NOTE 4 – CASH AND CASH EQUIVALENTS AND INVESTMENTS. ADDITIONAL INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS

Financial position information:


			Percentage
			of capital
			stock owned
			and	Valuation as	Valuation as
Companies	Main activity	Country	voting rights	of 12.31.2021	of 12.31.2020
Ver TV. (1)	Cable television station	Argentina	49.00	2,010	1,840
TSMA (1) (2) (3)	Cable television station	Argentina	50.10	684	685
La Capital Cable (1) (2)	Closed-circuit television	Argentina	50.00	531	525
Other minor investments in associates at equity method				—	8
Total				3,225	3,058

(1)	Data about the issuer arise from extra-accounting information.

(2)	Direct and indirect interest.

(3)	Despite owning a percentage higher than a 50% of interest, the Company does not have the control in accordance with the requirements of IFRS.

Earnings (losses) information:


	Years ended December 31,
	2021	2020	2019
Ver TV	312	562	(337)
TSMA	77	166	(89)
La Capital Cable	6	21	41
Total	395	749	(385)

Movements in the allowance of current credit risk are as follows:


	December 31,
	2021	2020
At the beginning of the fiscal year	(120)	(131)
Additions – Exchange differences	(12)	(75)
Additions – Risk of doubtful government bonds results	—	(24)
Reclassifications	(75)	(759)
Uses (includes RECPAM)	207	869
At the end of the year	—	(120)

Movements in the allowance of non-current credit risk are as follows:


	December 31,
	2021	2020
At the beginning of the fiscal year	(328)	(2,012)
Additions – Exchange differences	(25)	(332)
Additions – Risk of doubtful government bonds results	—	(63)
Reclassifications	75	759
Uses (includes RECPAM)	278	1,320
At the end of the year	—	(328)

b) Additional information on the consolidated statements of cash flows

The Company applies the indirect method to reconcile the net income for the year with the cash flows generated by its operations.

For purposes of the consolidated statements of cash flows, cash and cash equivalents comprise cash, bank current accounts and short-term highly liquid investments (with a maturity of three months or less from the date of acquisition). Bank overdrafts are disclosed in the consolidated statement of financial position as financial debts and its flows in the cash flow statements as proceed and payment of financial debt, because they are part of the short-term financial structure of Telecom and its subsidiaries.

Changes in assets/liabilities components:



	December 31,
Net (increase) decrease in assets	2021	2020	2019
Trade receivables	(12,854)	(20,075)	(12,149)
Other receivables	(5,316)	(6,007)	(6,392)
Inventories	(391)	(1,943)	(1,971)
	(18,561)	(28,025)	(20,512)
Net increase (decrease) in liabilities
Trade payables	6,640	8,887	(8,364)
Salaries and social security payables	10,002	6,545	9,392
Other taxes payables	(2,656)	3,467	4,509
Other liabilities and provisions	(4,545)	(3,771)	(89)
	9,441	15,128	5,448

Main Financing activities components

The following table presents the main financing activities components:


	December 31,
	2021	2020	2019
Bank overdrafts	10,156	—	16,490
Notes	41,524	42,377	46,279
Bank and other financial entities loans	11,060	37,478	55,430
Loans for purchase of equipment	1,476	4,715	2,029
Total financial debt proceeds	64,216	84,570	120,228
Bank overdrafts	—	(10,427)	(1)
Notes	(19,722)	(14,522)	(6,282)
Bank and other financial entities loans	(27,003)	(70,374)	(68,727)
Loans for purchase of equipment	(3,571)	(3,382)	—
Total payment of debt	(50,296)	(98,705)	(75,010)
Bank overdrafts	(3,198)	(5,988)	(1,993)
Notes	(10,601)	(8,605)	(2,320)
Bank and other financial entities loans	(10,280)	(13,642)	(14,640)
By DFI, purchase of equipment and others	(2,738)	(3,238)	2,733
Total payment of interest and related expenses	(26,817)	(31,473)	(16,220)

Main non-cash operating transactions

Main non-cash operating transactions and that were eliminated from the consolidated statement of cash flows are the following:


	December 31,
	2021	2020	2019
PP&E and intangible assets acquisition financed with accounts payable	20,609	29,663	31,580
Dividends payment with investments not considered as cash and cash equivalents	40,020	38,809	—
Accounts payable payment with CDB loan proceeds	8,138	376	—
Trade receivables offset with government bonds	2,355	706	—
Social security payables offset with government bonds	1,316	—	—
Other receivables offset with income tax liabilities	73	39	—

Cash dividends collected

Brief information on cash dividends collected by the Company is provided below:


		Cash Dividends Collected
			Current currency
		Currency of the	as of December 31,
Year	Company	transaction date	2021
2021	Ver TV	109	153
	TSMA	57	81
		166	*() 234**
2020	Ver TV	50	86
	TSMA	21	35
		71	121
2019	Ver TV	97	260
	TSMA	41	108
	La Capital Cable	5	12
		143	380

(*) includes 14 corresponding to dividends distributed in 2020.

Cash and non-cash assets dividends from the Company and its subsidiaries

Non-cash assets dividends

Telecom Argentina’s General Extraordinary Shareholders’ Meeting held on August 11, 2021 resolved to distribute non- cash assets dividends as follows: i) Global Bonds of the Argentine Republic amortizable in US dollars maturing on July 9, 2030 (the “2030 Global Bonds”), for a nominal value of US$370,386,472, and ii) Global Bonds of the Argentine Republic amortizable in US dollars maturing on July 9, 2035 (the “2035 Global Bonds”) for a nominal value of US$186,621,565.

Consequently, and considering that the valuation of the mentioned non-cash assets dividends was $35,068,340,043 Argentine pesos ($40,020 in current currency as of December 31, 2021), the “Voluntary Reserve to maintain the Company’s level of investments in capital assets and the current level of solvency” was partially withdraw for that amount.

Telecom Argentina’s General Extraordinary Shareholders’ Meeting held on November 13, 2020 resolved to distribute non- cash assets dividends as follows: i) Global Bonds of the Argentine Republic amortizable in US dollars maturing on July 9, 2030 (the “2030 Global Bonds”), for a nominal value of US$157,642,897, and ii) Global Bonds of the Argentine Republic amortizable in US dollars maturing on July 9, 2035 (the “2035 Global Bonds”) for a nominal value of US$271,896,177.

Consequently, and considering that the valuation of the mentioned non-cash assets dividends was $24,723,374,678 Argentine pesos ($38,809 in current currency as of December 31, 2021), the “Voluntary Reserve for Future Cash Dividends” amounting to $9,963 in current currency as of December 31, 2021 was fully withdraw and the “Voluntary Reserve to maintain the Company’s level of investments in capital assets and the current level of solvency” was partially withdraw in $28,846 in current currency as of December 31, 2021.

Cash dividends

Brief information on cash dividends of the Company and its subsidiaries is provided below:

Distributed amount

Amount paid in

Current currency

current currency

Currency of the

as of December 31,

as of December

Year

Company

Distribution month

transaction date

2021

Payment month

31, 2021

2021

Núcleo

April 2021

650

834

May 2021/ Oct 2021

744

834

744

2020

Núcleo

April 2020

295

556

May 2020/ Oct 2020

554

556

554

2019

Telecom

April 2019

6,300

17,808

May 2019

16,712

Telecom

August 2019

7,045

17,126

August 2019

17,126

Telecom

October 2019

17,387

38,646

October 2019

38,646

Núcleo

April 2019

197

537

May 2019

523

74,117

73,007