Telecom ArgentinaTelecom Argentina

2Q14 2Q14 EarningsEarnings ReleaseRelease2Q14 2Q14 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

Financials

2

Financials

Q&A

Manufacturer Industry

Transport & Communications

Retail & Wholesale commerce

Construction

Real Estate

Public Admin & Defense

Mines

Social services & Healthcare

Agriculture

Electricity, gas & water

Financial interm.

46.4 43.330.6 27.0 29.3

10.0 12.28.0 6.6 6.4

52 44 4627 26

8.9%

1.9% 2.9%-0.2% -1.1%

29.4% 24.5% 25.9% 29.5% 32.3%

∆ YoY - constant pricesTrade Balance (Billion U$S) Last 12 months

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

Consumer Confidence Index of Durable Goods

Economic activity per sector Wages Central Bank Reserves

2Q14 confirms the slowdown trend in the economic activity 2Q14 confirms the slowdown trend in the economic activity

Real GDP* CCI Trade Balance

Total

� During 2Q14 a strong deceleration in

industrial production caused a spillover effect

in other sectors and consumption was affected

by the decrease in real wages and a raise in

interest rates for financing

� A good harvests season was shown in the

quarter, but the agricultural production was

not enough to offset the decline in the general

economic activity

� New economic measures were implemented

aimed to support car sales as this sector was

severely impacted by the decline in exports

(mainly to Brazil)

2011 2012 2013 1Q14 2Q14e2011 2012 2013 1Q14 2Q14e

-0.2%

2011 2012 2013 1Q14 2Q14e

3Source: MECON, INDEC and Company Estimates

*Official GDP YoY variation, constant prices

� After a strong decline in February, the

consumer confidence index showed a stable

performance

� Decline in supermarket sales reached -1.3% in

1H14, -4.3% in June

� The new CPI Index published by the

government reached 15% YTD, stabilizing in a

level of aprox. 1.5% per month during the

quarter

� In 1H14 collective bargaining agreements

between companies and unions were settled

with wages increases of 31% on average

� In 2Q14 the Central Bank took measures to

reduce the loan interest rates and to mitigate

the negative impact in economic activity

� As of June 2014, Central Bank Reserves

showed a decrease of 21% YoY, but increasing

since last April

� After the US Supreme Court rejected

Argentina´s holdouts case, the Government is

focused on reaching an agreement to solve

the situation

AgendaAgenda

Market Overview

Business Highlights

Financials

4

Financials

Q&A

� Revenues up +23% driven by:

- Mobile internet (+56%) due to increase in unique users

and ARPU

- Non regulated fixed revenues grew +28%, Data (+55%)

and Broadband (26%) in the Fixed Business

� Smartphone sellout reached 81% in 2Q14, while Smartphone

penetration represented 30% of the customer base in the

quarter supporting 3G-IP VAS Growth

� Nucleo: +10% in postpaid (excl. dongles and Wimax) growth

YoY; steady improvement in customer mix

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

56% 65%73% 73% 81%

23% 23% 27% 29% 30%

2Q13 3Q13 4Q13 1Q14 2Q14

Business HighlightsBusiness Highlights

Smartphone

penetration

Smartphone

sellout*

4.03.1 3.2 2.9 SAC/ARPU

Broadband

Net Adds

� Broadband net adds continue to increase with 92k new subs

YoY

� 3x growth in VDSL cabinet deployment helps to increase our

customer base with more than 10 Mb speed commercial offer

� Broadband ARPU rose +20% YoY in 2Q14

� TEO Dividend payment: AR$601 million paid in June (first

installment)

� Unleveraged financial structure while paying dividends in

tough macro context

5

Dividend Comparison

Evolution of DeclaredDividend

*Smartphone participation in total handset sales

-491

-55 -126

265

3.1 3.2 2.9

FY12 FY13 1H13 1H14

Handset

Revenues - Costs

SAC/ARPU

Handset Revenues – Costs in million of AR$

5.8 6.9

2Q13 2Q14Focus on

39.5 45.1

26.026.6

2Q13 2Q1413.0 13.4

6.3 6.3

2Q13 2Q14

Mobile Mobile -- continuous improvement in value proposition:continuous improvement in value proposition:focus on postpaid and future proof revenue mixfocus on postpaid and future proof revenue mix

Million of lines / Month/million of customers

Postpaid 1

Prepaid

+0%

19.8

+4%

+2%

YoY var

19.3

Mobile Customer Evolution & Mob. Internet Unique User

Voice

Non Voice

ARPUAR$/Month

71.6+9%65.5

+14%

+0.5 MM

subs.

+19%

Mobile Unique

Internet User

28.937.7

2Q13 2Q14

+30%

Browsing ARPU

+2%

2Q13 2Q14

66.683.8

53.3

61.3

2Q13 2Q14

Focus on Postpaid2Q13 2Q14

6

Note: 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

share33.1%32.9%

+15%

+26%

119.9145.1+21%

Voice

Non Voice

Postpaid

ARPU

59.974.0

55.2

60.8

1Q13 1Q14

+10%

+24%

115.1134.8+17%

Voice

Non Voice� Mobile Unique Internet user continued to grow, supported by 3G smartphone sellout

� Higher Browsing ARPU with incremental usage

� Positive evolution of Postpaid ARPU driven by a +26% increase in non-voice concepts

61% 66%

8% 12%31% 22%

Jun 13 Jun 14

6,299 6,7033,304 3,571

5,7657,212

3,364 3,677

1,248

2,088

9151,425

1,915

3,126

1,235

2,115

Growth supported by improved revenue mix but affected by Growth supported by improved revenue mix but affected by traditional prepaid servicestraditional prepaid services

Million AR$ – Argentine Market

Internet Services

Data

(SMS & Content)

Retail &

Wholesale Voice

19,129

15,227

Revenue Breakdown

+67%

+25%

+6%

+26%

8,818

10,788

+8%

+9%

+56%

+22%

Service Revenue particip. per subs

+71%Handsets

+63%

Traditional Prepaid Services

(Pay-per-use)

Browsing & Content Prepaid

(Pay-per-use)

Postpaid

+62%

+24%

-17%

Prepaid subs. Recharge <30 days

Dec 13 Jun 14

� Internet Services up by +56% YoY

� Total VAS increased by +19% YoY, reaching 59% participation of Service Revenues

� Substantial increase in handset revenues with positive margin

� Even partially mitigated Billing per Second resolution affect voice revenue growth

6,299 6,7033,304 3,571

FY12 FY13 1H13 1H14

7

VAS as % of Service

Revenues59%56%

Wholesale Voice

58%53%

+8%

� In June 2014 Postpaid revenues rose +24% representing 66%participation of Service Revenues

� Prepaid segment continues to be strongly affected by the slowdown in economic activity, increasing pressure from competition, and cannibalization of SMS

� ‘SuperChip’ offer is implemented to uplift credit recharges and regain positive trend in 30-days recharging customer base; prepaid MOU rose +18% during 2Q14 vs. 1Q14

� Innovative Pay-per-use VAS increasing by +62% in June

1.5% 1.4% 1.3% 1.3%1.4%

123.6 125.5 134.0 138.0 147.9

2Q13 3Q13 4Q13 1Q14 2Q141,634 1,669 1,707 1,714 1,726

Fixed: Growth in BB accesses thru improved service provisioning Fixed: Growth in BB accesses thru improved service provisioning

and competitive bundling offer, and expansion in ICT servicesand competitive bundling offer, and expansion in ICT services

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

Evolution of BBAccesses

+20%+92k; +6%

AR$/Month

IFRS Million of ARS

Data Revenues

1,6341,726

BB Accesess 1H13 <10Mb ≥10Mb BB Accesess 1H14

2Q13 3Q13 4Q13 1Q14 2Q14

8

BB Speed

-2% ~3x

735 963

213 319

228

364

FY12 FY13 1H13 1H14

+50%

+31%

1Q

2Q+60%

+55%683

441

12,713 166 242312 1 267 313

510880 181 15,585

IFRS, Million of ARS, Percentage

Consolidated revenue growth propped up by Data, Internet & Consolidated revenue growth propped up by Data, Internet &

HandsetsHandsetsEvolution of revenues 1H13 – 1H14

+2,872; +23%

MOBILE IN ARGENTINAFIXED NUCLEO

1H13

Revenues

Voice Data Internet Equipments Voice Data Internet Handsets Nucleo 1H14

Revenues

9

Note:

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

Figures might not sum up due to rounding

0%10% 24%4% 9%% of total

Revenues13%

YoY

Variation +10% +55% +8% +9% +56% +71%+26% +3% +32%

12% 23% 5%

Intangible Assets

2Q13 3Q13 4Q13 1Q14 2Q14

2,415

3,964

1,1371,806

842

887

417

459

Capex: Focus in Capacity and Coverage to ensure continuous service Capex: Focus in Capacity and Coverage to ensure continuous service quality improvementquality improvement

Million of ARS

+46%

+49%

Capex Evolution FTTx Rollout

PP&ECapex breakdown

1,554

2,265

+10%

+59%PP&E

+3x

3,257

4,851

+5%

+64%

33%

24%

30%

12%1%

Mobile

Access

Fixed

Access

Core &

Infraest. 1

ITOthers

2,4151,137

1,806

FY12 FY13 1H13 1H14

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

including quality and innovation capex.

% Revenues 18% 12% 15%

� Strong increase in PP&E Capex (+59% vs. 1H13)

� Continuous effort to deploy mobile access network focus inquality upgrade

� Continuous FTTx deployment to increase fixed accessbandwidth, despite delay in permits in the city of Buenos Aires

15%

Capex breakdownPP&E

10

NORTHNORTHAMBA**AMBA** SOUTHSOUTH

3G/4G 3G/4G SpectrumSpectrum auctionauction: : Total Frequencies availableTotal Frequencies available

30 30 35 901,900 Mhz AWS*

3G: Cap 50 Mhz LTE / 4G: 60 Mhz

� AWS/700 Mhz price per- Mhz/Pop:U$S0.24/U$S0.25

� Personal ´s participation in both spectrumauctions would imply a minimum cost of U$S442 million

30 30 35

7.5 90

* Corresponds to bands of 1,700/2,100 Mhz

** Buenos Aires Metropolitan Area

850 Mhz 700 Mhz

11

1.0 4.4 0.6

6.0

Price per Mhz (in

million U$S)

Price per Mhz (in

million U$S)

9.44Price per Mhz (in

million U$S)

9.87Price per Mhz (in

million U$S)

2283G Auction:

Total base price(in million U$S)

1,7374G Auction:

Total base price(in million U$S)

Personal:frequency

already allocated

1,900 Mhz

850 Mhz

20 30 40

25 12.5 0

AgendaAgenda

Market Overview

Business Highlights

Financials

12

Financials

Q&A

6,5707,564

TEO Group: Consolidated Results TEO Group: Consolidated Results

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

+23% +14%

Revenues OIBDA*

+23% +15%

Fixed Business 16%

Broadband 10%

Personal - Mobile 69%

% of Revenues

Nucleo - Mobile 5%

12,713

15,585

3,624

4,119

6,570

1,799 2,112

1,8252,007

FY12 FY13 1H13 1H14

22,11727,287

6,064 7,466

6,6498,119

FY12 FY13 1H13 1H14

13

OIBDA

Margin30% 28% 29% 26%

Regulated

Revenues10% 8% 9% 8%

+14%

*Operating Income Before Depreciation & Amortization.

1Q

2Q

1Q

2Q

12,713

+23%

+22%

+17%

+10%

3,624

3,624

2,009

880605

14 664316

149 385 105 156

4,11918%

68%

47%

1%

35%25%

11%

32% 35%

18%

YoY

Variation

TEO Group: Consolidated TEO Group: Consolidated costs costs and OIBDA evolutionand OIBDA evolution

IFRS, Million of ARS

Operating Income Before Depreciation and Amortization 1H13 – 1H14

+495; +14%

OIBDA 1H13 Ss. Revenues

& other

incomes

Handsets

Sales

Handsets

Costs

ITX Costs Labor Costs Taxes Other

Marketing &

Sales

Fees for

services,

maint. and

materials

VAS Costs Others* OIBDA 1H14

14* Others includes bad debt expenses, provisions, recovery (costs) restructuring and others

OIBDA Margin

-1.5%+1.4% -0.2% +0.9% -0.7% -0.2% 26.4%+0.2%28.5%

� Second quarter in a row with positive margin in handsets business, improving the mix revenues

� Higher dilution impact in margin related to direct and indirect labor costs, due to severance costs of AR$122 million

� After strong increases in FY13, turnover taxes rate continued to increase in 1H14 but at a slower pace

� Continuous review of structural costs, optimization in ITX costs

-2.0%

-0.5%+1.0% -0.7% +1.3% -0.2% -1.1% 27.7%+0.4%29.7% -2.2%

1H14

FY13

1H13

FY12

1,241

3,9664,518

3,202

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of ARS, Percentage

+14%

+27%

IFRS, Million of ARS, Percentage

Net Income attributable to

Telecom

+19%

+24%2Q

Operating Income

2,060

2,618

1,4541,805

in million of AR$ 1H13 1H14

Net Interests $ 253 $ 238

FX results & results on NDF -$ 62 -$ 228

Others $ 23 $ 144

Total $ 214 $ 154

1,115 1,377

9451,241

FY12 FY13 1H13 1H14

802 889

2,685652

916

FY12 FY13 1H13 1H14

3,202

15

O. Income

Margin18% 17% 12% 12%16% 17% 11% 12%

+11%

Net Income

Margin

� Positive financial results in 2Q14 foster a strong Net Income growth in 1H14

� Fx results in 1H14 affected by a non-cash pre-tax loss of AR$202 MM related to purchases of U$S DollarBonds following accounting valuation standards of fixed income securities (Valuation method: amortizationcost)

1Q

2Q

+23%

+31%+40%

1,454

1Q

2Q

5,094

1,599

2,063858 342 1,645

378

3,807

IFRS, Million of ARS - Last 12 months

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

Telecom Argentina 1,650(1)

Telecom Personal 2,411

Operating free Cash Flow

Net Financial Position

Free Cash Flow

8,059 5,562 898

OIBDA Capex Δ WK & others

Net Financial

Position

1H13

(Net Cash)

Net Financial

Position

1H14

(Net Cash)

Net Interest

& Others

FX

Variations

Operating

Free Cash

Flow2Taxes

Dividend

Payments3

Share

buy back

16

Note:

(1) Includes Telecom USA

(2) OFCF: Operating Free Cash Flow before Taxes

(3) Includes $44 Million related to Nucleo dividends payments to third parties, net of income tax

Nucleo (Paraguay) (254) Free Cash Flow = -464

334 241 109

61 5 -82

In U$S million, June 2014. Argentinean operations

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

of 1H14

>120%CoverageNet Payables in

Foreign

Currency

Unleveraged

Balance Sheet

Limited Impact

in P&L

100% Coverage

in FY13

(Net Cash) (Net Cash)

HEDGING STRATEGY

277 4 1 17

IFRS, Million of AR$

Net Net Financial Financial Position (financial instruments at fair value)Position (financial instruments at fair value)

Fair Value NFP

+291

Book Value

Government Bonds 876

Dollar Linked Bonds 54

Notes in AR$ 10

Dollar Linked Notes 98

1,038

Fair Value

Government Bonds 1,153

Dollar Linked Bonds 50

Notes in AR$ 11

Dollar Linked Notes 115

1,329

Investments in AR BondsInvestments in AR BondsInvestments in AR BondsInvestments in AR Bonds

-- NonNon--restructured Bondsrestructured Bonds

-- Under Argentine jurisdictionUnder Argentine jurisdiction

-- Booked in ArgentinaBooked in Argentina

3,807 4,098

17

Net Financial

Position 1H14

(including financial

instruments at

book value)

Net Financial

Position 1H14

(including financial

instruments at fair

value)

Notes in AR$ (∆

Fair Value - Book

Value)

Dollar linked

Notes (∆ Fair

Value - Book

Value)

Government Bonds

(∆ Fair Value - Book

Value)

Dollar linked Bonds

(∆ Fair Value -

Book Value)

Dividends: Paying dividends 5 years in a rowDividends: Paying dividends 5 years in a row

3.6% 3.8%

42% 37%

Dividend

Dividend Yield

TELECOM ARGENTINA

LATAM TELCOS

Dividend Comparison

Evolution of DeclaredDividend

2012 2013 2014

8071,000

1,202

In million of AR$

Pay out Ratio

18

� Total Dividend AR$ 1.24 per outstanding share in circulation or AR$ 6.2 per ADR

� Payable in two equal installments:

� 50% on June 10th, 2014

� 50% in September when the Board of Directors determines the specific date for such payment

� Equivalent to 37% pay-out ratio

� Dividend Yield 3.8% in U$S*

Dividend Payment

* Assuming Closing Price of March 14th , 2014 in Buenos Aires Stock Exchange and total Dividend

AgendaAgenda

Market Overview

Business Highlights

Financials

19

Financials

Q&A