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

(1)	As of December 31, 2022, includes restricted funds for $505 corresponding to the funds to be paid to clients

(a)

Information on Investments in associates is detailed below:

Financial position information:


			Percentage
			of capital
			stock owned
			and	Valuation as	Valuation as
Companies	Main activity	Country	voting rights	of 12.31.2022	of 12.31.2021
Ver TV. (1)	Cable television station	Argentina	49.00	4,132	3,914
TSMA (1) (2) (3)	Cable television station	Argentina	50.10	1,554	1,334
La Capital Cable (1) (2)	Closed-circuit television	Argentina	50.00	757	1,033
Total				6,443	6,281

(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 information:


	Years ended December 31,
	2022	2021	2020
Ver TV	413	608	1,095
TSMA	272	150	323
La Capital Cable	134	12	41
Total	819	770	1,459

b) Additional information on the consolidated statements of cash flows

Changes in assets/liabilities components:


	December 31,
Net increase in assets	2022	2021	2020
Trade receivables	(26,143)	(25,039)	(39,105)
Other receivables	(20,699)	(10,355)	(11,701)
Inventories	(5,017)	(762)	(3,785)
	(51,859)	(36,156)	(54,591)
Net increase (decrease) in liabilities
Trade payables	39,055	12,934	17,311
Salaries and social security payables	16,383	19,483	12,749
Other taxes payables	(5,480)	(5,174)	6,753
Other liabilities and provisions	(9,296)	(8,853)	(7,346)
	40,662	18,390	29,467

Main Financing activities components

The following table presents the main financing activities components:


	December 31,
	2022	2021	2020
Bank overdrafts	—	19,783	—
Notes	22,512	80,886	82,548
Bank and other financial entities loans	60,714	21,544	73,005
Loans for purchase of equipment	1,989	2,875	9,184
Total financial debt proceeds	85,215	125,088	164,737
Bank overdrafts	(1,171)	—	(20,311)
Notes	(98)	(38,417)	(28,288)
Bank and other financial entities loans	(60,390)	(52,600)	(137,084)
Loans for purchase of equipment	(6,654)	(6,956)	(6,588)
Total payment of debt	(68,313)	(97,973)	(192,271)
Bank overdrafts	(8,409)	(6,229)	(11,664)
Notes	(16,328)	(20,650)	(16,762)
Bank and other financial entities loans	(19,012)	(20,025)	(26,574)
By DFI, purchase of equipment and others	(2,463)	(5,334)	(6,307)
Total payment of interest and related expenses	(46,212)	(52,238)	(61,307)

Main non-cash transactions

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


	December 31,
	2022	2021	2020
PP&E and intangible assets acquisition financed with accounts payable	28,349	40,144	54,143
Dividends payment with investments not considered as cash and cash equivalents (See “Cash and non-cash assets dividends from the Company and its subsidiaries”)	45,258	77,956	75,597
Initial debt for acquisition of NYSSA (Note 3.d.1.b)	609	—	—
Indemnification assets (Note 3.d.1.b)	90	—	—
Trade payables cancelled with financial debt	10,736	15,852	732
Trade receivables cancelled with government bonds	671	4,587	1,375
Social security payables cancelled with government bonds	—	2,563	—
Other receivables offset with income tax liabilities	—	142	76

Dividends proceeds

Brief information on dividends proceeds by the Company is provided below:


		Cash Dividends Collected
				Current currency
		Currency of the		as of December 31,
Year	Company	transaction date		2022
2022	Ver TV	104		195
	TSMA	28		51
	La Capital Cable	343		369
				615
2021	Ver TV	110		298
	TSMA	57		158
			*()**	456
2020	Ver TV	50		168
	TSMA	21		68
				236

(*) includes 27 corresponding to dividends distributed in 2020.

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

Non-cash dividends

2022 Dividends

Based on the powers delegated by Telecom Argentina’s Ordinary and Extraordinary Shareholders’ Meeting held on April 27, 2022, on June 2, 2022 the Board resolved to distribute non-cash assets dividends of Global Bonds of the Argentine Republic amortizable in US dollars for a nominal value of US$515,000,000: 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$411,145,986 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$103,854,014.

Consequently, considering the valuation of the aforementioned bonds at the date of distribution resolved by the Board of Directors, non- cash dividends amounted to $31,634 Argentine pesos ($45,258 in current currency as of December 31, 2022), and partially withdraw the “Voluntary reserve to maintain the Company’s level of investments in capital assets and the current level of solvency” for such amount.

2021 Dividends

The General Extraordinary Shareholders’ Meeting of Telecom Argentina 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 Argentine pesos ($77,956 in current currency as of December 31, 2022), 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.

2020 Dividends

The General Extraordinary Shareholders’ Meeting of Telecom Argentina 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 Argentine pesos ($75,597 in current currency as of December 31, 2021), the “Voluntary Reserve for Future Cash Dividends” amounting to $19,407 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 $56,190 in current currency as of December 31, 2021.

Cash dividends distributed

Brief information on cash dividends distributed and paid 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

2022

Payment month

31, 2022

2022

Núcleo

April 2022

804

1,271

May 2022/ Aug 2022

1,229

1,229

2021

Núcleo

April 2021

650

1,625

May 2021/ Oct 2021

1,449

1,449

2020

Núcleo

April 2020

295

1,083

May 2020/ Oct 2020

1,079

1,079