Telecom Argentina SA Q4 FY2021 earnings call

• Brands consolidated under Personal Flow and Telecom.
• 2021 CapEx $833 million, CapEx to revenue ratio 20.1%.
• EBITDA margin 31.2%, bad debt 1.9% of revenues.
• Personal Pay available for Android, over 14,000 registered clients.
• Núcleo Paraguay showed solid performance with revenues and EBITDA increasing in hard currency.
• Debt maturities in 2021 refinanced/paid, strong cash flow.
• Focus on ESG, new IR website, and improved vendor financing sources.
• Prices increased in line with local inflation; mobile prices up 50% postpaid/15% prepaid in Dec '21, broadband DXL 42% in 2021, pay TV 43% in 2021.

Telecom Argentina's revenues totaled $4.1 billion in fiscal year 2021. Revenues in constant pesos grew 7% year-to-year. EBITDA was $1.3 billion with a margin of 31.2%. Mobile subscribers in Argentina were 20.1 million, up ~1.7 million from 2020. Broadband and Pay TV clients increased by 4.2 million and 3.6 million respectively. Fixed voice subscribers (excluding IP) were 2.4 million. Convergent unique customers rose to 2.1 million from 1.9 million. Regional operations: Paraguay had 2.2 million mobile subscribers and 196,000 fixed internet subscribers; Uruguay had 135,000 Pay TV clients. Núcleo (Paraguay) had revenues $206 million, EBITDA $100 million, growing 11% and 22% in hard currency. Revenue breakdown for Núcleo: browsing 45%, voice 16%, data 7%, broadband 15%, TV services 8%, other 9%.

• CapEx outlook for 2022: Range $600 million, dependent on Argentina's economic situation and foreign exchange rates.
• Price increases: Plan to keep pace with inflation, but need to address a pending ARS 11 billion gap from 2020 price freeze; inflation pace will impact ability to recover this gap.

• Uncertainties from economic and industry conditions, including potential changes in demand for products/services.
• Impact of COVID-19 on global and local economies.
• Local market imbalances and inflation speed affecting price adjustments and margin recovery.

Q: Provide CapEx outlook for 2022 and next price increase.

A: CapEx range $600 million, dependent on Argentina's economic situation and FX rates; price increases to follow inflation but need to address a $11 billion gap from 2020.

Q: EBITDA margin guidance for 2022.

A: EBITDA margin depends on inflation pace; aim to keep margins healthy as inflation pace affects ability to maintain margins.

Q: Real term revenue comparison and subscriber evolution.

A: Real term revenue decrease due to inflation components not specific to the industry; subscriber evolution depends on inflation pace, with focus on coping with inflation if pace remains similar to 2021.