Telecom Argentina S A : Financial Statements 3Q22

TELECOM ARGENTINA S.A.

TELECOM ARGENTINA S.A.

Unaudited Condensed Consolidated Financial Statements as of September 30, 2022

General Hornos 690

1. Ciudad Autónoma de Buenos Aires Argentina

$: Argentine peso

US$: US dollar

$147.32 = US$1 as of September 30, 2022

TELECOM ARGENTINA S.A.

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 AND 2021

INDEX

Unaudited consolidated financial statementsUnaudited consolidated statements of financial position Unaudited consolidated income statements

Unaudited consolidated statements of comprehensive income Unaudited consolidated statements of changes in equity Unaudited consolidated statements of cash flows

Notes to the unaudited consolidated financial statements Operating and Financial Review and Prospects

Corporate information

TELECOM ARGENTINA S.A.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In millions of Argentine pesos in current currency - Note 1.d)

		September 30,	December 31,
ASSETS	Note	2022	2021
Current Assets
Cash and cash equivalents	2	32,932	32,964
Investments	2	6,260	17,912
Trade receivables	3	29,779	37,456
Other receivables	4	13,178	14,690
Inventories	5	5,058	5,174
Assets classified as held for sale	27.3	791	-
Total current assets		87,998	108,196
Non-Current Assets
Trade receivables	3	101	121
Other receivables	4	2,292	3,463
Deferred income tax assets	13	1,619	1,093
Investments	2	5,139	5,357
Goodwill	6	422,217	629,582
Property, plant and equipment	7	684,718	749,280
Intangible assets	8	222,387	239,336
Right of use assets	9	51,666	55,494
Total non-current assets		1,390,139	1,683,726
TOTAL ASSETS		1,478,137	1,791,922
LIABILITIES
Current Liabilities
Trade payables	10	61,965	81,760
Financial debt	11	100,664	107,730
Salaries and social security payables	12	31,240	36,974
Income tax payables	13	32,250	23,129
Other taxes payables	14	7,772	6,580
Leases liabilities	15	8,068	10,180
Other liabilities	16	4,730	5,074
Provisions	17	2,316	3,564
Total current liabilities		249,005	274,991
Non-Current Liabilities
Trade payables	10	551	1,821
Financial debt	11	299,286	335,554
Salaries and social security payables	12	2,676	2,567
Deferred income tax liabilities	13	194,740	224,584
Other taxes payables	14	58	-
Leases liabilities	15	15,926	21,235
Other liabilities	16	2,434	2,078
Provisions	17	9,538	15,900
Total non-current liabilities		525,209	603,739
TOTAL LIABILITIES		774,214	878,730
EQUITY
Equity attributable to Controlling Company		690,897	898,957
Equity attributable to non-controlling interest		13,026	14,235
TOTAL EQUITY(See Consolidated Statements of		703,923	913,192
Changes in Equity)
TOTAL LIABILITIES AND EQUITY		1,478,137	1,791,922

The accompanying notes are an integral part of these unaudited consolidated financial statements.

F-1

TELECOM ARGENTINA S.A.

CONSOLIDATED INCOME STATEMENTS

(In millions of Argentine pesos in current currency, except per share data in Argentine pesos in current currency - Note 1.d)

			Three-month period		Nine-month period
			ended September 30,			ended September 30,
	Note	2022		2021			2022		2021
Revenues	21		148,238	176,175	470,960	536,247
Employee benefit expenses and severance payments	22		(41,651)	(40,040)		(115,470)	(110,453)
Interconnection and transmission costs			(4,672)	(6,251)		(14,574)	(19,544)
Fees for services, maintenance, materials and supplies	22		(19,043)	(20,205)		(56,503)	(61,220)
Taxes and fees with the Regulatory Authority	22		(11,425)	(13,491)		(36,272)	(41,368)
Commissions and advertising			(9,721)	(10,153)		(27,731)	(30,255)
Cost of equipment and handsets	22		(6,552)	(8,557)		(21,745)	(27,001)
Programming and content costs			(9,167)	(11,564)		(29,560)	(36,663)
Bad debt expenses	3		(3,909)	(3,587)		(11,781)	(9,814)
Other operating expenses	22		(5,573)	(10,238)		(22,186)	(25,322)
Depreciation, amortization and impairment of fixed assets	22		(260,782)	(60,528)			(369,806)	(172,438)
Operating income (loss)			(224,257)	(8,439)		(234,668)	2,169
Earnings from associates	2.a	166	153		342	384
Debt financial results	23		10,455	14,544		40,936	38,837
Other financial results, net	23		17,477	4,260			34,190	17,152
Income (loss) before income tax expense			(196,159)	10,518		(159,200)	58,542
Income tax	13		(6,224)	(5,297)			(4,298)	(56,666)
Net income (loss) for the period			(202,383)	5,221		(163,498)	1,876
Attributable to:
Controlling Company			(203,003)	4,666		(164,873)	655
Non-controlling interest			620	555			1,375	1,221
			(202,383)	5,221		(163,498)	1,876
Earnings (losses) per share attributable to Controlling
Company - Basic and diluted	1.c		(94.26)	2.17		(76.55)	0.30

The accompanying notes are an integral part of these unaudited consolidated financial statements.

See Note 22 for additional information on operating expenses per function.

F-2

TELECOM ARGENTINA S.A.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions of Argentine pesos in current currency - Note 1.d)

	Three-month period			Nine-month period
	ended September 30,			ended September 30,
	2022	2021			2022	2021

	Net income (loss) for the period		(202,383)		5,221
	Other comprehensive income - Will be reclassified
	subsequently to profit or loss
	Currency translation adjustments (no effect on Income Tax)		(2,924)		(3,071)
	DFI effects classified as hedges		297		135
	Income Tax effects on DFI classified as hedges and others		(156)		(37)
	Other comprehensive loss, net of tax		(2,783)		(2,973)
	Total comprehensive income (loss) for the period		(205,166)		2,248
	Attributable to:
	Controlling Company
		(204,985)	2,425
	Non-controlling interest		(181)	(177)
			(205,166)	2,248

(163,498) 1,876

(6,328) (7,563)

1. 418 419

2. (135)
   (6,101) (7,279)

(169,599) (5,403)

(169,474) (4,904)

1. (499)
   (169,599) (5,403)

The accompanying notes are an integral part of these unaudited consolidated financial statements.

F-3