Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Investor Presentation (2011)
22 slides from Partner Communications's investor presentation, 2011
Slide 1: Partner Communications Company Ltd. Company presentation Q4 2010
Partner Communications Company Ltd. Company presentation Q4 2010
Slide 2: Safe Harbor Statement
g This presentation includes forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, Section 21E of the US Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the US Private Safe Securities Litigation Reform Act of 1995. W
Slide 3: Agenda
Agenda 1. Partner in a Nutshell 2. The Israeli Telecommunications Market 3. Partner’s Financial and Operational Results 4. Partner’s Strategic Direction 3
Slide 4: Partner Today
Partner Today A Company with Key Assets A leading cellular company operating in Israel under the “orange” brand The strongest telecom brand in Israel 32% estimated market share The highest industry ARPU, leader in content & data revenues Outstanding customer service Significant customer interaction
Slide 5: Ownership Structure
Ownership Structure Partner's Ownership Structure g In October 2009, Scailex Corporation Suny, completed the acquisition of the 1.40% controlling equity interest in Partner from Scailex, Leumi 44.65% Partners , Hutchison Telecom (through its 4.95% subsidiary Advent) Israeli Holders, Public, 3.27% g
Slide 6: Q4/10 Highlights
Q4/10 Highlights Financial Results g Revenues of NIS 1.8 billion ($ 496 million) g content and data revenues of NIS 296 million ($ 83 million), or 20% of service revenues g EBITDA of NIS 664 million ($ 187 million), representing 38% of total revenues g Net income of NIS 304 million ($ 86 million) g
Slide 7: 2010 Highlights
2010 Highlights Financial Results g Revenues of NIS 6.7 billion ($ 1.9 billion) g content and data revenues of NIS 1.1 billion ($ 315 million), or 20% of service revenues g EBITDA of NIS 2,570 million ($ 724 million), representing 38.5% of total revenues g Net income of NIS 1.2 billion ($ 350 millio
Slide 8: Partner Creates Value for its Shareholders
Partner Creates Value for its Shareholders g Since 2005 the Company has returned approximately NIS 7.0 billion ($1.9 billion) to its shareholders n Buy-back of 18% of Partner’s shares in 2005 (approximately NIS 1.1 billion) n Buy-back in 2008 in an amount of NIS 351 million n Approximately NIS 5.9 b
Slide 9: The Smartphones Revolution
The Smartphones Revolution Our goal: To be the smartphones leader in Israel n Smartphones as a significant tool in customers retention and acquisition n Smartphones as a self-management tool available in modern lifestyle - The real benefit of the 3G revolution The combination of smartphones with App
Slide 10: Agenda
Agenda 1. Partner in a Nutshell 2. The Israeli Telecommunications Market 3. Partner’s Financial and Operational Results 4. Partner’s Strategic Direction 10
Slide 11: The Israeli Telecom Market
The Israeli Telecom Market Leadership of the Cellular Industry g By end 2009, the Israeli telecom market represented revenues of approximately NIS 32 billion, of which 59% are attributed to cellular g Partner generated more than NIS 6 billion revenues in 2009 g Partner ~ 20% of total telecom market
Slide 12: Regulatory Environment
Regulatory Environment g Reduction of interconnect tariffs to be paid to cellular operators n Approximate 72% reduction in interconnect tariffs in 2011, followed by additional reductions in 2012-2014. Reductions are expected to have a material adverse effect on the Company’s earnings* g 2011-2012 Fi
Slide 13: The Cellular Market in Israel
The Cellular Market in Israel Start of No. of Major Shareholder Technology Operations Subscribers * Partner 1999 3,160k Scailex Corporation GSM, UMTS, HSDPA, HSUPA Cellcom 1995 3,401k IDB Group GSM, TDMA, EDGE, HSDPA, HSUPA Pelephone 1986 2,850k Bezeq (Shaul Alovitz) NAMPS, CDMA, HSUPA MIRS 1997 ~45
Slide 14: Agenda
Agenda 1. Partner in a Nutshell 2. The Israeli Telecommunications Market 3. Partner’s Financial and Operational Results 4. Partner’s Strategic Direction 14
Slide 15: Key Business Indicators
Key Business Indicators Subscriber Growth (EOP, in 000’) 3G Subscribers (EOP, in 000’) & Content Revenues 3,500 Nber of subs 3,160 1,549 3,042 1,600 30% 3,000 2,668 2,860 2,898 1,400 1,279 2,340 2,529 25% 2,500 1,200 19.9% 16.8% 20% 1,000 951 2,000 14.9% 633 800 12.7% 15% 1,500 10.1% 600 8.7% 7.6% 1
Slide 16: Financial Performance
Financial Performance Total Revenue US GAAP IFRS in NIS millions 2008 2009 2010 8,000 Revenues 6,302 6,079 6,674 7,000 6,302 6,674 6,114 6,079 Cost of Revenues 3,868 3,770 4,093 6,000 5,607 5,141 5,123 Gross Profit 2,434 2,309 2,581 5,000 4,468 NIS millions SG&A 672 677 785 4,000 Other income 64 69
Slide 17: High Financing Capacity
High Financing Capacity Net debt / EBITDA1 CAPEX2 / Revenue US GAAP IFRS US GAAP IFRS 4,500 1.9 2.0 1.8 4,000 1.8 8,000 13% 14% 3,395 12% 6,674 1.6 3,500 7,000 12% 11% 6,302 1.4 6,114 6,079 3,000 1.2 6,000 2,764 5,123 5,607 1.3 10% 2,570 1.2 5,141 9% 1.2 8% 2,500 2,258 1.0 2,102 5,000 8% 8% NIS mill
Slide 18: Agenda
Agenda 1. Partner in a Nutshell 2. The Israeli Telecommunications Market 3. Partner’s Financial and Operational Results 4. Partner’s Strategy 18
Slide 19: Partner's Strategy
Partner’s Strategy Focus on “Mobile Centric” while Broadening Portfolio Maintaining Wireless Leadership Internet Content New Communication services Market Share ISP Mobile and ARPU Nomadic Fixed Brand Content as a Telephony Innovation growth engine New telecom Leader in Source of areas technology di
Slide 20: PRI and Transmission
PRI and Transmission Approximately 1,400 km of distributed nationwide optical network aimed at business sector and for cellular network needs Broad network “avenue” by four axes length mutually backed up Full optical monitoring of all network routes Communication stations (PoP) in major business cen
Slide 21: In Summary
In Summary Partner offers a top quality network, an excellent customer service, the number one brand in the Israeli telecom industry and a wide variety of value added services Future sources of growth Non Cellular service revenues Increase in data and content revenues Strong cash flow, and a signifi
Slide 22: Keep in touch
Keep in touch Emanuel Avner CFO emanuel.avner@orange.co.il +972 54 781 4951 Investors Web Site: http://www.orange.co.il/en/Investors-Relations/lobby/
Partner Communications Company — Investor Presentation (2011) on 6ix