TELECOM TELECOM

ARGENTINA

1Q17 Earnings

ReleaseConference Call Presentation

This presentation may include statements that could constitute forward-looking statements, including, but not limited to,

the Company’s and it’s management expectations for the Company’s future performance, revenues, income, earnings per

share, capital expenditures, dividends, liquidity and capital structure; the impact of the emergency laws enacted by the

Argentine government; and the impact of rate changes and competition on the Company’s future financial performance.

Forward-looking statements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”,

“should”, “seeks”, “estimates”, “future” and other similar expressions, but they are not the only way the Company

identifies forward-looking statements. Forward-looking statements involve risks and uncertainties that could significantly

affect the Company’s expected results. Due to extensive and rapid changes in laws and economic and business conditions

in Argentina, it is difficult to predict the impact of these changes on the Company’s financial condition. Other factors may

include, but are not limited to, the evolution of the economy in Argentina, growing inflationary pressure and reduction in

DDisclaimerisclaimer

consumer spending and the outcome of certain legal proceedings. Readers are cautioned not to place undue reliance on

forward-looking statements, which speak only as the date of this document. The Company undertakes no obligation to

release publicly the results of any revisions to forward-looking statements which may be made to reflect events and

circumstances after the date of this presentation, including, without limitation, changes in the Company’s business or to

reflect the occurrence of unanticipated events or as a result of new information or otherwise. Information included in this

presentation is unaudited and may not coincide with that included in the financial statements of the Company, due to

rounding, reclassification matters, and other reasons. Readers are encouraged to consult the Company’s Annual Report

and Form 20-F as well as periodic filings made on Form 6-K, which are filed with or furnished to the United States Securities

and Exchange Commission and the Argentine Comisión Nacional de Valores.

1

AgendaAgenda

Macro Overview

Vision & Strategy

Business HighlightsBusiness Highlights

2

Financials

Q&A

Official FX Rate Blue FX Rate

(Billion U$S)

Central Bank Reserves

Macro: Reserves continue to strengthen with a nominally appreciated FX rateMacro: Reserves continue to strengthen with a nominally appreciated FX rate

31.425.6

38.8

50.5

2014 2015 2016 1Q17

1Q17: Reserves surged to its highest level since mid 2011.

EXTERNAL FRONT

Mean - 1Q17 = 15.68

16,05Official

FX Rate

� International Reserves showed an increase of U$S 11,7 Bn during

1Q17, mainly explained by inflows coming from sovereign,

provincial and corporate debt issuances.

13.01 15.38

Official FX Rate Blue FX Rate

Closing of the gapClosing of the gapClosing of the gapClosing of the gapClosing of the gapClosing of the gapClosing of the gapClosing of the gapClosing of the gapClosing of the gap

Exchange Rates have

mantained unified

since Dec-15

Closing of the gapClosing of the gapClosing of the gapClosing of the gap

Pre - electionary

period

Closing of the gapClosing of the gap

3

� After a spike in Peso depreciation during 4Q16, in 1Q17 new debt issuances and tax amnesty’s inflows pressed nominal FX

downwards to Nov-16 levels. Central Bank allowed to market to freely establish the exchange parity., but applying a tight

monetary policy.

�Trade balance posted a deficit of U$S 1.0 Bn during 1Q17, increasing mainly due to growth in imports of capital goods and

transport materials during March 2017.

Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17

Mean - 1Q17 = 15.68

15,3815,23

Managed Floating Exchange Rate Regime during 1Q17

Capital inflows press towards peso appreciation. CB

continued to abide to its policy of low intervention on

FX markets.

Official

FX (CB)

-4.4%

3.5%

-1.4% -1.1%

2014 2015 2016 1Q17e

Macro: Activity improves Macro: Activity improves mildly while mildly while inflation gradually declinesinflation gradually declines

Household consumption

38.0% 41.0%35.0%

CPI (Buenos Aires City)CPI (YoY)

Inflation continues

with YoY decline

Revised official figures as of 4Q16Overall household consumption remains weak, showing some

fragile signs of recovery from 4Q16 but still decreasing YoY. After

some improvements observed during the end of 2016, consumer

confidence has experienced an overall decrease during 1Q17.

DOMESTIC ACTIVITY & INFLATION

CPI measured by private consultants reached 35.0% YoY, showing a

4

38.0%

26.9%

41.0%35.0%

2014 2015 2016 1Q17Economic activity per sector

Minery

Financial interm.

Manufacturer Industry

Retail & Wholesale commerce

Transport & Communications

Electricity, gas & water

Real Estate

Social services & Healthcare

Public Admin & Defense

Construction

AgricultureTotal

� Economic activity began 2017 with some slight improvements. Sectors’

performance remains mixed, with agriculture outperforming and

construction reacting more slowly. Nonetheless, overall activity remains

still depressed.

� Industrial production shows a fragile and unstable performance, with a

smoother the rate of decline, but still remaining in negative territory,

registering a fall of 2.7% in y-o-y comparison.

decrease from past year levels, although monthly figures showed

certain level of acceleration. In particular, February and March

measurements were influenced by increases in electricity tariffs

that came into effect. In turn, core inflation measurements have

experienced an increase during March mainly due to food price

increases.

AgendaAgenda

Macro Overview

Vision & Strategy

Business HighlightsBusiness Highlights

5

Q&A

Financials

2017 2017 –– The transformation process continuesThe transformation process continues

6

Innovative offer of products and services

DIGITAL ERA

Capitalization of investments in our networks

Incorporation of new inter-functional work methodologies

Challenge market practices to become more profitable

BEING A MULTIFUNCTIONAL

TEAM

AgendaAgenda

Macro Overview

Vision & Strategy

Business Highlights

7

Business Highlights

Q&A

Financials

1Q17 Highlights1Q17 Highlights

Sustained growth driven by Internet

� Continuous 4G rollout:

- 6.5 Million customers are enjoying 4G

- Data Consumption boost

(+MBOU growth +79%)

� Data Penetration grew by 13% achieving

8.6 frequent users

� Churn improvement: 2.9% vs. 3.4% in 4Q16

� Service Revenues growth of 28% in Argentina, mainly driven

by:

-Mobile Internet (+67%)

-Fixed Voice + Internet (+35%)

� EBITDA increased by 36% reaching a 31% profitability,

outperforming inflation for the first time in 5 years

� Net Income attributable to Telecom Argentina reached

P$1,955 million.

� In April 2017, Personal and the Inter-American Investment

Corporation, a member of the Inter-American Development

Bank Group, entered into a U$S 100 million, six-year loan

BUSINESS

Mobile

FINANCIALS

8

Expanding position in key segments

� Steady growth in UBB: ≥ 15Mb subs = 13% of CB vs.

9% in 1Q16 - ARPU +33% vs. 1Q16

� Voice: Tariff adjustment in monthly fee in retail and

business segments

� Churn improvement: 1.3% vs 2.2% in 4Q16

� As of March 31, more than 1 million customers

migrated to bundled packs that include voice and BB

services

� Churn improvement: 2.9% vs. 3.4% in 4Q16 Bank Group, entered into a U$S 100 million, six-year loan

agreement

� In March 2017, Sofora, Nortel, Telecom Argentina and

Telecom Personal signed a Corporate Reorganization

Agreement

� Acquisition of Nortel holding in Telecom Personal in

order to become Telecom Argentina the 100% holder

� On April 11, 2017, the Board of Directors of CONATEL

authorized TU VES S.A. (Chile) to transfer in favor of Núcleo

350 shares of Tuves that represent 70% of its capital.

FixedCORPORATE MATTERS

Preferred B(Listed in NYSE)

Floating shares(Class B Shares & ADRs)

Class C shares

Corporate ReorganizationCorporate Reorganization

CURRENT SHAREHOLDERS’ STRUCTURE

(Ordinary sharesSofora

Telecomunicaciones S.A.

(Nortel Inversora(Class A: 51%

- Class B 3.74%)

48.96% Econ. Int. 51.04% Econ. Int.

•The Reorganization is subject to the

terms and conditions set forth in the

Preliminary Reorganization Agreement.

•The main purpose of the Reorganization

is to absorb and consolidate the

operations, assets and liabilities of the

Absorbed Companies.

Telecom Personal

9

100.0% 67.5%

(Class B Shares & ADRs)

Telecom Argentina

Núcleo(Paraguay)

ANSES 24.99%

- Class B 3.74%)

44.37% Econ. Int. 55.60% Econ. Int. 0.03% Econ. Int. •Telecom will be the surviving entity that

will continue to be known as “Telecom

Argentina S.A.”

•Telecom will assume all of the rights and

obligations of each of the Absorbed

Companies.

Denotes companies that will be merged into Telecom Argentina

Wholesale Mobile6%

6%4%5%

48%50%

16%10%

GROUP REVENUE MIX

In P$ Million

2,364 3,328

1Q16 1Q17

41%

RETAIL FIXED VOICE + INTERNET

In P$ Million

Retail Mobile

Group Revenues: Growth acceleration continued due to higher usage and price adjustmentsGroup Revenues: Growth acceleration continued due to higher usage and price adjustments

Handsets

18%

Service

Revenues

+27%Wholesale Mobile

4% 4%

22% 25%

6%6%4%

1Q16 1Q17

10

7% 10%

MOBILE -in Argentina-

5,986 7,325

1Q16 1Q17

22%

RetailFixed Voice

+ Internet

Data

Paraguay

2,202

3,678

1Q16 1Q17

67%

Internet

In P$ Million

In P$ Million

Traditional fixed services (% on Total Rev)

+27%

Fixed Fixed –– Consolidated growth in UBB connectionsConsolidated growth in UBB connections

ULTRABROADBAND SPEEDS SUBS EVOLUTION

160

231

1Q16 1Q17

≥15Mb subs

9% 10% 11% 12% 13%

1Q16 2Q16 3Q16 4Q16 1Q17

% of Customer Base 45%

11

1,780

2,919

686 813

FY15 FY16 1Q16 1Q17

19%

Fixed Data

1.4% 1.7% 1.4 2.2% 1.3%

248.8 259.8 272.8 302.9 331.3

1Q16 2Q16 3Q16 4Q16 1Q17

Monthly Churn ARPU (P$)

BB ARPU & CHURN

In P$ Million

+33%

64%

P$/Month

80.9

93.7

105.1112.4

134.1

1Q16 2Q16 3Q16 4Q16 1Q17

+66%

Fixed Fixed –– ARBU increase driven by price adjustments in monthly feesARBU increase driven by price adjustments in monthly fees

Price Adjustments

BUSINESS SEGMENT

� February 2017 � From P$115 to P$140 (Δ22%)

RESIDENCIAL SEGMENT

� February 2017� From P$38 to P$75 (Δ97%)

ARBU DRIVERS OF ARBU INCREASE

12

4.0 4.0 3.9 3.9 3.9

1Q16 2Q16 3Q16 4Q16 1Q17

Million of lines

1Q16 2Q16 3Q16 4Q16 1Q17

LINES IN SERVICE

�As of March 31, more than 1

million customers migrated to

bundled packs that include

voice and BB services

�Cross selling opportunity in

80% of our customer base

ARNET + VOICE

Mobile in Argentina: Enhancing our value proposition with improved revenue qualityMobile in Argentina: Enhancing our value proposition with improved revenue quality

8.67.6

1Q171Q16

Monthly unique users in millionMBOU/ month

DATA USAGE

13%

+79%

DATA PENETRATION

794 918 1,122 1,287 1,420

1Q16 2Q16 3Q16 4Q16 1Q17 34%45%

66%55%

Browsing Voice + Data

SERVICE REVENUE MIX

13

12.8

6.4

Prepaid

Postpaid

19.2

CUSTOMER BASE (Mill)

Figures may not sum up due to roundingMonthly Unique users and MBOU over Monthly unique users that

consume more than 10Mb

1Q16 1Q17

33% 39%56% 64% 76%

1Q16 2Q16 3Q16 4Q16 1Q17

4G Users / total Monthly Unique Users

96142

1Q16 1Q17

+48%

ARPU Browsing

3.4% 2.9%

1Q174Q16

Churn vs. previous quarter

Mobile Mobile –– 4G evolution4G evolution

14

3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

2.01.0

2.53.0

4.35.5

4G Subs Evolution

6.5

35%21% 25% 19%

Mobile Access Fixed Access Core &

Infrastructure*

IT

7,844

11,386

2,256

430 278

CapexCapex: Network : Network deploymentdeployment toto improveimprove networknetwork capacitycapacity and and qualityquality

*Core & infrastructure refers to network related capex, including quality

and innovation capex

Spectrum

10,100

CAPEX EVOLUTION

Million of P$

-12%+13%

TECHNICAL CAPEX BREAKDOWN

1,9021,678

Intangible Assets

15

Infrastructure*7,844 1,472

1,400

FY15 FY16 1Q16 1Q17

11%19% 21%

1Q16 1Q17 1Q16 1Q17

+41%% Revenues (without Spectrum) +45%

4G sitesInstalled UBB

15%

Intangible Assets

PP&E-5%

AgendaAgenda

Macro Overview

Vision & Strategy

Business Highlights

16

Business Highlights

Q&A

Financials

10,866

14,424

3,402 4,638

TEO Group: Consolidated Results TEO Group: Consolidated Results

IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage

40,496

53,240

12,455 14,726

REVENUES EBITDA

+18%

+31%

+36%

+33%�In Argentina: +19%

�In Paraguay: +7%

% of Revenues

17

FY15 FY16 1Q16 1Q17

34,48045,354

10,405 13,227

FY15 FY16 1Q16 1Q17

FY15 FY16 1Q16 1Q17

27% 27% 27% 31%

EBITDA Mg

26% 25% 27% 27%

2Q15 3Q15 4Q15 1Q16

26% 26% 29% 31%

2Q16 3Q16 4Q16 1Q17

SERVICE REV GROWTH

EBITDA Mg Trend

+27%

+32%

% of Service Revenues

�In Argentina: +28%

�In Paraguay: +15%

TEO Group: Consolidated TEO Group: Consolidated costs costs and and EBITDA EBITDA evolutionevolution

EBITDA Margin

*Others include bad debt expenses, provisions, VAS costs and others

9% 8%5% 19% 9% 10%8%

18

+0.3% +1.0% -0.5% 31.5%+0.1%27.3% -1.1%+0.3%+4.2%

Figures may not sum up due to rounding

As % of Revenues

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of P$, Percentage

OPERATING INCOME

+26%

NET INCOME

(Attributable to Telecom)

+17%

+24%

IFRS, Million of P$, Percentage

Period D & A3G/4G Spectrum

Amortization

Results on write-

down of PP&ETotal

1Q16 1,277 98 30 1,405

1Q17 1,588 85 72 1,745

in million of P$ 1Q17 1Q16 Δ

Operating Income $ 2,893 $ 1,997 $ 896

Financial Results $ 124 -$ 557 $ 681

Income Tax -$ 1,051 -$ 505 -$ 546

Minority Interest -$ 11 -$ 10 -$ 1

Total $ 1,955 $ 925 $ 1,030

3,403 3,975

925

1,955

FY15 FY16 1Q16 1Q17

6,229 7,843

1,997 2,893

FY15 FY16 1Q16 1Q17

19

15% 15% 8% 7%16% 20% 7% 13%

+45%+111%

O.Income Margin Net Income Margin

TEO TEO GroupGroup: Net : Net IncomeIncome EvolutionEvolution

IFRS, Million of P$

in million of P$ 1Q16 1Q17

Net Interests -$ 310 -$ 216

Gains on Mutual Funds &

other inv.$ 196 $ 67

FX results net of NDF

instruments-$ 420 $ 290

Others -$ 23 -$ 17

Total -$ 557 $ 124

3,294 3,023

1Q16 1Q17

20

* Total Net Income includes the part attributable to Telecom and the non-controlling interest

‘Quantity Effect’ on Financial Results

�Lower interest rates on debt

� FX Apreciation as of March 17

since December 16

� Reduction in Net Debt levels

due to growth in Cash Flow

generation

NET DEBT

Dec 15 -

Mar 16

Dec 16 -

Mar 17

1Q16 1Q17

FX Rate Avg. Interest Rate (BADLAR)

+12%

-850bps

Price Effect on Financial Results

-3%

TEO Group: FCF, Net TEO Group: FCF, Net FinancialFinancial PositionPositionIFRS, Million of P$. Last 12 months

21(1) OFCF: Operating Free Cash Flow before Taxes

� On April 7, 2017, Personal and the Inter-American Investment Corporation (“IIC”), a member of

the IDB Group, signed a loan agreement for an amount of US$100 million and for a six year period,

payable in 8 equal semiannual installments commencing the first on the 24th month, with a 6

month LIBO rate + 400bp. The funds of this loan will be allocate to deploy the 4G network and for

financing working capital and other financial needs.

ICC LOAN AGREEMENT

Low leverage levels supported by sound financial strategyLow leverage levels supported by sound financial strategy

� Telecom Argentina has maintained low levels of

financial leverage, thanks to its strong cash flow

generation

14,42415,660

5,892 3,023

0.4 x

0.2 x

2016 LTM 1Q17

EBITDA Net Debt Net Debt / EBITDA

Ne

t D

eb

t/ E

BIT

DA

LEVERAGE

Local & International Bank Loans

Multillateral Credit Agencies

Capital Markets

ECA’s

FINANCIAL STRATEGY- FUNDING SOURCES DIVERSIFICATION

Cash + Cash Eq. 6,020 6,185

Debt Tenor 1Q16 1Q17

< 1 year 69% 9%

22

� During 4Q16 and 1Q17, through the IFC Loan

Agreement and the issuance of Series III and IV

Notes, the Company has managed to extend the

tenor of its financial debt

Inte

rest

Co

ve

rag

e

14,42415,660

1,613 1,558

8.9 x10.1 x

2016 LTM 1Q17

EBITDA Interest Expense Interest Coverage

ECA’s

International Trade Operations Finance Gross Debt

Cash + Cash Eq.

11,912

6,020

9,208

6,185

AgendaAgenda

Macro Overview

Vision & Strategy

Business Highlights

23

Business Highlights

Q&A

Financials