Partner Communications Co. Ltd. · TASE:PTNR

Partner Communications — Q1 2015 Earnings Presentation

24 slides from Partner Communications's earnings presentation, 2015

  1. Slide 1: The future is bright. The future is orange

    The future is bright. The future is orange Company and Financial Overview Q1 2015 Results

  2. 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

  3. Slide 3: Company overview

    Company overview orange”

  4. Slide 4: Strategic pillars: Orange brand, innovation, customer centricity

    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 – “

  5. 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

  6. Slide 6: Shareholder structure

      S.B. Israel Telecom 30.5% Public float Scailex 63.5% 6.0% 6

  7. 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 network

  8. Slide 8: Market overview

    Viarket overview

  9. Slide 9: ARPU decline 2011 to 2015

    2011 2015 Partner Q1’11 ARPU: NIS 115 Partner Q1’15 ARPU: NIS 69 9

  10. Slide 10: Wholesale market, LTE tender, TV / Schejter Committee

    Wholesale market LTE tender TV / Schejter Committee International calls Roaming Premium calls 10

  11. Slide 11: Financial overview

    Financial overview

  12. Slide 12: Q1'15 key financial results

    Q1’ 15 Q1’ 14 YoY change Total revenue (NIS, M) 1,054 1,103 -4% Service revenue (NIS, M) 759 876 -13% Equipment revenue (NIS, M) 295 227 +30% EBITDA (NIS, M) 227 274 -17% EBITDA margin 22% 25% -3 ppt Profit (NIS, M) 25 52 -52% Free cash flow (NIS, M) 21 145 -86% Cellular ARPU (NIS) 69 77 -10% Quarte

  13. Slide 13: Cellular subscribers, ARPU and churn rate

    Cellular subscribers (EOP, in thousands) Cellular ARPU (in NIS) 160 3,500 3,176 140 2,976 2,956 3,000 2,837 2,774 120 894 111 2,500 874 823 705 662 100 97 83 2,000 77 80 75 76 76 71 69 1,500 60 2,282 2,102 2,133 2,132 2,112 1,000 40 500 20 0 0 Q1'15 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Post-paid Pre-paid 1

  14. Slide 14: Subscriber movement post-paid and pre-paid

    170 174 2,837 123 2,774 182 705 662 2,132 2,112 December 31, March 31, Port In Non Port-In Sales Port Out Non Port-Out Churn 2014 2015 Post-Paid subscribers Pre-Paid subscribers 14

  15. Slide 15: 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 1,087 1,102 1,108 1,054 1,000 225 240 300 295 862 862 808 759 0 Q2'14 Q3'14 Q4'14 Q1'15 Service Revenues Equipment Revenues 15

  16. Slide 16: Quarterly results (NIS million)

    900 889 800 NIS million 744 700 675 661 657 642 630 604 600 500 Q4'11 Q4'12 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 16

  17. Slide 17: Adjusted EBITDA and margin

    39% 40% 2,500 35% 31% 29% 2,178 30% 2,000 25% 25% 25% % total revenues NIS million 22% 1,500 1,602 20% 1,000 15% 1,114 1,096 10% 500 5% 274 227 - 0% Q1'14 Q1'15 Adjusted EBITDA Adjusted EBITDA margin 17

  18. Slide 18: Net debt and cash

    5,171 532 4,639 1,061 3,550 1,300 65 969 NIS million 437 675 2,581 December 31, Scheduled Prepayments** New Loans Linkage Cash March 31, 2015 2011 Repayments differences & other * Net debt Cash 18

  19. Slide 19: Debt series amounts and maturities

    Annual Yield Amount to Maturity Series (NIS M) Coupon Duration Linkage (a/o 31/03) TOTAL 3,550 19

  20. Slide 20: Income bridge Q1'14 to Q1'15

    274 227 101 1 57 NIS million 15 14 1 Q1’14 Cellular Service Fixed Line Intersegment Equipment Operating Other Income Q1’15 Revenues Service Revenues Gross Profit Service Revenues Elimination Expenses 20

  21. Slide 21: Income bridge Q4'14 to Q1'15

    249 34 227 3 18 26 3 2 NIS million Q4’14 Cellular Service Fixed Line Intersegment Equipment Gross Operating Other Income Q1’15 Revenues Service Revenues Revenues Profit Service Expenses Elimination 21

  22. Slide 22: Balance sheet and cash flow

    Assets NIS million Liabilities and Equity NIS million Cash and cash equivalents 969 Current maturities of borrowings & notes payable 314 Trade receivables and other 1,040 Trade payables 716 Inventories 93 Other current liabilities 275 Total Current Assets 2,102 Total Current Liabilities 1,305 Trade

  23. Slide 23: 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   23

  24. Slide 24: Investor relations contacts

    Ziv Leitman CFO +972 (54) 781 4951 Liat Glazer Shaft Head of Investor Relations +972 (54) 781 5051 investors@orange.co.il Investor website: www.orange.co.il/en/Investors-Relations/lobby/ 24

Partner Communications Company — Q1 2015 Earnings Presentation on 6ix