Telecom Argentina S A : Press Release 4Q22

Telecom Argentina

Press Release

4Q22 & FY22

03-09-2023

Contacts:	Market Cap (NYSE: TEO): US$2,170.9 million*
Luis Fernando Rial Ubago
(5411) 5112 7218
Tomás Pellicori
(5411) 5524 7692

Telecom Argentina S.A.

announces consolidated annual results ("FY22") and

fourth quarter of fiscal year 2022 ("4Q22") **

Note:For the figures included in their FFSS, 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 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 FY22 include the effects of the adoption of inflationary accounting in accordance with IAS 29. Finally, comments related to variations of results of FY22 and vs. FY21 mentioned in this press release correspond to "figures restated by inflation" or "constant". Moreover, Table 3contemplates information broken down by segment for periods ended as of December 31 of 2022 and 2021, as analyzed by the Executive Committee and the CEO, who receive periodically the financial information of Telecom and its subsidiaries (in historical values). For further details, please refer to the titles of the financial tables beginning from page 11.

• Previous year figures included for comparative purposes (December 2021) contain the effect of the year over year inflation as of December 2022, which was 94.8%.
• Consolidated Revenues amounted to P$729,182 million in FY22 (-12.0% in constant currency vs. FY21), in a context of inflationary acceleration. Service Revenues totaled P$680,561 million (-11.7% in constant currency vs. FY21).
• Mobile clients in Argentina reached 20.2 million in FY22 (+116 thousand vs. FY21), cable TV subscribers totaled approximately 3.5 million (-84 thousand vs. FY21), while broadband accesses amounted to 4.1 million (-132 thousand vs. FY21).
• Operating Income before Depreciation and Amortization amounted to P$200,380 million in FY22 (- 22.5% vs. FY21), while our operating margin before D&A was 27.5%.
• The Company registered a Net Loss of P$205,640 million in FY22 (vs. an income of P$19,362 million in FY21). This loss was mainly due to a goodwill impairment of P$243.900 million registered in September 2022, which was partially offset by both positive net financial results of P$61,978 million and income tax gains of P$26,504 million.
• Investments (including rights of use assets) reached P$147,266 million in FY22, equivalent to 20.2% of our Consolidated Revenues.
• Net Financial Debt amounted to P$420,446 million in FY22 (-8.7% in constant currency vs. FY21).

*Market Cap as of March 8th, 2023

**Unaudited non financial data

TELECOM ARGENTINA	1

	IAS 29	IAS 29
(in million P$ adjusted by inflation, except where noted)**	As of Dec-31,	As of Dec-31,	Δ $	Δ %
	2022	2021
Consolidated Revenues	729,182	828,831	(99,649)	-12.0%
Operating Income before D&A	200,380	258,621	(58,241)	-22.5%
Operating Income (loss)	(294,941)	(5,429)	(289,512)	-
Net income (loss) before income tax expense	(232,144)	84,262	(316,406)	-
Net income (loss) attributable to Controlling Company	(207,833)	16,878	(224,711)	-
Shareholders' equity attributable to Controlling Company	796,341	1,054,417	(258,076)	-24.5%
Net Financial Debt	(420,446)	(460,268)	39,822	-8.7%
Investments in PP&E, intangible assets & rights of use assets *	147,266	202,009	(54,743)	-27.1%
Fixed lines in service (in thousand lines) ***	3,007	3,138	(131)	-4.2%
Mobile customers (in thousand)	22,464	22,348	116	0.5%
Personal (Argentina)	20,244	20,130	114	0.6%
Núcleo (Paraguay) -including Wimax customers-	2,220	2,218	2	0.1%
Broadband accesses in Argentina (in thousand)	4,116	4,248	(132)	-3.1%
Pay TV Subscribers (in thousand)	3,479	3,563	(84)	-2.3%
Average Billing per user (ARPU) Fixed Telephony / voice (in P$ - Restated by inflation)	1,445.0	1,513.9	(68.9)	-4.6%
Average Revenue per user (ARPU) Mobile Services - Personal (in P$ - Restated by inflation)	1,102.6	1,201.9	(99.3)	-8.3%
Average Revenue per user (ARPU) Broadband (in P$ - Restated by inflation)	3,052.4	3,364.3	(311.9)	-9.3%
Average Revenue per user (ARPU) Cable TV (in P$ - Restated by inflation)	3,006.9	3,668.3	(661.4)	-18.0%

• (in constant measuring unit - includes adds of rights of use assets of P$20.997 million and P$35.363 million as of December 31, 2022, and December 31, 2021, respectively)
  **(Figures may not add up due to rounding)
• (It includes IP telephony lines, which amounted to approximately 721 thousand and 1,097 thousand as of December 31, 2021, and December 31, 2022, respectively)

Consolidated Revenues

(in million P$)

828,831

729,182

538,708 471,483 190,474

357,348

FY21	FY22	FY21	FY22
		IAS 29	IAS 29

IAS 29 Adjustment (Inflation)

Operating Income (EBIT)

(in million P$)

63,167 85,136

(5,429) (294,941)

(68,596)

(380,077)

FY21 FY22 FY21 FY22

IAS 29	IAS 29
IAS 29 Adjustment (Inflation)

Operating Income before D&A (EBITDA)

	(in million P$)
31,9%			27,6%	31,2%	27,5%
					258,621
				148,765	144,658	200,380
113,963			51,615
	FY21	FY22		FY21		FY22
						IAS 29		IAS 29

EBITDA Margin

Net Income (Loss)

(in million P$)

		19,362
(6,417)
	(109,942)
			(205,640)
FY21	FY22	FY21	FY22
		IAS 29	IAS 29

TELECOM ARGENTINA	2

Buenos Aires, March 9, 2023 - - Telecom Argentina S.A. ('Telecom Argentina') - (NYSE: TEO; BYMA: TECO2), announced today a net loss of P$205,640 million for the period ended December 31, 2022 (-P$225,002 million vs. FY21). The net loss attributable to the controlling company was P$207,833 million (-P$224,711 million vs. FY21).

Comparative figures for the previous fiscal year have been restated so that the resulting information is presented in terms of the current measurement unit as of December 31, 2022.

The following table shows the evolution of the consumer price index (National CPI - according to INDEC's official statistics) for the last three fiscal years, which were used to restate the figures in constant currency:

			As of December 31.	As of December 31.	As of December 31.
			2020	2021	2022
	Annual		36.1%	50.9%	94.8%
	3-month cumulative		n/a	n/a	17.3%
	(Since September)

During the FY22, Consolidated Revenues amounted to P$729,182 million, from which Service Revenues totaled P$680.561 million.

	IAS 29	IAS 29	Δ $	Δ %
	FY22	FY21
Consolidated Revenues (MMP$)	729,182	828,831	(99,649)	(12.0%)
Net Income (loss) attributable to Controlling Company (MMP$)	(207,833)	16,878	(224,711)	-
Net income (loss) attributable to Controlling Company per Share (P$)	(96.5)	7.8	(104.3)
Net income (loss) attributable to Controlling Company per ADR (P$)	(482.5)	39.2	(521.7)
Operating income before D&A *	27.5%	31.2%
Operating income (loss) *	-40.4%	-0.7%
Net income (loss) *	-28.2%	2.3%
*As a percentage of Consolidated Revenues
Note: The average of ordinary shares outstanding considered amounted to and 2,153,688,011 as of FY22 and FY21

Consolidated Operating Revenues

Mobile Services

As of December 31, 2022, total mobile subscribers in Argentina and Paraguay amounted to 22.5 million. In FY22, total mobile services revenues represented

Mobile Services

Revenues

(in billion P$)

313.9 293.1

P$293.112 million (-P$20.760 million or -6.6% vs. FY21).

178.4

217.2

135.4

75.9

Mobile Services in Argentina

As of December 31, 2022, total mobile subscribers amounted to approximately 20.2 million (+114 thousand vs. FY21). Postpaid clients represented 43% of our subscriber base (vs. 41% in FY21).

FY21		FY22	FY21	FY22
			IAS 29	IAS 29
		IAS 29 Adjustment

TELECOM ARGENTINA	3

In FY22, mobile service revenues in Argentina amounted to P$268.035 million (-4.7% vs FY21). Mobile internet revenues accounted for 86% of mobile service revenues (vs. 75% in FY21). The average monthly revenue per user ("ARPU" - restated in constant currency as of December 31, 2022) amounted to P$1,102.6 during FY22 (-8.3% vs. FY21). The

Mobile Consumption of Personal in Argentina

effect generated by the restatement in terms of the December 31, 2022 current measurement unit (included in the ARPU) amounted to P$282.5 and P$681.3, for FY22

4,317

5,185

and FY21, respectively. The average monthly churn rate was 2.3% (vs. 1.5% in FY21).

During FY22, the Company prepared to receive 5G technology by expanding the coverage, availability and capacity of the network through a technological reconversion and continuing the use of 4G. As of December 2022, we count with 180 5G mobile sites, mostly operating under DSS, located in Buenos Aires, Rosario, the Atlantic Coast, Córdoba, Santa Fe, Corrientes, Posadas and Paraná, with the objective of preparing the technical and regulatory conditions that allow the full development of the 5G network.

1,2021,103

FY21FY22

ARPU ($/month)

MBOU(monthly)

Personal in Paraguay ('Núcleo')

As of December 31, 2022, Núcleo's subscriber base reached 2.3 million clients. Prepaid and postpaid customers represented 79% and 21%, respectively.

Núcleo's mobile service revenues during FY22, amounted to P$25,077 million (-22.9% vs. FY21), mainly due to a decrease in ARPU measured in constant pesos, which was partially offset by the appreciation of the Guaraní against the Argentine peso.

Cable TV Services

Cable TV service revenues were P$130,904 million in FY22 (-P$29,898 million or -18.6% vs. FY21). Cable TV subscribers totaled approximately 3.5 million (-84 thousand vs. FY21). The monthly Cable TV ARPU (restated in constant currency as of December 31, 2022) reached P$3,006.9 during FY22 (vs. P$3,668.3 in FY21). The effect generated by the restatement in terms of the measuring unit as of December 31, 2022, included in ARPU amounts to P$801,6 and P$2,091.8, for FY22 and FY21, respectively. The average monthly churn rate as of December 31, 2022, and as of December 31, 2021, was 1.3% and 1.1%, respectively.

Flow continued to strengthen its content offer by incorporating new products in music, national and international films, and gaming. During FY22, Flow subscribers alone reached 1.3 million.

Additionally, we continued to deploy the ISDB-T technology for analogic Flow subscribers in new cities, reaching more than 1.5 million subscribers in the Autonomous City of Buenos Aires and the province of Buenos Aires. Likewise, as part of the constant updating of devices, Flow commercially presented a new self-installing decoder with differential surround sound properties, Google Assistant, integrated Chromecast, 4K resolution, HDR, Dolby Vision, among others. We have also presented a new Flow Flex service, which consists of a flexible paid TV proposal that allows customers to contract Flow's services for a fixed period of time, with packages of 3, 7, 15 and 30 days.

TELECOM ARGENTINA

Pay TV Service

Revenues (in billion P$)

				160.8
						130.9
				91.6	34.3
69.2	96.6
	FY21		FY22		FY21		FY22
					IAS 29		IAS 29

IAS 29 Adjustment

4