Cellcom Israel Ltd. · TASE:CEL
Cellcom Israel — Merger or Acquisition (November 2015)
11 slides from Cellcom Israel's merger presentation, November 2015
Slide 1: Acquisition of Golan Telecom
Israel Cellcom Acquisition of Golan Telecom November 2015 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can identify these statements by forward- looking w
Slide 3: Golan financial information and offer of securities notice
Golan's financial and operational information included in this press release was prepared by Golan and provided to the Company as part of Golan's representations in the Agreement. Golan's financial information included in this press release was prepared by Golan in accordance with Israeli GAAP. Isra
Slide 4: Golan Telecom Snapshot
Golan Telecom Snapshot Entered the Market in May 2012 Low Cost player with aggressive prices and basic service Apx. 900K subscribers (most of them private) (1) 32% Annual churn rate (last 4 quarters) NIS 500 million revenues (2) NIS 53 ARPU (H1 2015) (2) NIS 204 million EBITDA (1) As o
Slide 5: Transaction Summary
Transaction Summary In November 2015,Cellcom entered an agreements to a share purchase transaction (1) Total transaction value is NIS1.17 billion representing NIS 1.0 billion EV of Golan Telecom The transaction represents a multiple of 5.0x FY2015 Golan (2) Telecom Adj. EBITDA Cellcom is cur
Slide 6: Highly Complementary Combination
Highly Complementary Combination Cellcom Golan (1) Subscribers (m) 2.8 0.9 Mobile Sub. (1) Market Share 28% 9% national roaming using Networks 2G, 3G & 4G Cellcom's network A highly complementary combination, with strong synergies (1) As of September 2015 (2) Adjusted EBITDA before national roaming
Slide 7: Telecom Transactions
Telecom Transactions EBITDA Multiple 13.8 10.3 9.7 8.2 7.8 7.8 7.8 6.5 6.5 5.0 Glental Ziggo Holdings Dodo Australia Telecom New Sky Wave Intechnology Enventis Telefonica Hispasat Golan Telecom Zealand Mobile Managed Corporation Services Average Multiple x8.7 Source: public figures 2013-2015
Slide 8: Golan EV Range
Golan EV Range (1) NIS billion Low High 1.4 EV by M&A Multiple 2.8 2.0 EV by DCF 2.25 1.0 1.95 (2) Golan EV Average EV (1) Based on external valuation (2) Net of NIS 0.16 billion working capital adjustments and tax shield
Slide 9: Value Creation
Value Creation NIS billion +1.95 -0.65 -1.17 +0.40 6.80 +0.16 +0.20 5.91 (1) Cellcom EV Golan EV Golan Transaction Working Equity Sellers' Consolidated Tel Aviv SE sharing Cost Capital and offering Convertible Calculated EV 03/11/2015 agreement Tax shield Note Cancellation adjustments (1) Cancellati
Slide 10: Soft Synergies
Soft Synergies Fixed line • Access to new households – an opportunity to increase fix line services cross- penetration (using wholesale selling market) New offering of (1) • Cell phones, value added services, mobile services repairs and extended warranty Cost synergies • unify overlapping activities
Slide 11: Contact us
Contact us Shlomi Fruhling Chief Financial Officer Elad Levy Investor Relations Manager E-mail: investors@Cellcom.co.il Tel : + 972 52 9989735 Fax: + 972 52 9989700 11
Cellcom Israel — Merger or Acquisition (November 2015) on 6ix