Telecom ArgentinaTelecom Argentina

3Q15 3Q15 EarningsEarnings ReleaseRelease3Q15 3Q15 EarningsEarnings ReleaseRelease

Conference Call Presentation

This presentation is based on audited financial statements and may include statements that could constitute forward-looking statements,

including, but not limited to, the Company’s expectations for its 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” or other similar expressions.

Forward-looking statements involve risks and uncertainties that could significantly affect the Company’s expected results. The risks and

uncertainties include, but are not limited to, uncertainties concerning the impact of the emergency laws enacted by the Argentine government

which have resulted in the repeal of Argentina’s convertibility law, the devaluation of the peso, restrictions on the ability to exchange pesos

into foreign currencies, the adoption of a restrictive currency transfer policy, the “pesification” of tariffs charged for public services, the

elimination of indexes to adjust rates charged for public services and the executive branch announcement to renegotiate the terms of the

concessions granted to public service providers, including Telecom. Due to extensive and rapid changes in laws and economic and business

DDisclaimerisclaimer

1

concessions granted to public service providers, including Telecom. 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 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. 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.

AgendaAgenda

Market Overview

Business Highlights

2

Financials

Q&A

Financial interm.

Transport & Communications

Manufacturer Industry

Real Estate

Minery

Retail & Wholesale commerce

Social services & Healthcare

Public Admin & Defense

Electricity, gas & water

Agriculture

Construction

4.3% 4.3%

-0.5%

0.8% 0.7% 1.0% 12.28.0

6.7 6.7 4.62.6

2012 2013 2014 1Q15 2Q15 3Q15

Trade Balance (Billion U$S) Last 12 months

26.6%38.0%

28.0% 25.5% 24.0%

15.0% 14,4%

2013 2014 1Q15 2Q15 3Q15e

Consumer Price Index (GCBA) Consumer Price Index (INDEC)

23.9%

43.3

30.6 31.4 31.533.9 33.3

2012 2013 2014 1Q15 2Q15 3Q15

24.5% 25.9% 33.7% 32.7% 29.1% 29.6%

2012 2013 2014 1Q15 2Q15 3Q15e

Central Bank Reserves (Billion U$S)National Wages - ∆ % YoY

Economic activity per sector Wages Central Bank Reserves

““Slow economic activity with a challenging external sectorSlow economic activity with a challenging external sector””

Household consumption CPI (YoY) Trade Balance

Total

16.5%

2012 2013 2014 1Q15 2Q15 3Q15e 2012 2013 2014 1Q15 2Q15 3Q152013 2014 1Q15 2Q15 3Q15e

� The economic activity seems to have entered into a

slow recovery phase, mainly due to improvements in

Construction, that showed a notorious advance during

3Q15, and Agriculture, that registered a slowdown in

3Q15 coming from a record soybean harvest in

volumes at 1H15. Evolution of macroeconomic

scenario must be carefully monitored in the coming

periods to determine whether growth will consolidate.

� Industrial production Index (IPI) shows a positive

trend, with improvements in metalworking and Food

and a decline in Cars and Steel.

� Argentine external competitiveness was affected by

the FX depreciation in Latam and China, partially offset

by an upward trend evolution of AR$/U$S FX rate

3Source: MECON, INDEC , FIEL and Company Estimates

� Consumer confidence reflected an improvement in

9M15 coming from a weak 2014. It is expected that

household consumption will maintain a positive

performance during 3Q15.

� Fiscal accounts continue to deteriorate due to

increasing public expenditures and subsidies to

transport and energy. Fiscal revenues growth is not

sufficient to balance the expenditures trend.

� The CPI Index published by the Federal

Government reached 14% YoY meanwhile GCBA

measures 24.0% in YoY.

� As of September 2015, international reserves

showed a decrease vs 2Q15, mainly due to CB’s

interventions to offset further depreciations of the

exchange rate. During Oct-15 important maturities

(around 5,9B U$S) of sovereign debt (Boden 2015)

were cancelled using reserves.

� Relatively stable FX rate evolution, with a slight

acceleration of the nominal depreciation of ARS vs

U$S during Sep-15.

� Trade balance continued to decrease in 3Q15, as

exports accumulated 22 months of contraction,

due to lower commodity prices and a reduction of

volumes in certain items, i.e. industrial

manufactures. External sector continues to pose a

challenge.

AgendaAgenda

Market Overview

Business Highlights

4

Financials

Q&A

B U S I N E S S

HighlightsHighlights

CommercialCommercial OfferOffer orientedoriented towardstowards DataData && InternetInternet

� Solid performance in value segments in 3Q15

� Strong smartphone sell out of 98% in line with solid demand at 4G devices, but limited by constraints on

imports. Solid growth of alternative sources of devices

� Pricing scheme simplification with Data Centric Plans

� Strong performance in 4G: - More than 1MM users

- Data consumption 3.6x higher than 2G/3G

InternetInternet

� Internet Mobile users +10% YoY in 3Q15 (Usage +75%, ARPU +66%)

5

� Internet Mobile users +10% YoY in 3Q15 (Usage +75%, ARPU +66%)

� Fixed Broadband subs +3% YoY (10 Mb subs 25% of CB vs. 13% in 3Q14) - ARPU +35% vs. 3Q14

� Service Revenues up +21% (vs 17% in 9M14) driven by:

� Mobile internet in Argentina (+87%)

� Broadband (+40%) in the Fixed Business

� EBITDA increased by +24% with a positive trend in margins, reaching a 27% profitability.

� LTM FCF generation AR$ 1,338 MM. After paying AR$ 804 MM in cash dividends and AR$ 5,786 MM in Spectrum, in

Argentina ,NFP (debt) reaches AR$ 1.6 Bn, mostly in local currency

� Solid hedge strategy with more than 70% of FX exposure covered

F I N A N C I A L S

Total Revenues, Million AR$, %

TEO Group TEO Group –– Consolidated resultsConsolidated results

24,183 28,59027,287

9M14 9M15FY14

33,341

FY13

+22% +18%

7,664

6,186

8,702

7,564

+15%

+24%

EBITDA, Million AR$, %

6

24,968

9M15FY14

24,012

9M14

20,568

FY13

28,278

+21%

FY13 9M14 9M15FY14

EBITDA Margin

+18%

28% 26% 26% 27%

Lower quantity of handsets sold (-35% YoY vs 9M14) due to import limitation in Argentina

Service Revenues , Million AR$, %

EBITDA

Margin

1.649

Group Revenues Group Revenues –– focus on mix and trendfocus on mix and trend

Retail Mobile

Retail Fixed Voice

Wholesale 14%

BB and fixed data

12%

AR$, Million

49% 52%

14% 16%

9% 8%

Retail Fixed Voice

Group Revenue Mix

682 745

704 788

723 846

9M14 9M15

+13%

1Q

3Q

2Q

9%

17%

12%

+34%

3Q35%

Broadband & Fixed Data

Internet

Mobile

2,1092,379

3,408

4,563

4,283

1.045 1.380

1.141 1.534

1.222

1.649

9M14 9M15

7

Regulated Rev

% on Total Rev 7.4% 7.1%

Handsets

Paraguay

9M15

Wholesale

9M14

14% 12%

4% 4%

15% 13%

9%7%

Retail Mobile

1Q

3Q

2Q

32%

34%

3.776 4.735

3.921 4.826

4.119 5.207

9M14 9M15

1Q

3Q

2Q

+25%

25%

26%

23%

6441,188

781

1.501 869

1,594

9M14 9M15

1Q

3Q

2Q

+87%

83%

84%

92%

11,81614,768

2,294

4,283

1,707

1,771 1,750

1,804

FY13 FY14 3Q14 3Q15

1.3% 1.2% 1.3% 1.4% 1.4%

157.8167.3 178.5 201.6

217.4

3Q14 4Q14 1Q15 2Q15 3Q15

Monthly Churn ARPU (AR$)

Fixed Fixed –– UBB accesses increased significantly in 3Q15 propped by competitive offerUBB accesses increased significantly in 3Q15 propped by competitive offer

Thousand of broadband accesses, thousand of net adds

+54k; +3%

AR$/Month

BB Accesses

≥10Mb subs.

+38%+64k; +4%

~2x

BB ARPU & Churn

232 291 335

394 448

3Q14 4Q14 1Q15 2Q15 3Q15963

1,470

1,063 1,290

FY13 FY14 9M14 9M15

8

IFRS Million of AR$

+53%

+21%

≥10Mb subs.

≥10Mb

% of CB

+54k;

+14%

16%13% 19% 22%

~2x

25%

Data / ICT Revenues

4,106 4,093 4,077 4,064 4,054

Fixed Fixed –– ARBU sustained thru flat pricing + price adjustment in the monthly feeARBU sustained thru flat pricing + price adjustment in the monthly fee

Thousand of lines

AR$/Month

Lines in Service

ARBU

20%

In AR$

58.160.1 60.5

64.4

69.6

3Q14 4Q14 1Q15 2Q15 3Q15

3Q14 4Q14 1Q15 2Q15 3Q15

9

DriversDrivers ofof ARBUARBU increaseincrease::

� Monthly Fee Tariff increases for Business Clients (17%

of CB)

� The process of the tariff adjustment contemplated in

the Argentine Digital Law has started

� Continous increase in penetration of packs of services:

81% of customer base

Market

Share*46.4% 46.5%46.5%46.4% 46.5%

*Market share calculated based on Company estimates

Mobile Mobile –– 3Q15 postpaid migrating to a Data Centric offer3Q15 postpaid migrating to a Data Centric offer

13.2 13.5

6.3 6.3

3Q153Q14

Customer Base (Mln)

Prepaid

Postpaid 1

19.8 19.41

33%Market Share2 33%

TOWARDS

Hours of connection per user

Share of web traffic by device

Source: Stat Counter, Q1 2015

YoY

10

1 Figures do not sum up due to rounding2 Market share calculated based on Company estimates

2Q15 3Q15

>390K

POSTPAID GROSS ADDS

33%Market Share2 33%

4.4 4.92,7 4,2

World Argentina

Hours of connection per user

Source: GlobalWebIndex, Q42014

Users mix

Mobile: Focus on data opportunity and revenue Mobile: Focus on data opportunity and revenue securizationsecurization

9M159M14

PxQ

Bundle

33%

40% 40%

Prepaid

9M159M14

Postpaid

Prepaid

Postpaid

9M159M14

Mobile services revenue mix

Revenue Mix

Data penetration,

Monthly unique users in million

11

17%26%

43%33%

Browsing SMS + Content Voice

9M14 9M15

10%

8.1

7.4

126

220

9M14

+75%

9M15

1 Includes Dongles

Figures may not sum up due to rounding

9M159M14

Data Usage MBOU/month

9M14

+66%

9M15

ARPU Browsing AR$/month

Mobile Mobile –– Data Data CentricCentric PlansPlans

EVOLUTION SIMPLIFICATION

It is not only about EVOLUTION of It is not only about EVOLUTION of

Technology, it is about how people Technology, it is about how people

react to it.react to it.

New and simplified plans New and simplified plans

adapted for every need.adapted for every need.

New Concept

New Plans

As a As a platformplatform toto MakeMake EverythingEverything PossiblePossible

12

New Plans

Past Current

Focus

Product

Portfolio

Offering

Lever

Individuals

Entertainment, gaming, music, content

Individuals Residential Business

Voice SMS Internet Internet Pay TV / Video Voice

Other

Services

One on One

plansConnectivity

concept

“Enabling platform for customer preference”

Based on

Services

Based on

Platforms

Mobile Mobile –– Strong Positioning in 4GStrong Positioning in 4GMain cities with 4G coverage

Apr/May Jul/Aug Apr/May Jul /Aug

6%

Average ARPU 4G ARPU*

21%

13

�As of today more than 870 sites installed.

�Presence in 188 locations of 18 provinces.

� Offering higher speed and capacity.

� 4G/3G/2G integrated and modernized network with

state-of-the-art technology.

�27% of sites already with 700 Mhz.

NETWORK ROLLOUT

4G Customers

1Q15 3Q15

325

1,000

>200%

DL & UL Speed

Local Benchmark

21

3Source: Ookla Speedtest

* Corresponds to total ARPU of customers using only 4G technology

4,851 5,427 4,535

3,530

2,256

FY13 FY14 9M14 9M15

3,819

6,791

Capex Capex –– Highlighting Mobile accesses thru network deploymentHighlighting Mobile accesses thru network deployment

Million of AR$

Capex Evolution

% Revenues 16% 24%18%

8,957

+85%

27%

+78%Spectrum

+1.7X

Actual Dec-15

+1.6X

4G Sites

Coverage over total population

4G Targets

14% 9% 16%9%

52%

Mobile Access Fixed Access Core &

Infraestruct *

IT Others &

Spectrum

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

14

Capex Breakdown

Actual Dec-15

Sep-14 Sep-15

3G: The frequencies acquired in the 2014 spectrum auction made

possible a relevant improvement of the quality of service adding a third

carrier.

FTTx Deployment

+2X

AgendaAgenda

Market Overview

Business Highlights

15

Financials

Q&A

3Q

+24%

6,186

7,664

TEO Group: Consolidated Results TEO Group: Consolidated Results

IFRS, Million of AR$, PercentageRevenues EBITDA

+22%

+15%

24,183

28,590+18%

IFRS, Million of AR$, Percentage

Service Revenues

14,0%

20,0% 21,9% 21,0% 24,4%

3Q14 4Q14 1Q15 2Q15 3Q15

Service Rev growth in Argentina

27,287

33,341

7,466 8,872

8,119 9,624

8,598

10,094

FY13 FY14 9M14 9M15

1Q

3Q

2Q7,564

8,702

2,112 2,634

2,007

2,501

2,067

2,529

FY13 FY14 9M14 9M15

6,186

16

EBITDA

Margin28% 26% 26% 27%Regulated

Revenues 8% 7% 7% 7%

+17%

+25%

+22%

+19%

+19%

24,183

+25%

1Q

2Q

+22%3Q

6,1864,375

7 328 231,290 442

487 378 612 7,664

21%0%

-11%1%

32%18% 21%

15%

28%

EBITDA 9M14 Ss. Revenues &

other incomes

Handsets

Sales

Handsets Costs ITX Costs Labor Costs Taxes Other Marketing

& Sales

Fees for services,

maint. and

Others* EBITDA 9M15

YoY

Variation+1,478; +24%

IFRS, Million of AR$EBITDA 9M14 – 9M15

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

other incomes Sales & Sales maint. and

materials

1717

EBITDA Margin

-2.0%+0.9% 0.0% -0.2% +0.3% 26.8%-0.7%25.6%9M14 9M15

* Others includes bad debt expenses, provisions, VAS costs and others* *Average of ~40 salary agreements

As % of Revenues 10% 10%5% 18% 10% 10%10%

TEO TEO GroupGroup: Net : Net IncomeIncome EvolutionEvolution

7,664

3,205 -192

1,489

2,778

In Million of AR$ 9M14 9M15 3Q14 3Q15

Net Interests $ 231 -$ 255 -$ 7 -$ 168

Gains on Mutual Funds &

other investments$ 224 $ 300

$ 77 $ 170

FX results -$ 205 -$ 194 $ 17 -$ 99

Results on NDF -$ 20 -$ 11 -$ 14 $ 36

Others $ 0 -$ 32 $ 3 -$ 12

Total $ 230 -$ 192 $ 76 -$ 73

9M15

18

2,778

EBITDA 9M15 D&A, Results on disposal

of PP&E and write-down of

PP&E

Net Financial Results Income Tax Expense Net Income 9M15

6,186

2,343 230

1,389

2,684

EBITDA D&A, Results on disposal

of PP&E and write-down of

PP&E

Net Financial Results Income Tax Expense Net Income

9M14

Variation +1,478 -862 -422 -100 +94

3,526

3,034 1,696

5,786107 90

861-1,586

IFRS, Million of ARS - Last 12 months

TEO Group: TEO Group: FCF, Net FCF, Net Financial Financial Position & Hedging StrategyPosition & Hedging Strategy

Free Cash Flow = 1,338

Operating free Cash FlowFree Cash Flow

Net Financial

Position

9M14

(Net Cash)

Net Financial

Position

9M15

(Net Debt)

Net Interest

& OthersFX

Variations

Operating

Free Cash

Flow2

Taxes Dividend

Payments3

Spectrum

Payment

10,180 6,143 1,003

EBITDA Capex Δ WK & others

19

Note:

(1) Includes Telecom USA

(2) OFCF: Operating Free Cash Flow before Taxes

(3) Includes $57 Million related to Nucleo dividend payments to third parties, net of income tax

Free Cash Flow = 1,338

In U$S million, September 2015. Argentine operations

U$S Dollar & Dollar

Link BondsNDFFX Cash

Exposure as

of 3Q15

Net Accounts

Payable & Debt

AgingAging ofof NDFNDF ((byby tenor)tenor)::

- 3 months or less = 13% over total

- From 3 to 6 months = 29% over total

- From 6 to 12 months = 58% over total

HEDGING STRATEGY

RELEVANT MATTERS

AgendaAgenda

Market Overview

Business Highlights

Financials

20

Financials

Q&A