Fourth Quarter & Fiscal Year 2012 Earnings Results

Conference Call 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

Disclaimer

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

Agenda

2

• Financials

• Guidance for 2013

• Q&A Session

Market Overview: Rebound expected after 2012 slowdown

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

179 211249 266

16,911,4 10,0

12,7

1,5% 1,7% 0,3%-0,2%

National Wages - ∆ % YoY

16,7%

26,3%29,4%

24,5%

Billion USD, at current prices – Last 12 months

307368

442 465

0,9%

9,2% 8,9%

1,9%

3

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

• International commerce declined in 2012, dueto a reduction in exports and imports of 3%and 7% respectively, reaching a trade surplusof 12,7 billion dollars.

• Weak performance in the fiscal accountsincreased flows from the Central Bank andNational Pension Funds.

• Improved agricultural production and Brazilianeconomy picking-up, could help to easeexternal constraints and to sustain a morefavorable context for 2013.

• After a hard landing in 2012, an improvedeconomic scenario for 2013 is expected. Theagricultural production will probably recoverstrength and the Brazilian economy may helpindustrial exports.

• Weak economic conditions reduced growth to1,9% in 2012 down from 8,9%.

• Sectors like agriculture and constructionsuffered the most, while banking and someother services outperformed the rest of theeconomy.

• Private consumption was the main driver ofgrowth in 2012, as deteriorated investmentlevels suffered from tighter FX and importsconditions.

• The continued increases in nominal wagesand the low real interest rates encouragedconsumption over savings.

• Inflation remained at high levels, althoughin general, wages negotiation concluded atlower levels from last year.

179

2009 2010 2011 2012e 2009 2010 2011 2012e2009 2010 2011 2012e

• Market Overview

• Business Highlights

• Financials

Agenda

4

• Financials

• Guidance for 2013

• Q&A Session

Business Highlights

#1 in Revenue Share; Service Revenues up +21% YoY in 4Q12

Postpaid leadership confirmed by high quality of port-ins & net adds

Investing in mobile access to sustain VAS growth

Wireline BB and Data services sustain revenue expansion

MOBILE

5

Wireline BB and Data services sustain revenue expansion

Wireline Broadband ARPU rose +22% YoY in 4Q12

Increasing ICT orders backlog

FINANCIALS

FIXED

Strong cash flow generation in 4Q12 – ARS1.406 MM in 2012

Margins expanded QoQ; controlled SAC/SRC and cost efficiency

Revenues and OIBDA double digit growth Target Reached

TEO Group: 2012 Targets

Guidance FY12 2012 Results

Revenues

2011 2012

+Positive Double Digit YoY trend

+Positive Double Digit YoY trend

+20% vs 2011+20% vs. FY11

IFRS, Billion of ARS

OIBDA

Capex

2011 2012

3,2 4,0

17% 18%

2011 2012

Digit YoY trend

+10% vs. FY11 +11% vs. FY11**Excluding non-recurring cost

Capex as % of Revenues

+2% vs. FY11ARS 3,3 Billion

�Delays in logistics for equipment imports affected target

6

32,9 34,6 36,3 37,6

Mobile: Consolidated revenue share leadership

Subscriber Share EvolutionMillion of lines

Others*

54,550,9

+5%

+7% 56,6

+4%

+4%

322 309 329 322

51,457,7 56,0

63,3

TOU (SMS/Month)

MOU (Mins/Month)

ARPU (ARS/Month)

+12%

-4%

Mobile KPI

+13%

-2%

+1%

+5%

+7%

47,4

14,5 16,3 18,2 19,0

2009 2010 2011 2012

7Note: Argentinean operation only - Does not include trunking subscribers.Source: Market estimates of the top 3 providers in the industry.

• Sustained #1 in Revenue Share

• Outperformance in postpaid segment; represents more than half of 2012 net adds

• Leading the Smartphone segment

• Despite single price adjustment in postpaid in 2012, 4Q12 ARPU rose +13% YoY

Market share

TEO

+0,8 MMsubs.

+11%

31,1%

33,5%32,1% 33,4%

+4%99 99 102 103

2011 2012 4Q11 4Q12

0% +1%

+13%

30,6%

Revenue Share

33,5%29,9% 34,3%

5,8%3,8% 5,2% 3,9% 2,0%

8,6%

9,0% 9,0%9,4%

8,9%

4.507 5.095 5.727 6.299

2.1502.997

4.4825.765

173

391

7741.248

Mobile: SAC & SRC under control in MNP success

Million ARS – Argentine Market

Internet Services

Data (SMS)

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

Service Revenue Breakdown SAC & SRC

+98%

+50%

+12%Handset subsidies

Agent Commissions

13.312

Retail & Wholesale

8.483

10.983+29%

16,2%17,3%16,4%

SAC & SRC

+126%

+39%

+13%

+24%6.830

+61%

+29%

+10%

+21%

14,2%

19,7%

5,3% 3,6% 3,1% 2,9% 3,3%

3,9% 2,0%

4Q11 1Q12 2Q12 3Q12 4Q12

4.507

2009 2010 2011 2012

8

VAS as % of Service Revenues

• Consolidated leadership in high-end market appealed by VAS & customer experience

• Successful mobile internet adoption in prepaid segment thanks to innovative daily flat offer (“internet por $1”)

Advertising

53%48%

Wholesale Voice

40%34%

• Continued rationalization of SAC & SRC after successful MNP implementation

• Promoting handsets upgrade to 3G & smartphones to encourage data usage and improve spectrum efficiency

385466

714

867

132 158

264331

1.806 1.8782.149 2.301

Paraguayan Market: Sustained value generationSubscribers

Thousand of lines (includes 3G modems)

+14%+7%

OIBDA

REVENUES +53%

+67%

FinancialsIFRS Million of ARS

+4%

+21%

+25%

+21%

+20%

2009 2010 2011 20122009 2010 2011 2012

91 Postpaid includes 3G modems but excludes WIMAX

• Revenues in ARS rose +21% YoY in 4Q12

• Sustained value generation and contribution tothe Telecom Argentina Group

OIBDA

Margin 34% 37% 38%

• LTE launch positioned our Brand as leaderin innovation in the mobile internet business

• Great postpaid momentum; customers1 rose+21% YoY

• Leadership in mobile internet boostedinternet service revenues

34%

13.169 460 112

1.283 474443 153 16.094

+2.925(+22%)

IFRS, Million of ARS, Percentage

Mobile Revenues: Sustained growth thanks to VAS Evolution of revenues 2011 – 2012

2011 Revenues

Retail Voice

Wholesale* Voice

Data Internet Equipment Nucleo* (Paraguay)

2012 Revenues

10

+11% +6 % +29% +21%+30%

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

36%11% 8%28% 12%% of total MobileRevenues

5%

+61%YoY Variation

1.380 1.550 1.629

Broadband: Sustaining growth thru adding value

• Upselling of bandwidth upgrades and video streaming sustain growth

• Deploying FTTC to increase bandwidth up to 100 mbps

• Wireline BB revenues up 29% YoY in 4Q12

• ARPU rose 22% YoY in 4Q12

• Broadband penetration reached 39% of LIS

Thousand of broadband accesses

Evolution of Accesses

+5%+12%

+14%

1.214 1.380 1.550

2009 2010 2011 2012

Market share1

1,1% 1,3% 1,1%1,5% 1,5%

91,195,6 96,5

105,1111,5

4Q11 1Q12 2Q12 3Q12 4Q12

Monthly Churn

ARPU (ARS)

11

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

35%

TEO

+22%

• Broadband penetration reached 39% of LIS

35%

ARPU & Churn Evolution

34%36%

4.060 4.107 4.141 4.128

Fixed Voice: Bundling services help ARPU & churn

• Retail voice revenues increased 5% YoY due to packs of services and flat pricing

• Bundled services helped to maintain churn under control

• Increasing ICT orders backlog in government and corporate segment

-0,3%+0,8%

Thousand of lines in service

Evolution of Lines in Service

TEO

+1,2%

2009 2010 2011 2012

12

1Source: Company reports of the main providers in the industry.ARBU: Includes only concepts billed to clients

ARS

government and corporate segment

+6%(excluding broadband and data)

ARBU evolution

Market share1 47% 47% 46%47%

0,5% 0,5% 0,5% 0,5% 0,5%

46,9 46,9 47,448,8

49,9

4Q11 1Q12 2Q12 3Q12 4Q12

Monthly Churn

ARPU (ARS)

5.329 118 -8152 440

-8 6.023

+694(+13%)

IFRS, Million of ARS, Percentage

Fixed Services: Wireline BB + ICT services key drivers

36%

Regulated

Evolution of revenues 2011 – 2012

Regulated

Revenues 2011

Retail Voice Wholesale Voice

Data Internet Equipment Revenues 2012

13

YoY Variation

-9%+5%

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

-1%

12% 33%42% 12%% of total Fixed Revenues

64%

41%

59%

Regulated

Non Regulated

1%

+26%

Non Regulated

+28%

19%

19%

23%

7%

Others

ITMobile access

Fixed access

1.6631.921

2.318 2.415

Evolution of CAPEX

Million of ARS

PP&E Capex BreakdownCapex Evolution

+2%+28%

3.192

+21%

PP&E

+4%

2.493

3.257

2.105

+18%

+16%

32%access

Core & Infraestructure1

442 572 874 842

2009 2010 2011 2012

14

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

% Revenues 17% 17% 15%

• Focus in core network improvement, fault tolerance enhancement

• Extending own network reach to reduce roaming and avoid drop-calls

• Continued FTTC network rollout• Initial delays in logistics and spectrum auction cancellation

resulted in postponement of certain capex to 2013

17%

+53%Intangible AssetsSAC/SRC

-4%+29%

• Market Overview

• Business Highlights

• Financials

Agenda

15

• Financials

• Guidance for 2013

• Q&A Session

4.775

5.645

5.139

6.092

1.5921.844 4Q

TEO Group: Consolidated Results

+23%

IFRS, Million of ARS, Percentage

Revenues OIBDA*IFRS, Million of ARS,

22.117

5.9936.570

+26%18.498

14.627

4.161+18%

3Q

+20%

+10%+19%

4Q

+20%

12.170+16%4.867+17%

4.134 5.126

4.4505.254

4.775

2009 2010 2011 2012

1.431 1.647

1.474 1.492

1.496 1.587

2009 2010 2011 2012

2Q

1Q

3Q

16

OIBDA Margin

34% 33% 32% 30%Regulated Revenues 16% 14%

+18%

+6%

4.161

12% 10%

+24%

+1%

+15%

2Q

1Q

*Operating Income Before Depreciation & Amortization.

• Before ARS90 MM one-time restructuringcharge, OIBDA would have been ARS6.660,increasing +11% YoY

TEO Group: Consolidated Costs

Consolidated Costs 1 as % of Revenues Operating Costs 1 2012

21,0%

8,1% 7,7%

Marketing &

ITX Costs

70,6%67,8%

Labor Costs

Taxes

Others2

21%

13%

11%30%

25%

17

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

Center outsourcing; bad debt expenses

• One-off impact in expenses related to corporate restructuring program

• Discontinued energy subsidies account for approximately 50 bps loss in margin

• Control in commercial costs through a more careful market approach:

• Reengineering of agent commissions

• Handset subsidies focused in contract upselling

16,7% 18,0%

14,1% 14,8%

8,6% 9,1%

20,3%21,0%

2011 2012

Others2

Marketing & Sales

Taxes

Labor costs

ITX costsMarketing & Sales

11%30%

794

2.685994 1.163

TEO Group: Consolidated Results

IFRS, Million of ARS, Percentage

Operating Income Net Income attributable to Telecom

3.857

3.162

+22%

+30%

+23%

+3%

2.513

IFRS, Million of ARS, Percentage

3.966

+17% 4Q +7%

4Q

D&A 2011 2012 ∆%PP&E 1.538 1.792 17%SAC and Connection costs 602 797 32%Other intangible assets 18 23 28%

Total 2.158 2.612 21%

2.616

+21%

634 698

627 577

609 616

643 794

2009 2010 2011 2012

958 1.033

971 849

934 921

2009 2010 2011 2012

18

O. Income Margin 21% 22% 12% 13%21% 18% 14% 12%

-8%

-13%

+10%+8%

+23%

2Q

1Q

2Q

1Q

1.935-1% 3Q

+1% 3Q

4Q

1.405

+38%

3.053

1.647

297 92 831

IFRS, Million of ARS - Last 12 months

TEO Group: FCF and Net Financial Position

6.570 3.257

260

OIBDA Capex ∆ WK & others

Operating Free Cash Flow

2.6843.648

19

Note:(1) Includes Telecom USA(2) Includes Springville(3) OFCF: Operating Free Cash Flow before Taxes.(4) $807 TA, $24 Nucleo

Net Financial Position

4Q11(Cash)

Net Financial Position

4Q12(Cash)

Net Interest

FX Variations

Operating Free Cash

Flow3

Taxes Dividend Payments4

Free Cash Flow = 1.406

Telecom Argentina 1.454(1)

Telecom Personal 2.295 (2)

Nucleo (Paraguay) (101)

Net Financial Position

• Market Overview

• Business Highlights

• Financials

Agenda

20

• Financials

• Guidance for 2013

• Q&A Session

15%17%

TEO Group: 2013 Guidance

Revenues

+Positive Double Digit YoY trend

+Positive Double Digit YoY trend

Capex / Revenues growing trend

OIBDA Capex

2012 2013 2012 2013

3,34,7

2012 2013 2015

• Improve customer experience

• Promote mobile data

• Increase broadband wireline penetration

• Improve QoS and customer experience to control opex

• Leverage on mobile leadership to control SAC & SRC

• Streamline overhead expenses

• Focus on delivering network service quality

• Extend reach and capacity of mobile access

• Deploy FTTC

21

• Market Overview

• Business Highlights

• Financials

Agenda

22

• Financials

• Guidance for 2013

• Q&A Session