Telecom Argentina S A : Presentación de Resultados 1Q25

About this update from Telecom Argentina Sa Class B

Telecom Argentina 1Q25 Earnings Release May 2025 2 DISCLAIMER Many of these factors are macroeconomic and regulatory in nature and therefore beyond the control of the Company's management. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended, planned or projected. The Company does not intend and does not assume any obligation to update the forward-looking statements contained in this document. These forward-looking statements are based upon a number of assumptions and other important factors that could cause our actual results, performance or achievements to differ materially from our future results, performance or achievements expressed or implied by such forward-looking statements. Readers are encouraged to consult the Company's Annual Report on Form 20-F and the periodic filings made on Form 6-K, which are periodically filed with or furnished to the SEC, as well as the presentations periodically filed before the CNV and the Buenos Aires Stock Exchange (Bolsas y Mercados Argentinos), for further information concerning risks and uncertainties faced by the Company. This document also contains pro-forma financial information to show the impact of the Acquisition of Telefónica Móviles Argentina S.A. The pro-forma financial information has not been audited or reviewed by the Company's auditors. The pro-forma financial information provided in this document is for illustrative purposes only and is not represented as being indicative of the Company's (nor anyone else's) views on its future financial condition and/or performance. Investors should note that the pro-forma financial information has not been prepared in accordance with, and does not purport to comply with, Article 11 of Regulation S-K under the U.S. Securities Act. The pro-forma financial information has been prepared in accordance with reasonable assumptions and the adjustments used therein are appropriate to give effect to the Acquisition. The Company has accounted for the effects of inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores ("CNV"), which establishes that the restatement for inflation will be applied to the annual financial statements, for intermediate and special [periods ended as of December 31, 2018 inclusive]. Accordingly, the reported figures corresponding to 1Q25 include the effects of the adoption of inflationary accounting in accordance with IAS 29. On the other hand, in order to ease the understanding and analysis of the earnings evolution by its users, additional figures of the income statements are included, which are non-restated for inflation and which were used as the base for the information presented in constant pesos. OVERVIEW OF OUR 1Q25 | Operational and Financial highlights 3 1Q25 REVENUES 6% Mobile Services MERGER & ACQUISITIONS 11% 13% 1% US$ 1.3 BN 24% 46% Internet Services Pay TV Fixed & Data Handsets Other ACQUISITION OF TMA MARKET REPAIR TRANSACTION 3.4x EV/EBITDA as reported NO IMPACT ON LEVERAGE AFTER TRANSACTION 1Q25 ADJUSTED EBITDA US$0.4 BN MOBILE Market Leader Subscribers BROADBAND Market Leader Subscribers 1Q24 30.3% 1Q25 33.1% 21.3M | 2.6M 4.1M EBITDA margin 1Q25 CAPEX US$ 165 MM 1 +8% vs 1Q24 Focused on mobile & FTTH network deployment NET DEBT / Estimated proforma EBITDA 2 LTM1Q25 = 1.9 x 18.9M 3 PAY TV Subscribers Market Leader 3.1M | 111K 417K 1.6M PERSONAL PAY ~ 3.9 MM onboarded clients 2 Fintech in Argentina considering total remunerated account balances *Figures of 1Q25 in constant pesos as March 31, 2025, converted at the BNA ask rate as of March 31, 2025 (1,074.0). (1) Includes only PPE & intangibles (2) Calculated as Net Financial Debt (cash, cash equivalents - net of Client Funds - plus financial investments and financial NDF minus financial loans) / EBITDA. This ratio is included here solely for reference and may be calculated differently according to the definitions incorporated in some of the Company's debt contracts. The EBITDA figure considered includes Telecom's last twelve months standalone EBITDA of USD 1,235 million, plus TMA's proforma EBITDA of USD 533 million. The proforma calculation for TMA primarily includes adjustments for management fees, brand fees, debit and credit tax and customer acquisition and installation costs . (3) Include 2.7 million M2M accesses 4 ACQUISITION OF TMA 2 Greater Synergies & Efficiencies to Increase Profitability 5 Transaction Rationale 1 Increased EBITDA Generation with Stable Leverage PROCESS TOWARDS ACQUISITION OF TMA Efficiency plan to increase TMA profitability Greater ability to carry out required investments, accelerating 5G and FTTH deployment . Creating the most competitive telecommunications Company in Argentina, with premium infrastructure EBITDA US$ MM CAPEX 1 /REVENUES Market repair transaction - solving a situation where a player had a limited profitability and limited investment capacity Profitability and Investments below industry standards 17% 10.2% 9.8% 9.2% 8.6% 8.4% 8.5% 10.9% 2.4% 25.1% 5G Spectrum Ordinary CAPEX 2022 2023 2024 1Q25 2022 2023 2024 1Q25 3 Creating the Most Competitive Telecom Company in Argentina 4 Best Quality and Complementarity of Networks (1) CAPEX considers investments in PP&E and Intangible Assets REVENUES (US$ Million) 2,444 4,009 +61% Sum of the parts 6,453 EBITDA (US$ Million) Sum of the parts 265 1,129 1,394 +23% CAPEX (US$ Million) 225 552 +41% 777 Sum of the parts Consolidated 643 1,269 162 1 6 1Q25 1Q25 FY24 KEY FIGURES Consolidated 63 358 421 +17% 1,051 218 +21% 144 +14% Consolidated 66 165 20 Figures include contributions from TMA as of February 24 Reported figures for TMA as of 1Q25 *According to FY24 audited financial statements of Telecom Argentina and Telefonica Móviles Argentina. Combined figures are obtained by sum of the parts Figures of 2024 in constant pesos as of December 31, 2024 converted at the BNA ask rate as of December 31, 2024 (1032.0). Figures of 1Q25 in constant pesos as of March 31, 2025 converted at the BNA ask rate as of March 31, 2025 (1,074.0). TMA EBITDA Mg 11.0% 2024 2025 2026 2027 2028 2029 2030 TMA - Actions to improve margins 2 7 28% EBITDA Mg as reported FY24 33% EBITDA Mg as reported 1Q25 | 34% excluding TMA contribution 11% EBITDA Mg as reported FY24 25% EBITDA Mg as reported 1Q25 EFFICIENCY PLAN Elimination of management and brand fees Reduction of redundant mobile sites costs Optimization of procurement of handsets and sim cards Lower advertising activity and costs Improvement of bad debt ratios Lower programming costs Lower video platform operating Optimization of the commercial network Optimization of administrative costs: Insurance Logistics DONE IN ANALYSIS IN PROGRESS IN PROGRESS IN ANALYSIS IN PROGRESS IN ANALYSIS IN ANALYSIS DONE IN PROGRESS Security IN PROGRESS POST ACQUISITION Others 42% Personal + Movistar 58% Others 54% Personal + Movistar 46% Flow + Movistar Others 38% 62% Flow + Movistar 16% Others 84% PORTABILITY (In million) 3.4 3.6 Average 2.6 Source: ENACOM- Indicadores de Mercado 2018 2019 2020 2021 2022 2023 sep-24 Market share measured in accesses. Data as of 3Q24. (1) Source: Enacom(2) Source: Dataxis and Enacom. (3) Source: Business Bureau & Enacom Figures may not add up due to rounding 3 8 Traditional Pay TV Broad Pay TV (+OTTs) Movistar PRE ACQUISITION Others 42% Personal 34% Others 54% Personal 34% 2% Flow 34% Flow 14% Movistar 24% Movistar 13% Others 62% Movistar 5% Others 84% PAY TV SHARE 3 BROADBAND SHARE 2 MOBILE SHARE 1 CREATING THE MOST COMPETITIVE TELECOM COMPANY IN ARGENTINA 3.0 2.8 1.6 2.2 1.8 4 9 Combined Strength in complementary MOBILE AND FIXED NETWORKS Mobile and Fixed Networks Fixed network coverage TEO + TMA Quadruple Play Operator, leader in every market segment State of the art and owned infrastructure Best national coverage The fastest mobile network, and the first operator to deploy 5G: Fastest mobile network award for six years in a row¹ and fastest 5G network in 2024 Stronger presence in North area +8,500 mobile sites • +4 MM homes passed with fiber to the home (FTTH HHPP) of the country Only TEO TEO + TMA TMA Only ≈ 15,500 mobile sites ≈ 7.5 MM FTTH HHPP Quadruple Play Operator with an important mobile customer base Large mobile and fixed network The fastest fixed network in the country, with a large FTTH customer base: Fastest fixed network award for five years in a row 1 ≈7,000 mobile sites • +3.5 MM FTTH HHPP Stronger presence in South area of the country 1 Source: Speedtest Ookla FTTH : Fiber to the home 10 Formal response by Telecom to the request for additional REGULATORY PROCESS Required Regulatory Approvals Post-Transaction information issued by the CNDC Expected Approval Period (6 to 12/14 Months Post-Transaction) Feb 24 th Mar 3 rd Mar 7 th May 2 nd Aug - 2025 Apr - 2026 >>>>>>>>>>>>>>>>>>> The companies continue to Transaction Date CNDC Filing ENACOM Filing operate separately and independently 6 Months 12-14 Months Antitrust Approval Request Formal Approval Request Merger Cablevisión & Fibertel (2003) Telecom & Nextel (2006-2007) Cablevisión & Multicanal (2006-2007) Telecom & Cablevisión (2017-2018) Type Cable TV + Internet service provider Internet & cable TV service operator + Mobile operator Two leading cable TV companies Mobile & Internet services operator + Broadband & cable TV services provider Timeline 2003 Announced in Jan-2006 Approved by CNDC in Mar-2007 (14 months later) Announced in Oct-2006 Approved by CNDC in Dec-2007 (14 months later) Announced in Jul-17 Effective as of Jan-18 Approved by CNDC in Jun-2018 (6 months later) Rationale Consolidation of a combined cable TV and internet offering Entry into the mobile telephony services for Cablevisión Creation of the largest pay TV company at that time Formation of integrated operator with converged services (quadruple play) Remedies No conditions/remedies (No CNDC Anti-trust Commission) No conditions/remedies Approved by the CNDC with remedies Conditions on cable TV (for 2 years): Open exclusive content to third-parties Spot on grid for TV signal providers Pluralism of information Equitable pricing across the country Free cable TV to public institutions U$S 180MM* investment plan Approved by the CNDC with remedies: Transfer broadband customers (143k) to Universo Net Return of radio spectrum (80Mhz) due to cap excess Delay in offering packaged services for 6 up to 1 year in certain locations. * Between 2007 and 2011, Cablevision invested US$1.1 billion, more than 5 times the initial commitment to CNDC. 11 HISTORICAL MERGERS INVOLVING COMPANIES IN TELECOM'S GROUP 12 BUSINESS REVIEW 13 PRICING STRATEGY SERVICE REVENUES EVOLUTION (P$ MM) Telecom consolidated figures ARPU EVOLUTION PER SEGMENT* Δ% Y/Y TEO, Excluding TMA +26% Mobile ARPU evolution in US$ 4.5 6.4 4.3 TMA TEO 6.5 +49% +42% TMA 1Q25 contribution 1,285,482 +5% 1,016,464 1,066,748 218,734 US$ MM* 760 1,197 1Q24 1Q25 TMA 1Q25 figures Broadband ARPU evolution in US$ 14.8 11.8 TMA TEO 21 19.5 18.0 +42% +65% +82% 642,249 548,582 +17% Pay - TV ARPU evolution in US$ 10.5 14.1 9.9 +34% TMA TEO 1Q24 1Q25 1Q24 As reported 1Q25 TELECOM does not participate in TMA's pricing strategy *Figures of 1Q24 in constant pesos as of March 31, 2024 converted at the BNA ask rate as of March 31, 2024 (858.0). Figures of 1Q25 in constant pesos as of March 31, 2025 converted at the BNA ask rate as of March 31, 2025 (1,074.0). US$ MM* 422 598 …WITH A POSITIVE EVOLUTION OF SUBSCRIBER BASES 2 14 Combined Growth In thousands of accesses MOBILE* Prepaid Postpaid 12,963 13,112 8,201 8,236 43% 49% 48% 1Q24 1Q25 Machine-to-machine accesses Δ% Y/Y Δ% Y/Y +0.4% Prepaid +1.0% Postpaid -0.6% Prepaid +1.5% Postpaid Prepaid Postpaid 9,206 2,652 9,682 9,069 2,387 9,738 Δ% Y/Y +1.1% Prepaid +0.4% 1Q25 1Q24 Postpaid POSTPAID % 39% 39% BROADBAND 4,097 4,053 1Q24 1Q25 1,461 1,562 +6.9% 93% FTTH +1.0% Broadband -1.1% Growing +0.3% Pay TV 1Q25 1Q24 48% in FTTH Acceses 417 427 PAY TV** 3,125 3,147 1Q24 1Q25 +0.7% 1Q24 1Q25 -2.3% *Includes Machine-to-machine (M2M) accesses of TMA **Includes only Argentina. REVENUES BREAKDOWN 15 SERVICE REVENUES Million of P$ REVENUES BREAKDOWN Mobile REVENUES COMPOSITION Δ Y/Y Δ Y/Y Billion of P$ CONSOLIDATED HISTORICAL FIGURES INFLATION ADJUSTED CONSOLIDATED 45.5% CONSOLIDATED (MODELING PURPOSES) +113% FIGURES +26% 1,285,482 36,437 1,016,464 Other 1.1% Handsets 5.7% Fixed & Data Broadband 15 Other 12 78 Handsets 50 +26% +56% 5 4 +11% 48 -15% 57 586,618 1,249,045 429,846 586,618 1,249,045 11.4% Pay TV 12.7% 23.6% Fixed & Data 155 149 +4% 107 124 -14% 1Q24 1Q25 1Q24 IAS 29 1Q25 IAS 29 IAS 29 Adjustment Mobile 59.3% Pay TV 173 158 +9% 24 16 +49% INFLATION ADJUSTED FIGURES +17% 548,582 642,249 1Q24 1Q25 Figures may not add up due to rounding. Other 0.7% Handsets 7.0% Fixed & Data 15.4% Pay TV 3.5% Broadband 14.1% Broadband Mobile 322 263 62 434 0 1Q25 IAS 29 Includes revenues in foreign currency mostly from the B2B segment 1Q24 IAS 29 +23% +43% 97 67 409 337 +45% +22% REGIONAL OPERATIONS 16 Paraguay key figures EBITDA Mg 53% REVENUES EBITDA 51 50 26 27 Paraguay 1Q24 1Q25 1Q24 1Q25 Net debt to EBITDA 0.3x SUSCRIBERS * Mobile: 2.6M (+12%) Broadband: 322k (+13%) Pay TV: 112k (+4%) Pay: 899k Onboarded Users Uruguay Pay TV: 111k * (-4.7%) OUR DIGITAL WALLET A relevant player in the market with high growth potential ~ 3.9 million total onboarded clients (+55% y/y) x3.5 times TPV and +65% TPN vs 1Q24 + P$ 356BN in clients' remunerated account balance #2 Fintech in Argentina considering remunerated balances * Number of subscribers in each segment. Figures in brackets are y/y variations. 17 REVENUES EBITDA FINANCIAL HIGHLIGHTS Million of P$ Million of P$ HISTORICAL FIGURES (MODELING PURPOSES) HISTORICAL FIGURES INFLATION ADJUSTED FIGURES (MODELING PURPOSES) INFLATION ADJUSTED FIGURES 615,345 +115% 1,324,901 1,066,430 451,085 +28% 1,363,353 38,452 32.8% 34.0% 30.3% 33.1% 451,948 450,014 1,934 322,984 121,284 201,700 1Q24 1Q25 1Q24 IAS 29 1Q25 IAS 29 1Q24 1Q25 1Q24 IAS 29 1Q25 IAS 29 MARGIN EVOLUTION Y/Y EBITDA margin evolution (p.p. difference, IAS 29) IAS 29 Adjustment IAS 29 Adjustment EBITDA EVOLUTION 1Q25 Million of P$. +28% +23% EBITDA Margin 911,405 +40% 451,948 30.3% 33.1% 1,363,353 1Q24 1Q25 Strong improvement Revenues Operating Costs before D&A EBITDA *As a percentage of total Operating Costs. EBITDA 1Q24 Ss. Revenues & Handsets Sales Handsets Costs Fees for services, Labor Cost ITX Costs Commisions & Taxes Programming & Others* EBITDA 1Q25 other income maintenance Advertising content costs 18 IFRS, Million of P$ Y/Y Variation 269,018 27,905 +P$128,964 (+40%) 19,805 16,024 40,752 5,155 15,922 31,736 13,420 25,145 56% 53% 27% 38.6% 36% 10.3% 16.6% 13.2% 28.8% 23.0% 451,948 322,984 IAS 29 EBITDA 1Q24 - 1Q25 EBITDA Margin 30.3% -1.0% +1.0% and materials -0.7% + 2.0% + 2.0% + 0.4% + 0.0% - 0.6% + 0.2% - 0.4% 33.1% AS % OF REVENUES 1Q24 1Q25 Others* Taxes Commisions & Adv ITX Costs 3% 4% 15% 13% 23% 21% 4% 3% 5% 5% 1Q25 consolidated EBITDA Mg | 34% Effective cost management: contributing to stabilize EBITDA Mg. excluding TMA 1-month contribution 8% 8% 5% 5% 6% 7% Programming & content costs "Others" includes bad debt expenses and other costs. Handsets Costs Fees for services, maintenance and materials Labor Costs Figures may not add up due to rounding. 19 CONSOLIDATED RESULTS OPERATING INCOME (LOSS) IFRS, Million of P$ NET INCOME IFRS, Million of P$ HISTORICAL FIGURES (MODELING PURPOSES) INFLATION ADJUSTED FIGURES IAS 29 Adjustment HISTORICAL FIGURES (MODELING PURPOSES) INFLATION ADJUSTED FIGURES +128% 362,824 159,438 (40,771) 111,899 (200,209) (250,925) 1,052,577 38,140 93,202 (43,641) 1Q24 1Q25 1Q24 IAS 29 1Q25 IAS 29 1Q24 1Q25 1Q24 IAS 29 1Q25 IAS 29 OPERATING INCOME MARGIN: 27% 26% 1Q25 CAPEX 20 CAPEX* Million of P$ TEO, Excluding TMA HIGHLIGHTS +8% 176,721 We expanded our FTTH network over 1,900 new blocks. 21,759 +37% TMA 1Q25 contribution 163,209 154,962 51,394 70,531 1Q24 IAS 29 1Q25 IAS 29 1Q24 IAS 29 1Q25 IAS 29 US$ MM** 122 165 38 66 % over Revenues 15.3% 13.0% 8.5% 10.2% 300 blocks with FTTH overlay. 24 new sites were deployed and another 185 sites were upgraded. CONSOLIDATED TECHNICAL CAPEX BREAKDOWN 55% 11% 34% Network and We add 31 5G Sites. Technology*** Installations and CPE International Capex *CAPEX considers investments in PP&E and Intangible Assets ** Figures of 2024 in constant pesos as of March 31, 2024 converted at the BNA ask rate as of March 31, 2024 (858.0). Figures of 2025 in constant pesos as of March 31, 2025 converted at the BNA ask rate as of March 31, 2025 (1,074.0). *** Includes: CAPEX in Datacenter/IT and other investments in Argentina. 21 CASH FLOW FCF GENERATION 1Q24 FCF GENERATION 1Q25 Million of P$ Million of P$ 322,984 451,948 163,209 3,808 155,967 393 155,574 176,721 188,985 86,242 536 85,706 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF 241 - 122 -3 117 - 0 116 421 - 165 -176 80 - 0 80 US$ MM** IFRS, U$D Million - US$ 36 Y/Y Variation *CAPEX considers investments in PP&E and Intangible Assets ** Figures of 2024 in constant pesos as of March 31, 2024 converted at the BNA ask rate as of March 31, 2024 (858.0). Figures of 2025 in constant pesos as of March 31, 2025 converted at the BNA ask rate as of March 31, 2025 (1,074.0). FCF calculation considers: (Cash flows from Operating Activities + Cash Flows from Investment Activities - Payments for investments not considered as cash and cash equivalents - Proceeds from sale of investments not considered as cash and cash equivalents - Dividends from associates- Payments for acquisition of subsidiary, net of cash acquired) KEY FIGURES 22 In US$ Million 1 LTM1Q25 FY24 EBITDA 1,768 Estimated proforma 2 1,129 Gross Debt 3 3,837 2,789 Cash & Equivalents 497 308 Net Debt 3 3,340 2,447 Ratios LTM1Q25 FY24 Gross Debt / EBITDA 4 2.17 Estimated Proforma 2 2.47 Net Debt / EBITDA 4,5 1.89 Estimated Proforma 2 2.17 1: Figures of 2024 in constant pesos as of December 31, 2024 converted at the BNA ask rate as of December 31, 2024 (1,032.0). Figures of 2025 in constant pesos as of March 31, 2025 converted at the BNA ask rate as of March 31, 2025 (1,074.0). // 2: The EBITDA figure considered includes Telecom's last twelve months standalone EBITDA of USD 1,235 million, plus TMA's proforma EBITDA of USD 533 million. The proforma calculation for TMA primarily includes adjustments for management fees, brand fees, debit and credit tax and customer acquisition and installation costs. // 3: Excludes NDF //. 4: This ratios are included here solely for reference and may be calculated differently according to the definitions incorporated in some of the Company's debt contracts. // 5: Calculated as Net Financial Debt (cash, cash equivalents - net of Client Funds - plus financial investments and financial NDF minus financial loans) / EBITDA. The figures in dollars included in this presentation result from converting figures in constant pesos at the close of a specific period, using the closing exchange rate of that same period. These figures are included solely for the purpose of providing a general reference and are not obtained through any form of dual currency accounting conducted by the Company Approximately 73% in US$, RMB & GUA 17% in US$ Local DDLL 10% in ARS Breakdown by currency* 2025 2026 2027 ≥ 2028 Total (U$S million) US Dollars 186 230 29 2,078 2,522 Dollar-Linked 180 268 98 62 608 Renminbi 35 35 52 122 Guaraní 31 31 Pesos 300 97 381 TMA has no significant debt as of March 31, 2025 *Figures may not add up due to rounding. Figures in constant pesos as of March 31, 2025, converted at the BNA ask rate as of March 31, 2025 (1,074.0) . 23 DEBT MATURITY PROFILE AS OF MARCH 2025 | Annual Principal Payments Cross-Border Notes We cover over 50% of our consolidated debt interest payments with the EBITDA generated in our operation in Paraguay Vendors, multilateral and export credit agencies Local Debt (Argentina and subsidiaries) Breakdown by instrument* 2025 2026 2027 2028 2029 2030 2031 Total (U$S millions) Class 1 Notes 2026 163 163 Class 5 Notes 2025 112 112 Class 21 Notes 2031 270 270 278 817 Vendor Financing 4 3 2 2 0 11 Finnvera 20 12 32 EDC 7 9 4 4 4 4 34 IDB Loan 41 40 19 100 CDB loan 35 35 52 121 BoC loan 2 4 4 10 Syndicated Loan 970 970 ICBC Loan 80 80 40 200 Total 685 533 276 240 1,325 314 293 3,665 Núcleo (GUA) 16 15 31 Local Notes 165 97 261 Local Notes Dollar-linked 180 268 98 62 608 Local Notes Hard-dollar 75 75 Other (ARS) 119 119 FINAL REMARKS 24 Acquisition of TMA by TEO presents the opportunity to upgrade the connectivity in Argentina and upscale the operations of Telecom Market after the acquisition remains competitive in all relevant segments (Mobile, Broadband and Pay TV). The regulatory process is being conducted normally, and all filings have been submitted to competent authorities Consolidating our premium network infrastructure Well-balanced maturity profile as a result of prudent debt management TEO offers value in a consumption recovery scenario for Argentina Para continuar a leer este documento, haga clic aquí para la versión original.

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