Telecom Argentina S A : Financial Statements 4Q25

About this update from Telecom Argentina Sa Class B

TELECOM ARGENTINA S.A. Consolidated Financial Statements as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023. General Hornos 690 (C1272ACK) Autonomous city of Buenos Aires Republic of Argentina F-1 Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Telecom Argentina S.A. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated statements of financial position of Telecom Argentina S.A. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated https://www.pwc.com.ar Price Waterhouse & Co. S.R.L., Bouchard 557, 8 th floor, C1106ABG -Autonomous City of Buenos Aires, Argentina, T: +(54.11) 4850.0000 financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Goodwill Impairment Assessment - CGU Personal Network As described in Notes 3.m), 3.u.1) and 8 to the consolidated financial statements, the Company's consolidated goodwill balance was 4,443,998 million of Argentine pesos in current currency as of December 31, 2025, and the goodwill assigned to the cash generating unit related to operations carried out by the Company and its subsidiaries in Argentina of information and communication technology (ICT) services through the Personal Network ("the CGU Personal Network ") was 4,405,108 million of Argentine pesos in current currency as of December 31, 2025. Management tests for impairment at least annually, at closing date of every year, or more frequently if events or circumstances indicate that the carrying value of the goodwill might be impaired. The carrying value of the goodwill is considered impaired by management when the carrying value of the CGU Personal Network is higher than its recoverable value. The recoverable value of the CGU Personal Network was determined by management through the value in use (VIU). To determine the VIU of the CGU Personal Network , the management used a discounted cash flow model. Management's cash flow projections for the CGU Personal Network included significant judgments and key assumptions relating to revenue projections, long-term growth rate applied to the normalized cash flows used in the terminal value and the discount rate. The principal considerations for our determination that performing procedures relating to the goodwill impairment assessment of the CGU Personal Network is a critical audit matter is the significant judgment applied by management when developing the assessment of the VIU of the CGU Personal Network , which was determined using VIU. This, in turn, led to a high degree of auditor judgment, subjectivity, and effort in performing procedures to assess the VIU of the CGU Personal Network and to evaluate the management's significant assumptions related to revenue projections, long-term growth rate of normalized cash flow used in the terminal value and the discount rate. In addition, the audit effort involved the use of professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence obtained. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the financial statements. These procedures included testing the effectiveness of controls relating to management's goodwill impairment assessment, including controls over the determination of the VIU for the CGU Personal Network. These procedures also included, among others, evaluating the appropriateness of the recoverable value determination for the CGU Personal Network; testing the completeness, accuracy, and relevance of underlying data used in the VIU evaluating the reasonableness of the significant assumptions used by management related to the revenue projections, long-term growth rate of normalized cash flow used in the terminal value and the discount rate. Also, evaluating management's assumptions related to the revenue projections and long-term growth rate of normalized cash flow used in the terminal value used to determine the VIU involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the CGU Personal Network; (ii) the consistency with external market and industry data; and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in the evaluation of the management's discounted cash flow model and the discount rate assumption used to determine the VIU of the CGU Personal Network. Acquisition of Telefónica Móviles Argentina S.A. - Valuation of Fixed network and transportation and Licenses As described in Notes 3.u.7), 9, 10 and 29 to the consolidated financial statements, on February 24, 2025, the Company completed the acquisition of Telefónica Móviles Argentina S.A. (TMA). Of the acquired Property, plant and equipment of 1,332,961 million and Intangible assets (excluding goodwill) of 274,183 million, 665,674 million of Fixed network and transportation and 175,835 million of Licenses, all in Argentine pesos in current currency as of December 31, 2025 were recorded. Fair value of Fixed network and transportation was estimated by management using a cost approach, determining the replacement cost for the same service capacity, and depreciating it for age, condition and level of obsolescence. Fair value of Licenses was estimated by management using a market approach (comparable sales), analyzing data obtained from publicly available information in markets where comparable assets are transacted, adjusted by the level of obsolescence of the assets under license. Management's determination of the fair value of the acquired Fixed network and transportation and Licenses involved significant judgment related to the assumptions used to the level of obsolescence in the determination of the fair value of the Fixed network and transportation and Licenses acquired. The principal considerations for our determination that performing procedures relating to the valuation of Fixed network and transportation and Licenses acquired in the acquisition of TMA is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the Fixed network and transportation and Licenses acquired; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's significant assumption related to the level of obsolescence; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the acquisition accounting, including controls over management's valuation of the Fixed network and transportation and Licenses acquired. These procedures also included, among others (i) reading the purchase agreement; (ii) testing management's process for developing the fair value estimate of the Fixed network and transportation and Licenses acquired; (iii) evaluating the appropriateness of the cost approach and market approach methods used by management; (iv) testing the completeness and accuracy of the underlying data used in the fair value estimate of the Fixed network and transportation and Licenses; and (v) evaluating the reasonableness of the significant assumptions used by management related to the level of obsolescence. Professionals with specialized skill and knowledge were used to assist in evaluating the reasonableness of the assumptions related to the level of obsolescence used to determine the fair value of the Fixed network and transportation and Licenses. /s/ PRICE WATERHOUSE & CO. S.R.L. (Partner) /s/ Alejandro Javier Rosa Autonomous City of Buenos Aires, Argentina March 11, 2026 We have served as the Company's auditor since 2003. CONTENTS Glossary of terms F-6 Consolidated Statements of Financial Position F-10 Consolidated Income Statements F-11 Consolidated Statements of Comprehensive Income F-12 Consolidated Statements of Changes in Equity F-13 Consolidated Statements of Cash Flows F-14 Note to Consolidated financial statement Note 1 - Description of business and basis of preparation of the consolidated financial statements F-16 Note 2 - Regulatory framework F-23 Note 3 - Significant accounting policies F-26 Note 4 - Cash and cash equivalents and Investments F-45 Note 5 - Trade receivables F-46 Note 6 - Other receivables F-47 Note 7 - Inventories F-47 Note 8 - Goodwill F-48 Note 9 - PP&E F-48 Note 10 - Intangible assets F-50 Note 11 - Investment properties F-51 Note 12 - Rights of use assets F-52 Note 13 - Trade payables F-53 Note 14 - Borrowings F-53 Note 15 - Salaries and social security payables F-58 Note 16 - Income tax payable and Deferred income tax assets/liabilities F-58 Note 17 - Other taxes payables F-62 Note 18 - Leases liabilities F-62 Note 19 - Other liabilities F-63 Note 20 - Provisions F-63 Note 21 - Purchase commitments F-67 Note 22 - Equity F-68 Note 23 - Financial instruments F-69 Note 24 - Revenues F-73 Note 25 - Operating expenses F-73 Note 26 - Financial results F-75 Note 27 - Financial risk management F-75 Note 28 - Balances and transactions with Related Parties F-79 Note 29 - Business acquisition F-81 Note 30 - Subsequent events F-86 Glossary of terms The following explanations are not technical definitions, but to assist the financial statement reader to understand certain terms as used in these consolidated financial statements. ADR: American Depositary Receipt. ADS: Telecom Argentina's American Depositary Share, listed on the New York Stock Exchange, each representing five Class B Shares. ARCA (Agencia de Recaudación y Control Aduanero): Argentine Tax Collection and Customs Control Agency, Autonomous agency for Tax Collection and Customs Control, which replaced the Federal Administration of Public Revenues (AFIP). AMBA (Área Metropolitana de Buenos Aires): The Metropolitan Area of Buenos Aires. An area comprising the Autonomous city of Buenos Aires and the greater Buenos Aires area. AVC: Name corresponding to the subsidiary merged as from January 1, 2025 with Telecom Argentina, namely AVC Continente Audiovisual S.A. BCRA (Banco Central de la República Argentina): The Central Bank of Argentina. BYMA (Bolsas y Mercados Argentinos): Buenos Aires Stock Exchange. Cablevisión: Company absorbed by Telecom Argentina since January 1, 2018, whose activities are continued by Telecom. CAPEX: Capital expenditures. CNC (Comisión Nacional de Comunicaciones): The Argentine National Communications Commission. CNDC (Comisión Nacional de Defensa de la Competencia): The Argentine Antitrust Commission. CNV (Comisión Nacional de Valores): The Argentine Securities and Exchange Commission. CONATEL (Comisión Nacional de Telecomunicaciones del Paraguay): Paraguay Telecommunications Commission. CPI National Consumer Price Index. CVH Cablevisión Holding S.A., controlling company of Telecom since January 1, 2018. DFI: Derivative Financial Instrument. DATDH (Distribución de Señales de Audio y Televisión Directa al Hogar): direct-to-home subscription audio and television services. ENACOM (Ente Nacional de Telecomunicaciones): The Telecommunications Regulatory Authority of Argentina. ENTel (Empresa Nacional de Telecomunicaciones): Argentine State Telecommunication Company, which was privatized in November 1990. FACPCE (Federación Argentina de Consejos Profesionales en Ciencias Económicas): Argentine Federation of Professional Councils of Economic Sciences. FFSU or SU Fund (Fondo Fiduciario del Servicio Universal): Universal Service Fiduciary Fund. FTL: Fintech Telecom LLC, a Telecom shareholder. Fintech services: Financial technology services are activities that involve the use of innovation and technological developments for the design, offer and provision of financial products and services. Fixed and intangible assets: Includes PP&E, Intangible assets, Goodwill, Investment Properties and Rights of use assets. IAS: International Accounting Standards. IASB: International Accounting Standards Board. ICT Services (Information and Communication Technology services): Services to transport and distribute signals or data, such as voice, text, video and images, provided or requested by third-party users, through telecommunications networks. ICT Services provided in Argentina - Personal Network: Corresponds to the operations carried out by Telecom Argentina and its subsidiaries located in Argentina except TMA (TSMA, Cable Imagen, PEM, Inter Radios, Personal Smarthome and NYS2) engaged in the provision of ICT services. ICT Services provided in Argentina - TMA Network: Corresponds to the operations carried out by the subsidiary TMA as from the acquisition date. IFRS Accounting Standards: International Financial Reporting Standards, as issued by the International Accounting Standards Board. CPI: Consumer Price Index. INDEC (Instituto Nacional de estadísticas y censos): The National Institute of statistics and censuses. La Capital Cable/Ver TV: Names corresponding to limited companies La Capital Cable S.A. and Ver T.V. S.A., respectively, companies that are or have been directly or indirectly associates according to the definition of the General Corporations Law. LAD (Ley Argentina Digital): Argentine Digital Law No. 27,078. LGS (Ley de General de Sociedades): Argentine Corporations Law No. 19,550 as amended. Since the enforcement of the new Civil and Commercial Code its name was changed to "General Corporations Law". Micro Sistemas/ Pem/ Cable Imagen/ Inter Radios/ Personal Smarthome/ NYS2/ RISSAU/ Manda/ TSMA/ TMA: Names corresponding to limited companies or limited responsibility companies that are directly or indirectly controlled according to the definition of the LGS, or were controlled by Telecom Argentina, directly or indirectly: Micro Sistemas S.A., Pem S.A.U., Cable Imagen S.R.L., Inter Radios S.A.U., Personal Smarthome S.A., NYS2 S.A.U., Red Intercable Satelital S.A.U., Manda S.A., Teledifusora San Miguel Arcángel S.A and Telefónica Móviles Argentina S.A. MULC (Mercado Único y Libre de Cambios): The Argentine Single and Free Exchange Market. NYSE: New York Stock Exchange. OCI: Other Comprehensive Income. OPH: Name corresponding to company Open Pass Holding LLC that is a joint venture of Telecom Argentina. Other segments: These correspond to a) ICT services provided through subsidiaries (Telecom Argentina USA, Núcleo, Televisión Dirigida, Adesol and its subsidiaries, Opalker, Ubiquo, Naperville, Saturn, Manda and RISSAU) in Paraguay, Uruguay and Chile and b) activities in the fintech industry, carried out, through subsidiaries Micro Sistemas, Personal Envíos, CrediPay and MFH in Argentina and Paraguay. Parklet/ Openxpand: Name corresponding to a joint venture of Telecom, Parklet S.A., then renamed to "Openxpand S.A." PCS (Personal Communications Service): A mobile communications service with systems that operate in a similar manner to cellular systems. PEN (Poder Ejecutivo Nacional): National Executive Power. PPP (Programa de Propiedad Participada): Share Ownership plan. PP&E: Property, plant and equipment. PSP: Payment Service Providers. RECPAM (Resultado por exposición a los cambios en el poder adquisitivo de la moneda): Inflation Adjustment Gain (Loss). RMB: Official currency of Popular Republic of China. Roaming: a function that enables mobile subscribers to use the service on networks of operators other than the one with which they signed their initial contract. The roaming service is active when a mobile device is used in a foreign country (included in the GSM network). SBT (Servicio básico telefónico): Basic telephone service. SC (Secretaría de Comunicaciones): The Argentine Secretary of Communications. SCMA (Servicio de Comunicaciones Móviles Avanzadas): Mobile Advanced Communications Service. SMS: Short message systems. SOF: Secured Overnight Financing. SRCE (Servicio Radioeléctrico de Concentración de Enlaces): Radio-electric Service of Concentration of Links. SRMC (Servicio de Radiocomunicaciones Móvil Celular): Cellular Mobile Radiocommunications Service. SRS (Servicio de Radiodifusión por Suscripción por vínculo físico y/o radioeléctrico): Subscription Broadcasting Service by physical and / or radio-electric link. STeFI (Servicios de Telecomunicaciones Fiables e Inteligentes): Reliable and Intelligent Telecommunications Service. STM (Servicio de Telefonía Móvil): Mobile Telephone Service. STMC (Servicio de Telefonía Móvil por Celular): Mobile Telephone Service by Cellular. SU: The availability of Basic telephone service, or access to the public telephone network via different alternatives, at an affordable price to people within a country or specified area. TASA: Telefónica Móviles Argentina S.A.(entity merged with TMA prior to the acquisition of TMA by Telecom Argentina). TAMAR: (Tasa Mayorista de Argentina) Argentina Wholesale Rate published by the BCRA. Telecom Argentina: Telecom Argentina S.A. Telecom or the Company: Telecom Argentina and its consolidated subsidiaries. Telecom Argentina USA/ Núcleo/ Personal Envíos/ Televisión Dirigida/ Adesol/ Opalker/ Ubiquo/ Micro Fintech Holding/ Naperville/ Saturn/ CrediPay: Names corresponding to foreign companies Telecom Argentina USA Inc., Núcleo S.A.E., Personal Envíos S.A., Televisión Dirigida S.A., Adesol S.A., Opalker S.A., Ubiquo Chile Spa, Micro Fintech Holding LLC, Naperville Investments LLC, Saturn Holding LLC and CrediPay S.A., respectively, companies that are directly or indirectly controlled according to the definition of the LGS. URSEC (Unidad Regulatoria de Servicios de Comunicaciones): Communication Services Regulatory Agency. USA: United States of America. UVA (Unidad de Valor Adquistivo): Purchasing Value Unit, an index developed and published by the BCRA. VAS (Value-Added Services): Services that provide additional functionality to the basic transmission services offered by a telecommunications network such as SMS, Video streaming, Personal Video, Personal Cloud, M2M (Communication Machine to Machine), Social networks, Personal Messenger, Contents and Entertainment (content and text subscriptions, games, music ringtones, wallpaper, screensavers, etc.), MMS (Mobile Multimedia Services) and Voice Mail, among others. VAT: Value-Added Tax. WACC: Weighted Average Cost of Capital, discount rate used to discount cash flows in estimating the recoverable value of the Goodwill. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In millions of Argentine pesos in current currency - Note 1.d) As of December31, ASSETS Note 2025 2024 Current Assets Cash and cash equivalents 4 469,050 418,745 Investments 4 323,064 44,179 Trade receivables 5 799,188 389,375 Other receivables 6 159,969 58,875 Inventories 7 79,530 79,513 Assets classified as held for sale 3.j 3,011 2,322 Total current assets 1,833,812 993,009 Non-Current Assets Trade receivables 5 940 568 Other receivables 6 28,870 64,417 Deferred income tax assets 16 48,434 43,398 Investments 4 14,701 17,902 Goodwill 8 4,443,998 4,436,736 PP&E 9 6,789,118 5,696,731 Intangible assets 10 2,671,525 2,494,659 Right of use assets 11 727,288 646,324 Investment properties 12 63,866 - Total non-current assets 14,788,740 13,400,735 TOTAL ASSETS 16,622,552 14,393,744 LIABILITIES Current Liabilities Trade payables 13 1,108,820 584,980 Borrowings 14 1,616,544 1,411,178 Salaries and social security payables 15 435,044 297,645 Income tax liabilities 16 66,741 5,999 Other taxes payables 17 243,086 119,264 Dividends payables 87 902 Leases liabilities 18 149,030 98,045 Other liabilities 19 85,165 53,144 Provisions 20 133,783 5,109 Total current liabilities 3,838,300 2,576,266 Non-Current Liabilities Trade payables 13 20,314 21,674 Borrowings 14 3,820,071 2,374,802 Salaries and social security payables 15 59,034 12,455 Deferred income tax liabilities 16 1,179,974 1,855,808 Other taxes payables 17 - 3 Leases liabilities 18 239,266 182,123 Other liabilities 19 52,983 20,162 Provisions 20 429,302 69,524 Total non-current liabilities 5,800,944 4,536,551 TOTAL LIABILITIES 9,639,244 7,112,817 EQUITY Equity attributable to Controlling Company 6,863,861 7,136,514 Equity attributable to non-controlling interest 119,447 144,413 TOTAL EQUITY(See Consolidated Statements of 6,983,308 7,280,927 Changes in Equity) TOTAL LIABILITIES AND EQUITY 16,622,552 14,393,744 The accompanying notes are an integral part of these consolidated financial statements. CONSOLIDATED INCOME STATEMENTS (In millions of Argentine pesos in current currency, except per share data in Argentine pesos in current currency - Note 1.d) For the years ended December 31, Note 2025 2024 2023 Revenues 24 8,328,814 5,442,958 5,898,611 Employee benefit expenses and severance payments 25 (1,961,097) (1,346,737) (1,473,756) Interconnection and transmission costs (243,797) (155,918) (174,151) Fees for services, maintenance, materials and supplies 25 (1,064,393) (724,120) (741,134) Taxes and fees with the Regulatory Authority 25 (720,488) (428,352) (453,157) Commissions and advertising (437,205) (305,491) (345,483) Cost of equipment and handsets 25 (288,668) (259,216) (318,199) Programming and content costs (450,698) (314,423) (332,792) Bad debt expenses (143,722) (112,102) (127,913) Other operating expenses, net 25 (493,211) (264,218) (272,257) Depreciation, amortization and impairment of Fixed and intangible assets 25 (2,075,488) (1,725,057) (2,018,038) Operating income (loss) 450,047 (192,676) (358,269) Losses from associates and joint ventures 4 (3,742) (15,094) (5,408) Financial results from borrowings 26 (748,840) 1,914,786 (1,817,071) Other financial results, net 26 110,799 190,451 496,492 Income (loss) before income tax (191,736) 1,897,467 (1,684,256) Income tax benefit (expense) 16 46,432 (538,237) 968,990 Net income (loss) for the year (145,304) 1,359,230 (715,266) Attributable to: Controlling Company (170,006) 1,331,805 (738,306) Non-controlling interest 24,702 27,425 23,040 (145,304) 1,359,230 (715,266) Earnings (losses) per share for income attributable to the Controlling Company - Basic and diluted 3.t (78.94) 618.38 (342.81) See Note 25 for additional information on operating expenses per function. The accompanying notes are an integral part of these consolidated financial statements. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions of Argentine pesos in current currency - Note 1.d) For the years ended December 31, 2025 2024 2023 Net income (loss) for the year (145,304) 1,359,230 (715,266) Other comprehensive income Items that may be reclassified to profit or loss Currency translation adjustments (no effect on Income Tax) 85,195 (300,646) 209,535 DFI effects classified as hedges - (7,778) 3,761 Gains of investments at fair value 8,333 - - Income Tax effects (2,997) 2,403 (1,037) Items that will not be reclassified to profit or loss Actuarial results (4,897) (37) (1,204) Income Tax effects 1,714 13 421 Other comprehensive income (loss), net of tax 87,348 (306,045) 211,476 Total comprehensive income (loss) for the year (57,956) 1,053,185 (503,790) Attributable to: Controlling Company (101,212) 1,117,261 (592,845) Non-controlling interest 43,256 (64,076) 89,055 (57,956) 1,053,185 (503,790) The accompanying notes are an integral part of these consolidated financial statements. TELECOM ARGENTINA S.A. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In millions of Argentine pesos in current currency - Note 1.d) Owners' contribution Reserves Other comprehensive loss Retained earnings Equity attributable to controlling company Equity attributable to non-controlling interest Total Equity Outstanding shares Capital nominal value (1) Inflation adjustment Contributed Surplus Legal Special reserve for IFRS implementation Facultative (2) Balances as of January 1, 2023 2,154 2,461,031 6,061,634 146,147 53,587 526,526 (293,108) (1,854,026) 7,103,945 144,622 7,248,567 Resolutions of the General Ordinary and Extraordinary Shareholders' Meeting held on April 27, 2023 - Specific loss allocation - - (2,443,629) - - - - 2,443,629 - - - - Reserves constitution - - - - - 589,603 - (589,603) - - - Dividends (1) - - - - - (299,199) - - (299,199) - (299,199) Dividends to non-controlling shareholders - - - - - - - - - (11,516) (11,516) Subsidiary acquisition - - - - - - - - - (5) (5) Subsidiary call option Comprehensive income: - - - - - - (1,690) - (1,690) - (1,690) Net income (loss) for the year - - - - - - - (738,306) (738,306) 23,040 (715,266) Other comprehensive income - - - - - - 145,461 - 145,461 66,015 211,476 Total Comprehensive income (loss) - - - - - - 145,461 (738,306) (592,845) 89,055 (503,790) Balances as of December 31, 2023 2,154 2,461,031 3,618,005 146,147 53,587 816,930 (149,337) (738,306) 6,210,211 222,156 6,432,367 Resolutions of the General Ordinary and Extraordinary Shareholders' Meeting held on April 25, 2024 - Absorption of retained earnings (losses) and reserve reclassification - - (221,779) - - (516,527) - 738,306 - - - Dividends to non-controlling shareholders - - - - - - - - - (13,719) (13,719) Subsidiary acquisition - - - - - - - - - 2,477 2,477 Transaction with non-controlling interest - - - - - - (34,606) - (34,606) (3,272) (37,878) Subsidiary acquisition - - - - - - - - - 847 847 Dividends (1) Comprehensive income: Net income (loss) for the year - - - - - - - - - - (156,352) - - - - 1,331,805 (156,352) 1,331,805 - 27,425 (156,352) 1,359,230 Other comprehensive loss, net of tax - - - - - - (214,544) - (214,544) (91,501) (306,045) Total comprehensive income (loss) - - - - - - (214,544) 1,331,805 1,117,261 (64,076) 1,053,185 Balances as of December 31, 2024 2,154 2,461,031 3,396,226 146,147 53,587 144,051 (398,487) 1,331,805 7,136,514 144,413 7,280,927 Resolutions of the General Ordinary and Extraordinary Shareholders' Meeting held on April 25, 2025 (2) - Constitution and reclassification of reserves - - (122,442) 66,590 - 1,387,657 - (1,331,805) - - - Dividends to non-controlling shareholders - - - - - - - - - (12,907) (12,907) Dividends (1) - - - - - (226,756) - - (226,756) - (226,756) Transaction non-controlling interest (3) Comprehensive income: Net income (loss) for the year - - - - - - - - - - - - 55,315 - - (170,006) 55,315 (170,006 ) (55,315) 24,702 - (145,304) Other comprehensive income, net of tax - - - - - - 68,794 - 68,794 18,554 87,348 Total comprehensive income (loss - - - - - - 68,794 (170,006) (101,212) 43,256 (57,956) Balances as of December 31, 2025 2,154 2,461,031 3,273,784 212,737 53,587 1,304,952 (274,378) (170,006) 6,863,861 119,447 6,983,308 See Note 22. Corresponds to the Facultative Reserve to maintain the capital investments level and the current level of solvency. It corresponds to the transaction carried out between controlling and non-controlling shareholders related to the acquisition of 100% of Adesol's license-holding entities. See Note 3.d.6). The accompanying notes are an integral part of these consolidated financial statements. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions of Argentine pesos in current currency - Note 1.d) For the years ended December 31, CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES Note 2025 2024 2023 Net income (loss) for the year (145,304) 1,359,230 (715,266) Adjustments to reconcile net income to net cash flows provided by operating activities Allowances deducted from assets 160,105 99,860 113,817 Depreciation of PP&E 25 1,533,091 1,312,898 1,559,899 Amortization of intangible assets 25 234,722 152,940 251,826 Amortization of rights of use assets 25 278,639 260,674 205,413 Depreciation of Investment properties 25 2,028 - - Impairment of goodwill 8 15,941 - - Disposals of Fixed and intangible assets 147,293 2,217 1,454 Losses from associates and joint ventures 4 3,742 15,094 5,408 Financial results and others 624,547 (2,418,267) 803,367 Income tax expenses 16 (46,432) 538,237 (968,990) Income tax paid (15,012) (9,703) (14,670) Change in operating assets and liabilities, net of effects from purchase of controlled entity Increase Trade receivables (224,666) (343,132) (509,799) Decrease / (Increase) Other receivables (15,709) (106,937) (257,366) Decrease / (Increase) Inventories 71,370 (8,403) (59,785) (Decrease) / Increase Trade payables (17,962) 27,494 968,990 Increase Salaries and social security payables 62,144 109,976 207,576 (Decrease) / Increase Other taxes payables (250,817) 85,071 125,970 (Decrease) / Increase Other Liabilities and Provisions (31,862) (9,736) 51,647 Total cash flows from operating activities 2,385,858 1,067,513 1,769,491 CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Payments for PP&E (1,355,061) (457,953) (756,094) Payments for intangible asset acquisitions (135,574) (60,623) (571,697) Dividends received from associates 7 1,333 3,449 Proceeds from the sale of PP&E and intangible assets 37,202 7,777 3,308 Payments for acquisition of subsidiary, net of cash acquired 29 (1,304,037) (18,237) (6,466) Integration of contributions in joint ventures 4 (220) - - Compensation received for acquisition of companies 1,720 4,208 - Proceeds from DFI liquidations 33,850 5,186 69,087 Proceeds from sale of investments not considered as cash and cash equivalents 442,802 438,002 400,610 Payments for investments not considered as cash and cash equivalents (732,319) (424,073) (766,727) Acquisition of purchase option - - (7,150) Total cash flows used in investing activities (3,011,630) (504,380) (1,631,680) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Proceeds from borrowings 14 3,959,692 1,573,995 1,111,970 Payment of borrowings 14 (2,583,267) (1,474,844) (654,722) Repurchase of Notes 14 (15,011) (34,913) - Payment of interests, DFI and related expenses 14 (514,351) (428,014) (592,904) Payments of leases liabilities (196,180) (121,016) (126,595) Transaction with non-controlling interests - (36,164) (1,690) Dividends paid to non-controlling interests in subsidiaries (17,640) (12,634) (11,516) Dividends paid 22 (20,286) - - Total cash flows from (used in) financing activities 612,957 (533,590) (275,457) NET INCREASE IN CASH AND CASH EQUIVALENTS (12,815) 29,543 (137,646) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 418,745 457,698 357,294 NET FOREIGN EXCHANGE DIFFERENCES AND RECPAM ON CASH AND CASH EQUIVALENTS 63,120 (68,496) 238,050 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 469,050 418,745 457,698 The accompanying notes are an integral part of these consolidated financial statements. Non-cash investing and financing activities Main non-cash transactions from the consolidated statement of cash flows are the following: Description Classification of activities Year ended December 31, 2025 2024 2023 PP&E and intangible assets acquisition financed with accounts payable Investing 358,056 267,562 395,979 Right of use assets acquisition owed Investing 195,712 312,163 245,269 Trade payables cancelled with government bonds Investing - 27,659 - Investing Investing - - - 10,961 11,250 - Investing - - 1,567 Investing 8,533 - - Investing 2,376 - - Investing 440 - - Financing 189,790 156,352 299,199 Acquisition of companies and joint ventures financed with other liabilities Other receivables offset with acquisition of companies and joint ventures Joint ventures acquisition cancelled with government bonds Trade payables offset with PP&E sale Other receivables pending collection from PP&E sale Dividends received offset against trade payables Dividends payment made with investments not considered as cash and cash equivalents (Note 22) Dividend paid with tax credits (Note 22) Financing 16,680 - - Exchange Notes Financing - 175,165 - Trade payables cancelled with borrowings Financing - 30,815 97,699 Acquisition of non-controlling interest offset against other receivables Financing - 1,715 - Dividend payable from subsidiaries Financing - 1,085 - Issuance costs payable Financing 794 1,364 - NOTE 1 - DESCRIPTION OF BUSINESS AND BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS The Company and its Operations Telecom Argentina was created through the privatization of ENTel, the state-owned company that provided telecommunication services in Argentina. Telecom Argentina's license, as originally granted, was exclusive to provide telephone services in the northern region of Argentina since November 8, 1990 through October 10, 1999. As of October 10, 1999, Telecom Argentina also began providing telephone services in all the country. On December 1, 2017, Telecom Argentina merged with Telecom Personal, so, since that date, it provides directly mobile telecommunications services. As a consequence of the merger with Cablevisión (accounted for as a reverse acquisition on January 1, 2018), Telecom Argentina provides cable television services through networks installed in different localities in Argentina and Uruguay. On February 24, 2025, Telecom Argentina acquired 99.999625% of TMA, acquiring control of such company, see Note 29. TMA is a corporation (sociedad anónima) organized under the laws of Argentina and is one of the largest telecommunications and data transmission service providers in Argentina in terms of customers. Therefore, the Company mainly provides fixed and mobile telephony services, cable television services, data and Internet services, among others, in Argentina. Additionally, through its subsidiaries, it also provides diverse ICT Services in Uruguay, Paraguay, USA and Chile. Moreover, through its subsidiaries Micro Sistemas, Personal Envíos and CrediPay, the Company provides fintech services related to the use of electronic means of payment, transfers and/or electronic use of money, among others. As of December 31, 2025, the following are the subsidiaries included in the consolidation process and the respective equity interest owned by Telecom Argentina: Company Main Activity Country Telecom Argentina's direct/indirect interest in capital stock and votes TMA (a) ICT Services and Audiovisual Communication Services Argentina 99.999625% Micro Sistemas (b) Services related to the use of electronic payment media Argentina 100,00% Manda Holding Argentina 100,00% RISSAU Broadcasting services Argentina 100,00% Inter Radios Broadcasting services Argentina 100,00% Pem Holding Argentina 100,00% Cable Imagen Closed-circuit television Argentina 100,00% Personal Smarthome Security solutions and services Argentina 100,00% NYS2 ICT Services and Audiovisual Communication Services Argentina 100,00% TSMA (c) Community Closed-Circuit Television Argentina 100,00% Telefónica Ingeniería de Seguridad de Argentina Security solutions and services Argentina 99.999625% S.A.U. (d) Ubiquo Cybersecurity services and products Chile 95,00% Núcleo Mobile telecommunications Services Paraguay 67,50% Personal Envíos Mobile financial services Paraguay 67,50% CrediPay Financial services Paraguay 67,50% Televisión Dirigida Cable television services Paraguay 100,00% Adesol (e) Holding Uruguay 100,00% Opalker Cybersecurity, content platform and related services Uruguay 100,00% Openxpand (f) Development and provision of digital platforms Uruguay 51,00% MFH Holding USA 100,00% Naperville Holding USA 100,00% Saturn Holding USA 100,00% Telecom USA Telecommunication services USA 100,00% Acquired by Telecom Argentina on February 24, 2025. See Note 29. On January 22, 2026, Banco Macro subscribed for shares representing 50% of the share capital and voting rights of Micro Sistemas. See Note 30. On December 1, 2025, the Telecom Argentina's Board of Directors and the Board of Directors of TSMA approved the initiation of the process leading to the corporate reorganization consisting of the merger by absorption of TSMA by Telecom Argentina, effective as of January 1, 2026, the date from which TSMA's operations shall be considered as carried out by Telecom Argentina. Indirectly acquired by Telecom Argentina following the acquisition of TMA, see reference (a) above. Adesol acquired 100% of the equity interests in the license-holding entities that operate subscriber-based television services in various localities within that country. See Note 3.d.6). Included in the Company's consolidated financial statements until May 19, 2025, and thereafter accounted for as a joint venture. See Notes 3.d.4) and 4. Segment information The Executive Committee and the CEO have a strategic and operational vision of Telecom as a single business unit in Argentina, according to the current regulatory context of the converged ICT Services industry (adding to the same segment the activities related to mobile services, internet services, cable television and fixed and data services, services governed by the same regulatory framework of ICT Services). To exercise its functions, both the Executive Committee and the CEO receive periodically the economic-financial information of Telecom Argentina and its subsidiaries located in Argentina except TMA (stated in historic currency at the transaction date), that is prepared as a single segment and evaluate the evolution of business as a unit of generation of results, administrating the resources in a unique way to achieve the objectives. Regarding costs, they are not specifically allocated to a type of service, considering that Telecom Argentina has a single payroll and operating expenses that affect all services in general (non-specific). Further, decisions on CAPEX affect all the types of services provided by Telecom in Argentina and its subsidiaries located in Argentina except TMA and are not allocated specifically to one of them. Following the acquisition of TMA, on February 24, 2025 (see Note 29), the Company identified a new reportable segment, "ICT Services provided in Argentina - TMA Network" corresponding to the provision of mobile and fixed telephony services, fixed broadband, and video services on a nationwide scale in Argentina, using its own networks, with its own infrastructure. The subsidiary TMA is managed as a separate business unit, and therefore, the Executive Committee and the CEO review its economic and financial information (stated in historic currency at the transaction date) separately. Regarding costs, they are not specifically allocated to a type of service, considering that TMA has a single payroll and operating expenses that affect all services in general (non-specific). Further, decisions on CAPEX affect all the types of services provided by TMA and are not allocated specifically to one of them. Additionally, Telecom, through Micro Sistemas, develops activities in the fintech industry in Argentina. Telecom also carries out activities abroad (Paraguay, USA, Uruguay and Chile). The operations that Telecom develops through Micro Sistemas, and those developed abroad, are not analyzed as a separate segment by the Executive Committee and the CEO, considering that they are not considered as individually significant. These operations do not meet the aggregation criteria established by the standard to be grouped within the "ICT Services in Argentina - Personal Network" and "ICT Services in Argentina - TMA Network" segments, and considering that they do not exceed any of the quantitative thresholds identified in the standard to qualify as reportable segments, they are grouped within the category "Other segments". The Executive Committee and the CEO continue to monitor these businesses to evaluate the manner in which its performance is reviewed and, eventually, its consideration as a separate reportable segment provided it complies with the requirements established by IFRS Accounting Standards to that effect. As a result, segments as of December 31, 2025, are the following: ICT Services provided in Argentina - Personal Network. ICT Services provided in Argentina - TMA Network. Other segments. The Executive Committee and the CEO evaluate the profitability for each reportable segment based on the measure of the Adjusted EBITDA. Adjusted EBITDA is defined as our net (loss) income less income tax, financial results, earnings (losses) from associates and joint ventures, and depreciation, amortization and impairment of Fixed and Intangibles Assets, reviewing this information in the currency of the date of each transaction. Presented below is the Segment financial information for the years ended December 31, 2025, 2024 and 2023: Consolidated Income Statement as of December 31, 2025 Revenues ICT Services provided in Argentina - Personal Network ICT Services provided in Argentina - TMA Network Other segments Eliminations (135,158) Total 8,328,814 Currency of the transaction date 4,688,533 Inflation restatement 595,615 In current currency 5,284,148 Currency of the transaction date 2,482,714 Inflation restatement 265,779 In current currency 2,748,493 Currency of the transaction date 384,630 Inflation restatement 46,701 In current currency 431,331 Operating costs without depreciation, amortization and impairment of Fixed and intangible assets Employee benefit expenses and severance payments Fees for services, maintenance, materials and supplies Taxes and fees with the Regulatory Authority Commissions and advertising Programming and content costs Other operating costs (1,096,467) (561,780) (393,956) (202,884) (267,805) (546,973) (140,974) (93,997) (49,872) (24,785) (33,898) (110,090) (1,237,441) (655,777) (443,828) (227,669) (301,703) (657,063) (619,738) (325,306) (234,436) (136,090) (101,212) (442,453) (65,877) (35,240) (24,819) (14,658) (10,598) (93,755) (685,615) (360,546) (259,255) (150,748) (111,810) (536,208) (33,893) (51,640) (15,433) (57,383) (33,015) (68,094) (4,148) (6,184) (1,972) (8,447) (4,170) (8,998) (38,041) (57,824) (17,405) (65,830) (37,185) (77,092) -9,754 - 7,042 -100,965 (1,961,097) (1,064,393) (720,488) (437,205) (450,698) (1,169,398) Adjusted EBITDA 1,618,668 141,999 1,760,667 623,479 20,832 644,311 125,172 12,782 137,954 (17,397) 2,525,535 Depreciation, amortization and impairment of Fixed and intangible assets (2,075,488) Operating income 450,047 Losses from associates and joint ventures (3,742) Financial results from borrowings (748,840) Other financial results, net 110,799 Loss before income tax (191,736) Income tax benefit 46,432 Net loss (145,304) Attributable to: Controlling Company (170,006) Non-controlling interest 24,702 (145,304) Consolidated Income Statement as of December 31, 2024 ICT Services provided in Argentina - Personal Network Other segments Eliminations Total Currency of the transaction date Inflation restatement In current currency Currency of the transaction date Inflation restatement In current currency Revenues 3,165,736 1,872,500 5,038,236 266,915 168,101 435,016 (30,294) 5,442,958 Operating costs without depreciation, amortization and impairment of Fixed and intangible assets Employee benefit expenses and severance payments (823,975) (483,077) (1,307,052) (24,450) (15,235) (39,685) - (1,346,737) Fees for services, maintenance, materials and supplies (393,042) (279,499) (672,541) (35,839) (22,620) (58,459) 6,880 (724,120) Taxes and fees with the Regulatory Authority (258,519) (152,324) (410,843) (10,931) (6,578) (17,509) - (428,352) Commissions and advertising (133,932) (74,995) (208,927) (62,477) (38,240) (100,717) 4,153 (305,491) Programming and content costs (172,422) (99,687) (272,109) (25,570) (16,744) (42,314) - (314,423) Other operating costs (429,466) (302,323) (731,789) (47,831) (31,095) (78,926) 19,261 (791,454) Adjusted EBITDA 954,380 480,595 1,434,975 59,817 37,589 97,406 - 1,532,381 Depreciation, amortization and impairment of Fixed and intangible assets (1,725,057) Operating loss (192,676) Losses from associates and joint ventures (15,094) Financial results from borrowings 1,914,786 Other financial results, net 190,451 Profit before income tax 1,897,467 Income tax expense (538,237) Net income 1,359,230 Attributable to: Controlling Company 1,331,805 Non-controlling interest 27,425 1,359,230 Consolidated Income Statement as of December 31, 2023 ICT Services provided in Argentina - Personal Network Other segments Eliminations Total Currency of the transaction date Inflation restatement In current currency Currency of the transaction date Inflation restatement In current currency Revenues 1,053,442 4,456,328 5,509,770 81,877 334,899 416,776 (27,935) 5,898,611 Operating costs without depreciation, amortization and impairment of Fixed and intangible assets Employee benefit expenses and severance payments (279,608) (1,152,805) (1,432,413) (8,277) (33,066) (41,343) - (1,473,756) Fees for services, maintenance, materials and supplies (131,861) (566,980) (698,841) (9,292) (37,368) (46,660) 4,367 (741,134) Taxes and fees with the Regulatory Authority (83,591) (354,647) (438,238) (2,968) (11,951) (14,919) - (453,157) Commissions and advertising (52,319) (224,650) (276,969) (13,346) (57,350) (70,696) 2,182 (345,483) Programming and content costs (55,317) (233,466) (288,783) (8,532) (35,477) (44,009) - (332,792) Other operating costs (145,951) (688,188) (834,139) (15,714) (64,053) (79,767) 21,386 (892,520) Adjusted EBITDA 304,795 1,235,592 1,540,387 23,748 95,634 119,382 - 1,659,769 Depreciation, amortization and impairment of Fixed and intangible assets (2,018,038) Operating loss (358,269) Losses from associates and joint ventures (5,408) Financial results from borrowings (1,817,071) Other financial results, net 496,492 Loss before income tax (1,684,256) Income tax benefit 968,990 Net loss (715,266) Attributable to: Controlling Company (738,306) Non-controlling interest 23,040 (715,266) Additional information is disclosed below: Revenues 2025 For the years ended December 31, 2024 2023 From customers located in Argentina 7,934,388 5,037,636 5,490,518 From foreign customers 394,426 405,322 408,093 8,328,814 5,442,958 5,898,611 CAPEX ICT Services in Argentina - Personal Network 924,556 653,694 1,277,987 ICT Services in Argentina - TMA Network 456,602 - - Other segments 104,419 95,280 106,206 1,485,577 748,974 1,384,193 As of December 31, Fixed and intangible assets 2025 2024 ICT Services in Argentina - Personal Network 12,439,729 12,750,637 ICT Services in Argentina - TMA Network 1,645,414 - Other segments 610,652 523,813 14,695,795 13,274,450 Borrowings ICT Services in Argentina- Personal Network 5,380,181 3,723,906 ICT Services in Argentina- TMA Network 36 - Other segments 56,398 62,074 5,436,615 3,785,980 Basis of Presentation These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the IASB. IFRS Accounting Standards also includes the International Accounting Standards or "IAS"; the International Financial Reporting Interpretations Committee or "IFRIC", the Standard Interpretations Committee or "SIC" and the conceptual framework. The preparation of these consolidated financial statements in conformity with IFRS Accounting Standards requires that the Company's Management make estimates that affect the figures disclosed in the financial statements or its supplementary information. Actual results may differ from these estimates. The areas involving a higher degree of judgment or complexity, or areas where estimates are significant are disclosed under Note 3.u). These consolidated financial statements are expressed in millions of Argentine pesos, based on historical cost, except for certain financial assets and liabilities (includes DFI) that are measured at fair value and are prepared in current currency as of December 31, 2025 (see section d)). These consolidated financial statements contain, additionally to all disclosures required under IFRS Accounting Standards, some disclosures required by the LGS and/or by the CNV. These consolidated financial statements as of December 31, 2025, were authorized for issuance and approved by resolution of the Board of Directors' meeting held on March 10, 2026. Financial reporting in hyperinflationary economies Since Argentina has been considered a high-inflation economy for accounting purposes in accordance with IAS 29 since July 1, 2018, the financial information expressed in Argentine pesos is restated in current currency of December 31, 2025. The table below shows the evolution of the indexes in the last three years according to official statistics (INDEC) in accordance with Resolution No. 539/18 of the FACPCE and the devaluation of the Argentine peso against the US dollar for the same years: As of December 31, 2023 As of December 31, 2024 As of December 31, 2025 National CPI 3,533.2 7,694.0 10,121.4 Variation in prices Annual 211.4% 117.8% 31.5% Banco Nación US$/$ exchange rate 808.5 1,032.0 1,455.0 Variation in the exchange rate Annual 356.3% 27.7% 41.0% Below is a summary of the effect of applying IAS 29: Restatement of the Statement of Financial Position and the Statement of Changes in Equity The Company restated all the non-monetary items in current currency as of December 31, 2025. Each item must be restated since the date of the initial recognition or since the last revaluation. Monetary items have not been restated because they are stated in terms of the measuring unit current as of December 31, 2025. Restatement of the Income Statement, the Statements of Comprehensive Income and the Statement of Cash Flows In the Income Statement and the Statements of Comprehensive Income, items are restated in current currency as of December 31, 2025. The Company shall apply the monthly variations of CPI. Financial results related to foreign currency exchange and accrued interest are determined in real terms, excluding the inflationary effect contained therein. The effect of inflation on the monetary position is included in the Income Statement under Financial cost and Other financial results, net. The items of the Statement of Cash Flows are restated in current currency at the closing date. The restatement effect has an impact on the Income Statement and must be eliminated from the Statement of Cash Flows because it is not considered cash or cash equivalent. Investments in foreign companies The subsidiaries that use functional currencies other than the Argentine peso (mainly foreign companies with economies that are not considered to be hyperinflationary), must not restate for inflation their financial statements, in accordance with IAS 29. Notwithstanding, and only for reporting and consolidation purposes, the comparative figures presented in Argentine pesos in the Income Statement corresponding to the current year and the previous year must be stated using the exchange rates at the transaction date. In addition, the initial items of the Statement of Changes in Equity must be reported at the closing rate without modifying its total amount due to the fact that it is translated into the closing exchange rate, which implies that a translation adjustment is recognized against Retained Earnings and Other Comprehensive Income (loss). Comparative information The figures as of December 31, 2024 and for the years ended December 31, 2024 and 2023, which are disclosed in these consolidated financial statements for comparative purposes, are a result of restating the financial statements as of such dates, according to what is described in section d). When applicable, certain reclassifications were made for comparative purposes. As disclosed in Note 29, the Company has consolidated TMA as from February 24, 2025, and, therefore, the Company's financial statements as of December 31, 2025, and the results for the year ended December 31, 2025, are not comparable to the comparative information presented in these consolidated financial statements. NOTE 2 - REGULATORY FRAMEWORK Regulatory Authority Argentina In Argentina, the regulatory authority for the ICT services provided by Telecom Argentina and certain subsidiaries is ENACOM. Through Decree No. 89/2024 dated January 26, 2024, the Argentine government ordered the intervention of ENACOM for a period of 180 consecutive days, which was subsequently extended on several occasions, the latest being Decree No. 938/2025 until January 4, 2027, with the purpose of redefining outdated regulations that hinder technological progress, among other matters. As of the date of issuance of these consolidated financial statements, there have been no effects on Telecom Argentina and certain subsidiaries' operations in Argentina due to this intervention. Telecom Argentina will continue to monitor the matter for any potential impacts. Regarding fintech services, Micro Sistemas is registered with the BCRA as a PSP that offers payment accounts, accepts payments via transfers, and acts as a payment aggregator. It is also registered in the Interoperable Digital Wallets Registry and in the Other Non-Financial Credit Providers Registry. Therefore, Micro Sistemas is subject to certain regulations established by the BCRA and the Financial Information Unit, as it holds the status of Obligated Subject (OS) pursuant to Article 20 of Law No. 25,246 (as amended). Foreign companies The Regulatory Authority for ICT Services, provided by Núcleo in Paraguay is the CONATEL. Personal Envíos is under the oversight of the Central Bank of the Republic of Paraguay to operate as an Electronic Payment Company. The Regulatory Authority for the services provided by Telecom USA, in USA, is the Federal Communications Commission. The Regulatory Authority for the services provided by special purpose entities in Uruguay are under the orbit of URSEC. Licenses Argentina Under the Licencia Única Argentina Digital, Telecom Argentina and certain subsidiaries currently provides the following services: local fixed telephony, public telephony, domestic and international long-distance telephony, domestic and international point-to-point link services, value added, data transmission, videoconferencing, transportation of broadcasting signals, and Internet access, STM, SRMC, PCS and SCMA, also called mobile communications services ("SCM", for its Spanish acronym), Such licenses were granted for the provision of STM in the Northern Region of Argentina, of SRMC in the AMBA area, and of PCS and SCMA throughout the country, SRS, SRCE and STeFI. Paraguay Núcleo holds a license to provide STMC and PCS. In addition, it holds a license for the installation and exploitation of Internet, data services and license to provide DATDH services throughout Paraguay. These licenses have been granted for renewable five-year periods. Main Regulatory issues - ICT Services provided in Argentina Among the main regulations governing the services of Telecom Argentina and its ICT subsidiaries in Argentina, the following stand out: LAD and its amendments. Law No. 19,798 to the extent it does not contradict the LAD. The Privatization Regulations, which regulated that process. The Transfer Agreement. The licenses for providing telecommunication services and the Bidding Terms and Conditions and their respective general rules. Current service regulations. See the main regulations on Licenses, Interconnection, SU and Spectrum in sections d) to e) of this Note. Universal Service ("SU" for its Spanish acronym) Universal Service Fiduciary Fund On January 3, 2025, PEN, through Decree No. 6/2025, dissolved the FFSU established by Article 21 of Law No. 27,078 and its amendments. Furthermore, it repealed the aforementioned article. Subsequently, ENACOM issued Resolution No. 3/2025, stipulating that, in order to ensure the public policy of guaranteeing access to the SU, ICT service licensees shall continue making contributions in accordance with the current form and mechanism. Decree No. 312/2025 established that ENACOM would be responsible for collecting and administering such contributions. General Regulation of the Universal Service The new General Regulation of the Universal Service, issued by ENACOM through Resolution No. 1,182/2025, maintains the obligation to contribute 1% of total accrued ICT revenues to the Universal Service Fund administered by ENACOM. Fund - Impact on Telecom Argentina with respect to its original license to provide SBT Pursuant to SC Resolutions Nos. 80/07 and 154/10 and CNC Resolution No. 2,713/07, Telecom Argentina filed its monthly returns, which show a credit balance. However, as of the date hereof, no tax credits have been applied in respect of the SU services provided. Between 2011 and 2012, the Argentine Secretariat of Communications issued a series of resolutions whereby it informed Telecom Argentina that the provisions related to certain services and/or programs did not qualify as Initial SU Programs or different services involving a SU provision and cannot be financed with SU Funds. Telecom Argentina filed appeals against the above-mentioned resolutions, presenting the legal arguments based on which such resolutions should be revoked. In September 2012, the CNC formally required Telecom Argentina to deposit approximately $208 million. Telecom Argentina submitted a filing rejecting such demand on the grounds that the appeals filed against the resolutions issued by the Secretariat of Communications (SC) were still pending resolution. In November 2019, the ENACOM notified Telecom Argentina that the appeals filed by Telecom Argentina against the SC resolutions had been rejected, and that the file had been submitted to the Court of Appeals. On January 19, 2026, ENACOM Resolution No. 3/2026 was published in the Official Gazette, approving a Payment Facilities Regime aimed, among other matters, at the regularization of outstanding amounts related to contributions to the Universal Service Fund. The Payment Facilities Regime will remain in effect for a period of 180 days. Telecom Argentina has expressed its willingness to adhere to the payment plan in order to assess the advisability of submitting to the scheme issued by ENACOM regarding the items covered by Resolution No. 3/2026, taking advantage of the opportunity for a significant reduction in the interest applied to the recognized debts, thus bringing the dispute to an end and putting a stop to years of uncertainty and to the potential contingency that could arise from a possible rejection of the appeals submitted. Consequently, Telecom Argentina, together with its advisors, has recognized a contingency provision of $25,156 million (including $ 10,513 million of interest), calculated based on the probability of occurrence and the probable amount of disbursement, in accordance with the Payment Facilities Regime. Additionally, matters concerning TMA in relation to the "SU" are detailed in Note 29. SU Fund - Impact on Telecom Argentina with respect to the SCMs originally provided by Telecom Personal S.A. In compliance with SC Resolution No. 80/07 and No. 154/10 and CNC Resolution No. 2,713/07, since July 2007 Telecom Personal S.A. has filed its tax returns and deposited the corresponding contributions. On January 26, 2011, the SC issued Resolution No. 9/11, providing that telecommunication service providers could only allocate to investment projects under this program the amounts corresponding to outstanding investment contribution obligations arising from Annex III of Decree No. 764/00 before the effective date of Decree No. 558/08. In July 2012, the SC issued Resolution No. 50/12, whereby it informed that the services declared by SCM service providers as SU services did not constitute items that could be discounted from the amount of SU contributions. It also established that certain amounts deducted could be allocated to investment projects within the framework of the program established by SC Resolution No. 9/11 or, as applicable, be deposited into the SU Fund. Telecom Personal S.A. filed an administrative appeal against the decision issued by the Secretariat of Communications, seeking its nullification. As of the date of these consolidated financial statements, this appeal is still pending resolution. Nevertheless, in October 2012, and in response to the formal demand issued by the Secretariat of Communications, Telecom Personal S.A. deposited, under protest, into the SU Fund an amount equivalent to the valuation of the SU services that Telecom Personal S.A. had been providing. As of December 31, 2025, Telecom Argentina had not recognized any credits in respect of these items. Spectrum Spectrum Allocation for SCMA In 2014, Telecom Argentina was awarded Lots 2, 5, 6 and 8 and the remaining frequencies of the PCS and the SRMC, as well as those of the spectrum for the SCMA. The use of the frequencies is granted for a period of 15 years counted from the notification of the administrative act of adjudication. In particular, for the spectrum of the SCMA, the term was counted as from February 27, 2018. Once the term of use granted for the different frequencies has expired, the Regulatory Authority may extend the validity at the express request of the successful bidder (which will be onerous and under the price and conditions established by it). STeFI - 5G spectrum allocation On October 24, 2023, the Auction was held for the above-mentioned Bid for the allocation of frequency bands for the provision of STeFI, where Telecom Argentina was awarded Lot 2 (3,400-3,500 MHz Band), equivalent to US$350 million, which was paid in November 2023. The award of the right to use the frequency band implied the capitalization as intangible assets which are amortized as described in Note 3.i). On February 24, 2025, Telecom Argentina acquired TMA, which was opportunely awarded Lot 3B (3,550-3,600 MHz Band). On April 24, 2025, through ENACOM Resolution No. 611/2025, Article 1 of Resolution No. 1,285/2023 was amended, establishing that the maximum limit of radio spectrum accumulation for STeFI would be reduced from 200 MHz to 150 MHz per Licensee in each Operating Area. Main Regulatory issues - Fintech Services Foreign companies Personal Envíos is authorized by the Central Bank of the Republic of Paraguay to operate as an Electronic Payment Company ("EMPE", for its Spanish acronym) through Resolution No. 6 issued on March 30, 2015. Argentina Since November 20, 2020, Micro Sistemas has been registered as a PSP offering payment accounts. On July 4, 2024, it was registered as an Acceptor of Transfers and, on October 21, 2024, it obtained registration as a Payment Aggregator. Furthermore, in August 2022, it was registered in the Interoperable Digital Wallets Registry, and during the first quarter of 2023, it was registered in the Other Non-Financial Credit Providers Registry. Therefore, Micro Sistemas is governed by the BCRA regulations for such registries. Additionally, Micro Sistemas is required to comply with the provisions for the Protection of Financial Services Users and supplementary regulations issued by the BCRA. NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES Detailed below are the most relevant accounting policies used by Telecom for the preparation of these consolidated financial statements, which have been applied uniformly with respect to comparative years. Going Concern The consolidated financial statements have been prepared on a going concern basis as there is a reasonable expectation that Telecom will continue its operational activities in the foreseeable future (and in any event with a time horizon of more than twelve months). Foreign Currency Translation Items included in the financial statements of each of the Company's subsidiaries are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in Argentine pesos, which is the functional currency of all the Company's subsidiaries located in Argentina. In general, the functional currency for the Company's foreign subsidiaries is the respective legal currency of each country, except for Opalker and its subsidiary Ubiquo, whose functional currency is the US dollar. The assets and liabilities of the Company's foreign subsidiaries are translated using the exchange rates in effect at the reporting date, while income and expenses are translated at the average exchange rates for the year. Translation differences resulting from the application of this method are recognized under Other Comprehensive Income. The cash flows of foreign consolidated subsidiaries expressed in foreign currencies included in the consolidated financial statements are translated at the average exchange rates for each year. Additionally, the joint ventures OPH and Openxpand have the U.S. dollar as their functional currency. For the registration of Telecom's participation in these joint ventures, their financial information is translated into the Company's functional currency by applying the closing exchange rate for assets and liabilities, and average exchange rates for each fiscal year for revenues and expenses. The resulting translation differences are recognized in "Other Comprehensive Income" and accumulated in equity under "Translation Adjustment." Such adjustment is reclassified to profit or loss when the Company loses its interest in the joint venture." Foreign Currency Transactions Transactions in foreign currencies are translated into the functional currency using the foreign exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the foreign exchange rate prevailing at the reporting date. Exchange differences recognized in real terms, are included in the consolidated income statement in the items "Foreign currency exchange gains (losses) on borrowings" and "Other foreign currency exchange gains (losses)" within the line items "Financial results from borrowings" and "Other financial results, net", respectively, except when they are deferred in equity for transactions that qualify as cash flow hedges, if applicable. Principles of consolidation and equity method Subsidiaries Subsidiaries are all entities over which the Company has control. The Company controls an entity where the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Company (see item d.7) to this Note). Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, statement of comprehensive income, statement of changes in equity and statement of financial position respectively. Inter-company transactions, balances and unrealized gains on transactions between Telecom Argentina and its subsidiaries are eliminated. Unrealized losses are also eliminated, unless the transaction provides evidence of impairment of the transferred assets. The subsidiaries' financial statements cover the same periods and are prepared as of the same closing date and in accordance with the same accounting policies as those of Telecom Argentina. Note 1.a) details the subsidiaries, together with the interest percentages held directly or indirectly in each subsidiary's capital stock and votes, main activity and country of origin as of December 31, 2025. Transactions with non-controlling interests Telecom considers any transactions executed with non-controlling shareholders that do not result in a loss of control, as transactions among shareholders. A change in the equity interests held by Telecom is considered as an adjustment in the book value of controlling interests and non-controlling interests to reflect the changes in its relative interests. The differences between the amount for which non-controlling interests are adjusted and the fair value of the consideration paid or received and attributed to the shareholders of the controlling company will be directly recognized in "Other comprehensive income (loss)" in the equity attributed to the parent company. Investments in Associates Associates are all entities over which Telecom has significant influence but not control or joint control. This is generally the case where the Company holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method (see item d.5) to this note), after initially being recognized at cost. Note 4 details the investments in associates, together with the interest percentages held directly or indirectly in each company's capital stock and votes, main activity and country of origin as of December 31, 2025. Joint arrangements Under IFRS 11 "Joint Arrangements" investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor. As of the date of these consolidated financial statements, Telecom only maintains joint arrangements that qualify as joint ventures, namely: Joint venture Interests in joint ventures are accounted for using the equity method, after initially being recognized at cost in the consolidated statement of financial position. In April 2023, the Company acquired a 50% shareholding in OPH, over which joint control is exercised. Until May 19, 2025, Telecom Argentina indirectly held 100% of Openxpand (formerly Parklet) through Opalker. On May 19, 2025, Opalker transferred to the unrelated company Tech-Co Enablers, LLC the shares representing 49% of Openxpand's capital stock and voting rights, and on that same date, the company was renamed Openxpand. Consequently, from that date, Opalker's interest in the company is 51%. On the same date, the parties entered into a shareholders' agreement ("Agreement") which establishes, among other matters, the rights and obligations of both parties regarding their participation in the company. Pursuant to the Agreement, a special majority with the consent of both shareholders is required to decide on key business and corporate matters. Therefore, Opalker alone does not have the ability to use its power over the investee to influence its returns, and exercises joint control. Accordingly, from the date of the share transfer, the investment in this company is measured and presented in these consolidated financial statements as a joint venture (see Note 4). Equity method Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize Telecom's share of the post-acquisition profits or losses of the investee in profit or loss, and Telecom's share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. Telecom's investment in associates includes the goodwill identified at the time of the acquisition, net of any impairment losses. For more information on impairment of Fixed and Intangible Assets, see item m) to this note. Unrealized gains on transactions between Telecom and its associates and joint ventures are eliminated to the extent of the group's interest in these entities. The associates' and joint ventures' financial statements cover the same periods and are prepared as of the same closing date as of the Telecom's financial statements. Adjustments were made, where necessary, to the associates' extra-accounting information so that their accounting policies are in line with those used by Telecom. Consolidation of structured entities The Company, through one of its subsidiaries located in Uruguay (Telemás S.A.), has executed certain agreements with other companies (Bersabel S.A., Audomar S.A., Dolfycor S.A., Reiford S.A., Tracel S.A., Space Energy Tech S.A. and Visión Satelital S.A., collectively license-holding entities) for the purpose of rendering on behalf of and by order of such companies' certain installation services, collections, administration of subscribers, marketing and technical assistance, financial advisory services and general business advising, with respect to cable television services in Uruguay. The Company maintains control of these entities in accordance with the guidelines of IFRS 10, so the present consolidated financial statements include their assets, liabilities, and results. Since the Company did not hold an equity interest in these companies until January 2025, the offsetting entry of the net effect of the consolidation of their assets, liabilities and results is disclosed until that moment under the line items "Equity attributable to non-controlling interests" and "Net Income attributable to non-controlling interests". In February 2025, Adesol acquired 100% of the non-controlling interests in the license-holding entities. This acquisition was approved by the regulatory authority through Resolution No. 79 issued by the Ministry of Industry, Energy and Mining of Uruguay, dated February 27, 2025, and published in the Official Gazette of the Eastern Republic of Uruguay on March 12, 2025. This transaction represents a transaction between controlling and non-controlling shareholders in equity for $55,315 million. Business Combinations Telecom applies the acquisition method of accounting for business combinations. The consideration for each acquisition is measured at fair value of the assets given (acquisition cost). The identifiable assets and the liabilities assumed of the acquired company that meet the conditions for recognition under IFRS 3 are recognized at fair value at the acquisition date, except for certain particular cases provided by such standard. Any excess between: a) the sum of the consideration transferred, plus non-controlling interests (valued at fair value or at their proportional participation on identifiable net assets), plus acquisition-date fair value of the acquirer's previously held equity interest in the acquire (if any) and b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed determined on the acquisition date, is recognized as goodwill. Otherwise, the gain is immediately recognized in the income statement. Acquisition direct costs are recognized in the Income Statements when they are incurred. For more details on the acquisitions made, see Note 29. Business combinations under common control The business combinations between companies under common control, which are accounted for considering the book value of the acquired company in the parent company. Unrealized result is also eliminated unless the transaction provides evidence of the asset transferred. Revenues Revenues are recognized (net of discounts and returns) to the extent the sales agreement has commercial substance, provided it is considered probable that economic benefits will flow to Telecom and their amount can be measured reliably. Telecom discloses its revenues into two large groups: services and equipment. Revenues from sales of services are recognized at the time services are rendered to the customers. Revenues from sales of equipment are recognized at the point in time when the control is transferred and the performance obligation is performed. The main performance obligations of Telecom are: Mobile Services: include mainly consist of monthly basic fees, revenues from prepaid credit sales and online recharges, airtime usage charges, roaming and interconnection charges, VAS charges, and other services. Telecom provides mobile services in Argentina and Paraguay. Internet Services : include mainly consist of fixed monthly fees received from residential and corporate customers (mainly high-speed subscriptions - broadband and non-dedicated internet-). Telecom provides internet services in Argentina, Uruguay and Paraguay. Cable Television Services: include mainly consist of monthly fees and certain variable consumption fees related to on demand services. Telecom provides cable television services in Argentina, Uruguay and Paraguay. Fixed and Data Services: include mainly consist of voice services monthly fees, measured service and fixed-line IP telephony / unified communications, interconnection services, capacity leases and data transmission services for companies (among others; private networks, dedicated lines, broadcasting signal transport, cybersecurity and IOT solution - internet of things -, Cloud & Infrastructure services -technological solutions - and Special projects). Telecom provides fixed and Data services in Argentina, USA, Uruguay, Paraguay and Chile. Other Services Revenues: include mainly revenues from billing remuneration and collection management on behalf of third parties, revenues related to fintech services, administrative revenues and revenues from the sale of advertising space, among others. Revenues from transactions that include more than one item have been recognized separately to the extent they have commercial substance on their own. In those cases, in which payment is deferred in time, such as construction contracts, the effect of the time value of money must be accounted for. Non-refundable up-front connection fees (one-time revenues), generated at the beginning of the relationship with the customers, are deferred and charged to income over the term of the contract or, in the case of indefinite period contracts, over the average period of the customer relationship. Monthly fees paid in advance are disclosed net of trade receivables until the service is rendered. Revenues on construction contracts are recognized based on the stage of completion (percentage of completion method). Such method provides an accurate representation of the transfer of goods in construction contracts because revenues are recognized based on the progress of the construction. When the outcome of a construction contract can be estimated reliably, the revenues and costs associated with the construction contract are recognized as revenues and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period. When it is probable that total contract costs will exceed total contract revenues, the expected losses are immediately recognized as expenses. During the year ended December 31, 2025 Telecom recognized revenues from construction contracts in the amount of $8,115 million. However, during the years ended December 31, 2024 and 2023, Telecom has not recognized income from construction contracts. Financial Instruments At initial recognition, Telecom measures financial assets and liabilities at its fair value. In the case of a financial asset, not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issuance will be added or removed. Financial Assets Classification and measurement Based on the business model for managing financial assets and the contractual terms of the cash flows, Telecom classifies and measures its financial assets into the following categories: Financial assets measured at amortized cost: Financial assets that are held with the objective of collecting contractual cash flows, and whose cash flows consist solely of payments of principal and interest, are measured at amortized cost. Financial assets at fair value through other comprehensive income (FVOCI): Financial assets that are held both to collect contractual cash flows and for sale, and whose cash flows consist solely of payments of principal and interest, are measured at fair value through other comprehensive income. Financial assets measured at fair value through profit or loss (FVPL): Financial assets that do not meet the criteria to be measured at amortized cost or at FVOCI, meaning their objective is to generate cash flows through their sale, are measured at FVPL. For more information about financial instruments, see Note 23. Interest income on these financial assets is recognized within "Other financial results," under the line item "Other net interest," using the effective interest method. Income and expenses arising from financial assets (investments) measured at fair value are included in the line item "Changes in the fair value of financial assets" within "Other financial results, net." Changes in the carrying amount of financial assets measured at fair value through other comprehensive income are recognized in other comprehensive income, except for impairment gains or losses, interest income, and foreign exchange differences, which are recognized in profit or loss within "Other financial results, net". As of December 31, 2025, the Company maintains financial assets measured at amortized cost, financial assets measured at FVPL, and financial assets measured at FVOCI. Telecom reclassifies debt investments only when its business model for managing those assets changes. Financial assets, excluding DFI, include: Cash and Cash Equivalents Cash equivalents are short-term and highly liquid investments that are readily convertible to known amounts of cash, subject to an insignificant risk of changes in value and their original maturity or the remaining maturity at the date of purchase does not exceed three months. Cash and cash equivalents are recorded according to their nature, at fair value or amortized cost. Telecom applies the indirect method to reconcile the net income for the year with the cash flows generated by its operations. Bank overdrafts are disclosed in the consolidated statement of financial position as current borrowings and in the cash flow statements as financing activities of Telecom, because they are part of the short-term financial structure. Trade and Other Receivables Trade and other receivables are initially recognized at fair value and, in general, subsequently measured at amortized cost using the effective interest method, less allowances for doubtful accounts. Sometimes, mobile telephony customer pays for the handset the price net of the discount. Such discount is allocated between handset sale revenues and service revenues, generating, initially, the recognition of a contractual asset. Contractual assets are initially recognized at fair value and subsequently measured at amortized cost, less allowances for bad debts, if any. The effects of the variation in the fair value of other credits measured at fair value through profit or loss impact the line "Financial discounts on assets, debts and others" in "Other financial results, net". Investments Governments bonds include the Bonds issued by National, Provincial and Municipal Governments. Securities and bonds are measured at fair value. Other investments are held for collection of contractual cash flows, where those cashflows represent solely payments of principal and interest, are measured at amortized cost. Investments in mutual funds are carried at fair value. Impairment of Financial Assets At the time of initial recognition of financial assets (and at each closing), Telecom estimates the expected losses, with an early recognition of a provision, pursuant to IFRS 9. Regarding trade receivables, and using the simplified approach provided by such standard, Telecom measures the allowance for doubtful accounts for an amount equal to the lifetime expected credit losses. The expected losses to be recognized are calculated based on a percentage of un-collectability per maturity ranges of each financial asset. For such purposes, Telecom analyzes the performance of the financial assets grouped by type of market. Such historical percentage must contemplate the future collectability expectations regarding those financial assets and, therefore, those estimated changes in performance. Derecognition of Financial Assets Telecom derecognizes a financial asset when the contractual rights to the cash flows of such assets expire or when it transfers the financial asset and, therefore, all the risks and benefits inherent to the ownership of the financial asset are transferred to another entity. Gains or losses arising from the derecognition of the asset are recognized directly in net income for the year and are presented within "Other financial results, net". In the case of financial assets measured at FVOCI, upon derecognition of a financial asset, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to net income for the year and recognized within "Other financial results, net." Financial Liabilities Classification and measurement Financial liabilities comprise trade payables, borrowings, leases liabilities and certain other liabilities. Financial liabilities are initially recognized at fair value and subsequently measured at amortized cost. For more information about the measurement of Financial liabilities, see Note 23. Borrowings Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. In the case of loan exchange, Telecom analyzes whether the modifications therein are substantial or not, in order to define whether it is a cancellation or modification, respectively, of the original liability. If the analysis results in a cancellation, a new liability is recognized. If it is not accounted for as a cancellation, any costs or fees incurred adjust the carrying amount of the borrowing and are amortized over the remaining term of the modified borrowing. The results generated by the renegotiation of loans are included in the line "Borrowings renegotiation results" within Financial results from borrowings. Other liabilities Below are some particular issues regarding certain financial liabilities included in Other liabilities. Funds to be paid to customers correspond to the amounts owed to users of the digital wallet, held by the subsidiary Micro Sistemas. These funds are held in the user's payment account until the user requests withdrawal. Derecognition of Financial Liabilities Telecom derecognize a financial liability (or part of it) when it has been extinguished, i.e., when the obligation specified in the corresponding agreement is discharged, repaid or expires. Derivatives Derivatives are recognized at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. Derivatives are used by Telecom to manage their exposure to exchange rate and interest rate risks. At inception of the hedge relationship, Telecom documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. Telecom documents its risk management objective and strategy for undertaking its hedge transactions. DFIs are classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months. They are classified as a current asset or liability when the remaining maturity of the hedged item is less than 12 months. The effective portion of changes in the fair value of DFI that are designated and qualify as cash flow hedges is recognized in OCI. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss, within "Financial costs". When a hedge no longer meets the criteria for hedge accounting, gains or losses are immediately reclassified to profit or loss. Changes in the fair value of DFI that do not meet the criteria for hedge accounting, are recorded in profit or loss. If the hedged item is a prospective transaction that results in the recognition of a non-financial asset or liability or a firm commitment, the cumulative gain or loss that was initially recognized in OCI is reclassified to the carrying amount of such asset or liability. For additional information about derivatives instruments, see Note 23.c). Inventories Inventories are measured at the lower of the restated for inflation cost and net realizable value. The cost is determined under the weighted average price method. The net realizable value represents the estimated selling price in the ordinary course of business less the applicable variable sale costs. The estimate of the Allowance for obsolescence of inventories is determined for those assets that, at year end, due to the advancement of technology and/or slow rotation, have lost their value. The value of inventories does not exceed its recoverable value at the end of the year. PP&E and Investment properties PP&E are measured at acquisition and/or construction cost restated for inflation less accumulated depreciation and impairment losses. Acquisition cost includes expenditures that are directly attributable to the acquisition of the items. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to Telecom and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within "Other operating expenses, net". Investment properties mainly include land and buildings that are not occupied for Telecom own operations. These assets were initially recognized at fair value at the acquisition date. Subsequently, they are measured using the cost model, being carried at cost restated for inflation less accumulated depreciation and accumulated impairment losses, if any. Depreciation of PP&E and Investment properties is calculated on a straight-line basis over the ranges of estimated useful lives of each class of assets. The ranges of the estimated useful lives of the main classes of PP&E are the following: Estimated Useful Life (in years) Real Estate 5 - 50 Fixed Network and Transportation 4 - 20 Mobile Network Access 3 - 7 Tower and Pole 10 - 20 Switching Equipment 2 - 7 Computer Equipment 3 - 5 Vehicles 5 Goods lent to customers at no cost 2 - 4 Power Equipment and Installations 2 - 12 Machinery, diverse equipment and tools 5 - 10 For Investment properties, the estimated remaining useful life of buildings is 20 years. Investment properties consisting of land are not depreciated. The assets' residual values and useful lives of PP&E and Investment properties, as well as the depreciation methods, are reviewed and adjusted, if appropriate, at the end of each reporting period. Intangible Assets Intangible assets are valued at their restated for inflation cost, less accumulated amortization (in the case of intangible assets with a finite useful life) and impairment losses, if any. Intangible assets comprise the following: Incremental Costs from the Acquisition of Contracts: These costs are capitalized as intangible assets to the extent the conditions for the recognition of an intangible asset are met, i.e., provided Telecom expects to recover those costs and provided they are costs that Telecom would not have incurred if the contract had not been successfully obtained. Such assets will be amortized under the straight-line method over the contractual relationship of the related transferred service. Licenses 5G licenses: Includes the assignment of 5G spectrum of the frequency bands 3,400-3,500 MHz assigned to Telecom Argentina and 3,550-3,600 MHz assigned to TMA. 3G/4G licenses: Includes the 3G and 4G frequency bands assigned to Telecom Argentina and TMA. Núcleo´s licenses: Includes PCS licenses, for spectrum in the 700 MHz band and internet and data transmission licenses. PCS and SRCE licenses (Argentina): Correspond to licenses of Telecom Argentina and TMA, over which the Management has considered that the licenses have an indefinite useful life because there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for Telecom Argentina and TMA. Therefore, these licenses are subject to a recoverability assessment, at least on an annual basis. The Company's management has concluded that the licenses described in a), b) and c) have a finite useful life. Customer Relationship: Customer relationship comprises contracts with Telecom's customers that were incorporated as a result of the merger between Telecom Argentina and Cablevisión, as well as those customer contracts identified as a result of acquisitions made by Telecom, among which, in 2025, the customer relationship recognized upon the acquisition of TMA was included. The customer relationship is amortized based on the estimated tenure of the acquired customers. Brands: It includes the brands Telecom and Personal, which were recognized as a result of the merger between Telecom Argentina and Cablevisión. It should be noted that, as a result of the rebranding implemented in December 2025, Telecom Argentina will provide its services under the "Personal" brand, and the "Telecom" brand will thereafter be used as an institutional brand. These brands are not amortized because they are considered to have an indefinite useful life, and, therefore, are subject to evaluation of their recoverability at least annually. In addition, Telecom recognized the right to use the "Movistar" brands, arising from the acquisition of TMA. Such right originates from the contractual license agreement executed on the acquisition date and has been recognized as an identifiable intangible asset in accordance with IFRS 3. The useful lif...

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