Telecom ArgentinaTelecom Argentina

1Q15 1Q15 EarningsEarnings ReleaseRelease1Q15 1Q15 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

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

2

Financials

Q&A

Financial interm.

Transport & Communications

Retail & Wholesale commerce

Manufacturer Industry

Public Admin & Defense

Real Estate

Minery

Social services & Healthcare

Construction

Agriculture

Electricity, gas & water

4.3% 4.3%

-0.5% -0.2%

0.0%

-0.8%-1.2%

12.28.0

6.7 6.7

Trade Balance (Billion US$) Last 12 months

26.6%38.0%

28.0%

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

43.3

30.6 31.4 31.5

24.5% 25.9% 33.7% 32.4%

2012 2013 2014 1Q15e

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

Economic activity per sector Wages Central Bank Reserves

“Monetary policy aimed at“Monetary policy aimed at increasing FX reserves while reducing devaluation expectations”increasing FX reserves while reducing devaluation expectations”

Household consumption CPI (YoY) Trade Balance

Total

23.9%16.5%

2012 2013 2014 1Q14 2Q14 3Q14 4Q14 2012 2013 2014 1Q15e2013 2014 1Q15

� Argentine external competitiveness affected by

the FX depreciation in Latam combined with a

stable evolution of AR$/U$S.

� Economic activity showed mixed results with

improvements in certain sectors like Agriculture

and Construction. Nevertheless, it was not

enough to offset the declining trend in the rest

of the economy.

� Industry slowdown: 22 months in a row.

� The harvest period has started and might be a

key factor for the rest of the year in terms of

activity and external restrains.

3Source: MECON, INDEC and Company Estimates

*Official GDP YoY variation, constant prices

� Consumer confidence reflected improvements in

1Q15 after a weak 2014.

� Continuous deterioration in fiscal accounts due

to increasing public expenditures and subsidies

to transport and energy. Fiscal revenues growth

is not sufficient to balance expenditures trend.

� The CPI Index published by the government

reached 3.4% in 1Q15 with a marked reduction

to 16.5% YoY.

� Certain delays in wages negotiation for 2H15

help to reduce YoY inflation.

� As of March 2015, CB reserves showed a stable

performance due to currency swap with China,

loans from French CB.

� An accommodative monetary policy is shown in

2015 compared to 2014, expanding monetary

base to finance fiscal accounts.

� Stable Fx currency evolution, deepening

appreciation of the Peso in real terms.

� Exports experimented a decrease in 1Q15 due to

lower commodity prices and a reduction in

volumes. A strong reduction in the price of

energy helped to reduce imports.

AgendaAgenda

Market Overview

Business Highlights

4

Financials

Q&A

Business HighlightsBusiness Highlights

Business Highlights

New pricing offers implementation results on:

� Encouraging trend in Postpaid and Prepaid segments

� Increasing usage of Browsing + Voice + Content

� Appropriate pricing + monetizing services

� Internet Mobile users +12% YoY (Usage +50%, ARPU+63%)

� Broadband wireline subs +3% YoY (10 Mb subs 19% of CB vs. 8% in 1Q14)

Commercial Offer

Internet

5

Financials

� Service Revenues up +21% (vs. 19% in 1Q14) driven by:

� Mobile internet in Argentina (+84%) & Voice (+19%)

� Broadband (34%) in the Fixed Business

� EBITDA rose by +25% with a positive trend in margins reaching a 30% profitability

margin

� Strong OFCF generation +AR$389 MM YoY

73 88 247350 58 544 40

7,959

IFRS, Million of AR$, Percentage

Service revenue growth propped up by Data, Internet & strong improvements Service revenue growth propped up by Data, Internet & strong improvements

in voicein voiceEvolution of service revenues 1Q14 – 1Q15

YoY

+1,400; +21%

MOBILE IN ARGENTINAFIXED NUCLEO

Positive impact ofSuperchip offer

6,5597,959

1Q14 Service

Revenues

Voice Data Internet Voice Data Internet Nucleo 1Q15 Service

Revenues

6

Note:

*Paraguayan (Nucleo S.A.) revenues expressed in AR$.

Figures might not sum up due to rounding

12% 23%5% 15%% of Service

Revenues

YoY

Variation +8% +28% +19% +3% +84%+34% +12%

12% 28% 5%

� Certain delays in delivery of handsets. The Company is taking measures to revert the situation.

Mobile Mobile –– Post and Prepaid show encouraging results after new pricing offersPost and Prepaid show encouraging results after new pricing offers

Postpaid

1Q14 1Q15

Postpaid

ARPU2

+33%

AR$/Month

Prepaid

ARPU2

AR$/Month

68.386.2

ARPU

+26%

AR$/MonthYoY Var

17%22% 20%

29%33%

1Q14 2Q14 3Q14 4Q14 1Q15

Bundled Data Packs YoY

1Q14 2Q14 3Q14 4Q14 1Q15

+11%

Postpaid Gross Adds

64%66% +26%

% of Postpaid of Total Service Revenues

Revenue

growth

1Q14 1Q15

+35%

7

1Q14 1Q15

ARPU2

+17%

Prepaid

Customer Base (Mln) 19.319.9 7.76.9

1Q 14 1Q15

1) Monthly unique Internet Users2) Includes Dongles

Internet Users(Mln)1

1Q14 1Q15

Prepaid

� Increase Usage of Voice & Data

� Increase average recharge

1Q14 1Q15

1%

-6%-9%

5%17%

1Q14 2Q14 3Q14 4Q14 1Q15

YoY Var

1Q14 2Q14 3Q14 4Q14 1Q15

+35%

Mobile Argentina Mobile Argentina –– ARPU & Usage uplift driven by effective internet strategyARPU & Usage uplift driven by effective internet strategy

USAGE

Browsing ARPU*

Data Usage (MB/month)

31.6

51.6

1Q14 1Q15

(ARS/month)

S-phone

Penetration/CB

HANDSETS

+63%

Browsing ARPU-Postpaid*

(ARS/month)

+55%

R

e

s

u

M

o

n

e

t

120.8

180.8

1Q14 1Q15

+50%

8

CUSTOMERS

Internet Users (Monthly unique

users)

6.97.7

1Q14 1Q15

29%38%

1Q14 1Q15

+12%

3X2X

1Q14 1Q15

of Prepaid

+55%

Browsing ARPU-Prepaid*

1Q14 1Q15

(ARS/month)

>100%

u

l

t

s

t

i

z

i

n

g

* Based on Internet Users

Mobile Mobile –– 4G competitive edge4G competitive edge

InitialInitial NetworkNetwork RolloutRollout::

More than 180 sites installed in:

� Buenos Aires

� Córdoba

� Rosario

� Salta

� Santa Fe

� Tucuman

� summer resortsCustomersCustomers

� Can experience the service

Competitive advantage in Competitive advantage in

AWS SpectrumAWS SpectrumOutstanding Results in the Outstanding Results in the

first Launchfirst LaunchStrong positioning in 4g: Strong positioning in 4g:

325k subs325k subs

� 1st frequency 3G and AWS bands: allocated

in November and paid in December –

equivalent to U$S410.7 million

� 2nd frequency allocation 700Mhz to be

determined

9

Average UL & DL Speed

1.1 5.9

25.835.3

UpLink (mbps) DownLink (mbps)

3G

4G

AWS already assigned

700 MHz to be assigned

� Can experience the service

with no needs to change

SIM card

� 4G sellout in march-15:

36%

Note: 1 Taking into consideration the effective assignation of the 700 MHz spectrum.

1

1,714

1,768

1Q14 1Q15

1.3% 1.4% 1.3% 1.2% 1.3%

138.0147.9 157.8 167.3

178.5

1Q14 2Q14 3Q14 4Q14 1Q15

Monthly Churn

ARPU (AR$)

Fixed Fixed –– Revenues Revenues YoYYoY Growth of BB thanks to service provisioning and Growth of BB thanks to service provisioning and

competitive offercompetitive offer

Thousand of broadband accesses, thousand of net adds

+29%

+54k; +3%

AR$/Month

BBAccesses

BB ARPU & Churn

963

1,470

319 407

FY13 FY14 1Q14 1Q15

10

IFRS Million of AR$

+53%

+28%

≥10Mb subs.

Data / ICTRevenues

145 176 232

291 335

1Q14 2Q14 3Q14 4Q14 1Q15≥10Mb

% of CB 16%13%10%8% 19%

+44k;

+15%

ParaguayParaguay: Focus on Postpaid and expanding Revenues trend in GUA: Focus on Postpaid and expanding Revenues trend in GUA

Thousand of lines

1%

5%

2,413 +4%

Pre

paid

Post

paid 1

YoY var

Customers

2,509

1,928 2,021

484 489

1Q14 1Q15

4,728

12,204

24,774

3Q14 4Q14 1Q15

DTH subs. evolution

1,166

1,588

358 405427578

141 147

2013 2014 1Q14 1Q15

Revenues EBITDA

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

. Figures might not sum up due to rounding.

Paraguayan local currency is the Guaraní.

IFRS Million of ARS

Margin 36% 39% 36%37%

Financials

11

68.4 67.4 56.9

3Q14 4Q14 1Q15

DTH ARPU evolutionIn thousand of GUA

+13%

1Q14 2Q14 3Q14 4Q14 1Q15

4,851 5,427

1,062 864

3,530

FY13 FY14 1Q14 1Q15

Capex Capex -- Focus on BB and UBB Fixed and MobileFocus on BB and UBB Fixed and Mobile

Million of AR$

Capex Evolution

% Revenues 14% 10%18%

8,957

+85%

27%*

FTTx Rollout

>2x

23%26%

32%

16%

3%

Mobile Access Fixed Access Core &

Infraestruct **

IT Ohers

Note:

* Incl. spectrum payment**Core & infrastructure refers to network related capex, including quality and innovation capex.

12

14% 10%18% 27%*

Capex Breakdown

Conventional

3G + LTE

Overlay

6 Sectors

+54%

~4x

+23%

Mobile AccessNetwork rollout

Vs. Δ1Q14

AgendaAgenda

Market Overview

Business Highlights

13

Financials

Q&A

27,287

33,341

Personal – Mobile 69%

7,564 8,702

2,112 2,634

TEO Group: Consolidated Results TEO Group: Consolidated Results

IFRS, Million of AR$, Percentage IFRS, Million of AR$, Percentage

+25%

RevenuesEBITDA

+22%

+15%Fixed Business 15%

Broadband 11%

Nucleo – Mobile 5%

% of Revenues

27,287

7,466 8,872

FY13 FY14 1Q14 1Q15

2,112

FY13 FY14 1Q14 1Q15

14

EBITDA

Margin 28% 26% 28% 30%

Regulated

Revenues 8% 7% 8% 7%

+19%

Handsets Revenues – Costs

(in million of AR$)

Before capitalization of SAC & SRCHandset Results - Mobile in Argentina

-491

-55

900

116282

FY12 FY13 FY14 1Q14 1Q15

Results on EBITDA: Positive margin increase by second consecutive quarterResults on EBITDA: Positive margin increase by second consecutive quarter

YoY EBITDAgrowth

17.4%

10.0%

7.1%

25.2% 24.7%

0.6

1.4

Δ YoY EBITDA margin

(in p.p)

15

7.1%

1Q14 2Q14 3Q14 4Q14 1Q15

15

-1.4

-2.7-3.1

1Q14 2Q14 3Q14 4Q14 1Q15

2,1121,397

6 135 15 360 118109 134

310 2,634

21%1%

-17%-3%

30%16% 15% 18%

46%

YoY

Variation+522; +25%

IFRS, Million of AR$EBITDA1Q14 – 1Q15

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

+141

EBITDA 1Q14 Ss. Revenues &

other incomes

Handsets

Sales

Handsets Costs ITX Costs Labor Costs Taxes Other Marketing

& Sales

Fees for services,

maint. and

materials

Others* EBITDA 1Q15

1616

EBITDA

Margin

-1.6%+0.5% -0.1% +0.6% -0.3% 26.1%+0.3%27.7%

-1.6%+1.2% +0.3% +0.3% +0.1% 29.7%-2.1%28.3%

FY14FY13

1Q14 1Q15

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

4,518

5,443

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of AR$, Percentage

+20%

IFRS, Million of AR$, Percentage

Net Income attributable to Telecom

+15%

Operating Income

+22%

5,080

521

1Q14 1Q15

Net Financial Position

-32

-89

1Q14 1Q15

Financial Results

3,202 3,673

889 1,028

FY13 FY14 1Q14 1Q15

1,377 1,680

FY13 FY14 1Q14 1Q15

17

O. Income

Margin17% 16% 12% 11%18% 19% 12% 12%

+16%

Net Income

Margin

+22%

5,080

1,999 2,250

3,530311

1661,255

521

IFRS, Million of ARS - Last 12 months

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

Telecom Argentina 260(1)

Telecom Personal 502

Nucleo (Paraguay) (241)

Operating free Cash Flow

Net Financial Position

Free Cash Flow

9,224 5,229 1,996

EBITDA Capex Δ WK & others

Net Financial

Position

1Q14

(Net Cash)

Net Financial

Position

1Q15

(Net Cash)

Net Interest

& OthersFX

Variations

Operating

Free Cash

Flow2

Taxes Dividend

Payments3

Spectrum

Payment

18

Note:

(1) Includes Telecom USA

(2) OFCF: Operating Free Cash Flow before Taxes

(3) Includes $53 Million related to Nucleo dividend payments to third parties, net of income tax

Nucleo (Paraguay) (241) Free Cash Flow = -251

In U$S million, March 2015. Argentine operations

U$S Dollar

Linked

NDFFX Cash Exposure as

of 1Q15

Net Accounts

Payable & Debt

(Net Cash) (Net Cash)

Shareholders meeting held on April 29th,

approved:

� The cash dividends distribution for a

total amount of AR$804 million

(equivalent to AR$ 0.83 per each share in

circulation)

� The creation of a ‘Reserve for Future

Cash Dividends’ of AR$2.9bn:

� where AR$649 million could

be distributed in FY15,

depending on the

performance of the business

HEDGING STRATEGY

U$S Dollar

Bonds

271 130

52%Coverage

AgendaAgenda

Market Overview

Business Highlights

19

Financials

Q&A