Slide 12: Overview of Our Networks
OVERVIEW OF OUR NETWORKS ➢ BROADBAND NETWORK ➢ FLOW EXPERIENCE ➢ MOBILE NETWORK The best coverage network in the Flow is a meeting point for Fastest network in the country with great performance in entertainment country* with: terms of speed HFC Almost 98% Video 4G/LTE urban coverage 74 Mbps Average
Slide 13: Paraguay
PARAGUAY Revenues EBITDA Revenues Breakdown Million of U$S Million of U$S Internet -1% 14% Others +7% TV 12% 8% Núcleo Data (Paraguay) 167 166 77 6% 67.5% 72 Voice 16% 9M20 9M21 9M20 9M21 Browsing 44% Subscribers Fixed Network Internet subscribers (as of September-21) Capacity (in thousands) (thousa
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 +36% -8% 36,2% 35,8% 317.476 292.983 150 .000 33,5% 32,6% 35, 0% 34.845 113.522 130 .000 127.581 30, 0% 110
Slide 15: IAS 29 EBITDA 9M21 – 9M20
IAS 29 EBITDA 9M21 – 9M20 YoY -P$18.124 (-16%) Variation IFRS, Million of P$ 200% 110000 7.365 1.006 100000 90000 3.770 1.024 1.444 774 150% 80000 28.263 3.719 1.389 136 70000 100% 113.522 60000 34% 95.398 50000 22% 50% 40000 -9% 2% 0% -6% -4% 30000 -9% -6% -28% 0% 20000 10000 0 -50% EBITDA 9M20 Ss.
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 +15% 1.025 -96% -2.647 -1.904
Slide 17: 9M21 Capex
9M21 CAPEX CAPEX* +1,1% HIGHLIGHTS Million of P$ 53.334 53.900 120 new sites were deployed, and more than 1,500 sites were upgraded 9M20 IAS 29 9M21 IAS 29 U$S 7,200 FTTH blocks were commercially MM** 540 546 enabled and another 2,500 blocks were built TECHNICAL CAPEX BREAKDOWN Upstream capacity in
Slide 18: Cash Flow
CASH FLOW FCF GENERATION 9M20 FCF GENERATION 9M21 Million of P$ Million of P$ 95.398 113.522 59.064 57.329 41.401 39.873 53.334 1.124 1.735 53.900 97 1.528 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF YoY Variation IFRS, Million -P$17.456 U$S 581 -546 419 -15 4
Slide 19: Key Figures
KEY FIGURES In P$ Millions LTM3Q21 FY20 Revenues 388,567 413,060 EBITDA 122,789 140,913 Gross Debt** 248,522 273,470 Cash & Equivalents 25,291 34,508 Net Debt** 223,231 238,962 Capex 76,895 76,329 EBITDA-Capex* 45,894 64,584 Ratios LTM3Q21 FY20 EBITDA Margin 31.6% 34.1% Interest Coverage 8.40 7.16 G
Slide 20: Debt Maturity Profile as of September 2021
DEBT MATURITY PROFILE AS OF SEPTEMBER 2021 Total (U$S) Breakdown by Instrument* 2021 2022 2023 2024 2025 2026 >=2027 (million) Class 1 Notes 2026 400 400 Class 5 Notes 2025 128 128 132 389 Vendor Financing 8 35 25 11 4 82 IFC Loan 100 85 185 IFC New Loan 88 88 82 38 297 IIC Loan 25 21 46 Term Loan d
Slide 21: teleccm | personal | flow
teleccm | personal | flow “~~