NOTE 1 - DESCRIPTION OF BUSINESS AND BASIS OF PREPARATION OF THE RECAST ANNUAL CONSOLIDATED FINANCIAL STATEMENTS

a)    Purpose of these recast consolidated financial statements

On February 28, 2025, the Company filed with the SEC its 2024 20-F which included its audited consolidated financial statements as of December 31, 2024, and 2023 and for the three years ended December 31, 2024, 2023 and 2022, respectively (the “Consolidated Financial Statements”). Those Consolidated Financial Statements were presented in current currency at the end of the reporting year (December 31, 2024) in accordance with IAS 29.

On July 8, 2024, the Company filed with the SEC a registration statement on Form F-3 (F-3) which incorporated by reference its Consolidated Financial Statements included in Item 18 of Form 20-F.

The Company anticipates that it may undertake a capital markets transaction prior to the issuance of the Consolidated Financial Statements as of December 31, 2025. Therefore, for comparability with its most recent unaudited condensed consolidated financial statements as of September 30, 2025, the Company has recast the Consolidated Financial Statements to measure them in current currency as of September 30, 2025 (“Recast Annual Consolidated Financial Statements”).

The National Consumer Price Index as of September 30, 2025, was 9,384.1 and the cumulative variation in prices for the nine-month period then ended was 22.0%.

b)    The Company and its Operations

Telecom Argentina was created through the privatization of ENTel, the state-owned company that provided telecommunication services in Argentina.

Telecom Argentina’s license, as originally granted, was exclusive to provide telephone services in the northern region of Argentina since November 8, 1990 through October 10, 1999. As of October 10, 1999, the Company also began providing telephone services in all the country.

In November 2017, the Company merged with Telecom Personal, so, since that date, it provides directly mobile telecommunications services.

As a consequence of the merger with Cablevisión (accounted for as a reverse acquisition on January 1, 2018), the Company provides cable television services through networks installed in different localities in Argentina and Uruguay.

Therefore, the Company mainly provides fixed and mobile telephony services, cable television services, data and Internet services, among others, in Argentina. Additionally, through its subsidiaries, it also provides diverse ICT Services in Uruguay, Paraguay, USA and Chile.

Moreover, through its controlled companies Micro Sistemas, Personal Envíos and CrediPay, the Company provides fintech services related to the use of electronic means of payment, transfers and/or electronic use of money, among others.

As of December 31, 2024, the following are the subsidiaries included in the consolidation process and the respective equity interest owned by Telecom Argentina:

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c)    Segment information

An operating segment is defined as a component of an entity that may earn revenues and incur expenses, and whose financial information is available, held separately, and evaluated regularly by the chief operating decision maker. In the case of the Company, the Executive Committee and the Chief Executive Officer (“CEO”) are responsible for controlling recourses and for the economic and financial performance of Telecom.

The Executive Committee and the CEO have a strategic and operational vision of Telecom as a single business unit, according to the current regulatory context of the converged ICT Services industry (adding to the same segment the activities related to mobile services, internet services, cable television and fixed and data services, services governed by the same regulatory framework of ICT Services). To exercise its functions, both the Executive Committee and the CEO receive periodically the economic-financial information of Telecom Argentina and its subsidiaries (in current currency as of the date of each transaction), that is prepared as a single segment and evaluate the evolution of business as a unit of generation of results, administering the resources in a unique way to achieve the objectives. Regarding costs, they are not specifically allocated to a type of service, considering that the Company has a single payroll and operating expenses that affect all services in general (non-specific). Further, decisions on CAPEX affect all the types of services provided by Telecom in Argentina and are not allocated specifically to one of them.

Additionally, Telecom, through Micro Sistemas, develops activities in the fintech industry in Argentina. Telecom also carries out activities abroad (Paraguay, USA, Uruguay and Chile).

The operations that Telecom develops through Micro Sistemas, and those developed abroad, are not analyzed as a separate segment by the Executive Committee and the CEO, considering that they are not considered as individually significant. These operations do not meet the aggregation criteria established by the standard to be grouped within the “ICT Services in Argentina” segment, and considering that they do not exceed any of the quantitative thresholds identified in the standard to qualify as reportable segments, they are grouped within the category “Other segments.”

The Executive Committee and the CEO continue to monitor this business to evaluate the manner in which its performance is reviewed and, eventually, its consideration as a separate reportable segment provided it complies with the requirements established by IFRS Accounting Standards to that effect.

The Executive Committee and the CEO evaluate the profitability for each reportable segment based on the measure of the Adjusted EBITDA. Adjusted EBITDA is defined as our net (loss) income less income tax, financial results, earnings (losses) from associates and joint ventures, and depreciation, amortization and impairment of Fixed Assets.

Presented below is the Segment financial information for the years ended December 31, 2024, 2023 and 2022:

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Additional information per geographical area is disclosed below:

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d)    Basis of Presentation

These recast consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the IASB. IFRS Accounting Standards also includes the International Accounting Standards or “IAS”; the International Financial Reporting Interpretations Committee or “IFRIC”, the Standard Interpretations Committee or “SIC” and the conceptual framework.

The preparation of these recast consolidated financial statements in conformity with IFRS Accounting Standards requires that the Company’s Management make estimates that affect the figures disclosed in the financial statements or its supplementary information. Actual results may differ from these estimates. The areas involving a higher degree of judgment or complexity, or areas where estimates are significant are disclosed under Note 3.u).

For comparability with its most recent unaudited condensed consolidated financial statements as of September 30, 2025, these recast consolidated financial statements are expressed in millions of Argentine pesos, are prepared as of December 31, 2024 and recast in current currency as of September 30, 2025 (see item 1.a and 1.e), on an accrual basis of accounting (except for the consolidated statement of cash flows), based on historical cost, except for certain financial assets and liabilities (includes DFI) that are measured at fair value.

These recast consolidated financial statements contain, additionally to all disclosures required under IFRS Accounting Standards, some disclosures required by the LGS and/or by the CNV.

The figures as of December 31, 2023, and for the years ended December 31, 2023 and 2022, which are disclosed in these recast consolidated financial statements for comparative purposes, are a result of recasting the financial statements as of such dates, according to what is described in section a). When applicable, certain reclassifications were made for comparative purposes.

The Consolidated Financial Statements as of December 31, 2024, were authorized for issuance and approved by resolution of the Board of Directors’ meeting held on February 27, 2025. In addition, the recast of the Consolidated Financial Statements, to measure them in current currency as of September 30, 2025 as described in Note 1.a), were approved on December 11, 2025 by the Chief Financial Officer (“CFO”), whose power was designated by resolution of the Board of Directors’ meeting held on December 4, 2024.

e)    Financial reporting in hyperinflationary economies

Since Argentina has been considered a high-inflation economy for accounting purposes in accordance with IAS 29 since July 1, 2018, the financial information expressed in Argentine pesos is restated in current currency of December 31, 2024, and recast in current currency as of September 30, 2025, for comparability with its most recent unaudited condensed consolidated financial statements as of September 30, 2025.

The table below shows the evolution of price indexes as of September 30, 2025, and December 31, 2024, 2023 and 2022 according to official statistics published by INDEC and the devaluation of the Argentine peso vs. the U.S. dollar for the same years / period:

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Below is a summary of the effect of applying IAS 29:

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Restatement of the Statement of Financial Position and the Statement of Changes in Equity

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The Company restated all the non-monetary items in current currency as of December 31, 2024. Each item must be restated since the date of the initial recognition or since the last revaluation. Monetary items have not been restated because they are stated in terms of the measuring unit current as of December 31, 2024. In addition, all monetary and non-monetary items as of December 31, 2024 were recast to measure them in current currency as of September 30, 2025, as described in Note 1.a).

Restatement of the Income Statement, the Statements of Comprehensive Income and the Statement of Cash Flows

In the Income Statement and the Statements of Comprehensive Income, items are restated in current currency as of December 31, 2024 and recast to measure them in current currency as of September 30, 2025, as described in Note 1.a). The Company shall apply the monthly variations of CPI.

Financial results related to foreign currency exchange and accrued interest are determined in real terms, excluding the inflationary effect contained therein.

The effect of inflation on the monetary position is included in the Income Statement under Financial cost and Other financial results, net.

The items of the Statement of Cash Flows are restated in current currency at the closing date. The restatement effect has an impact on the Income Statement and must be eliminated from the Statement of Cash Flows because it is not considered cash or cash equivalent.

Investments in foreign companies

The subsidiaries that use functional currencies other than the Argentine peso (mainly foreign companies with economies that are not considered to be hyperinflationary), must not restate for inflation their financial statements, in accordance with IAS 29.

Notwithstanding, and only for reporting and consolidation purposes, the comparative figures presented in Argentine pesos in the Income Statement corresponding to the current year and the previous year must be stated using the exchange rates at the transaction date. In addition, the initial items of the Statement of Changes in Equity must be reported at the closing rate without modifying its total amount due to the fact that it is translated into the closing exchange rate, which implies that a translation adjustment is recognized against Retained Earnings and Other Comprehensive Income (loss).