Internet Gold - Golden Lines Ltd.
Internet Gold - Golden Lines — Investor Presentation (December 2017)
28 slides from Internet Gold - Golden Lines's investor presentation, Dec 6, 2017
Slide 1: Investors Presentation December 2017
Investors Presentation December 2017
Slide 2: Forward-Looking Statements
Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . Forward - looking statements are statements that are not histor
Slide 3: IGLD's Profile
IGLD’s Profile ▪ Internet Gold (TASE and Nasdaq : IGLD) is a telecommunications - oriented holding company . Internet Gold holds a 64 . 8 % interest in B Communications Ltd . (“BCOM”) (TASE and Nasdaq : BCOM), which in turn holds the controlling interest (approximately 26 . 3 % ) in Bezeq − The Is
Slide 4: Eurocom Group is one of the leading holding companies in Israel
3 Eurocom Group is one of the leading holding companies in Israel, highly experienced in the telecommunications market Eurocom was founded in 1979. One of Israel’s largest holding companies in Israel. Owned by Shaul Elovitch, Chairman of the Board of Directors (80% ownership) and Yossef Elov
Slide 5: Company's Management
Proven capabilities in: • Strategy creation & strategic planning • Marketing & brand development • Operational & financial management • Management of mergers & acquisitions • Capital raising - 16 major transactions » 2 IPOs – IGLD and BCOM » 12 bond issues » $ 800 million Rule 144 A offering Doron T
Slide 6: Key Milestones for IGLD
Key Milestones for IGLD From small entrepreneurial business to large holding company Internet emerges as a major commercial service IGLD decides to focus on ISP activities Expansion into Content and Value - Added Services Successful listing on NASDAQ (IGLD) (TASE dual listing 2005) 1995 To
Slide 7: Group Structure
Group Structure Eurocom Group Internet Gold Golden Lines B Communications ~ 60.6 % ~64.8% ~ 26.3 % ~ 73.7 % Walla! 100% 100 % 100 % 100 % 100% Mobile telephony and data Fixed - line, broadband infrastructure, data com Call centre services ILD, ISP, enterprise solutions Pay - TV (DTH) Internet port
Slide 8: Our Base Asset
bezea Our Base Asset
Slide 9: Bezeq is Israel's largest telecom group
Bezeq is Israel’s largest telecom group and the most comprehensive infrastructure and service provider Note: LTM results, KPIs and Subscriber based market share data are as of 4 Q ’ 16 1 Company estimates; Captures private and business sector 2 Breakdown based on gross revenue (pre elimination of in
Slide 10: The Israeli economy combines advantages of developed and emerging markets
The Israeli economy combines the advantages of developed markets and emerging economies Nominal GDP Growth, 2016 Unemployment rate Inflation rate Source: Central Bureau of Statistics data and Bank of Israel calculations Source : Credit Suisse; Israel – Bank of Israel Source: Central Bureau of Statis
Slide 11: Bezeq is the historical incumbent, controlled under a Control Permit
Bezeq is the historical incumbent and since its privatization in 2005 has been controlled under a Control Permit attached to the 30 % stake Control permit Control in Bezeq is held by holders of a pre - approved permit from the Israeli Prime Minister and the Ministry of Communications (“Control Per
Slide 12: The Bezeq Group in numbers - 2016
The Bezeq Group in numbers - 2016 11
Slide 13: Sector Leading Dividend Policy
Sector Leading Dividend Policy
Slide 14: Bezeq's Dividend Policy
Bezeq’s Dividend Policy Distribution of 100 % of its net income on a semi - annual basis 13 1 , 600 1 , 060 1 , 514 1 , 941 3 , 733 2 , 155 2 , 071 1 , 830 2 , 069 1 , 777 1 , 441 1 , 286 1 , 800 1 , 000 1 , 000 1 , 000 10.5 % 16.1 % 9.1 % 9.8 % 14.9 % 13.4 % 21.9 % 19.4 % 12.3 % 9.3 % 7.0 % 7.9 % 0
Slide 15: Bezeq's leading position supported by advanced network infrastructure
Bezeq’s leading position is supported by its fully owned advanced network infrastructure and technology across all lines of business Bezeq Fixed - Line Pelephone YES Bezeq International Leading broadband provider in Israel with over 1.56 million subscribers, approximately 69 % market share, offeri
Slide 16: Bezeq quarterly revenue, EBITDA, net profit, CapEx and cash flow
8 bezea Consolidated Revenue _(NIS Millions) Consolidated EBITDA (NIS Millions) Consolidated Net Profit (NIS Millions) Vv 2,510 2,504 2,453 2,463 2,415 350 358399 _. 1,041 g4g © «994-997 980 4185 ul I | 232016 @42016" 212017 | e227 232017 ~=VoY charge Veen rn a 40.6% Q32016 Q42016 Q12017 Q22017 Q320
Slide 17: Bezeq Financials (NIS Millions)
Bezeq Financials (NIS Millions) 16 Revenues Net Income EBITDA Free Cash Flow 9 , 055 9 , 985 10 , 084 2014 2015 2016 4 , 507 4 , 254 4 , 060 4 , 000 49.8 % 42.6 % 40.3 % 2014 2015 2016 2017F 2 , 751 2 , 251 2 , 248 2 , 000 2014 2015 2016 2017F 2 , 111 1 , 722 1 , 244 1 , 400 2014 2015 2016 2017F
Slide 18: Bezeq is well positioned for future growth
bezea Strong country economic growth State of the art infrastructure and high quality of service Regulatory limitations regarding structural separation Leading dividend yield among telecom peers New digital innovative growth engines Bezeq is well positioned for future growth in the Israeli Telecom m
Slide 19: IGLD's Unconsolidated Net Debt
18 IGLD’s Unconsolidated Net Debt December 31, 2016 Sepember 30, 2017 NIS millions NIS millions Series C debentures 389 257 Series D debentures 551 541 CPI forward 6 - Total liabilities 946 798 Cash and cash equivalents 48 20 Short-term investments 334 177 Total Liquidity 382 197 Net debt 564 601 •
Slide 20: IGLD's Unconsolidated Balance Sheet
19 IGLD’s Unconsolidated Balance Sheet December 31, 2016 September 30, 2017 Audited Unaudited Assets Cash and cash equivalents 48 20 Short-term investments 334 177 Total current assets 382 197 Investment in BCOM 758 834 Total non-current assets 758 834 Total assets 1,140 1,031 Liabilities Short-term
Slide 21: Projection of Future Debt Repayments
Projection of Future Debt Repayments (NIS millions) • All amounts include future estimated interest payments • As of November 30 , 2017 and subsequent to the debentures exchange in October, 2017 . 23 22 121 117 264 250 160 144 139 264 250 160 - 50 100 150 200 250 300 2018 2019 2020 2021 2022 Seri
Slide 22: The Bezeq Era Thank you
The Bezeq Era Thank you
Slide 23: Non-IFRS financial measures
We and the Bezeq Group’s management regularly use supplemental non - IFRS financial measures internally to understand, manage and evaluate its business and make operating decisions . The following non - IFRS measures are provided in the press release and accompanying supplemental information beca
Slide 24: Reconciliation for Non-IFRS Measures
Reconciliation for Non - IFRS Measures Three months period ended Trailling twelve months ended NIS millions September 30, 2017 Net income 322 1,215 Income tax 128 562 Share of loss in equity-accounted investee - 5 Financing expenses, net 94 433 Depreciation and amortization 436 1,696 EBITDA 980 3
Slide 25: Reconciliation for Non-IFRS Measures
Reconciliation for Non - IFRS Measures NIS millions BCOM IGLD Value of shares held * 3,817 1,231 Net debt 1,917 601 NAV 1,900 630 * Please refer to glossary. As at September 30, 2017 NIS Millions Bezeq BCOM IGLD Short term bank loans and credit and debentures 555 257 185 Non-current bank loans an
Slide 26: Reconciliation for Non-IFRS Measures
Reconciliation for Non - IFRS Measures NIS Millions Bezeq's equity market cap. * 14,491 Bezeq's Net Debt 8,968 Bezeq's Enterprise Value 23,459 TTM EBITDA 3,911 EV/EBITDA 6.0 The following table shows the calculation of the Bezeq Group’s EV and EV to EBITDA:
Slide 27: Glossary
Glossary Term Definition TTM Trailing twelve months LTM Last twelve months KPI Key performance indicator TMT Telecom, Media & Technology Liquidity balances Cash and cash equivalents and short term investments. Net debt Long and short term bank loans and debentures minus cash and cash equivalents
Slide 28: Glossary
Glossary Term Definition Internet Gold’s NAV Value of IGLD’s share in BCOM’s NAV less IGLD’s unconsolidated net debt. Net debt / EBITDA Proportional net debt to EBITDA according to company’s holding ratio in its subsidiaries. Market Capitalization Market cap. Figures in this presentation are as o
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