Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — FY2014 Earnings Presentation
26 slides from Partner Communications's earnings presentation, 2015
Slide 1: The future is bright. The future is orange
The future is bright. The future is orange Company and Financial Overview Q4 and Annual 2014 Results
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: Total communications company: strategic pillars
Total Innovation & tech Operational Customer Dual Branding communications Excellence Human Capital Centric leadership company Excellence in Orange TM Comprehensive First to launch Optimizing Employee enhancing the Premium brand value added Orange 4G synergies nurturing customer 012 – “
Slide 5: A comprehensive product offering
A comprehensive product offering i + a Cellular services Content Services Comm Devices Repair Services & Accessories > @ gS g a Cloud services ISP Broadband International Calls Infrastructure XY - ft £3 Home Telephony Intemet Security Hosting Transmission Products and services are offered under the
Slide 6: Shareholder structure
S.B. Israel Telecom 30.5% Public float Scailex 63.5% 6.0% 6
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: Market overview
Viarket overview
Slide 9: Partner ARPU 2011 vs 2014
2011 2014 Partner 2011 ARPU: NIS 111 Partner 2014 ARPU: NIS 75 9
Slide 10: Wholesale market, LTE tender, TV, roaming
Wholesale market LTE tender TV / Schejter Committee International calls Roaming Premium calls 10
Slide 11: Financial overview
Financial overview
Slide 12: Annual 2014 results summary
2014 2013 YoY change Total revenue (NIS, M) 4,400 4,519 -3% Service revenue (NIS, M) 3,408 3,784 -10% Equipment revenue (NIS, M) 992 735 +35% EBITDA (NIS, M) 1,096 1,114 -2% EBITDA margin 25% 25% No change Profit (NIS, M) 162 135 +20% Net debt (NIS, M) 2,612 3,000 -388 Free cash flow (NIS, M) 520 1,
Slide 13: Q4 2014 results summary
Q4’ 14 Q4’ 13 YoY change Total revenue (NIS, M) 1,108 1,127 -2% Service revenue (NIS, M) 808 922 -12% Equipment revenue (NIS, M) 300 205 +46% EBITDA (NIS, M) 249 282 -12% EBITDA margin 22% 25% -3 ppt Profit (NIS, M) 24 46 -48% Free cash flow (NIS, M) 71 278 -74% Cellular ARPU (NIS) 71 81 -12% Quarte
Slide 14: Cellular subscribers, ARPU and churn rate
Cellular subscribers (EOP, in thousands) Cellular ARPU (in NIS) 160 148 3,500 3,160 3,176 140 2,976 2,956 2,936 3,000 2,914 2,894 2,837 2,837 120 111 870 894 874 823 799 2,500 705 776 749 705 97 100 83 2,000 75 77 76 76 71 80 1,500 60 2,290 2,282 2,102 2,133 2,132 2,137 2,138 2,145 2,132 1,000 40 50
Slide 15: Subscriber movements
719 625 515 728 2,956 2,837 823 705 2,133 2,132 December 31, Port In Non Port-In Sales Port Out Non Port-Out Churn December 31, 2013 2014 Post-Paid subscribers Pre-Paid subscribers 15
Slide 16: Service and equipment revenues
7,000 6,000 5,572 5,000 932 4,519 4,400 NIS million 4,000 735 992 3,000 4,640 2,000 3,784 3,408 1,103 1,087 1,102 1,108 1,000 227 225 240 300 876 862 862 808 0 Q1'14 Q2'14 Q3'14 Q4'14 Service Revenues Equipment Revenues 16
Slide 17: Quarterly trend
900 889 800 NIS million 744 700 675 661 657 642 630 600 500 Q4'11 Q4'12 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 17
Slide 18: Adjusted EBITDA and margin
39% 40% 2,500 35% 31% 29% 2,178 30% 2,000 25% 25% 25% % total revenues 22% NIS million 1,500 1,602 20% 1,000 15% 1,114 1,096 10% 500 5% 282 249 - 0% Q4'13 Q4'14 Adjusted EBITDA Adjusted EBITDA margin 18
Slide 19: Net debt and cash
5,171 532 4,639 1,061 3,275 1,123 663 NIS million 88 131 200 2,612 December 31, Scheduled Prepayments** New Loans Linkage Cash December 31, 2011 Repayments differences & 2014 other * Net debt Cash 19
Slide 20: Debt series and maturities
Annual Yield Amount to Maturity Series (NIS M) Coupon Duration Linkage (a/o 31/12) TOTAL 3,275 20
Slide 21: Annual EBITDA bridge 2013 to 2014
1,114 1,096 29 201 289 186 81 6 NIS million 2013 Cellular Service Fixed Line Intersegment Equipment Operating Other Income 2014 Revenues Service Revenues Gross Profit Service Revenues Elimination Expenses 21
Slide 22: EBITDA bridge Q4'13 to Q4'14
282 6 249 106 45 42 NIS million 8 0 Q4’13 Cellular Service Fixed Line Intersegment Equipment Operating Other Income Q4’14 Revenues Service Revenues Gross Profit Service Revenues Elimination Expenses 22
Slide 23: EBITDA bridge Q3'14 to Q4'14
282 45 249 3 9 27 0 3 NIS million Q3’14 Cellular Service Fixed Line Intersegment Equipment Gross Operating Other Income Q4’14 Revenues Service Revenues Revenues Profit Service Expenses Elimination 23
Slide 24: Balance sheet and free cash flow
Assets NIS million Liabilities and Equity NIS million Cash and cash equivalents 663 Current maturities of borrowings & notes payable 309 Trade receivables and other 1,016 Trade payables 804 Inventories 138 Other current liabilities 272 Total Current Assets 1,817 Total Current Liabilities 1,385 Trade
Slide 25: 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 25
Slide 26: 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/ 26
Partner Communications Company — FY2014 Earnings Presentation on 6ix