Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Q3 2014 Earnings Presentation
23 slides from Partner Communications's earnings presentation, 2014
Slide 1: The future is bright. The future is orange
The future is bright. The future is orange Company Presentation & Q3’14 Update
Slide 2: Safe harbor statement
Safe harbor statement 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 Securities Litigation Reform
Slide 3: Company overview
Company overview orange”
Slide 4: Strong execution – continued investment in the business
™ Strong execution – continued investment in the business Defined strategy to meet market challenges Financial strength Value-added controlling shareholder 4
Slide 5: A comprehensive product offering
A comprehensive product offering hn + a Cellular services Content Services Comm Devices Repair Services & Accessories & ft ia X. Cloud services Hosting Transmission Home Telephony Ma @ B S ISP International Calls Internet Security Products and services are offered under the orange and / or 012 brand
Slide 6: Strategy
strategy Excellence in orange™ - Comprehensive First in launching Optimizing Employee enhancing the premium value proposition Orange 4G synergies between nurturing i 4 the organization’s i customer brand in the field of Developing growth g s Unique communications, \ engines and \ units \ organizatio
Slide 7: Future savings from network sharing agreement with HOT Mobile
Future savings from network sharing agreement with HOT Mobile » Network sharing agreement business model = HOT Mobile to pay one-time amount by 2017 = CAPEX — shared equally = OPEX — 50% shared equally and 50% split based on traffic = Key benefits = Savings in CAPEX and OPEX = Smaller number of netw
Slide 8: Public float and S.B. Israel Telecom ownership
S.B. Israel Telecom Public float 30.8% 58.7% Scailex 10.5% 8
Slide 9: Market overview
Viarket overview
Slide 10: Partner ARPU Q3'11 vs Q3'14
2011 2014 Partner Q3’11 ARPU: NIS 111 Partner Q3’14 ARPU: NIS 76 10
Slide 11: Wholesale market, LTE tender, TV / Schejter Committee
Wholesale market LTE tender TV / Schejter Committee International calls Roaming Premium calls 11
Slide 12: Quarterly update
Quarterly update
Slide 13: Q3'14 key financial results
Q3’ 14 Q3’ 13 YoY change Total revenue (NIS, M) 1,102 1,118 -1% Service revenue (NIS, M) 862 951 -9% Equipment revenue (NIS, M) 240 167 +44% EBITDA (NIS, M) 282 284 -1% EBITDA margin 26% 25% +1 ppt Profit (NIS, M) 40 38 +5% Free cash flow (NIS, M) 112 273 -59% Cellular ARPU (NIS) 76 84 -10% Quarterl
Slide 14: Cellular subscribers, ARPU and churn rate
Cellular subscribers (EOP, in thousands) Cellular ARPU (in NIS) 3,500 140 3,160 3,176 122 2,976 2,956 2,936 120 3,000 2,914 2,894 111 870 894 2,500 874 823 799 776 749 100 97 83 2,000 80 77 76 76 1,500 60 2,290 2,282 2,102 2,133 2,137 2,138 2,145 1,000 40 500 20 0 0 Q1'14 Q2'14 Q3'14 Q1'14 Q2'14 Q3'
Slide 15: Service and equipment revenues
6,998 7,000 6,000 1,774 5,572 5,000 932 4,519 NIS million 4,000 735 3,000 5,224 4,640 2,000 3,784 1,103 1,087 1,102 1,000 227 225 240 876 862 862 0 Q1'14 Q2'14 Q3'14 Service Revenues Equipment Revenues 15
Slide 16: NIS million quarterly trend
952 900 889 800 NIS million 744 720 700 696 700 675 661 657 642 600 500 Q3'11 Q4'11 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 16
Slide 17: Adjusted EBITDA and margin
39% 40% 2,500 2,570 35% 31% 29% 2,178 30% 2,000 25% 25% 26% 25% % total revenues NIS million 1,500 1,602 20% 1,000 15% 1,114 10% 500 5% 284 282 - 0% Q3'13 Q3'14 Adjusted EBITDA Adjusted EBITDA margin 17
Slide 18: Net debt / Adjusted EBITDA
5,500 3.5 5,000 4,639 3.0 4,500 4,000 3,812 2.7 2.5 Net Debt / Adjusted EBITDA 3,500 3,395 2.4 2.3 3,000 2.0 3,000 2.1 NIS million 2,637 2,500 1.5 2,000 1.3 1,500 1.0 1,000 0.5 500 0 - Q3'14 Net Debt Net debt / Adjusted EBITDA 18
Slide 19: Debt series amounts and maturities
Annual Yield to Amount Maturity Series (NIS M)* Coupon Duration Linkage (a/o 30/9) TOTAL 3,399 19
Slide 20: Adjusted EBITDA evolution Q3'13 vs Q3'14
Adjusted EBITDA* evolution Q3’13 vs. Q3’14 284 282 6 39 80 NIS million 54 8 1 Q3’13 Cellular Service Fixed Line Intersegment Equipment Operating Other Income Q3’14 Revenues Service Revenues Gross Profit Service Revenues Elimination Expenses 20
Slide 21: Adjusted EBITDA evolution Q2'14 vs Q3'14
Adjusted EBITDA* evolution Q2’14 vs. Q3’14 291 6 2 11 15 282 9 0 NIS million Q2’14 Cellular Service Fixed Line Intersegment Equipment Gross Operating Other Income Q3’14 Revenues Service Revenues Revenues Profit Service Expenses Elimination 21
Slide 22: Balance sheet summary
Assets NIS million Liabilities and Equity NIS million Cash and cash equivalents 749 Current maturities of Notes payables and loans 309 Trade receivables and other 938 Trade payables 682 Inventories 110 Other current liabilities 274 Total Current Assets 1,797 Total Current Liabilities 1,265 Trade rec
Slide 23: Investor relations contacts
Ziv Leitman CFO +972 (54) 781 4951 Elana Holzman Head of Investor Relations +972 (54) 781 4383 investors@orange.co.il Investor website: www.orange.co.il/en/Investors-Relations/lobby/ 23
Partner Communications Company — Q3 2014 Earnings Presentation on 6ix