Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Q3 2011 Earnings Presentation
21 slides from Partner Communications's earnings presentation, 2011
Slide 1: Company Presentation Q3 2011
Company Presentation Q3 2011
Slide 2: Safe Harbor Statement
g 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 Safe Securities Litigation Reform Act of 1995. W
Slide 3: Agenda
agenda 1.Partner Highlights 2.The Israeli Telecommunications Market 3.Financial and Operational Performance 4.Partner’s Strategic Direction 3
Slide 4: Partner Today
Partner Today A leading telecommunications company operating in Israel under the “orange” brand Strong brand and market presence 32% estimated cellular market share Clear strategy to evolve into a diversified Multi-Service Communications and Content Media Service group, including 012 Smile, a leadin
Slide 5: Q3/11 Highlights
Q3/11 Highlights * Financial Results g Revenues of NIS 1.8 billion ($ 472 million) g Service Revenues of NIS 1.4 billion ($ 368 million) g Equipment Revenues of NIS 0.4 billion ($ 104 million) g EBITDA of NIS 529 million ($ 143 million), 30% of total revenues g Net profit of NIS 172 million ($ 47 mi
Slide 6: Q3/11 YTD Highlights
Q3/11 YTD Highlights * Financial Results g Revenues of NIS 5.4 billion ($ 1.5 billion) g Service Revenues of NIS 3.9 billion ($ 1.1 billion) g Equipment Revenues of NIS 1.5 billion ($ 396 million) g EBITDA of NIS 1.7 billion ($ 458 million), 31% of total revenues g Net profit of NIS 631 million ($ 1
Slide 7: Ownership Structure
Ownership Structure Partner's Ownership Structure * Suny, 1.40% Leumi g In October 2009, Scailex Corporation Scailex, Partners, 4.99% acquired the controlling equity interest in 44.54% Israeli Partner from Hutchison Telecom (through its Holders, 3.25% subsidiary Advent) Public, 45.82% g Scailex is a
Slide 8: Agenda
agenda 1.Partner Highlights 2.The Israeli Telecommunications Market 3.Financial and Operational Performance 4.Partner’s Strategic Direction 8
Slide 9: The Cellular Market in Israel
The Cellular Market in Israel Start of No. of Operations Subscribers * Major Shareholder Partner 1999 3,201k Scailex Corporation Cellcom 1995 3,391k IDB Group Pelephone 1986 2,933k Bezeq MIRS 1997 475k Altice (Patrick Drahi) Q3-11 Estimated Market Q3-11 Estimated Market Subscriber Growth (EOP in ‘00
Slide 10: Regulatory Environment – Cellular
Regulatory Environment – Cellular* g Reduction of interconnect tariffs to be paid to cellular operators n In 2011, approximate 71% reduction in interconnect voice tariff and approximate 94% reduction in interconnect SMS tariff, to be followed by additional reductions in 2012-2014 g Selection of two
Slide 11: Regulatory Environment – Fixed Line
Regulatory Environment – Fixed Line* g The Hayek committee that was set up to recommend on new Bezeq’s fixed line tariffs and future regulations including wholesale market tariffs published its recommendations in October 2011 n Regulator to set maximum wholesale cost-based tariffs to be reviewed eve
Slide 12: Agenda
agenda 1.Partner Highlights 2.The Israeli Telecommunications Market 3.Financial and Operational Performance 4.Partner’s Strategic Direction 12
Slide 13: Key Business Indicators (Cellular)
Key Business Indicators (Cellular) Subscriber Growth (EOP, in 000’)* Content and Data Revenues % Service Revenues 3,500 3,160 3,201 3,042 30% 2,860 2,898 27.4% 3,000 2,668 892 2,529 811 870 2,500 2,340 792 745 781 754 20% 18.7% 2,000 700 16.8% 14.9% 1,500 12.7% 10.1% 2,153 2,231 2,290 2,309 10% 8.7%
Slide 14: Financial Performance
Financial Performance* Total Revenue US GAAP IFRS in NIS millions Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 8,000 Revenues 1,650 1,761 1,771 1,887 1,751 7,000 6,674 6,302 Cost of Revenues 995 1,120 1,188 1,301 1,210 6,114 6,079 6,000 5,607 5,409 Gross Profit 655 641 583 586 541 5,123 4,913 5,000 S,G&A
Slide 15: High Financing Capacity
High Financing Capacity * Net debt / EBITDA1 CAPEX2 / Revenue 5,500 US GAAP IFRS 3.0 8,000 US GAAP IFRS 16% 5,000 4,718 7,000 6,674 14% 4,500 2.5 6,302 6,114 6,079 6,000 5,607 4,000 12% Capex as % Total Revenues 5,409 2.1 2.0 5,123 11% 3,500 3,395 4,913 Net Debt / EBITDA 5,000 2,764 10% NIS millions
Slide 16: EBITDA Evolution Q3'10-Q3'11 (NIS M)
EBITDA Evolution Q3’10-Q3’11 (NIS M)* Partner: +13 Interconnect: +4 012 Smile: +60 Intersegment:-14 Revenues: +191 Expenses: +152 Revenues: -282 Other Income: +14 Expenses: -165 (excludes one-time provision of NIS 6M in Q3’10) 641 529 Q3 2010 Q3 2011 16 * The analysis is presented net of intersegmen
Slide 17: Partner Creates Value for its Shareholders
Partner Creates Value for its Shareholders For 2011, dividend policy to distribute at least 80% of net income Return to Shareholders (NIS m) 3,000 200% 98% 180% 2,500 160% 2,000 140% NIS millions 1,400 120% 1,500 53% 80% 100% 93% 1,000 1,091 351 80% 80% 60% 60% 1,220 500 1,059 55% 752 841 40% 410 35
Slide 18: Agenda
agenda 1.Partner Highlights 2.The Israeli Telecommunications Market 3.Financial and Operational Performance 4.Partner’s Strategic Direction 18
Slide 19: Partner's Strategy
Partner’s Strategy 1. Excellence in customer experience, creating differentiation in the level of customer service, while providing added value to our customers 2. Improving operational efficiency, adjusting costs and workforce to a level appropriate for current market conditions 3. Realizing the fu
Slide 20: In Summary
In Summary Partner offers a strong brand and a clear strategy to evolve into a multi-service communications group Future sources of growth Non cellular service revenues Increase in data and content revenues 20
Slide 21: Keep in touch
Keep in touch Ziv Leitman, CFO investors@orange.co.il +972 54 781 4951 Yaffa Cohen-Ifrah, Head of Investor Relations Yaffa.cohenifrah@orange.co.il +972 54 909 9039 Investors’ website: http://www.orange.co.il/en/Investors-Relations/lobby/ 21
Partner Communications Company — Q3 2011 Earnings Presentation on 6ix