Telecom Argentina (NYSE:TEO) Q4 2025 Earnings call March 11, 2026 11:00 AM ET Company ParticipantsFederico Pra - Interim CFOLuis Rial Ubago - Head of Investor RelationsLuis Rial UbagoGood morning. On behalf of Telecom Argentina, I would like to thank everybody for participating in this conference call. The participants of today's conference call are Roberto Nóbile, Chief Executive Officer, Federico Pra, Interim Chief Financial Officer, and myself, Luis Rial Ubago, Head of Investor Relations. The purpose of ...

Financial Data and Key Metrics Changes - Telecom's consolidated revenues totaled over $5.7 billion, up 53% year-over-year in constant Argentine pesos, primarily driven by the incorporation of TMA results [5] - Consolidated EBITDA margin reached over 30.3%, an increase of over 200 basis points compared to the same period in 2024, with a comparable EBITDA margin of 33.7% excluding TMA contributions [6][21] - Consolidated CapEx amounted to approximately $1.0 billion, an 88% increase in pesos versus fiscal year 2024, focusing on the expansion of fixed and mobile access networks [7][29] - Net debt to estimated pro forma EBITDA leverage ratio improved to around 1.7x in fiscal year 2025, reflecting a solid credit profile [8][34] Business Line Data and Key Metrics Changes - Service revenues reached over $5.4 billion, increasing 55% year-over-year in real terms, with mobile, broadband, and Pay TV service revenues growing at a weighted average growth rate of 7% [11][12] - Mobile subscriber bases of Telecom and TMA reached 19.9 million and 19.1 million accesses respectively, consolidating market leadership [10] - Broadband subscriber base increased by 3.2% year-over-year, reaching 4.2 million accesses, driven by higher FTTH adoption [14] - Pay TV subscriptions grew for the second consecutive year, with Personal Flow's unique customers increasing by over 490,000 or 33% compared to the previous year [16] Market Data and Key Metrics Changes - In Paraguay, revenues grew almost 7% year-over-year in U.S. dollars, with EBITDA increasing 12% year-over-year, reaching $115 million [18] - In Uruguay, the broadband market is developing, with potential for growth as customer additions began at the end of 2024 [19] Company Strategy and Development Direction - The company continues to prioritize the expansion of its 5G and FTTH networks, achieving record levels of deployment during the year [40] - A joint venture with Banco Macro was created to accelerate the growth of Personal Pay and expand its product offerings [20] - TMA is executing an efficiency plan to align its EBITDA margin with Telecom's margin, focusing on cost optimization and operational improvements [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the business model and the effectiveness of cost efficiency initiatives, with a strong improvement in EBITDA margin [40] - The company remains focused on sustaining long-term growth while maintaining sound financial management and a solid cash position [41][42] Other Important Information - The company was recognized with multiple awards for its financial strategy and execution, including the Southern Cone Deal of the Year for the acquisition of TMA [9][37] - Free cash flow reached over $0.6 billion in fiscal year 2025, with a cash position exceeding $0.5 billion at year-end [41] Q&A Session All Questions and Answers Question: What are the expectations for subscriber growth in the broadband segment? - The company noted a continued recovery in broadband demand dynamics, supported by FTTH expansion and improved customer acquisition strategies [40] Question: How is the integration of TMA progressing? - The integration is on track, with TMA showing significant improvements in profitability and operational efficiency, aligning its EBITDA margin closer to Telecom's [25] Question: What are the company's plans for future investments? - Future investments will focus on enhancing network quality and expanding digital financial services, with a strong emphasis on 5G and FTTH deployment [40]

Results Q4 2025 & Full year March 10, 2026 Disclaimer Any estimates and statements that may be made during this presentation about future operations regarding our strategy and future growth opportunities are based primarily on our current expectations and estimates or projections of future events and trends that affect or may affect our business and results of operations. Although we believe that these estimates and statements about future operations are based on reasonable assumptions, they are subject to ...

Financial Data and Key Metrics Changes - For the full year 2025, total revenues were $1.714 billion, up 15% year over year, marking a record result for the firm [5] - Fourth quarter revenues were $535 million, up 12% year over year, also a record quarter [5] - Adjusted pre-tax income for the full year was $357 million, with an adjusted pre-tax margin of 20.8% [8] - Adjusted earnings per share were $6.98 for the full year, compared to $5.02 in 2024 [9] - The firm ended the year with record cash balances of $586 million and no funded debt outstanding [10] Business Line Data and Key Metrics Changes - Strategic Advisory was the primary driver of revenue growth, with record revenues for both the fourth quarter and the year [5][13] - Restructuring and PJT Park Hill also contributed significantly, with PJT Park Hill achieving its strongest quarter ever [12][13] - Adjusted compensation expense for the full year was $1.15 billion, with a compensation ratio of 67.1%, down from 69% in 2024 [6] Market Data and Key Metrics Changes - Global primary fundraising volumes declined for the fourth consecutive year, while interest in secondary products grew [12] - M&A activity increased sharply in 2025, with global announced volumes significantly up, making it the second-best year for announced M&A activity [13] Company Strategy and Development Direction - The company aims to invest in its firm and people while returning capital to shareholders primarily through share repurchases [4] - The firm is focused on expanding its advisory capabilities and integrating its services, moving away from breaking out revenue by advisory placement [11] - The management believes the firm is well-positioned to capitalize on favorable deal environments due to its expanded footprint and enhanced capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for restructuring services, citing a multi-year period of elevated activity [21] - The outlook for M&A activity remains positive, with expectations of continued strength in capital markets and CEO confidence [14][32] - Geopolitical risks and debates surrounding AI development may impact market sentiment, but the firm remains optimistic about its growth prospects [14][78] Other Important Information - The board approved a quarterly dividend of $0.25 per share [10] - The firm plans to report revenue as a single line item going forward, reflecting its strategic priority of expanding advisory capabilities [11] Q&A Session Summary Question: Outlook for Restructuring Activity - Management indicated that the restructuring business is in a multi-year period of elevated activity, driven by over-leveraged balance sheets and technological disruption [21][20] Question: M&A Activity and Market Conditions - Management believes the M&A market has not yet reached its full potential and expects elevated deal activity to continue due to favorable macroeconomic conditions [32] Question: Compensation Ratio Outlook - Management noted that the compensation ratio had peaked and is expected to continue to decline, with guidance to be provided in the first quarter results [34] Question: Private Capital Solutions Opportunities - Management highlighted the growth potential in private capital solutions, particularly in secondary markets, and expects to gain market share [69] Question: Competition for Talent in Restructuring - Management emphasized the importance of talent and culture, expressing confidence in attracting and retaining top talent in the restructuring business [71]

3Q25 Financial Highlights - Cosan Portfolio 的 EBITDA 为 74 亿雷亚尔，低于 3Q24 的 84 亿雷亚尔[7] - 收到的股息和权益资本利息为 4800 万雷亚尔，低于 3Q24 的 3.43 亿雷亚尔[7] - 净债务为 182 亿雷亚尔，高于 2Q25 的 175 亿雷亚尔[7] - 净亏损为 12 亿雷亚尔，而 3Q24 的净利润为 3 亿雷亚尔[7] - 债务偿还覆盖率 (DSCR) 为 1.0x LTM，低于 2Q25 的 1.2x[7] - 事故伤害频率 (LTIF) 为 0.34，高于 2Q25 的 0.27[7] Operational Performance - Rumo 运输量最大，为 234 亿 TKU，增长 8%[12] - Rumo 的平均票价降低 6%[12] - Compass 的 EBITDA 增长 6%[12] - Raízen 的甘蔗压榨量为 3500 万吨，增长 7%[13] - Radar 的 EBITDA 下降 26%，主要原因是租赁农业地产的影响[13] - Radar 投资组合中的土地价值为 168 亿雷亚尔，其中 Cosan 的股份为 52 亿雷亚尔[13] Liability Management - 总债务从 3Q24 的 242 亿雷亚尔降至 3Q25 的 216 亿雷亚尔[15] - 净债务从 2Q25 的 175 亿雷亚尔增至 3Q25 的 182 亿雷亚尔[15] - 平均债务期限为 5.9 年[17] - 平均债务成本为 0.89%[17] Managerial Cash Handling - 期初现金及现金等价物为 39.75 亿雷亚尔[20] - 收到的股息和权益资本利息为 4800 万雷亚尔[20] - 利息和其他财务费用为 5.63 亿雷亚尔[20] - 期末现金及现金等价物为 34.53 亿雷亚尔[20]

Core Viewpoint - OSB Group PLC has announced a cash tender offer for its £150,000,000 Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, aiming to provide liquidity for investors and manage refinancing alongside the issuance of new securities [2][5]. Offer Details - The offer is for the purchase of all outstanding £150,000,000 Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities (ISIN: XS2391408072) [2][4]. - The purchase price is set at 100.250% of the principal amount of the securities [7]. - The offer is subject to the satisfaction or waiver of the New Issue Condition, which involves the concurrent issuance of new sterling denominated additional tier 1 securities [10][11]. Rationale for the Offer - The primary purpose of the offer is to enhance liquidity for investors and to proactively manage the refinancing of the existing securities [5]. - Securities purchased through the offer will be cancelled and will not be re-issued or resold [5]. Tender Instructions - Holders must submit valid tender instructions by 4:00 p.m. (London time) on 24 November 2025 to participate in the offer [22][23]. - Tender instructions must be for a minimum principal amount of £1,000, and can be submitted in integral multiples of £1,000 thereafter [24]. Indicative Timetable - The offer commenced on 17 November 2025, with the expiration deadline for valid tender instructions set for 24 November 2025 [25]. - The announcement of results regarding accepted tenders is expected on 25 November 2025, with the settlement date anticipated for 27 November 2025 [25].

Restructuring and Liability Management - Lazard has observed a significant increase in its restructuring and liability management practice [2] - The firm suggests that increasing dispersion across firms leads to M&A activity coexisting with restructuring and liability management [3] - Most activity is on the liability management side, resolving issues before formal bankruptcy [5][6] Private Credit Market - Lazard does not believe recent bankruptcies signal a broader problem in private credit [2] - The firm anticipates a potential "wobble" in the rapidly growing private credit market at some point [3][9] - Concerns about banks' loans to private credit and non-depository financial institutions (NDFIs) are present, but the current situation is viewed as idiosyncratic [8][10] Deal Advisory and M&A - There's an increased willingness to explore deals due to easier regulatory burdens [6] - Government shutdowns are affecting the closing of some transactions but not the progress towards new deals [6] - Financing markets are generally accommodating with tight risk spreads [7] Geopolitics and Oil Market - Business decisions today must consider geopolitics [12] - Lazard supports the Trump administration's actions regarding Russia oil tariffs [12] - The price effect of these actions has been modest, returning to earlier levels this month [13] - There may be pressure on Saudi Arabia and the UAE to boost production next spring and summer [15] - The US spends approximately 600 to 700 million USD per year importing Russian uranium for nuclear reactors, representing about 20% of the feedstock [16]

Core Insights - The restructuring liability management practice has seen a significant increase, indicating a robust demand for advisory services in this area despite some high-profile bankruptcies [2][5] - The current environment shows a wide dispersion in firm performance, allowing for mergers and acquisitions to coexist with active restructuring efforts [3][5] - The financing markets are generally accommodating, with tight risk spreads and a more favorable regulatory environment compared to previous administrations [7][8] Restructuring and Liability Management - There is a notable rise in liability management activities, which help companies avoid bankruptcy by restructuring their debts [4][5] - The majority of current activity is focused on liability management rather than formal bankruptcy proceedings, suggesting a proactive approach by firms [5][10] Deal Advisory and Market Conditions - The government shutdown is temporarily affecting the closing of some transactions but not the initiation of new deals, indicating resilience in the deal-making environment [6] - Financing is readily available for deals, supported by tight risk spreads and a more accommodating regulatory landscape [7][8] Geopolitical Considerations - Geopolitical factors are increasingly influencing business decisions, with firms needing to account for these risks in their strategies [11][12] - The oil market is experiencing modest price effects, with potential pressure on oil-producing countries to increase production in response to rising core inflation in the US [13][15]

Financial Performance - Cosan's EBITDA under management reached R$ 60 billion, a decrease from R$ 73 billion in 2Q24[6] - Dividends and Interest on Capital Received amounted to R$ 06 billion, down from R$ 21 billion in 2Q24[6] - Net Debt remained stable at R$ 175 billion, consistent with 1Q25[6] - Net Income was R$ (09) billion, compared to R$ (02) billion in 2Q24[6] Operational Highlights - Rumo experienced higher transported volume, reaching 218 billion RTK, a 4% increase[12] and increased EBITDA (+6%)[12] - Compass saw growth in distributed volume (+9%)[12] - Moove experienced lower EBITDA (-12%) due to a reduction in lubricant volumes sold (-13%)[12] - Raízen experienced a reduction in EBITDA (-23%), lower crushing in ESB offset by better performance of Fuel Distribution Brazil[13] Sugarcane crushing was 25 million tons, a 21% decrease[13] - Radar's portfolio land value is R$ 168 billion, with Cosan's stake at R$ 52 billion[13] Liability Management - Cosan Corporate's Net Debt was R$ 175 billion in 2Q25[15] - The Debt Service Coverage Ratio (DSCR) was 12x LTM[6, 15] - The average cost of debt is 088%[17]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 amounted to $249 million, representing a 17% decline year-on-year due to soft gas sales, falling petrochemical prices, and higher operating expenses [6] - CapEx surged 140% year-on-year, reaching $354 million, primarily invested in the development of Rincon de Aranda [6] - Gross debt was nearly $1.6 billion, down 23% since December 2024, reflecting successful liability management efforts [18] Business Line Data and Key Metrics Changes - Oil and gas adjusted EBITDA was $87 million, down 28% year-on-year, largely due to reduced domestic gas sales and higher lifting costs [7] - Power generation posted an adjusted EBITDA of $112 million in Q2, a 5% increase year-on-year, mainly due to BP6 performance and higher spot prices [16] Market Data and Key Metrics Changes - Crude oil prices averaged nearly $62 per barrel in Q2, 14% lower than last year, primarily due to Brent underperformance [10] - Total gas sales fell 11% year-on-year to nearly 13 million cubic meters per day but rose 10% from Q1, attributed to seasonal effects [11] Company Strategy and Development Direction - The company aims to reach a production target of 20,000 barrels per day at Rincon de Aranda by Q4 2025 and 45,000 barrels per day by 2027 [15] - The company is focused on increasing gas exports to Chile and enhancing production capabilities through new infrastructure investments [13][15] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 and 2026 will be years of negative free cash flow due to significant investments in Rincon de Aranda, with expectations of cash generation improving thereafter [73] - The company remains optimistic about future production growth and the potential for improved pricing dynamics in the oil market [108] Other Important Information - The company has extended the exploratory license for Paravanera until 2027, indicating ongoing commitment to exploration activities [12] - The central processing facility (CPF) is expected to be operational by 2026, which will significantly enhance production capabilities [24] Q&A Session Summary Question: Can you provide more details on the CPF in Rincon de Aranda? - The CPF will facilitate oil and water separation, disposal of flowback water, and natural gas separation, with an output of 7,000 cubic meters per day expected to be completed by 2026 [24] Question: Have you started self-producing power with your own fuel? - Yes, self-procurement of gas has begun on a marginal basis, with current prices around $8 per million BTU [29][33] Question: What are the expected lifting costs for the second half of the year? - Lifting costs are expected to decrease from around $16 per barrel in 2025 to approximately $7 per barrel by 2026 as production ramps up [38] Question: What is the expected EBITDA contribution from the CESA project? - The EBITDA contribution will depend on LNG prices, which are currently variable and difficult to predict [130] Question: What is the current status of hydroelectric concessions? - The first tenders for hydro concessions are expected to be auctioned soon, but there is no clarity on the timing [100] Question: Are there plans for shareholder distributions in 2027? - It is too early to determine, but the company anticipates significant developments by then [132]