Partner Communications Co. Ltd. · TASE:PTNR

Partner Communications — Q2 2014 Earnings Presentation

22 slides from Partner Communications's earnings presentation, 2014

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

    The future is bright. The future is orange Company Presentation & Q2’14 Update

  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: 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

  5. Slide 5: 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

  6. Slide 6: 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

  7. Slide 7: Public float

      S.B. Israel Telecom Public float 30.9% 57.2% Scailex & Suny 11.9% 7

  8. Slide 8: Market overview

    Viarket overview

  9. Slide 9: Highly competitive cellular market

    Highly competitive cellular market 2014 KK Cellcom 8 bezea telecom Golan Erie wpa nad SI cellact “SEY sn7omn MOBILE 9 orange”

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

    Wholesale market LTE tender TV / Schejter Committee International calls Premium calls IBC fiber optic project 10

  11. Slide 11: Quarterly update

    Quarterly update

  12. Slide 12: Q2'14 results summary

    Q2’ 14 Q2’ 13 YoY change Total revenue (NIS, M) 1,087 1,130 -4% Service revenue (NIS, M) 862 950 -9% Equipment revenue (NIS, M) 225 180 +25% EBITDA (NIS, M) 291 280 +4% EBITDA margin 27% 25% +2 ppt Net income (NIS, M) 46 20 +130% Free cash flow (NIS, M) 192 287 -33% Cellular ARPU (NIS) 76 83 -8% Qua

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

    Cellular subscribers (in thousands) Cellular ARPU (in NIS) 3,500 140 3,160 3,176 122 2,976 2,956 2,936 120 3,000 2,914 111 870 894 2,500 874 823 799 776 100 97 83 2,000 80 77 76 1,500 60 2,290 2,282 2,102 2,133 2,137 2,138 1,000 40 500 20 0 0 Q1'14 Q2'14 Q1'14 Q2'14 Post-paid Pre-paid 14% Cellular c

  14. Slide 14: Service and equipment revenues (NIS million)

    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 1,127 1,103 1,087 1,000 205 227 225 922 876 862 0 Q4'13 Q1'14 Q2'14 Service Revenues Equipment Revenues 14

  15. Slide 15: NIS million

    952 900 889 800 NIS million 744 720 700 696 700 675 661 642 600 500 Q3'11 Q4'11 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 15

  16. Slide 16: Adjusted EBITDA and margin

    39% 40% 2,500 2,570 35% 31% 29% 2,178 30% 2,000 27% 25% 25% 25% % total revenues NIS million 1,500 1,602 20% 1,000 15% 1,114 10% 500 5% 280 291 - 0% Q2'13 Q2'14 Adjusted EBITDA Adjusted EBITDA margin 16

  17. Slide 17: Net Debt / Adjusted EBITDA

    5,500 3.5 5,000 4,639 3.0 4,500 4,000 3,812 2.7 2.4 2.5 Net Debt / Adjusted EBITDA 3,500 3,395 2.4 3,000 2.0 3,000 2.1 NIS million 2,735 2,500 1.5 2,000 1.3 1,500 1.0 1,000 0.5 500 0 - Q2'14 Net Debt Net debt / Adjusted EBITDA 17

  18. Slide 18: Debt series amounts and maturities

    Annual Yield to Amount Maturity Series (NIS M)* Coupon Duration Linkage (a/o 6/30) TOTAL 3,393 18

  19. Slide 19: Adjusted EBITDA evolution Q2'13 vs. Q2'14

    Adjusted EBITDA* evolution Q2’13 vs. Q2’14 8 291 280 58 59 NIS million 49 29 0 Q2’13 Cellular Service Fixed Line Intersegment Equipment Operating Other Income Q2’14 Revenues Service Revenues Gross Profit Service Revenues Elimination Expenses 19

  20. Slide 20: Adjusted EBITDA evolution Q1'14 vs. Q2'14

    Adjusted EBITDA* evolution Q2’13 vs. Q2’14 291 1 19 274 13 13 NIS million 1 2 Q1’14 Cellular Service Fixed Line Intersegment Equipment Gross Operating Other Income Q2’14 Revenues Service Revenues Revenues Profit Service Expenses Elimination 20

  21. Slide 21: Balance sheet and free cash flow

    Assets NIS million Liabilities and Equity NIS million Cash and cash equivalents 643 Current maturities of Notes payables and loans 308 Trade receivables and other 1,025 Trade payables 733 Inventories 99 Other current liabilities 267 Total Current Assets 1,767 Total Current Liabilities 1,308 Trade re

  22. Slide 22: 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/ 22

Partner Communications Company — Q2 2014 Earnings Presentation on 6ix