Telecom ArgentinaTelecom Argentina

3Q14 3Q14 EarningsEarnings ReleaseRelease3Q14 3Q14 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

Conclusions

Relevant Matters

Q&A

Retail & Wholesale commerce

Manufacturer Industry

Transport & Communications

Financial interm.

Construction

Real Estate

Minery

Public Admin & Defense

Agriculture

Social services & Healthcare

Electricity, gas & water

8.6%

0.9%2.9%

0.3% 0.0% 0,2%

∆ YoY - constant prices

10.012.2

8.06.6 6.5 7.5

Trade Balance (Billion US$) Last 12 months

51.944.1 45.7

27.426.0

31.2

Consumer Confidence Index of Durable Goods

46.4 43.330.6 27.0 29.3 27.9

29.4% 24.5% 25.9% 29.5% 33.5% 35.5%

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

Economic activity per sector Wages Central Bank Reserves

3Q14:3Q14: unsustainable trilemma (Economic Activity + Imports restriction + Reserves)unsustainable trilemma (Economic Activity + Imports restriction + Reserves)

Real GDP* CCI Trade Balance

Total

2011 2012 2013 1Q14 2Q14 3Q14e 2011 2012 2013 1Q14 2Q14 3Q14e2011 2012 2013 1Q14 2Q14 3Q14e

� Industrial activity remained depressed, after

suffering January devaluation, a tax hike on the

automobile sector, and a lower demand from

Brazil

� Agricultural exports were affected by a

reduction in international prices

� Government continues to implement measures

to foster economic activity but no recovery

signals are still shown in the quarter

� Car Sales fell by 42% vs. September 2013

� Real Estate activity fell by 2.8% vs. September

2013 and 52% vs. 2011

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

in 3Q14 but showed a slowdown in September

� Strong decline in consumer indicators:

- Retail sales decreased 6% YoY

- Consumer loans contracted together

with a reduction in real wages

- VAT collection deteriorated in 9M14

� The new CPI Index published by the government

reached 19.8% YTD, stabilizing in a level of aprox.

1.4% per month during the quarter

� The supply of foreign currency was affected not

only by the decline in oilseed and grain export

liquidation but also by devaluation expectations

and holdouts situation

� As of September 2014, Central Bank Reserves

showed a decrease of 20% YoY

� Government is actively monitoring the FX market

aimed at dampering expectations of devaluation

of the peso

� Trade balance showed some improvements in

3Q14. Nevertheless, this result was obtained

thru higher reduction in imports instead of

increases in exports

AgendaAgenda

Market Overview

Business Highlights

Financials

4

Financials

Conclusions

Relevant Matters

Q&A

� Internet Mobile users and revenues keep growing (1.1 million new users

YoY)

� Broadband wireline continues to gain strength (81k new subs YoY)

� Accelerated roll out of 3G and preparation for 4G

� VDSL cabinet deployment (enabling up to 50 Mb connections)

� Spectrum auction held on October 31st: the equivalent of US$658 million

committed in the auction (including the highest offer for lot 8: 30 Mhz in

AWS and 20 Mhz in 700 Mhz)

Business HighlightsBusiness Highlights

Business

5

Financials

� Revenues up +22% driven by:

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

ARPU and Data penetration

- Data (+54%) and Broadband (28%) in the Fixed Business

� Constant efforts in costs efficiencies to mitigate the effects of the

inflationary context

19,827 241 374 518 -5 329 359 8221,406 312

24,183

IFRS, Million of AR$, Percentage

Consolidated revenue growth propped up by Data, Internet & HandsetsConsolidated revenue growth propped up by Data, Internet & HandsetsEvolution of revenues 9M13 – 9M14

YoY

Variation +9% +54% +7% +7% +56% +67%

+4,356; +22%

+28% -10% +37%

MOBILE IN ARGENTINAFIXED NUCLEO

SMS-AR144 MM; -4%

Impact of billing per second

9M13

Revenues

Voice Data Internet Equipments Voice Data Internet Handsets Nucleo 9M14

Revenues

6

Note:

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

Figures might not sum up due to rounding

0%10% 23%4% 9%% of total

Revenues15%

Variation +9% +54% +7% +7% +56% +67%+28% -10% +37%

12% 22% 5%

1.8 1.7

19.9 20.1 19.9 19.8 19.8

Customer Base

(in MM)

2.7% 3.0%

Mobile Business in Argentina Mobile Business in Argentina –– Focusing on High value customers and servicesFocusing on High value customers and services

AR$/Month

43.2 48.7

27.2 26.5

3Q13 3Q14

Voice

Non Voice

75.2

+7%

70.4

+13%

-3%

� Browsing ARPU (+41% in 3Q14 YoY)

� Voice/SMS ARPU (-8% in 3Q14 YoY)

FOCUS ON DATAFOCUS ON DATA

Monthly Churn

Gross Adds(in MM)

23%30%

3Q13 3Q14

ARPU Smartphone

Penetration

88%65%

Smartphone Sellout

Prepaid Arpu Pospaid Arpu

6.3 6.7 6.9 6.9 7.4

3Q13 4Q13 1Q14 2Q14 3Q14

(in MM)

Monthly Unique

Internet Users (in

MM)

7

Note: Argentinean operation only. Figures might not sum up due to rounding1 Includes “Cuentas Claras” subscribers2Market 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

13.4 13.5

6.4 6.3

3Q13 3Q14

Postpaid 1

Prepaid

19.9 19.8

Market

share2 33.0%32.6%

FOCUS ON POSTPAIDFOCUS ON POSTPAID

� Lower Churn (50% vs. Prepaid)

Mobile Business in Argentina Mobile Business in Argentina -- Prepaid offering to revert challenging Prepaid offering to revert challenging environment and stimulate usageenvironment and stimulate usage

56 55 45 54 64

295265

220182 158

3Q13 4Q13 1Q14 2Q14 3Q14

MOU

TOU

PREPAIDPREPAID

Customers Prepaid recharges <30 days Customers Prepaid recharges <30 days

Results of “Super Chip”

� Stabilizing CB and expanding “frequent

users” (recovering 30-day rechargers)

� Stimulate voice usage (MoU rose 14%

in two quarters)

� Increase Data Usage (Browsing ARPU

rose 50% in 3Q14 YoY)

16.5

24.7

3Q13 4Q13 1Q14 2Q14 3Q14

8

+50%

Customer Base

Traditional

Usage

Data Usage

PREPAIDPREPAID

AR$/Month

241 240 202 197 195

239219

180 161 143

3Q13 4Q13 1Q14 2Q14 3Q14

MOU

TOU

Mobile Business in Argentina Mobile Business in Argentina --Postpaid segment Postpaid segment –– Innovative Offers that result Innovative Offers that result in encouraging trendsin encouraging trends

POSTPAIDPOSTPAIDAR$/Month

BLACK ILIMITADOBLACK ILIMITADO

6.4 6.3

3Q13 4Q13 1Q14 2Q14 3Q14

Total Postpaid Subscribers (in MM)

Billing per

second

effect

9

38.0

53.2

3Q13 3Q14

+40%

AR$/MonthBLACK ILIMITADOBLACK ILIMITADO

Goals:

Retain High End Customers

Proposal:

Unlimited calls and SMS, and Data included in the plan

DIA FULL (for Hybrid accounts)DIA FULL (for Hybrid accounts)

Goals:

Increase Postpaid Cb while fostering ARPU

Proposal:

Unlimited on-net calls and SMS at AR$4.9 per day

1,669 1,707 1,714 1,726

1,750

3Q13 4Q13 1Q14 2Q14 3Q14

1.4% 1.3% 1.3% 1.4% 1.3%

125.5134.0 138.0 147.9 157.8

3Q13 4Q13 1Q14 2Q14 3Q14

Monthly

Churn

ARPU

(AR$)

Fixed: Leadership in flow share in BB accesses thru improved service Fixed: Leadership in flow share in BB accesses thru improved service

provisioning and competitive bundling offerprovisioning and competitive bundling offer

Thousand of broadband accesses, thousand of net adds

+26%+81k; +5%

AR$/Month

FIXEDFIXED

33%

48%

39%

27%

41%

3Q13 4Q13 1Q14 2Q14 3Q14e

735

963

213 319

228

364 248

380

FY12 FY13 9M13 9M14

10

IFRS Million of AR$

+50%

+31%

1Q

2Q

+60%

+54%1,063

689+53%

3Q

FIXEDFIXED

3Q14e: Market estimates of the top 3 providers in the industry

887

784

33%

22%

31%

12%2%

Fixed

AccessCore &

Infraest. 1

ITOthers Mobile

Access

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

Million of AR$

+32%

+49%

Capex Evolution FTTx Rollout

2,896

3,819

+21%

+3x

3,257

4,851

+5%

3Q13 4Q13 1Q14 2Q14 3Q13

3G Cells

PP&E

Intangible Assets

2,415

3,964

2,249 3,035

842 647

FY12 FY13 9M13 9M14

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

% Revenues 18% 15% 16%

� Strong increase in PP&E Capex (+35% vs. 9M13)

15%

2,896+21%

+35%

11

+64%

3Q13 4Q13 1Q14 2Q14 3Q13

+62%

� Continuous broadband fixed and mobile access

deployment despite delays in permits

AgendaAgenda

Market Overview

Business Highlights

Financials

12

Financials

Conclusions

Relevant Matters

Q&A

1,930 2,067

27,287

7,114

8,598

TEO Group: Consolidated Results TEO Group: Consolidated Results

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

+22%

+11%

Revenues OIBDA*

+23%

+15%

Fixed Business 16%

Broadband 10%

Personal – Mobile 69%

% of Revenues

Nucleo – Mobile 5%

19,827

24,183

5,554

6,1863Q

+21% 3Q+7%

Handsets Revenues – Costs(in million of AR$)

-491

-55-148

463

FY12 FY13 9M13 9M14

Before capitalization of SAC & SRC

6,570 7,564

1,799 2,112

1,825 2,007

1,930

FY12 FY13 9M13 9M14

22,117

27,287

6,064 7,466

6,649

8,119

FY12 FY13 9M13 9M14

13

OIBDA

Margin30% 28% 28% 26%

Regulated

Revenues 10% 8% 9% 7%

*Operating Income Before Depreciation & Amortization.

1Q

2Q

1Q

2Q

+23%

+22%

+17%

+10%

5,554

2,968

1,402950

150 1,006445

240 605 176 166

6,18617%

63%

44%

11%

34%23%

12%

32% 35%

12%

YoY

Variation

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

IFRS, Million of AR$

Operating Income Before Depreciation and Amortization 9M13 – 9M14

+632; +11%

452

5,554

OIBDA 9M13 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 9M14

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

OIBDA Margin

-1.4%+0.6% -0.1% +0.9% -0.7% -0.2% 25.6%+0.5%28.0%

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

� After strong increases in FY13, turnover taxes rate continued to increase in 9M14 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%

9M14

FY13

9M13

FY12

2,685 3,202

652 916

870

839

3,966 4,518

945

1,241

1,203

1,225

TEO Group: Consolidated ResultsTEO Group: Consolidated Results

IFRS, Million of AR$, Percentage

+14%

+18%

IFRS, Million of AR$, Percentage

Net Income attributable to Telecom

+19%+14%

2Q

Operating Income

+31%

3,263

3,843

+40%

2,324

2,644

2Q

+2%3Q

3Q

-4%

in million of AR$ 9M13 9M14

Net Interests $ 428 $ 231

Gains on Mutual Funds $ 46 $ 113

FX results -$ 131 -$ 205

Results on NDF $ 14 -$ 20

Others $ 20 $ 111

Total $ 377 $ 230

2,685

802 889

652 916

FY12 FY13 9M13 9M14

1,115 1,377

FY12 FY13 9M13 9M14

15

O. Income

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

+11%

Net Income

Margin

1Q+23%

+40%

1Q

� FX results in 9M14 affected by a non-cash pre-tax loss of AR$228 MM related to purchases of US$ Dollar Bonds, following accounting valuation

standards of fixed income securities (Valuation method: amortization cost)

� Net Income in 9M13 includes AR$172 Million charge related to disposal of PP&E. Excluding this effect, Net Income in 9M14 vs. 9M13 would have

increased +6% YoY

IFRS, Million of AR$ - Last 12 months

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

Free Cash Flow

5,684

1,2902,165

728 375 2,234

152

3,526

Telecom Argentina 1,235(1)

Telecom Personal 2,507

Operating free Cash Flow

Net Financial Position

8,196 5,774 1,132

OIBDA Capex Δ WK & others

Net Financial

Position

9M13

(Net Cash)

Net Financial

Position

9M14

(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

-6%

48%

38%15% 5%

100%

FX Cash in Argentina Dollar LinkedFX Cash

Abroad

AR$Núcleo

NFP

NFP Breakdown

NFP

Nucleo (Paraguay) (216) Free Cash Flow = -875

(Net Cash) (Net Cash)

150% Coverage

in 9M14

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

17

� 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% on September 22nd, 2014

� Equivalent to 37% pay-out ratio

� Dividend Yield 3.8% in US$*

Dividend Payment

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

AgendaAgenda

Market Overview

Business Highlights

Financials

18

Financials

Conclusions

Relevant Matters

Q&A

Events on OIBDAEvents on OIBDA

YoY OIBDAgrowth

Actions Items:

� Price increase in mobile will have full impact in 4Q14

(~14%)

� Recent launch of appealing commercial offers (“Super

Chip” & “Full Day” packs) to enrich value proposition

� Positive KPI trends:

� Rising mobile Data penetration

September11% YoY

19

1Q14 2Q14 3Q14

� Rising mobile Data penetration

� Increase in prepaid recharges and MOU

� Browsing ARPU grows at high level

� Constant efforts in costs efficiencies to

mitigate the effects of the inflationary

context

19

10.0%17.4%YoY

Growth7.1%

AgendaAgenda

Market Overview

Business Highlights

Financials

20

Financials

Conclusions

Relevant Matters

Q&A

Capital Ownership and Corporate StructureCapital Ownership and Corporate Structure

Preferred B(Listed in NYSE)

21.62% Capital Own.

48.96% Econ. Int.

(Ordinary shares)

SoforaTelecomunicaciones S.A.

78.38% Capital Own.

51.04% Econ. Int.

32%51%

Telecom Italia Group

Werthein Group

17%

Fintech Group

Shareholder Structure as of October 29th , 2014

� On October 29th, 2014 TI sold to Fintech 17% of its Sofora

shareholding shares.

� The sale of the 51% controlling interest of TI in Sofora is

conditional upon obtaining regulatory approval by the

“Secretaría de Comunicaciones” and will not occur until after

such approval is obtained. This sale is expected to occur within

the next two and one-half years

21

99.99% 67.5%

Floating shares(Class B Shares & ADRs)

Nortel Inversora

(Class A: 51% - Class B 3.74%)Class C shares

Telecom Argentina

TelecomPersonal

Núcleo(Paraguay)

the next two and one-half years

� The majority of Sofora’s Board of Directors will continue to

be appointed by Telecom Italia Group until receipt of

Argentine regulatory approval and closing of the sale of

Telecom Italia’s 51% controlling interest in Sofora. No material

change in the corporate governance of Sofora and its

subsidiaries is foreseen

45.23% Capital Own.

44.37% Econ. Int.

54.74% Capital Own.

55.60% Econ. Int.

0.03% Capital Own.

0.03% Econ. Int.

Note: TI economic interest reaches 14.5%

GeographicalGeographical FootprintFootprint

Northern Region

Population

17.2 MM

Buenos Aires Metro Area

Population

15.2 MM

Presence by Region

Technological and

Market Leadership

Competitive Gap

Sites SpectrumMkt Share

Spectrum

15.2 MM

Southern Region

Population

9.8 MM

Source: INDEC. Projections based on Censo Nacional de Población, Hogares y Viviendas 2010.

22

Competitive Gap

Low market share

Sites

Sites

Spectrum

Telecom Argentina

Competitors

Mkt Share

Mkt Share

NORTHNORTH

AMBA**AMBA**

3G/4G Spectrum auction3G/4G Spectrum auctionTotal

Spectrum4G

20

20

AWS*

700 Mhz

30

20

AWS*

700 Mhz

20

30

AWS*

700 Mhz

Lot 1

Lot 8

Lot 9

Maintain

Leadership

Fill the Gap

4G

25 2520 25

2030

Pre Auction Post Auction

850 Mhz 1,900 Mhz 700 Mhz 1,700 Mhz

13 2030 30

2030

Pre Auction Post Auction

3G

SOUTHSOUTH

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

** Buenos Aires Metropolitan Area 23

30700 Mhz

20

20

AWS*

700 Mhz

Lot 10

Spectrum auction schedule

SPECTRUM AUCTIONOctober 31, 2014

FREQUENCIES ALLOCATIONBY GOVT.

In the period of 20 days after Spectrum Auction

PAYMENT

10 days after frequencies allocation

Room for

Growth40 50

2030

Pre Auction Post Auction

AgendaAgenda

Market Overview

Business Highlights

Financials

24

Financials

Conclusions

Relevant Matters

Q&A