Internet Gold - Golden Lines Ltd.
Internet Gold - Golden Lines — Investor Presentation (May 2016)
20 slides from Internet Gold - Golden Lines's investor presentation, May 31, 2016
Slide 1: The Bezeq Era Investors Presentation May 2016
The Bezeq Era Investors Presentation May 2016
Slide 2: Forward-Looking Statement
Forward - Looking Statement 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 histori
Slide 3: IGLD's Profile
IGLD’s Profile ▪ Internet Gold (TASE and Nasdaq : IGLD) is a telecommunications - oriented holding company . Internet Gold’s holds 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: Bezeq, B-Com and IGLD are ultimately controlled by the Eurocom Group
3 Bezeq , B - Com and IGLD are ultimately controlled by the Eurocom Group, the most experienced operator in the Israeli telecommunications field Eurocom was founded in 1979 One of Israel’s largest holding companies with a strong presence in Israel and a growing international presence Owned by
Slide 5: Eurocom: Israel's Largest Communications Footprint
4 Relative strength Company within the group Internet access 5 Internet Services Internet VAS residential 5 Internet business 5 e-Advertising 5 e-Commerce 5 Date Services 5 ILD 5 Fixed telephony 5 Mobile 5 Multi channel TV 5 Telecom & consumer electronics. 5 Satellite services 5 Eurocom: Israel’s La
Slide 6: Experienced, Disciplined Leadership
Proven capabilities in: • Strategy creation & strategic planning • Marketing & brand development • Operational & financial management • Management of mergers & acquisitions • Creation of partnerships • Capital raising: 13 major transactions • 2 IPOs – IGLD and BCOM • 10 bond issues • $ 800 million R
Slide 7: Key Milestones for IGLD
Key Milestones for IGLD From small entrepreneurial business to large holding company Founded in 1999 under the name Goldtrade , operating in the field of e - commerce, as a subsidiary of IGLD, and as the operator of the e - commerce web site P 1000 In 2004 , IGLD increases its holdings in the
Slide 8: Group Structure
Group Structure Eurocom Group Internet Gold Golden Lines BCOM ~ 63.8 % ~ 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 portal Free
Slide 9: Reduction in LTV According to BCOM's NAV
Reduction in LTV According to BCOM’s NAV ( NIS Millions ) 48 % 31 % 0% 10% 20% 30% 40% 50% 60% (1,000) (500) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 15 May 15 IGLD's share in BCOM's NAV IGLD's Net Debt LTV
Slide 10: Reduction in LTV According to Market Value
Reduction in LTV According to Market Value (NIS Millions ) 65 % 38 % 0% 10% 20% 30% 40% 50% 60% 70% 80% (1,000) (500) 0 500 1,000 1,500 2,000 2,500 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 15 May 15 Market value of IGLD's holding in BCOM IGLD's Net Debt LTV
Slide 11: Bezeq, Our Base Asset
bezea Bezeq, Our Base Asset 10
Slide 12: Bezeq: Israel's Most Comprehensive Communications Infrastructure and Service Provider
11 Bezeq : Israel’s Most Comprehensive Communications Infrastructure and Service Provider Level B Level B Fixed - Line Fixed - line, broadband infrastructure, data com 2015 Rev . NIS 4.41 bn 2015 EBITDA NIS 2.87 bn Bezeq Int’l ILD, ISP, enterprise solutions 2015 Rev . NIS 1.58 bn 2015 EBITDA NIS 372
Slide 13: Bezeq Financials (NIS Millions)
Revenues Net income attributable to shareholders EBITDA Free cash flow 9 , 563 9 , 055 9 , 985 2013 2014 2015 4 , 477 4 , 507 4 , 254 43.6 % 49.8 % 42.6 % 2013 2014 2015 Source : Bezeq’s press release * Free cash flow is defined as free cash flows from operating activities less net payments for i
Slide 14: Bezeq's Dividend Policy
Bezeq’s Dividend Policy distribution of 100 % of its net income on a semi - annual basis Dividend Yield from 2006 to 201 Source: Bezeq Dividend Yield is based on average market cap during the period • Based on its ownership interest, BCOM will receive ~ % of Bezeq’s annual dividends • Since 2
Slide 15: IGLD's Cash Position
14 IGLD’s Cash Position IGLD’s Unconsolidated Balance Sheet Data* NIS millions Unaudited Short term liabilities 140 Long term liabilities 793 Total liabilities 933 Cash and cash equivalents** 169 Total net debt 764 * Does not include the balance sheet of BCOM ** On June 29, 2016 ,IGLD expects to rec
Slide 16: IGLD's Solo Balance Sheet
15 IGLD’s Solo Balance Sheet December 31, 2015 March 31, 2016 Statements of Financial Position Audited Unaudited Assets Cash and cash equivalents 38 5 Investments including derivatives 239 164 Total current assets 277 169 Deferred tax asset 11 - Investments in investee 698 1,128 Total non-current as
Slide 17: IGLD During The Last Months
16 IGLD During Last 15 Months IGLD During The Last 15 Months December 31,2014 March 31, 2016 IGLD's share in Bcom's Market cap (NIS Billions) 1.40 1.98 IGLD's share in Bcom's NAV (NIS Billions) 2.21 2.46 Net Financial Debt (NIS Billions) (1) 0.82 0.76 NAV (NIS Billions) (2) 1.39 1.69 Debt Weighted D
Slide 18: Midroog Raised the Rating of the Company's Debentures
Midroog Raised the Rating of the Company’s Debentures from Baa 1 .il to A 3 .il On February 9 , 2016 , Midroog Ltd . , an Israeli rating company affiliated with Moody’s (“ Midroog ”) has raised the local rating of the Company’s Series C and D Debentures from Baa 1 . il to A 3 . il, with a stable
Slide 19: Projection of Future Debt Repayment
Projection of Future Debt Repayment (NIS millions) • All amounts include future estimated interest payments • As of May 26 , 2016 9 143 137 131 16 32 85 82 184 175 112 25 175 222 213 184 175 112 - 50 100 150 200 250 2016 2017 2018 2019 2020 2021 2022 Series C Debentures Series D Debentures
Slide 20: The Bezeq Era Thank you
The Bezeq Era Thank you
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