Cablevision Holding S.A.

Good afternoon. My name is Betsy and I'll be your conference operator today. After the speaker's remarks, there will be a question and answer session. You may submit your questions throughout the event by clicking in the submit a question box on your screen. This is Cablevision Holdings conference call, where we will discuss results for the first quarter 2021. This call is for investors and analysts only. Therefore, questions from the media will not be taken at this time. However, if you are a member of the media and have questions, please contact FIG Corporate Communications following the call. I will now introduce our speakers, Mrs. Samantha Olivieri, Head of Investor Relations, and Ms. Valentino Lopez, Senior Analyst. Additionally, Mr. Sebastian Bardengo, Executive Director and Chairman, will also be available for today's Q&A session. The team will be discussing the results. as per the earnings release distributed last Tuesday, May 11th. If you have not received the report or need any assistance during today's call, please contact Fig Corporate Communications in New York at 917-691-4047 or the company in Buenos Aires at 5411-4309-3417. CVH has also posted the webcast presentation that can be found at www.cvh.com.ar under the IR section. Comments made by the management may contain forward-looking statements about Cablevision Holdings' future performance, plans, strategies, and targets. Such statements are subject to uncertainties that could cause Cablevision Holdings' actual results and operations to differ materially. Such uncertainties include, but are not limited to, the effects of the impact and duration of the COVID-19 pandemic, new or ongoing industry and economic regulations, possible changes in demand for Cablevision Holdings products and services, and the effect of more general factors, such as changes in the general market, economy, or regulatory conditions. We ask that you refer to disclaimers in the earnings reports or presentation for additional information regarding forward-looking statements. It is now my pleasure to turn the call over to Mrs. Samantha Olivieri. Please go ahead.

Thank you, Betsy. Hello, everyone. As you all know, we are living through a challenging moment in history. I would like to start the call by expressing my hope that you and your families are all healthy and safe in these times of uncertainty. Before discussing our results for the quarter, Let me share with you the latest regulatory decisions by the Argentine government. Please move to slide four. The Argentine government issued the Decree 690-2020, later confirmed by Congress, declaring mobile, fixed telephony, broadband, and pay TV as public essential services, and freezing prices until the end of 2020, while instating ENACOM as a regulatory agency in charge of enforcing the decree and regulating prices. In December 2020, ENACOM issued two resolutions, Resolution 1466, which authorized price increases of 5% for all ICT services effective as of January 1, 2021, and also established that any further price increases must be informed and submitted to ENACOM for approval 60 days in advance. And Resolution 1467, which determined a series of basic universal services that should be provided by the operators for mobile, broadband, pay TV, and fixed voice services. These services target low-income individuals, beneficiaries of social programs, and nonprofit entities, all of which must file an application form with the ANACOM. In February 2021, a preliminary injunction requested by a cable TV operator from the province of Cordoba was accepted by a federal judge who ordered the suspension of Decree 690-20 and Decree 311-20. The injunction was later extended to all members of ATVC, that is the Argentine Association of Cable TV Operators, of which Telecom is a member. In addition, in May 2021, the Second Chamber of the Federal Court of Appeals on Administrative Litigation Matters granted Telecom a preliminary injunction suspending the effects of Sections 1, 2, 3, 4, 5, and 6 of Decree 690-20, and a Venecom resolutions number 1466-2020, 1467-2020, and 204-21. As a result of such injunction, Telecom may manage the pricing policy of its services as before the decree 690-2020. Now we will continue with an update of the tender offer process. Then we will move on to a brief macro overview and to the company's operating results, followed by a review of the financial position. Let's move to slide five, where we discuss a summary of the relevant aspects of the change of control tender offer. As we mentioned in our last call, by the end of December 2019, a first-instance judge of the Federal Administrative Litigation Matters Court admitted the claim filed by Mr. Burgueño in his capacity as the shareholder of Cabellet-Zion Holding S.A. and resolved that CVH is no longer an obligation to launch a mandatory tender offer as a result of the change of control in Telecom Argentina. While CVH did not appeal the court's decision and agreed with the position of the claimant, the CMV, that is the Argentine Securities Commission, appealed such a decision with the Court of Appeals. In September 2020, the court dismissed the appeal filed by the Argentine Securities Commission and confirmed the decision by the First Instance Court in favor of the claimant, Mr. Bulgenia. Later, in October 2020, the Federal Court of Appeals denied CMV's request to have a case heard by the Argentine Supreme Court and the CMB filed a complaint against the decision of the Court of Appeals directly at the Supreme Court. Now, the Supreme Court must evaluate if it will or not accept the case with no timeframe to do so. As per the original legal proceeding filed by CBH for the Federal Civil and Commercial Court regarding the price of the tender offer, it is still waiting for the first instance decision. we will keep the public informed about any news related with the tender offer process. Having gone through the discussion of the TEO process, please let me pass the call to Valentina.

Thank you, Samantha. I will continue with the macro overview. Let's move on to slide six. As we've seen in our previous calls, Argentina's economy is going through a deep recession worsened by the COVID-19 pandemic, which has caused, among other effects, two macroeconomic imbalances in the country, the highest fiscal deficit in the last decade, and a monetary overhang that the economy will have to process as a result of the monetary issue in 2020 to cover the fiscal deficit. Regarding the economic activity, GDP is expected to close the first quarter of 2021 with an increase of 2% as compared to the previous quarter, and of 1.5% on an annual basis registering a recovery after the plunge of 2020, despite its still weak condition. However, on a quarterly basis, we expect some contraction for the coming period, mainly due to the reinforcement of restrictions on the activity and the overnight mobility launched by the government in April 2021. It is worth noting that the improvement in the activity evolution has come with an increase in inflation, especially as a result of the economic recovery and the current monetary overhang and microeconomic policies that remain loose. Quarterly inflation was 40.6% on an annual basis, while the monthly variation was 4.8% at the end of March 2021, recording a higher than expected prices acceleration. Meanwhile, the government is tightening price controls raising utility prices marginally and reinforcing its intervention on the foreign market as the main way to anchor inflation. The reference rate stood at 38% at the end of March of 2021. Consensus is that the central bank will not increase interest rates before the elections despite an accelerating inflation, seeking to boost economic recovery and contain the fiscal deficit, which shows signs of worsening. The Argentine economy continues to show several difficulties, and more uncertainty is expected since legislative elections are taking place during this year, and no progress has been made on the new program with the IMF. The main challenge is that the current administration could face, in order to stabilize the economy and achieve a sustainable growth path, are the improvement of the health situation derived from the COVID-19 pandemic, the reduction of the fiscal and monetary imbalances, the ability to ease foreign exchange restrictions and contain inflation as the activity recovers, and a new agreement with the IMF. Now, I will pass the call back to Samantha. Thank you, Valentina.