TELECOM ARGENTINA

Earnings ReleaseMay 2019

1Q19

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

A G E N D A

BUSINESS HIGHLIGHTS

FINANCIALS

Q&A

STRATEGY

MACRO OVERVIEW

BUSINESS HIGHLIGHTS

FINANCIALS

Q&A

STRATEGY

MACRO OVERVIEW

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

BUSINESS HIGHLIGHTS

FINANCIALS

Q&A

STRATEGY

MACRO OVERVIEW

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

BUSINESS HIGHLIGHTS

FINANCIALS

Q&A

STRATEGY

MACRO OVERVIEW

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

BUSINESS HIGHLIGHTS

FINANCIALS

Q&A

STRATEGY

MACRO OVERVIEW

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

BUSINESS HIGHLIGHTS

FINANCIALS

Q&A

STRATEGY

MACRO OVERVIEW

Investor Relations Contact

Telephone: (5411) 4968 3628E-mail: relinver@teco.com.ar