First Quarter 2013 First Quarter 2013 Earnings ReleaseEarnings Release

Conference Conference Call PresentationCall Presentation

This presentation is based on audited financial statements and may include statements that could constitute forward-lookingstatements, including, but not limited to, the Company’s expectations for its future performance, revenues, income, earnings pershare, capital expenditures, dividends, liquidity and capital structure; the impact of the emergency laws enacted by the Argentinegovernment; and the impact of rate changes and competition on the Company’s future financial performance. Forward-lookingstatements may be identified by words such as “believes”, “expects”, “anticipates”, “projects”, “intends”, “should”, “seeks”,“estimates”, “future” or other similar expressions. Forward-looking statements involve risks and uncertainties that could significantlyaffect the Company’s expected results. The risks and uncertainties include, but are not limited to, uncertainties concerning theimpact of the emergency laws enacted by the Argentine government which have resulted in the repeal of Argentina’s convertibilitylaw, the devaluation of the peso, restrictions on the ability to exchange pesos into foreign currencies, the adoption of a restrictivecurrency transfer policy, the “pesification” of tariffs charged for public services, the elimination of indexes to adjust rates charged forpublic services and the executive branch announcement to renegotiate the terms of the concessions granted to public service

DisclaimerDisclaimer

1

public services and the executive branch announcement to renegotiate the terms of the concessions granted to public serviceproviders, including Telecom. Due to extensive and rapid changes in laws and economic and business conditions in Argentina, it isdifficult to predict the impact of these changes on the Company’s financial condition. Other factors may include, but are not limitedto, the evolution of the economy in Argentina, growing inflationary pressure and reduction in consumer spending and the outcome ofcertain legal proceedings. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only asthe date of this document. The Company undertakes no obligation to release publicly the results of any revisions to forward-lookingstatements 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. Information included in this presentation isunaudited and may not coincide with that included in the financial statements of the Company, due to rounding, reclassificationmatters, and other reasons. Readers are encouraged to consult the Company’s Annual Report and Form 20-F as well as periodicfilings made on Form 6-K, which are filed with or furnished to the United States Securities and Exchange Commission and theArgentine Comisión Nacional de Valores.

• Market Overview

• Business Highlights

• Financials

AgendaAgenda

2

• Financials

• Q&A Session

Market Overview: Soft economic conditions in 1Q13 Market Overview: Soft economic conditions in 1Q13

Billion USD, at current prices – Last 12 months∆ YoY - constant prices

Trade Balance (Billion USD) Last 12 monthsFiscal Balance as % of GDP Last 12 months*

Real GDP* Trade & Fiscal BalanceConsumption & Wages

211249 266 268

11.4 10.012.4 12.2

1.7%0.3%

-0.2% -0.2%

National Wages - ∆ % YoY

26.3%29.4%

24.5% 23.3%

Billion USD, at current prices – Last 12 months

368442 467 470

9.2% 8.9%

1.9% 2.8%

3

Source: MECON, INDEC and Company Estimates•Official GDP YoY variation, constant prices. •Fiscal Balance represents primarily fiscal surplus

• Argentine International commerce continue todeteriorate due to lower agricultural exportsand increasing energy imports.

• National taxes collection rose 26% YoYhelped by the VAT, income tax and importrelated taxes. This performance was achievedthanks to the consumption trends, increasedimports and higher nominal prices in theeconomy.

• Soft economic conditions in 1Q13. Certainsectors showed positive trends, althoughsectors like agriculture and construction remainbeing the main lagers.

• The harvest period has started and might be akey factor for the rest of the year in terms ofactivity and external restrains.

• Real interest rates remain in low real termsstimulating private spending.

• Private consumption is affected by factorslike the level of wage increases,government transfers to private sector andthe inflation levels.

• Different sectors are in process of reachingagreements with their unions, a necessarystep to sustain consumption levels.

• Uncertainties in the FX market might affectthe normal evolution of the economy interms of activity and inflation levels.

2010 2011 2012 1Q13e 2010 2011 2012 1Q13e2010 2011 2012 1Q13e

• Market Overview

• Business Highlights

• Financials

AgendaAgenda

4

• Financials

• Q&A Session

Business Business HighlightsHighlights

Postpaid delivered +2/3 of the quarterly net adds

Consistent VAS revenue expansion

Streamlining customer acquisition and retention costs

Data services to corporate clients sustains value generation

MOBILE

5

Data services to corporate clients sustains value generation

Enhancing value proposition with compelling offers

Upselling in broadband services increases ARPU and churn control

FINANCIALS

FIXED

Maintaining revenue growth with limited nominal price adjustments

Free Cash Flow expanded to P$ 1,429 MM in 12 months

Strengthening cost control to reduce impact of increase in labor related costs

1 Net income Attributable to Telecom Argentina

12.7 12.7 12.7 12.8 12.8

5.9 6.0 6.2 6.2 6.3

Mobile: Strong postpaid net adds drives growthMobile: Strong postpaid net adds drives growth

Mobile Clients EvolutionMillion of lines

Postpaid 1

Prepaid

+7%

19.1

+1%

19.018.918.718.5

• +2/3 of 1Q13 net adds were postpaid, now representing 33% of our clients

• Consolidating revenue share leadership

• Average monthly MOU and TOU expanded by 1% and 6% YoY

• +13% ARPU increase due to better postpaid/prepaid mix and higher VAS penetration

+3%

YoY var

12.7 12.7 12.7 12.8 12.8

1Q12 2Q12 3Q12 4Q12 1Q13

6

Note: Argentinean operation only. Figures might not sum up due to roundingSource: Market estimates of the top 3 providers in the industry.- Does not include trunking subscribers. 1 Includes “Cuentas Claras” subscribers

Market share

Prepaid

+0.6 MMsubs.

33.5%33.7% 33.3%33.8%

+1%

33.5%

penetration

2.8% 3.2% 2.9% 2.9% 2.8%

54.9 54.358.2

63.3 62.1

1Q12 2Q12 3Q12 4Q12 1Q13

Monthly Churn

ARPU (ARS)

+13%

ARPU & Churn Evolution

3.8% 5.2%3.9% 2.0% 2.9%

9.0%9.0%

9.4%8.9% 8.8%

5,727 6,299

4,4825,765

1,323 1,615

774

1,248

276391

Mobile: Leveraging on VAS to sustain revenue growthMobile: Leveraging on VAS to sustain revenue growth

Million ARS – Argentine Market

Internet Services

Data (SMS)

as % of Argentine Service Revenues -Before capitalization of SAC & SRC

Service Revenue Breakdown SAC & SRC

Handset subsidies

Agent Commissions

Retail &

16.2%17.3%

16.4%SAC & SRC

+61%

+29%

+10%

+21%

14.2%

+18%

+42%

+22%

3,6683,101

14.5%

13,31210,983

3.6% 3.1% 2.9% 3.3% 2.8%

1Q12 2Q12 3Q12 4Q12 1Q13

5,727 6,299

1,502 1,662

1,323 1,615

2011 2012 1Q12 1Q13

7

VAS as % of Service Revenues

• Leadership in smartphone and mobile internet supports consistent VAS revenue expansion

• Focusing on customer convenience to improve value perception

Advertising

55%52%

Retail & Wholesale Voice

+10%

53%48%

+22%

+11%

• Efficiency gain in customer acquisition and retention costs with a strong focus in upselling; SAC & SRC down to 14.5% of service revenues

714

867

199262264

331

73 89

1,829 1,849 1,860 1,872 1,888

375 393 410 428 447

Paraguay: Mobile Internet services key to revenue growth Paraguay: Mobile Internet services key to revenue growth Subscribers

Thousand of lines (includes 3G modems)

OIBDA

REVENUES

FinancialsIFRS Million of ARS

+32%

+22%

+19%

+3%

2,3352,3012,2702,2422,203+6%

Prepaid

+21%

+25%

Post paid 1

YoY var

73 89

2011 2012 1Q12 1Q131Q12 2Q12 3Q12 4Q12 1Q13

81 Postpaid includes “Cuentas Claras” and 3G modems but excludes WIMAX

Figures might not sum up due to rounding

• Local currency (Guaraní) appreciation tothe Argentine Peso amplifies theperformance of revenues and profitsdenominated in ARS.

• Revenues in local currency rose 5% YoY

OIBDA

Margin 38% 37% 34%

• First to launch LTE services in the country

• Postpaid segment leads customer growth andupholds revenue share expansion

• Regulation ruling against on-net calls promotionsimproved the incoming/outgoing traffic ratios andfavors the competitive scenario.

37%

3,705 137 23 292115

113 63 4,448

+743(+20%)

IFRS, Million of ARS, Percentage

Mobile Revenues: Sustained growth thanks to VAS Mobile Revenues: Sustained growth thanks to VAS Evolution of revenues 1Q12 – 1Q13

1Q12 Revenues

Retail Voice

Wholesale* Voice

Data Internet Equipment Nucleo* (Paraguay)

1Q13 Revenues

9

+13% +5% +22% +32%+28%

Note: Wholesale voice shows Interconnection revenues (CPP, TRLD, Roaming and others)Núcleo revenues expressed in ARS and includes equipment.

36%10% 9%27% 12%% of total MobileRevenues

6%

+42%YoY Variation

1,550 1,629 1,566 1,626

Broadband: Enhancing value propositionBroadband: Enhancing value proposition

• Enhancing value proposition with compelling bundled offers:

�Streaming services

�Bandwidth increases

�Commercial agreement with satellite TV provider to offer combined products.

�YE Target: +60% of LIS with +10Mb speed

Thousand of broadband accesses

Evolution of Accesses

+4%+5%

1,550 1,629 1,566 1,626

2011 2012 1Q12 1Q13

Market share1

1.3% 1.1%1.5% 1.5% 1.6%

95.6 96.5105.1

111.5 114.9

1Q12 2Q12 3Q12 4Q12 1Q13

Monthly Churn

ARPU (ARS)

10

1 Source: Market estimates of the top 3 providers in the industry.

34%

+20%

�YE Target: +60% of LIS with +10Mb speed

• ARPU rose by 20% YoY in 1Q13

35%

ARPU & Churn Evolution

34%35%

4,141 4,128 4,138 4,109

Fixed Voice & Data: Robust data revenue expansionFixed Voice & Data: Robust data revenue expansion

-0,7%

Thousand of lines in service

Evolution of Lines in Service

-0,3%

Data Revenues

583735

163 213

+26%

+31%

IFRS Million of ARS

• Bundled services helped to maintain churn under control

• +6% ARBU increase despite frozen tariff

• Appealing and integrated offers to corporate and governmental clients boost data revenues

2011 2012 1Q12 1Q13

11

1Source: Company reports of the main providers in the industry.21Q13 market shares refers to 4Q12 figures. ARBU: Includes only concepts billed to clients

ARS +6%(excluding broadband and data)

ARBU evolutionMarket share1 46% 47% 46%247%

0.5% 0.5% 0.5% 0.5% 0.6%

46.947.4

48.849.9 49.5

1Q12 2Q12 3Q12 4Q12 1Q13

Monthly Churn

ARPU (ARS)

163 213

2011 2012 1Q12 1Q13

1,421 22 1050 117 -4 1,616

+195(+14%)

IFRS, Million of ARS, Percentage

FixedFixed Services: Wireline BB + ICT services key driversServices: Wireline BB + ICT services key drivers

34%

Regulated

Evolution of revenues 1Q12 – 1Q13

Regulated

Revenues 1Q12

Retail Voice Wholesale Voice

Data Internet Equipment Revenues 1Q13

12

YoY Variation -22%

Note: Does not include intercompany revenues.Graph not in scale

+6%

13% 36%39% 11%% of total Fixed Revenues

66%

39%

61%

Regulated

Non Regulated

1%

+31%

Non Regulated

+26%+4%

23%

23%32%

17%

6%

Others

IT Mobile access

Fixed access

2,318 2,415

Evolution of Evolution of CAPEXCAPEX

Million of ARS PP&E Capex BreakdownCapex Evolution

+7%

690

PP&E

Intangible +5%

741

+2%3,192

+4%

3,257

Core & Infraestructure1

874 842198 222 492 519

2011 2012 1Q12 1Q13

13

Note: 1Core & infrastructure refers to network related capex, including quality and innovation capex.

% Revenues 15% 13% 12%

• Main focus of capex program: increase network capacity, enhance voice & data availability and improve customer experience

• Continue developing the FTTC rollout in key areas with the aim of launching retail high speed BB offer by YE2013

• 3G mobile network enhancement

17%

Intangible AssetsSAC/SRC +12%

+5%

-4%

Capex plan focused on quality of service andCapex plan focused on quality of service andcustomer experiencecustomer experience

Access Network

• Migration to 6-sector cell sites to take advantage of existing infrastructure

• Incremental coverage and capacity thru unconventional sites

• Spectrum refarming from 2G to 3G to increase data speed and capacity

• Speeding 3G device penetration to optimize spectrum usage

• Increasing pace of FTTx deployment to improve BB speed availability SSSS

pppp

eeee

cccc

14

Core / Transport / Backbone

• Adding capacity to backbone network to address growth in data traffic

• Secure backbone with additional fiber optic ring

• Adding backhaul capacity to improve customer experience

• New technologies to reduce network workload

cccc

tttt

rrrr

uuuu

mmmm

Installed FTTx cabinets

>5x

Cumulative 3G Cell Sites

>3x

Main KPIs in the network evolutionMain KPIs in the network evolution

Fixed access Mobile access

2012 2015 20152012

% Sites in Ethernet

2012 2015

~90%

2012

International Bandwidth Capacity(in Gbps)

2015

2x

Backhaul Transport

15

• Market Overview

• Business Highlights

• Financials

AgendaAgenda

16

• Financials

• Q&A Session

5,9936,570

TEO Group: Consolidated Results TEO Group: Consolidated Results

IFRS, Million of ARS, Percentage

Revenues OIBDA*IFRS, Million of ARS,

22,117

18,498

+20%

+10%

5,126 6,064

2011 2012 1Q12 1Q13

1,647 1,799

2011 2012 1Q12 1Q13

17

OIBDA Margin

32% 30% 32% 30%Regulated Revenues 12% 10% 11% 9%

+18%

+9%

*Operating Income Before Depreciation & Amortization.

1Q12 1Q13

943 76191 140 164

79 71 70

118%

+152(+9%)

TEO Group: Consolidated TEO Group: Consolidated Costs and OIBDA evolutionCosts and OIBDA evolution

IFRS, Million of ARSOperating Income Before Depreciation and Amortizati on 1Q12 – 1Q13

OPEX1

3,483

+23%

4,274

1,647 1,79918% 19%28% 30%

16% 17% 20%

OIBDA 1Q12

Revenues & other

incomes

ITX Costs Labor Costs Taxes Marketing & Sales

Fees for services,

maintenance and

materials

VAS Costs Others* OIBDA 1Q13

18

YoY Variation

1Consolidated cost excluding Depreciation & AmortizationsNote: Others includes bad debt expenses, maintenance, materials, supplies and others

OIBDA Margin -1.1%0.0% -0.9% +0.5% +0.1% -1.0%32.1% 29.7%-0.1%

% of Revenues

TEO Group: Consolidated TEO Group: Consolidated CostsCosts

Consolidated Costs 1 as % of Revenues Operating Costs 1 1Q13

Labor Costs

Taxes

Others220%

14%

11%29%

23%

3%

20%

14%

11%29%

23%

3%

20.5%20.0%

8.0% 8.0%

Marketing & Sales

ITX Costs

70.5%68.0%

VAS Costs

19

1. Excluding Depreciation & Amortizations2. Others includes: Fees for services, maintenance and materials; fees for Call

Center outsourcing; bad debt expenses and others

• Impact of increased turnover tax rates in certain provinces

• Higher labor cost due to wages adjustments and increased headcount

• Streamlining commercial costs through :

• Redefinition of agent commissions

• Handset subsidies focused on contract upselling

ITX costsMarketing &

Sales

11%29% 11%29%

16.1% 16.1%

13.2% 14.3%

9.0% 9.9%1.2%

2.2%

1Q12 1Q13

Others2

Taxes

Labor costs

VAS costs

3,857 3,9662,685

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of ARS, Percentage

Operating Income Net Income attributable to Telecom

+3%

2,513

IFRS, Million of ARS, Percentage

+7%

1,033 1,115

2011 2012 1Q12 1Q13

698 802

2011 2012 1Q12 1Q13

20

O. Income Margin 21% 18% 14% 12%20% 18% 14% 13%

+15%+8%

3,198

1,769

333 106 830

IFRS, Million of ARS - Last 12 months

TEO Group: FCF and Net Financial PositionTEO Group: FCF and Net Financial Position

6,722 3,308

216

OIBDA Capex ∆ WK & others

Operating Free Cash Flow

2,9824,020

21

Note:(1) Includes Telecom USA(2) Includes Springville(3) OFCF: Operating Free Cash Flow before Taxes.(4) $807 TA, $23 Nucleo

Net Financial Position

1Q12(Net Cash)

Net Financial Position

1Q13(Net Cash)

Net Interest

FX Variations

Operating Free Cash

Flow3

Taxes Dividend Payments4

Free Cash Flow = 1.429

Telecom Argentina 999(1)

Telecom Personal 3,118 (2)

Nucleo (Paraguay) (97)

Net Financial Position

• Market Overview

• Business Highlights

• Financials

AgendaAgenda

22

• Financials

• Q&A Session