Telecom Argentina

4Q16 Earnings Release

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

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

Disclaimer

Agenda

Macro Overview

Vision & Strategy

Business Highlights

2

Financials

Q&A

13.01

15.85

Mean - FY16 = 14.79

Mean - 4Q16 = 15.49

3

(Billion U$S)

Peso depreciation accelerated in 4Q16, reaching levels of almost P$ 16 to U$S 1. CB continued to exercise low direct intervention in FX markets, and cutting reference interest rates due to lower monthly inflation readings.

Trade balance achieved a surplus of more than U$S 2,1 Bn during 2016, responding mostly to a decrease on cumulative imports YoY.

Central Bank Reserves

Macro: Capital inflows strengthen reserves

30,6 31,4

25,6 29,6 30,5 29,9

38,8

2013 2014 2015 1Q16 2Q16 3Q16 4Q16

Official FX (BCRA)

4Q16: Total repayment of Jan-16 Repo agreement (U$S 1Bn left outstanding)

FX Rate

Managed Floating Exchange Rate Regime during 2016 9.83

13.01

15.85

Official FX Rate Blue FX Rate

Pre - electionary period

Closing of the gap

Unification of Exchange Rates

EXTERNAL FRONT

International Reserves showed an increase of U$S 13,2 Bn during 2016,

mainly explained by a rise during 4Q16 in deposits denominated in

foreign currency, due to cash inflows generated via government’s Tax

Amnesty Plan.

Strong influence of monetary policy and interest rates. Nominal FX increased during 4Q16 after US Elections

3,6%

-4,4%

3,5% 2,2%

-2,6% -3,1% -2,0%

2013 2014 2015 1Q16 2Q16 3Q16 4Q16e

Macro: Activity turnaround yet to come, inflation continues its declining trend

4

Household consumption

26,5%

40,6%

27,2% 32,8%

41,7% 37,9% 37,6%

2013 2014 2015 1Q16 2Q16 3Q16 4Q16

Consumer Price Index (FIEL) CPI (YoY)

Economic activity per sector

Inflation decline mainly pulled by lower core inflation

Revised official figures as of 3Q16

Construction Agriculture

Financial interm. Minery

Retail & Wholesale commerce Manufacturer Industry

Transport & Communications Real Estate

Public Admin & Defense Electricity, gas & water

Social services & Healthcare Total

Overall household consumption shows weak signs of recovery as

of 4Q16 and remains depressed, after being affected by

important increases in prices and tariffs that in turn affected real

household’s income. Slight improvements have been observed in

durable good’s consumer confidence during the last quarter of

the year.

Economic activity closed 2016 with a weak performance. Although the

majority of sectors are decreasing their output, with construction and

agriculture leading the decline, some sectors are beginning to show

some positive signs in 4Q16.

Industrial production continues to show a decline on YoY comparison,

registering a fall of 4.7% in FY16, but moderating the rate of decline

from previous quarters.

DOMESTIC ACTIVITY & INFLATION

CPI measured by private consultants rose to 37.6% YoY, showing

very moderate variation in 3Q16 readings. In particular, October

measures were influenced by postponed increases in gas tariffs

that came into effect. Nonetheless, core inflation shows a strong

decrease YoY, reaching 32.4% but signaling that inflation trend is

heading to lower levels onward.

Agenda

Macro Overview

Vision & Strategy

Business Highlights

5

Q&A

Financials

6

Vision & Business Anchors

Gain share in Individuals, Households and Companies

Segments

Drive Operational Excellence

Transform Customer Experience

STRATEGIC HIGHWAYS

ANCHORS

Keep developing new convergent products and services New business plan & business development Develop ability to provide media services, home + mobile VOD solution

Strategic Highways

02

03

01 01

Capex Plan for 2016-2018 > P$ 40 bn; P$11.4 bn were already executed in 2016 Implementation of virtualized core infraestructure +37% 4G sites 5.5 million customers

7

Capex 2017 > P$13 billion

Redefinition of the commercial offer Launch of first convergent bundled offer (Voice + BB +Mobile Internet)

Integration of Operations, revision of BSP New Convergent CRM System, discovery phase

New charging, billing, order manager systems with convergent customer centric architecture Customer excellence process Resignification of NPS

Infrastructure and investment plan

Customer Centric Vision

Convergence of Services

WHERE WE STAND 2017 ACTION ITEMS

Home convergence

06

05

Strategic Highways

04

8

Continuous rollout of FTTx technology Integration of field services

FTTH: increase in covered neighborhoods FTTC: strenghten current infraestructure to provide up to 100mbps speed Develop ability to provide media services, home + mobile VOD solutions CPE visibility Transformation from installation/ maintainance capabilities to home advisor force

New offers for the enterprise management Alliances with Microsoft, Microstrategy and Oracle to promote Cloud Services

Development of vertical platforms

ICT portfolio of services for SMEs

Redefinition of content strategy: •Change in business nature •Change in client management, double OPT-in, churn reduction •Evolution to new generation content

Relaunch of Personal Store

New generation content/ selection of value added content

Cloud Services

Content Management

WHERE WE STAND 2017 ACTION ITEMS

9

New telecommunication convergent model

HOME & INDIVIDUALS

BENEFITS

COST OPTIMIZATION

SIMPLIFICATION OF PROCESSES

INTEGRATION OF SALES & CLIENTS

MULTIPLE ACCESSES

MULTISERVICE NETWORK

Leader in solutions and convergent connectivity services, with an agile structure and focused on our customers

MULTIFUNCIONAL DEVICES

VOICE

DATA

VIDEO & MULTIMEDIA

AL

WA

YS

O

N

CLIENT

VISION

Agenda

Macro Overview

Vision & Strategy

10

Business Highlights

Q&A

Financials

11

FY16 Highlights BUSINESS

FINANCIALS

Retail Fixed Voice gained 41% to P$4,654 million during FY16. ARBU is 48% higher, reaching P$112.4 per month in 4Q16

New price adjustments took place on Feb-17 Broadband & Fixed Data grew by 41% YoY 6Mb and 10 Mb still remain the most demanded

speeds gaining 31% and 26% YoY respectively Data & ICT revenues are 64% higher than a year ago

Retail Mobile grew 27% achieving P$25,971 million

Mobile Internet in Argentina grew 73% YoY Browsing represents 39% of revenue mix

in 2016 with sustainable growth during 4Q16 raising P$3,335 million

Data Usage grew by 90% YoY with 1,207 MBOU/ month

Fixed

Consolidated Revenues up 31% in FY16 Service Revenues growth of 30% in Argentina, mainly driven by: -Mobile Internet (+73% in FY16) -Broadband & Fixed Data (+41% vs FY15) EBITDA increased by 33% achieving a 27% profitability, continuing with the positive trend of last quarter Relevant improvement in dividend payment with an exceptional payout ratio of 59% and a P$2.06 DPS Two new series of Notes for Telecom Personal were issued for an amount of P$722 million and U$S77.9

million and disbursement of IFC loan of U$S400 MM.

Mobile

FY16

Retail Fixed Voice

FY15

4% 4%

15% 15%

7% 6%

50% 49%

16% 17%

8% 9%

+31% +21%

BB and Fixed Data

Retail Mobile

Paraguay

Handsets

Wholesale

Traditional fixed services % on Total Rev

7.0% 7.6%

Revenues YoY

745 975 788

1.117

846

1.241 925

1.321

FY15 FY16

41%

1.380

2.079

1.534

2.161

1.649

2.244

1.773

2.429

FY15 FY16

+41%

4.735 5.986 5.274

6,264 5.207

6.605 5.158

7.116

FY15 FY16

FY15 FY16

+73%

+27%

Group Revenues: Growth acceleration continued due to higher usage and price adjustments

12

GROUP REVENUE MIX RETAIL

1Q

2Q

3Q

4Q

31%

42%

47%

43%

51%

41%

36%

37%

3,304

4,654

6,336

8,913

20,374 25,971

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

26%

19%

27%

38%

Fixed Voice Mobile

6,254

10,832

Mobile Internet in Argentina

BROADBAND & FIXED DATA

In P$ Million

In P$ Million

In P$ Million

% of CB

13

1.4% 1.4% 1.7% 1.4% 2.2%

231,5 248,8 259,8 272,8 302,9

4Q15 1Q16 2Q16 3Q16 4Q16

Monthly Churn ARPU (P$)

+31%

492 618

FY15 FY16

963 1.470

1.780

2.919

FY13 FY14 FY15 FY16

IFRS Million of P$

+53%

+21%

Fixed – Consolidated growth in UBB connections

519 681

FY15 FY16

Data / ICT Revenues increased due to the FX variation in contracts that are set in dollars

BB ARPU & CHURN

DATA / ICT REVENUES

6Mb subs

+162k, 31%

10Mb subs

+126k, 26%

% of CB 29% 39%

27% 36%

Thousand of clients

MOST DEMANDED SPEEDS

+64%

14

4,0 4,0 4,0 3,9 3,9

4Q15 1Q16 2Q16 3Q16 4Q16

Million of lines

P$/Month

76,2 80,9

93,7

105,1 112,4

4Q15 1Q16 2Q16 3Q16 4Q16

Source: OVUM (**) Information after adjustments on residential tariffs. Latam Avg: Simple Average of 7 countries, without including Argentina

+48%

Fixed – ARBU increase driven by price adjustments in monthly fees

5,0

15,3

AR Latam Avg

USD w/o VAT(**)

~3x

+39%

Price Adjustments

BUSINESS SEGMENT

February 2016 From P$77 to P$95 (Δ23%) September 2016 From P$95 to P$115 (Δ21%) February 2017 From P$115 to P$140 (Δ22%)

RESIDENCIAL SEGMENT May 2016 From P$13 to P$38 (Δ192%) February 2017 From P$38 to P$75 (Δ97%)

ARBU DRIVERS OF ARBU INCREASE

LINES IN SERVICE LATAM BENCHMARK

Dec-15 Dec-16

15

13.0 (*)

6,5

Prepaid

Postpaid

9.0 8.5

FY16 FY15

28% 39%

32% 24%

40% 38%

Browsing SMS + Content Voice

FY15 FY16

2.202 2.468 2.827

3.335

1Q16 2Q16 3Q16 4Q16

SERVICE REVENUE MIX

BROWSING

DATA PENETRATION

Monthly unique users in million

634 707 827 1.033 1.207

4Q15 1Q16 2Q16 3Q16 4Q16

MBOU/ month

DATA USAGE

CUSTOMER BASE (Mill)

Mobile in Argentina: Enhancing our value proposition

6%

OVERALL NETWORK COMPARISSON

2 1

3

Source: Open Signal

In P$ Million

Figures may not sum up due to rounding

AVG AMOUNT OF PREPAID RECHARGE

19.5

+32%

+90%

(*) 65% of de total prepaid base are subscribers that recharge within 180 days

Mobile – 4G evolution

16

3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

2.0 1.0

2.5 3.0 4.3

5.5

4G Subs Evolution

17

42%

15% 30%

13%

Mobile Access Fixed Access Core & Infrastructure*

IT

5.427 7.844

11.386

3,530 2,256

FY14 FY15 FY16

21% 16% 19%

Capex: Network deployment to improve network capacity and quality

FY15 FY16

+21%

FY15 FY16 FY15 FY16

>4x

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

Spectrum

8,957 10,100

% Revenues (without Spectrum)

CAPEX EVOLUTION

Million of P$

TOTAL NEW SITES

+37%

4G sites

+45% +13%

TECHNICAL CAPEX BREAKDOWN

FO deployment

Agenda

Macro Overview

Vision & Strategy

18

Business Highlights

Q&A

Financials

19

7.564 8.702

2.634 3.394

2.501 3.361

2.529

3.453 3.202

4,216

FY13 FY14 FY15 FY16

TEO Group: Consolidated Results

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

24% 30% 31% 30% 30%

4Q15 1Q16 2Q16 3Q16 4Q16

27.287 33.341

8.872 12.455

9.624 12.951

10.094

13.412 11.906

14.422

FY13 FY14 FY15 FY16

40%

35%

53,240

40,496

29%

34%

21%

37%

14,424

10,866

28% 26% 27% 27%

EBITDA Mg

30% 26% 25% 27%

1Q15 2Q15 3Q15 4Q15

27% 26% 26% 29%

1Q16 2Q16 3Q16 4Q16

33%

32%

REVENUES EBITDA

+22%

+31%

+21%

+15%

+33%

+25%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

SERVICE REV GROWTH

In Argentina (yoy) EBITDA Mg Trend

EBITDA Margin

TEO Group: Consolidated costs and EBITDA evolution

*Others include bad debt expenses, provisions, VAS costs and others

10% 9% 5% 18% 9% 10% 12%

20

+0.1% +1.0% +0.3% 27.1% -1.0% 26.8% -0.5% +0.6% -0.3%

Figures may not sum up due to rounding

As % of Revenues

YoY

Variation IFRS, Million of P$

EBITDA FY15 – FY16

+3,558;+33%

3.202 3.673

1.028 925

928 800

801 746

646 1,504

FY13 FY14 FY15 FY16

4.518 5.443

1.680 1.997

1.468 1.724

1.311 1.802

1.770

2,320

FY13 FY14 FY15 FY16

21

TEO Group: Consolidated Results

17% 16% 12% 11% 15% 15% 8% 7%

IFRS, Million of P$, Percentage

15%

+26%

+20%

17%

19%

17%

7,843

6,229

-10%

-14%

3,975 3,403

37% -7%

O.Income Margin Net Income Margin

31%

133%

OPERATING INCOME

+14%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

NET INCOME

(Attributable to Telecom)

-7%

+42%

Period D & A3G/4G Spectrum

Amortization

Results on write-

down of PP&ETotal

FY15 4,114 324 199 4,637

FY16 5,860 338 383 6,581

IFRS, Million of P$, Percentage

2.277

5.892

FY15 FY16

22

TEO Group: Net Income Evolution

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

‘Quantity Effect’ on Financial Results

Dividend payments (May-15, May -16 and Aug-16)

IFRS, Million of P$

in million of P$ FY15 FY16

Net Interests -$ 526 -$ 1,483

Gains on Mutual Funds &

other inv.$ 601 $ 348

FX results net of NDF

instruments-$ 1,140 -$ 1,055

Others -$ 37 -$ 54

Total -$ 1,102 -$ 2,244

NET DEBT

2015 2016 2015 2016

Avg. FX Rate

Avg. Interest Rate (BADLAR)

+59%

+420bps

Price Effect on Financial Results

** Includes P$368 MM and P$98 MM for FY15 and FY16, related to administrative recourse claims at the tax authority related to the lack of application of inflation adjustment in the determination of Income Tax

+P$1,151 MM

23

TEO Group: FCF, Net Financial Position IFRS, Million of P$. Last 12 months

Free Cash Flow = -6

(1) OFCF: Operating Free Cash Flow before Taxes

On November 16th 2016, Telecom Personal successfully issued two series of Notes for a total nominal value of P$722.0 million and U$S77,9 million:

18-month bullet maturity, at a floating interest rate (BADLAR rate + 290bps), P$ denominated

24-month bullet maturity, at a fixed interest rate (4.85%), U$S denominated

P$ 722.0 MM

U$S 77.9 MM

SERIES III

SERIES IV

FREE CASH FLOW

TELECOM PERSONAL’S NOTES

Net Debt FY15

Net Debt FY16

Net Interest & Others

FX Variations

Operating Free Cash

Flow1

Taxes Dividend Payments

14.424 11.386

1.344

EBITDA Capex Δ WK & others

OPERATING FREE CASH FLOW

1Q16 2Q16 3Q16 4Q16

FCF GENERATION - QoQ

Δ vs. 2015 +1,330 +1,151 +170 +69 +129

2.277 1.694 1.700

1.269 3402.000

5.892

Debt Tenor FY15 FY16

< 1 year 60% 28%

1-2 years 32% 20%

> 3 years 8% 52%

Low leverage levels supported by sound financial strategy

24

Telecom Argentina has maintained low levels of financial leverage, although indebtedness has increased since the 2nd stage of frecuency allocation corresponding to the 2014 Spectrum Auction

During 4Q16, through the IFC loan agreement and

the issuance of Series III and IV Notes, the Company has managed to extend the tenor of its financial debt.

7.564 8.702 10.866

14.424

2.277 5.892

-0,7 x

-0,1 x

0,2 x 0,4 x

2013 2014 2015 2016

EBITDA Net Debt Net Debt / EBITDA

Net

De

bt/

EB

ITD

A

Inte

rest

Co

vera

ge

7.564 8.702

10.866

14.424

17 30 566

1,613

444,9 x

290,1 x

19,2 x 8,9 x

2013 2014 2015 2016

EBITDA Interest Expense Interest Coverage

LEVERAGE

Local & International Bank Loans

Multillateral Credit Agencies

Capital Markets

ECA’s

International Trade Operations Finance

FINANCIAL STRATEGY- FUNDING SOURCES DIVERSIFICATION

Gross Debt

Cash + Cash Eq.

433

1,178

4,900

2,623

11,912

6,020

235

5,589

-5.354

-745

Agenda

Macro Overview

Vision & Strategy

25

Business Highlights

Q&A

Financials