This presentation may contain statements that could constitute forward-looking statements, including, but not limited to (i) the Company’s
expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; (ii)
the synergies expected from the merger between the Company and Cablevisión S.A. (or the Merger); (iii) the implementation of the Company’s
business strategy; (iv) the changing dynamics and growth in the telecommunications and cable markets in Argentina, Paraguay and Uruguay; (v)
the Company’s outlook for new and enhanced technologies; (vi) the effects of operating in a competitive environment; (vii) the industry
conditions; (viii) the outcome of certain legal proceedings; and (ix) regulatory and legal developments. Forward-looking statements may be
identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “will,” “may” and “should” or other similar
expressions. Forward-looking statements reflect the current views of the management of the Company with respect to future events. They are
not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. In addition, certain forward-looking
statements are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause actual results,
performance or achievements of the Company to be materially different from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements. These factors include, among others: (i) the Company’s ability to successfully
implement our business strategy and to achieve synergies resulting from the Merger; (ii) the Company’s ability to introduce new products and
services that enable business growth; (iii) uncertainties relating to political and economic conditions in Argentina, Paraguay and Uruguay; (iv)
inflation, the devaluation of the peso, the Guaraní and the Uruguayan peso and exchange rate risks in Argentina, Paraguay and Uruguay; (v)
restrictions on the ability to exchange Argentine or Uruguayan pesos or Paraguayan guaraníes into foreign currencies and transfer funds
abroad; (vi) the manner in which the Argentine government regulates Law No. 27,078, the Argentina Digital Law or, as amended by Decree No.
267/15; (vii) the creditworthiness of our actual or potential customers; (viii) the nationalization, expropriation and/or increased government
intervention in companies; (ix) technological changes; (x) the impact of legal or regulatory matters, changes in the interpretation of current or
future regulations or reform and changes in the legal or regulatory environment in which the Company operates; (xi) the effects of increased
competition; (xii) reliance on content produced by third parties; (xiii) increasing cost of the Company’s supplies; (xiv) inability to finance on
reasonable terms capital expenditures required to remain competitive; (xv) fluctuations, whether seasonal or in response to adverse macro-
economic developments, in the demand for advertising; and (xvi) the Company’s ability to compete and develop our business in the future. 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 orachievements 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
United States Securities and Exchange Commission, as well as the presentations periodically filed before the Argentine Securities and Exchange
Commission (Comisión Nacional de Valores) and the Buenos Aires Stock Exchange (Bolsas y Mercados Argentinos) , for further information
concerning risks and uncertainties faced by the Company.
D I S C L A I M E R
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 1Q19 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.
D I S C L A I M E R
M A C R O -E V O L U T I O N S O FA R A N D W H E R E W E S TA N D :F XI N F L AT I O NM O N E TA R Y P O L I C Y
N E W B U N D L I N GS T R AT E G I E S
OTT video platforms boosts the quality and value of the bundle
OTT bundle is a “must have”
Offering more than a line will helpoperators to tie up the household
and reduce churn
Mobile within thebundles
“Build your own” bundles is a new trend in themarket. Nonetheless, operators should keep
it simple for the customers to understand them
BYOBundles
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
2018 2019 2020 2021 2022 2023
Broadband Bundle without OTT Broadband Bundle with OTT
Broadband bundling forecast in Argentina ( thousand subscriptions)
It is expected that
by 2023 the Broadband
bundles that includes OTT
will reach 50% of total
Broadband Bundles
Source : OVUM
6 AV E N U E S TO R E A C H O U R G O A L S
Transform us into a simple, Agile and customer-focused
company, to lead convergencewithout affecting market value,
leveraging experienceas a differentiating factor
Customer Care
And DigitalSales
IoT
Advertising and
Programmatic
Mobile FinanceServices
EffectiveOrganization
Customer Centric Culture
DNA
Real TimeDecisions
Big Data And
Analytics
PorfolioDevelopment
Convergent Channels
Field Service
Regional Management
Model
Develop the best convergent value
proposal
Promote a high-performance organization
Boost new business
Lead convergence and grow in VAS in
the corporate market
Transform to a digital company
Enhance the commercial and operational model by product, region and
segment
P I L L A R S O F T H ET R A N S F O R M AT I O N
CLIENTS
• BSS Transformation- #Fan
• Digital Experience
• Commercial Intelligence
NETWORK
• Cloud Strategy and DC Evolution
• OSS System Transformation
CULTURE
• Operational Model
• Talent Management
• Communication
COMPANY
• Back Office Transformation- 4UP
• Digital Office
Initiatives and Projects
P$ 44.3 bnREVENUES
EBITDA
ARPU (per month)
SUBSCRIBERS
1Q19Highlights
P$ 14.5bnMargin :
32.7%
Pay TV ARPU: $871.5
Mobile ARPU: $ 225.5
Fixed Voice ARBU: $ 314.3
Mobile subs in Argentina : 18.4 mm
Fixed Voice : 3.5 mm
Broadband : 4.1 mm 12.5mm
CORPORATE MATTERS
Pay TV: 3.4 mm
Broadband ARPU: $ 819.4
4G CLIENTS
► The Ordinary and Extraordinary General Shareholders’ Meeting held
on April 24 approved a cash dividend distribution of 6.3 billion pesos thatwas made available to shareholders on May 7.
14.813
44.328
10.152
9.5756.865 2.807
Mobile Broadband Pay TV Fixed & Data Handsets Other Total Revenues
48.725 44.328
1Q18 1Q19
In P$ Million
T E L E C O M R E V E N U E S
R e v e n u e s c o m i n g f r o m m o b i l e s t i l l t h e m o s t p r e v a l e n t b u s i n e s s o f a l l
Figures may not sum up due to rounding
-9%
33,4%
22,9%
21,6%
15,5%
6,3% 0,3%
Mobile Broadband Pay TV
Fixed & Data Handsets Other
REVENUES BREAKDOWN YoY EVOLUTION
REVENUES COMPOSITION
6,5
10,512,5
1Q17 1Q18 1Q19
100% of the 4G Network is 4G+(also denominated LTE Advanced)
Figures may not sum up due to rounding
MOBILE POSTPAIDSUBSCRIBERS
DATA USAGE
2.256
3.340
1Q18 1Q19
4G SUBSCRIBERS
255 226
2,7% 2,6%
-
50,0
100 ,0
150 ,0
200 ,0
250 ,0
300 ,0
-
0,0
0,0
0,0
0,0
0,0
1Q18 1Q19
ARPU Churn
+48%
Monthly Unique users and MBOU over Monthly unique users that consume more than 10Mb
MOBILE IN ARGENTINA:
N° 1 in f low share of post -paid cl ients
MOBILE ARPU
64%60%
36%40%
1Q18 1Q19
Prepaid Postpaid
BROWSING SPEED
Download average speed (Mbps)
2017 2018 2019
4G COVERAGE
0
15
30
45
60
3G 4G 4G+
1° in Flow Share. More than 600K new post-paid clients in the last twelve months.
I N T E R N E T A N D C AT V
D i f f e r e n t i a t i o n t h r o u g h C u s t o m e r E x p e r i e n c e
BROADBANDSUBSCRIBERS
4,08 4,11
1Q18 1Q19
BB ARPU
In Million
+38K 44%Broadband subscribers compared with 1Q18
Of total subscribers with speeds between 20 and 100 Mb
312
602
1Q18 1Q19
Boxes
CATV SUBS
3,53,4
1Q18 1Q19
FLOW CATV ARPU
In Million In Thousand In P$
73%
56%
27%44%
1Q18 1Q19<20 Mb >20 MB
BROADBAND SPEEDS
993,1871,5
1,3%
1,5%
600,00
700,00
800,00
900,00
1.000,00
1.100,00
1.200,00
1.300,00
1Q18 1Q19
0,7 %
0,9 %
1,1 %
1,3 %
1,5 %
1,7 %
ARPU Churn
882,3819,4
1,8%
2,0%
600,00
700,00
800,00
900,00
1.000,00
1.100,00
1.200,00
1Q18 1Q19
1,0 %
1,2 %
1,4 %
1,6 %
1,8 %
2,0 %
2,2 %
ARPU Churn
C A P E X :
C o n t i n u o u si n v e s t m e n t e f f o r t s t o i m p r o v e o u r n e t w o r k a n d s e r v i c e s
Million of P$
CAPEX EVOLUTION
✓During 1Q19 the Company deployed more than 140 sites, in line with the plan for 2019.
✓More than 800 existing sites were modified. The modification included modernization and
incorporation of new bands.
✓ The Company began the construction of 600 blocks of FTTH and 1,000 blocks of 2 ways 1 Ghz HFC
% REVENUES 20%19%
9.327 9.067
1Q18 1Q19
-3%
47%
38%
10%6%
Network and Technology Installations and CPE
International Capex Other
TECHNICAL CAPEX BREAKDOWN
11.793 14.322
6.640 169
38,8%33,7%
37,8%32,7%
0,0 %
5,0 %
10, 0%
15, 0%
20, 0%
25, 0%
30, 0%
35, 0%
0
500 0
100 00
150 00
200 00
250 00
18,43314,491
30.69842.460
18.027 1.868
1Q18 1Q19 1Q18 IAS 19 1Q19 IAS 19
IAS 29 Adjustment
48,725 44,328
C O N S O L I D AT E D R E S U LT S
REVENUES
EBITDA
44.328
29.837
14.491
Revenues Operating Costsbefore D&A
EBITDA
-9% -2%
-21%
EBITDA EVOLUTION
SERVICE
28.50339.772
16.7161.749
1Q18 1Q19 1Q18 IAS 291Q19 IAS 29
+21%
+38%+40% 41,52145,219
-9%
-21%
-8%
IFRS, Million of P$,
C O N S O L I D AT E D R E S U LT S
EBITDA Margin
*Others include bad debt expenses and others
-1.4% +0.2% +0.2% 32.7%-0.7%37.8% -0.2%-2.8%
Figures may not sum up due to rounding
18.4333.698
699 437 494 41 234427 363 1 86 14.491
-8%
-20% -17%
6%-3%
6%
-11% -13%0% 2%
EBITDA 1Q18 Ss. Revenues &other incomes
HandsetsSales
Handsets Costs Labor Costs ITX Costs Fees forservices, maint.
and materials
Taxes Commissions &Adv
Programmingand content
Costs
Others* EBITDA 1Q19
YoY
Variation
IFRS, Million of P$
IAS 29EBITDA 1Q19 – 1Q18
-P$3,942;-21%
20% 10%3%5% 8% 6% 8%AS % OF
REVENUES
-0.9%+0.5%
8%
C O N S O L I D AT E D R E S U LT S
7.126 7.914
2.813
-3.418
1Q18 1Q19 1Q18 IAS 29 1Q19 IAS 29
IAS 29 Adjustment
9,939
4,496
OPERATING INCOME MARGIN
19%23%
OPERATING INCOME NET INCOME
3.460
-3.211
11.374
1.232
1Q18 1Q19 1Q18 IAS 29 1Q19 IAS 29
IFRS, Million of P$, Percentage
(Attributable to controlling company
20% 10%
In million of P$ 1Q18 IAS 29 1Q19 IAS 29 ∆$Operating Income $ 9.939 $ 4.496 -$ 5.443
Financial Results $ 3.817 $ 105 -$ 3.712
Financial expenses on debt -$ 749 -$ 4.050 -$ 3.301
Other financial results, net -$ 103 $ 534 $ 637
RECPAM (Inflation Adjustment) $ 4.669 $ 3.621 -$ 1.048
Earnings in equity from associates $ 78 $ 103 $ 25
Income Tax -$ 2.433 -$ 3.425 -$ 992
Minority Interest $ 27 $ 47 $ 20
Total $ 11.374 $ 1.232 -$ 10.142
1Q18 IAS 29 1Q19 IAS 29 ∆$ ∆%
D&A $ 8.494 $ 9.995 $ 1.501 18%
✓R e v e n u e s
✓ E B I T D A
183,478(*)
59,077(*)
✓N e t D e b t * 71,601
LTM1Q19
✓C a p e x
I n M i l l i o n P $
R a t i o s
47,233(*)
✓G r o s s D e b t * 91,357
G r o s s D e b t / E B I T D A 1.55x
E B I T D A / M a r g i n 32.2%
N e t D e b t / E B I T D A 1.21x
✓ E B I T D A - C a p e x 11,845
✓C a s h & E q u i v a l e n t s * 19,756
(*) The figures were calculated applying the accumulated inflation for the 1Q19 to the figures reported by Telecom for FY18
In U$S Million
On March 4, 2019, the Company entered into a loan agreement with the International Finance Corporation ("IFC"),
for a total amount of up to U$S 450 million1
On March 12, 2019, Núcleo issued its Series I notes due to 2024 for an amount ofGUA 120 bn (approx. U$S 20 million). Moreover, on March 28 , 2019, Núcleo
issued its Serie II notes due to 2024 for an amount of GUA 30 billion(approx.. U$S 5 million). The issuance was the
biggest private one carried out by a non-financial institution in Paraguay
2
On May 7, 2019, the Company announced a new Credit Facility for an amount of upto U$S 96 million. The credit facility is guaranteed by Finnvera, an official
Credit agency from Finland. In this sense, Telecom obtained an international loan at a rate lower than the Argentine
risk (LIBOR + 104bps), with a final maturity in 2026.
3
✓ C V 5 y e a r B o n d C l a s s A 500
U$S
✓ I F C L o a n
Debt Principal as of March 31, 2019
350
D E B T S TO C K
-
P$
-
✓ I I C L o a n 88 -
500
Total (U$S)
350
88
✓ V e n d o r F i n a n c i n g 57 - 57
✓ N ú c l e o - - 82
T O T A L 1,995 23 2,100
In U$S Million
✓ O t h e r 10 23 33
-
GUA
-
-
-
82
82
-
✓ Te r m L o a n d u e 2 0 2 2 400 - 400-
✓ D e u t s c h e B a n k L o a n 300 - 300-
334
✓ I F C N e w L o a n 290 - 290-
RATING AGENCY CountryMOODY’S
FITCHS&P
B1B
B+
International
B1B+B+
Local
Aa2.arAA+N/A