Telecom ArgentinaTelecom Argentina

3Q16 3Q16 EarningsEarnings ReleaseRelease3Q16 3Q16 EarningsEarnings ReleaseRelease

Conference 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

Business Highlights

FinancialsFinancials

2

Q&A

International Reserves showed a decrease of U$S 0,6 Bn

during 3Q16, mainly explained by net debt payments in

foreign currency and a reduction of financial institutions

minimum cash deposits in CB, partially offset by lower net

foreign currency purchases

(Billion U$S)

Central Bank Reserves

Macro: Recovery lays still ahead, while inflation begins to reduce Macro: Recovery lays still ahead, while inflation begins to reduce

30.6 31.4

25.6

29.6 30.5 29.9

2013 2014 2015 1Q16 2Q16 3Q16

Official FX Rate Blue FX Rate

Closing of the gap

3Q16: Partial cancellation of Jan-16 Repo agreement of U$S 4BN (of

total U$S 5BN outstanding)

External Front

FX Rate15.26

3

� The Peso showed some level of average depreciation, but with a stable trend around levels of AR$ 15 to U$S 1.

CB was less prone to intervene directly in FX markets.

� Trade balance achieved a surplus of almost U$S 2,1Bn during 9M16, responding mostly to a decrease on

cumulative imports YoY.

Official

FX (BCRA)

9.83

13.01

15.26

Jan

-15

Fe

b-1

5

Ma

r-1

5

Ap

r-1

5

Ma

y-1

5

Jun

-15

Jul-

15

Au

g-1

5

Se

p-1

5

Oct

-15

No

v-1

5

De

c-1

5

Jan

-16

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

Jun

-16

Jul-

16

Au

g-1

6

Se

p-1

6

Pre - electionary

period

Closing of the gap

Unification of

Exchange Rates

Strong influence of monetary policy and interest rates.

Average nominal FX was higher during 3Q16.

Strong influence of monetary policy and interest rates.

Average nominal FX was higher during 3Q16.

13.01

15.26

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16

Mean - 1Q16 = 14.48Mean - 2Q16 = 14.23

Mean - 3Q16 = 14.94

Managed Floating Exchange Rate Regime during 1H16

Household consumption*

40.6% 41.7%

Consumer Price Index (FIEL)

CPI (YoY)

3.6%

-4.4%

3.6%1.6%

-0.1%-5.0%

2013 2014 2015 1Q16 2Q16 3Q15e

* Revised official figures as of

2Q16

Overall household consumption continues to show a

declining trend that can be observed from early 2016,

explained mostly by important increases in prices, and

changes in public service tariffs that affected real

wages

CPI measured by private consultants rose to 37.9% YoY, signaling

Macro: Recovery lays still ahead, while inflation begins to reduce Macro: Recovery lays still ahead, while inflation begins to reduce

Domestic Activity & Inflation

4

26.5%

40.6%

27.2%32.8%

41.7%37.9%

2013 2014 2015 1Q16 2Q16 3Q16Economic activity per sector

Still amid high levels, inflation

began to decelerate

Construction

Agriculture

Retail & Wholesale commerce

Manufacturer Industry

Financial interm.

Minery

Transport & Communications

Public Admin & Defense

Real Estate

Social services & Healthcare

Electricity, gas & waterTotal

CPI measured by private consultants rose to 37.9% YoY, signaling

that inflation is beginning to slow down. Although measures were

influenced by the reversal of gas tariffs increases due to a Supreme

Court ruling, core inflation fell to 1.4% MoM as of Sep-16. CB

announced its intention to implement Inflation Targeting in 2017.

� Economic activity continued to slowdown in 9M16, almost all

sectors are decreasing their output with construction and

agriculture leading the decline.

� Industrial production continues to show a weak

performance, registering a decline of 5.0% in 9M16.

AgendaAgenda

Macro Overview

Business Highlights

Financials

5

Q&A

HighlightsHighlights

MobileMobile -- SustainedSustained growthgrowth drivendriven byby DataData && InternetInternet

� Maintaining Solid position in value segments:

postpaid +4% YoY representing 33% of CB

� Internet consumption increase as MBOU up +65% to

1,033 Mb per user per month

� Successful 4G rollout continues:

- 4.3 Million customers are enjoying 4G

- 600 locations around the country

- 4G users consumption +125% to 1,8Gb

� Data Penetration grew by 10% achieving 8.8 million

� Revenues up 36% in 9M16

� Service Revenues growth of 30% in Argentina,

mainly driven by:

-Mobile Internet (+77% in 3Q16: from 74%

in 2Q)

-Broadband & Fixed Data (+42% vs. 9M15)

� EBITDA increased by 33% achieving a 26%

profitability, in a challenging scenario, but reverting

the trend of recent quarters

� Relevant improvement in dividend payment with an

exceptional payout ratio of 59% and a P$2.06 DPS

- A cash dividend distribution took place as

BUSINESS FINANCIALS

� Data Penetration grew by 10% achieving 8.8 million

monthly unique users

- A cash dividend distribution took place as

from August 26, 2016 for an amount of P$1,300

million

� An agreement with the IFC was reached for a loan of

U$S 400 million. This allows to change the tenor of

the debt

� Pursuant to Argentine Law Nº 26,831, a Public

Tender Offer was announced by Fintech Telecom, LLC

(“Fintech”) as a result of a change of control

� Tender Offer in Argentina expired on Nov, 4 and US

Tender Offer will end on Nov, 23

CORPORATE GOVERNANCE

Fixed Fixed –– Expanding position in key segmentsExpanding position in key segments

� Growth in BB: 6Mb subs add 156k clients, an

increase of 29% vs 2Q16; 10 MB subs = 33% of CB vs.

25% in 3Q15 ARPU +25% vs. 3Q15

� Voice: ARBU amounted to P$105, +51% vs 3Q15

thanks to price adjustments in monthly fee in retail

and business segments

6

Retail Fixed Voice

52% 49%

16% 17%

8% 9%

BB and Fixed Data

Retail Mobile

GROUP REVENUE MIX

2,379 3,333

9M15 9M16

40%

Retail Fixed Voice

4,563 6,484

9M15 9M16

+42%

Broadband & Fixed Data

Group Revenues: Accelerated pace as a result of incremental usage and price adjustmentsGroup Revenues: Accelerated pace as a result of incremental usage and price adjustments

9M169M15

4% 5%

13% 15%

7%6%

+36%+18%

Paraguay

Handsets

Wholesale

Traditional fixed

services

% on Total Rev 7.1% 7.5%

Revenues YoY

14,768 18,855

9M15 9M16

1,594

2,827

3Q15 3Q16

Mobile Internet in Argentina

+77%

+28%

Retail Mobile

7Figures may not sum up due to rounding

1.4% 1.4% 1.4% 1.7% 1.4%

217.4 231.5 248.8 259.8 272.8

3Q15 4Q15 1Q16 2Q16 3Q16

Monthly Churn ARPU (P$)

+25%

BB ARPU & Churn

Data / ICT Revenues

Fixed Fixed –– UpsellingUpselling strategy pushes UBB connectionsstrategy pushes UBB connections

6Mb subs.

510 519 531 535 691

3Q15 4Q15 1Q16 2Q16 3Q16

36%

+156k; +29%

Most demanded SpeedsThousand of clients

8

448 492 515 551 598

3Q15 4Q15 1Q16 2Q16 3Q16

+47k; +9%

34%

1,470 1,780

1,290

2,133

FY14 FY15 9M15 9M16

IFRS Million of P$

+21%+65%

Data / ICT Revenues

≥10Mb subs.

3Q15 4Q15 1Q16 2Q16 3Q16

27% 28% 31% 33%

% of CB

25%

Data / ICT Revenues increased due to the FX variation in contracts

that are set in dollars

P$/Month

69.6

76.280.9

93.7

105.1

3Q15 4Q15 1Q16 2Q16 3Q16

+51%Business Segment

�August 2015�February 2016�September 2016

Residential Segment

�May 2016

ARBU

Fixed Fixed –– Price Adjustments resulted in ARBU increasePrice Adjustments resulted in ARBU increase

Drivers of

ARBU

Increase

Price Adjustments 2016

9

4.1 4.0 4.0 4.0 3.9

3Q15 4Q15 1Q16 2Q16 3Q16

Thousand of lines

3Q15 4Q15 1Q16 2Q16 3Q16

(*) Household Penetration

Source: OVUM

Lines in Service

BB Accesses/

Total Lines in Service

44% 46%

3Q15 3Q16

80%60%

PENETRATION(*)

ARGENTINALATAM AVG

13.4 13.2

6.5 6.3

9M169M15

19.4 19.9

Postpaid 1

Prepaid

Mobile in Argentina: Mobile in Argentina: ImprovedImproved customercustomer profileprofile throughthrough growthgrowth in in valuevalue customerscustomers and data and data centriccentric

plansplans

27%37%

33%25%

40% 38%

Browsing SMS + Content Voice

Service

revenue mix

Customer Base (Mill)

Data Usage

10

10%

8.88.0

9M169M15

Data penetration Monthly unique users in million

6261,033

3Q15 3Q16

9M15 9M16

+65%

Quota Resets grew by 85% vs 2Q16

1Q16 2Q16 3Q16

+6%+14%

Data Centric

Plans

Total

Data Usage

MBOU/month

Figures may not sum up due to rounding

1. Includes Dongles

Mobile Mobile –– 4G Rollout and KPIs4G Rollout and KPIs

COVERAGE OF

POPULATION

IN CAPITAL

CITIES

Average Gb per user

Type of clients

Top Sites

COVERAGE OF

THE TOTAL

CAPITAL CITIES

AND AMBA

CONSUMPTIONCOVERAGE

11

Top Sites

DOWNLOAD SPEED

(*) AMBA: Metropolitan Area of Buenos Aires

OF THE TOTAL

TRAFFIC IS DONE BY

4G CLIENTSAMBA(*)

BUENOS AIRES

CORDOBA

SANTA FE

24%

19%

11%

9%

Location

CUSTOMERS

1.0 2.0 2.5 3.0

4.3

3Q15 4Q15 1Q16 2Q16 3Q16

Evolution of 4G subs

5,427 7,844

4,535

7,699 3,530

2,256

2,256

FY14 FY15 9M15 9M16

Million of P$

+13%

CapexCapex: Network : Network deploymentdeployment toto increaseincrease capacitycapacity and and coveragecoverage. 4G . 4G mainmain driver of driver of investmentinvestment

9M15 9M16

+78%

+70%

Spectrum

8,95710,100

Capex Evolution

Total New Sites

% Revenues (without Spectrum)

12

45%

16%27%

12%

Mobile Access Fixed Access Core &

Infrastructure*

IT

16%16% 20%19%

9M15 9M16

New 4G Sites

+77%

9M15 9M16

FTTx

~5x

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

and innovation capex

Figures may not sum up due to rounding

Technical Capex breakdown

AgendaAgenda

Macro Overview

Business Highlights

Q&A

13

Financials

8,702 10,866

2,634 3,394

2,501 3,361

2,529

3,453

+33%

TEO Group: Consolidated Results TEO Group: Consolidated Results

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

33,341 40,496

8,872 12,455

9,624

12,951

10,094

13,412

+21%

+36%

+25%

1Q16

2Q16

1Q16

2Q16

40%

35%

38,818

28,590

29%

34%

3Q1633% 3Q16

37%

10,208

7,664

Revenues EBITDA

14

2,634

FY14 FY15 9M15 9M16

24% 24%30% 31% 30%

3Q15 4Q15 1Q16 2Q16 3Q16

Service Rev growth in Argentina (yoy)

8,872

FY14 FY15 9M15 9M16

29%

26% 27% 27% 26%

EBITDA Mg

30% 26% 25%

1Q15 2Q15 3Q15

27% 26% 26%

1Q16 2Q16 3Q16

EBITDA Margin Trend

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

10% 9%5% 19% 9% 10%12%

15

+0.2% +1.2% +0.8% 26.3%-0.8%26.8% -0.1%+0.4%-2.2%

Figures may not sum up due to rounding

As % of Revenues

1,802

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of P$, Percentage

-7%+24%+14% -10%

5,523

4,459 2,4712,757

3Q16

Operating Income

Net Income attributable to Telecom

3,673 3,403

1,028 925

928 800

801 746

FY14 FY15 9M15 9M16

5,443 6,229

1,680 1,997

1,468 1,724

1,311

1,802

FY14 FY15 9M15 9M16

16

16% 15% 11% 8%16% 14% 10% 6%

1Q16

2Q16

19%

17%

1Q16

2Q16

-10%

-14%

2,4713Q16

37% -7%3Q16

O.Income Margin Net Income Margin

TEO TEO GroupGroup: Net : Net IncomeIncome EvolutionEvolution

IFRS, Million of P$

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

‘Quantity Effect’ on Financial Results

�Spectrum payments

(700Mhz Bands, Jun-15)

�Dividend payments (May-

15, May -16 and Aug-16)

‘Price effect’ on Financial Results

1,586 7,157

9M15 9M16

en

e-1

5

feb

-15

ma

r-1

5

ab

r-1

5

ma

y-1

5

jun

-15

jul-

15

ag

o-1

5

sep

-15

oct

-15

no

v-1

5

dic

-15

en

e-1

6

feb

-16

ma

r-1

6

ab

r-1

6

ma

y-1

6

jun

-16

jul-

16

ag

o-1

6

sep

-16

Official FX Interest Rate (BADLAR)

9M15 9M16

NET DEBT

TEO Group: FCF, Net TEO Group: FCF, Net FinancialFinancial PositionPosition

IFRS, Million of P$ - Last 12 months

Operating free Cash Flow

13,410 11,008

2,970

EBITDA Capex Δ WK &

others

Free Cash Flow

18

Notes:(1) OFCF: Operating Free Cash Flow before Taxes(2) Includes P$25 Million related to Nucleo dividend payments to third parties, net of income tax

LATAM

TEO

6-Year Avg*

36% 25%

2016

*Considering Payment Year, over period 2010-2015

Payout

Ratio

Free Cash Flow = -2,277

Steady retribution to

shareholders throghout

the years

DIVIDENDS

�On Aug-16, the second cash dividend payment to shareholders was completed for an amount of P$1,300 million. Total dividend payment for 2016

amounted to P$2,000 million which implied a payout ratio equivalent to 59% and P$2.06 per share or P$10.3 per ADR.

59%43%

Financial strength: Robust cash flow generation, strong balance sheet and solid coverage ratiosFinancial strength: Robust cash flow generation, strong balance sheet and solid coverage ratios

� Telecom Argentina has maintaned low

7,564 8,70210,866

13,410

-5,354

-745 2,2777,157

-0.7 x

-0.1 x

0.2 x

0.5 x

2013 2014 2015 LTM 9M16

Ne

t D

eb

t/ E

BIT

DA

20142013

Re

gio

na

l Av

era

ge

s

2015 20142013 2015

1.4x 2.2x 2.3x 14.3x 10.0x 10.4xUSA

Europe

LATAM

2.8x 3.5x 4.2x 5.9x 4.9x 3.6x

0.9x 1.2x 1.5x 18.9x 9.8x 9.0x

-0.7x -0.1x 0.2x 444.9x 290.1xTEO

Net Debt / EBITDA Interest Coverage

19.2x

Leverage

19

� Telecom Argentina has maintaned low

levels of financial leverage when

compared to regional benchmarks

� Indebtness has increased since the 2nd

stage of frecuency allocation

corresponding to the 2014 Spectrum

Auction

EBITDA Net Debt Net Debt / EBITDA

Inte

rest

Co

ve

rag

e

7,5648,702

10,866

13,410

17 30566

1,184

444.9 x

290.1 x

19.2 x 9.0 x

2013 2014 2015 LTM 9M16

EBITDA Interest Expense Interest Coverage

AgendaAgenda

Macro Overview

Business Highlights

Q&A

20

Financials