Telecom ArgentinaTelecom Argentina

4Q13 Earnings Release4Q13 Earnings Release4Q13 Earnings Release4Q13 Earnings Release

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

DisclaimerDisclaimer

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

Financials

2

Financials

Q&A Session

11.4 10.012.4

9.0

1.7% 0.3%-0.2% -0.8%

211 249 267 275368 442 467 475

26.3% 29.4% 24.5% 25.9%9.2% 8.9%1.9% 4.9%

Market Overview: Navigating in a challenging contextMarket Overview: Navigating in a challenging context

Billion USD, at current prices – Last 12 months

∆ YoY - constant prices

Trade Balance (Billion USD) Last 12 months

Fiscal Balance as % of GDP Last 12 months*National Wages - ∆ % YoY

Billion USD, at current prices – Last 12 months

Real GDP* Consumption & Wages Trade & Fiscal Balance

2010 2011 2012 2013e2010 2011 2012 2013e2010 2011 2012 2013e

3

Source: MECON, INDEC and Company Estimates

•Official GDP YoY variation, constant prices.

•Fiscal Balance represents primarily fiscal surplus

� Despite certain deceleration in 2H13, GDP

growth is estimated at 4.9% in 2013 mainly due

to higher agricultural exports vs. 2012

� Industrial production was impacted in 2H13 by

a reduction in carmaker exports and the

implementation of a new tax on luxury cars

� Expected external conditions such as a

slowdown in Brazilian economic growth and

lower commodity prices could have an

important impact in 2014 economic evolution

� Private consumption remained stable in 2013

due to pro-cyclical monetary and fiscal policies

� After an important devaluation of the

Argentine peso in January 2014, the

expectation is that inflation may accelerate in

FY2014

� A new CPI Index was published by the

government, that reached 3.7% for the month

of January

� 2014 wages negotiations are starting from

higher levels than previous year

� Trade balance was impacted by the increase in

energy imports despite the increase of

agricultural exports

� New monetary policies were applied to

preserve the levels of FX reserves (accelerating

FX depreciation, new taxes, etc)

� Although tax collection pushes revenues up,

fiscal balance suffered an important

deterioration due to higher public

expenditures, subsidies, energy imports,

salaries and pensions

AgendaAgenda

Market Overview

Business Highlights

Financials

4

Financials

Q&A Session

Business HighlightsBusiness Highlights

� Revenues up +26% with limited price adjustments

� Keeping the leadership in smartphones selloutachieving 73% share

� Significant reduction in handset subsidies

MOBILE

� Continuous FTTx deployment to improve valueproposition

� Corporate Data rose +31% YoY growth, acceleratingin 4Q13

FIXED

5.2 6.0 6.8 8.1 8.9

4Q12 1Q13 2Q13 3Q13 4Q13

3G Customers

FTTC

>3X

� AR$ 1 bn in dividend payment

� AR$ 0.5 bn in share buyback

� Solid financial structure to navigate in a challenging

macro context3.6

5.4

FY12 FY13

Net Financial Position

Cash (in billion AR$)

5

FINANCIALS

in 4Q13

� Fixed broadband ARPU rose +20% YoY in 4Q13

� Highest quarterly BB net adds in the last two yearsFY12 FY13

12.8 12.8 13.0 13.4 13.6

6.2 6.3 6.3 6.4 6.5

5.15.5

5.86.3

6.7

4Q12 1Q13 2Q13 3Q13 4Q13

35.4 41.757.7

66.8

27.927.3

FY12 FY13 4Q12 4Q13

Mobile: Mobile: Increasing share of Increasing share of multiusagemultiusage customers mitigates SMS customers mitigates SMS substitution effectsubstitution effect

Million of lines / Month/million of customers

Postpaid 1

Prepaid

+5%

19.1

+6%

19.0+6%

YoY var

19.3

Mobile Customer Evolution& Mob. Internet Unique User

19.9

Voice

Non Voice

63.3

+9%

-2%

+18%

Customer Segmentation

ARPU AR$/Month

Mobile Unique

Internet User

69.0

20.1

+16%

7% 6%7% 6%4% 5%

42%33%

40%50%

FY12 FY13

4Q12 1Q13 2Q13 3Q13 4Q13

6Note: Argentinean operation only. Figures might not sum up due to rounding1 Includes “Cuentas Claras” subscribers

Source: Market estimates of the top 3 providers in the industry – Exclude trunking services

Monthly Unique Internet Users: Number of subs. that use internet at least once a month

Market

share

+1.1 MM subs.

33.2%33.5% 32.6%32.9%

� 433 k postpaid net adds (+7% vs. FY12) -excluding dongles- in FY13

� Mobile Unique Internet user increased by 31% YoY thanks to

commercial focus in smartphone sales

� 4Q13 ARPU evolution impacted by non-recurring effects such as

discount on prepaid recharges

Customer Segmentationby Usage

33.0%VOICE+SMS+DATA

SMS+DATA

VOICE+SMS

SMS

VOICE + SMS

ARBU

OTHERS

~ 1.5X

+10 pp

-9 pp

4Q12 1Q13 2Q13 3Q13 4Q13

4Q13 Events on Mobile Service Revenues4Q13 Events on Mobile Service Revenues

Content Revenue – Quarterly Trend

-5 pp

Non-Recurring impacts

Recurring impactLower contribution ofContent VAS to growth

25%

13%

-12 pp

YoY Service Revenuesgrowth

7

Different timingin Price Adjustments

Xmas CampaignPromotions

Seasonal promotions on

prepaid recharges (triple

credit) impacted 4Q13 ARPU

Price Adjustments

(40-days delay)

-7 pp

Non-Recurring impacts

2012 2013

Oct 1st Nov 10th

3Q13 4Q13

Note: Only Argentinean operations

2.0%

3.3%

3.2%

8.9%10.2%

5,727 6,299 6,703

2,997

4,482

5,7657,212

391

774

1,248

2,088

Mobile: Mobile: Leadership Leadership in revenue in revenue shareshare

Million ARS – Argentine Market

Internet Services

Data

(SMS & Content)

as % of Argentine Service Revenues - Before

capitalization of SAC & SRC

Handsetsubsidies

Advertising

Agent Commissions

Retail &

SAC & SRC

+98%

+50%

+12%

16,00313,312

10,983

Service Revenue Breakdown

SAC & SRC

12.5% -3.0pp

-0.1pp

YoY var

1.3pp

14.2% 14.5%

10.9%

8,483

+29%+61%

+29%

+10%

+21%

+67%

+25%

+6%

+20%

11.2%

Var. vs. FY 12

-3.8pp

2.0%

-2.2%

3.2%

4Q12 1Q13 2Q13 3Q13 4Q13

5,095 5,727 6,299 6,703

2010 2011 2012 2013

8

VAS as % of Service

Revenues

subsidies

58%53%

Retail &

Wholesale Voice

+12%

48%40%

-4.2pp+10% +6%

� Internet Services and Data (SMS+Content) up by +67% and 25% respectively YoY; the main drivers of Service Revenue growth

� VAS increased by 33% YoY, high participation of service revenues

� Lower SAC & SRC due to reduced subsidies notwithstanding significant improvement in handset mix

1,872 1,888 1,906 1,925 1,936

429 447 475 482 484

Paraguay:Paraguay: Improved customer base mix and VAS pushes revenues upImproved customer base mix and VAS pushes revenues up

Thousand of lines

13%

3%

2,3352,301+5%

Pre

paid

Post

paid 1

YoY var

2,381

Customers

2,407 2,42054%

50%49%

45%

VAS as % of Service Revenues

4Q12 1Q13 2Q13 3Q13 4Q13

9

1 Postpaid includes “Cuentas Claras”, 3G modems and WIMAX.

Figures might not sum up due to rounding.

Paraguayan local currency is the Guaraní.

� VAS revenues up 38.5% in FY13, reaching 54% of Service Revenues

� Continuous network expansion to enhance coverage and capacity

� OIBDA margin represents 37% of Net Revenues in FY13

paid

2010 2011 2012 2013

� Mobile Internet expansion thru LTE

� +13% in postpaid growth yoy, improving customer mix

16,094 312 921,447 840 1,211 285 20,281

IFRS, Million of ARS, Percentage

Mobile Revenues: Mobile Revenues: Browsing and nonBrowsing and non--P2P SMS VAS, sustaining P2P SMS VAS, sustaining

revenues growthrevenues growthEvolution of revenues FY12 – FY13

+4,187; +26%

FY12

Revenues

Retail

Voice

Wholesale*

Voice

Data Internet Handsets Paraguay* FY13

Revenues

10

Note:

Wholesale voice shows Interconnection revenues (CPP, TRLD, Roaming and others)

*Paraguayan (Nucleo S.A.)revenues expressed in ARS and includes handsets.

Figures might not sum up due to rounding

36%9% 10%24% 15%% of total Mobile

Revenues6%

YoY

Variation+7% +5% +25% +67% +63% +33%

1.5% 1.6% 1.5% 1.4% 1.3%

111.5114.9

123.6 125.5 134.0

4Q12 1Q13 2Q13 3Q13 4Q13

1,629 1,626 1,634 1,669 1,707

Fixed Broadband: Fixed Broadband: Confirming positive trend in net addsConfirming positive trend in net adds

Thousand of broadband accesses, thousand of net adds ARPU & Churn Evolution

Evolution of BBAccesses

+20%+78k; +5%

AR$/Month

18

-39

35 38

4Q12 1Q13 2Q13 3Q13 4Q13

4Q12 1Q13 2Q13 3Q13 4Q13

11

� Broadband net adds continue growing with ~38knew accesses in 4Q13

� ARPU rose by 20% YoY in 4Q13 with slightreduction in churn

� Improvement in value proposition thruincremental speed offerings that sustainbroadband pricing

BB Net adds

488 583735

963

IFRS Million of ARS

Fixed Voice & Data: Fixed Voice & Data: ICT+DataICT+Data contributed to growth in Fixed contributed to growth in Fixed

Revenues Revenues (excluding broadband and data)

0.5% 0.6% 0.6% 0.5% 0.5%

49.9 49.552.8 53.1 54.4

4Q12 1Q13 2Q13 3Q13 4Q13

Data RevenuesBasic Services

ARBU evolution

+19%

+31%

+9%

+26%

� Corporate services +31% vs. FY12 thanks toimproved ICT+Data Center Offering

� ARBU reached P$54 per month, +9% YoY thanks tosuccessful bundled offers

� Positive LIS net adds starting from 2Q13

4,128 4,109 4,114 4,124 4,124

4Q12 1Q13 2Q13 3Q13 4Q13

488 583

2010 2011 2012 2013

121Source: Company reports of the main providers in the industry.

ARBU: Includes only concepts billed to clients

Thousand of lines in service

Market share1 46% 46% 46%

Evolution of Lines in Services

46% 46%

6,023 181 47228 528 -1 7,006

IFRS, Million of ARS, Percentage

Fixed Services: BB + Data services continue to be key driversFixed Services: BB + Data services continue to be key drivers

36%

33%

Regulated

Evolution of revenues FY12 – FY13

Regulated

+983; +16%

+4%

YoY var

Revenues

FY12

Retail Voice Wholesale

Voice

Data

Services

Internet Equipment Revenues

FY13

13

YoY

Variation

Note: Does not include intercompany revenues.

Graph not in scale

14% 36%38% 11%% of total Fixed Revenues

67%64%Non Regulated

1%

Non Regulated+7% +6% +31% +26% -1%

+22%

2,4933,192

655 813

8421,342

1,070

1,955

Evolution of Evolution of CAPEX: Focus in Network quality upgradeCAPEX: Focus in Network quality upgrade

Million of ARS

+49%

3,257

+59%

4,851

+28%

Capex Evolution

+24%

3Q

+83%

4Q

New Sites

3G Overlay

6 Sectors

>65%

>10%

>3x

Mobile AccessNetwork rollout Vs. Δ FY12*

2,493

690 741

655 813

2010 2011 2012 2013

14

Note: 1Core & infrastructure refers to network related capex,

including quality and innovation capex.

% Revenues 17% 15% 18%

� Despite delays in authorizations and import process, strong increase in PP&E Capex

� Second carrier implementation improved network capacity

� Accelerating FTTx rollout deployment to improve commercial offers and user experience

� Lower handsets subsidies impacted evolution of intangible assets

17%

+7%

+24%

1Q

2Q

Swap +

Modernization

+ Upgrade HW

>2x

* Increase in number of interventions in sites

AgendaAgenda

Market Overview

Business Highlights

Financials

15

Financials

Q&A Session

4,867

5,993

1,5871,930

1,844

2,010

6,570

7,564

5,645

7,114

6,092

7,460

TEO Group: Consolidated Results TEO Group: Consolidated Results

IFRS, Million of ARS, Percentage IFRS, Million of ARS, Percentage

18,498

14,627

+26%

+23%+22%

27,287

22,117

+9%

Revenues OIBDA*

3Q

+26%+22%

3Q

+23%

4Q

4Q

+15%

+20%

+10%

1,647 1,799

1,4921,825

1,587

2010 2011 2012 2013

5,126 6,064

5,2546,649

5,645

2010 2011 2012 2013

16

OIBDA

Margin33% 32% 30% 28%

Regulated

Revenues14% 12% 10% 8%

+18% +9%

*Operating Income Before Depreciation & Amortization.

+27% +22%

1Q

2Q

1Q

2Q

+22%

+22%

OIBDA Growth 4Q13 vs. 3Q13OIBDA Growth 4Q13 vs. 3Q13

YoY Service Revenues Change

~10%

22%

Structural subsidy

policy review

YoY OIBDA CHANGE

3Q13 4Q13 1Q14E

15%

Slowdown in

Commercial

Activity 4Q12

Recovery Area

Customer Customer CareCare raterate

+9%

Effect of QoS

Regulation and

postal cost increase

17

3Q13 4Q13

Customer

Management

(mainly QoS Regulation)

Handset

Subsidy

Service

Revenue

Growth

Sales

CommissionsFixed Costs &

Others

~3%

~3%

policy review

starting from 2Q13

~3%

6,570

5,154 1,068122 883 671 250

532 382 252

7,56423%

52%

7%

27% 33%

10%25%

117%

16%

YoY

Variation

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

IFRS, Million of ARS

Operating Income Before Depreciation and Amortization FY12 – FY13

+994; +15%

OIBDA

FY12

Revenues &

other

incomes

Handsets

Sales Costs

ITX Costs Labor Costs Taxes Other

Marketing &

Sales

Fees for

services,

maintenance

and materials

VAS Costs Others* OIBDA

FY13

18* Others includes bad debt expenses, maintenance, materials, supplies and others

OIBDA

Margin-0.5%+ 1.0% -0.7% 1.3% -0.2% -1.1% 27.7%0.4%

% of

Revenues

29.7%

� Higher impact in direct and indirect labor costs

� Higher taxing pressure

� +30% in handset sellout in 4Q13 at a higher average costs (+38%) due to FX effect

� Improvements in ITX and discretional costs

-2.2%

9211,203

1,1631,255

3,857

3,162

3,9664,518

1,935 794

878

870

2,513

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of ARS, Percentage

+22%

IFRS, Million of ARS, Percentage

+30% 2,685

3,202

Operating IncomeNet Income

attributable to Telecom

+31%

+14%

3Q

+19%

3Q

+8% 4Q

+3%

+11%

+7%

4Q

1,033 1,115

849 945

921

2010 2011 2012 2013

698 802

577 652

616870

2010 2011 2012 2013

19

O. Income

Margin22% 21% 13% 14%18% 17% 12% 12%

+13%

+8%

+11%

1Q

2Q

1Q

2Q

+15%

3Q+41%

3,825

1,609

739 201 989

461

IFRS, Million of ARS - Last 12 months

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

7,564 4,8511,112

OIBDA Capex Δ WK & others

Telecom Argentina 1,669(1)

Operating free Cash Flow

Net Financial Position

3,648

5,354

20

Note:

(1) Includes Telecom USA

(2) Includes Springville

(3) OFCF: Operating Free Cash Flow before Taxes

(4) $33 Millions represents Nucleo dividends payments to third parties and net of income tax

(5) Net of tax credits of ARS 8MM (Gross amount ARS 1,.617 MM)

Net Financial

Position

FY12

(Net Cash)

Net Financial

Position

FY13

(Net Cash)

Net Interest

& Others

FX

Variations

Operating

Free Cash

Flow3

Taxes 5Dividend

Payments4

Telecom Argentina 1,669(1)

Telecom Personal 3,896 (2)

Nucleo (Paraguay) (211)

Share buy

back

Free Cash Flow = 2,216

465235 34 59 138

0%

Solid financial policies limited exposure to FX riskSolid financial policies limited exposure to FX risk

Often tagged as a “Sub-Optimal Capital Structure”, having no debt denominated in foreign currency, represents a strategic asset in an environment of a deteriorating Peso

UNLEVERAGED BALANCE SHEET

HEDGING STRATEGY U$S millions or equivalents, December 2013. Argentinean operations

Exposure to FX in costs is almost matched by revenues in foreign currency or equivalent, coming from international traffic, corporate data and international roaming

21

LIMITED IMPACT IN P&L

Net Payables in

Foreign

Currency

U$S Dollar Linked NDFFX Cash U$S Dollar BondsExposure as

of FY13

AgendaAgenda

Market Overview

Business Highlights

Financials

22

Financials

Q&A Session