Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Q3 2020 Earnings Presentation
22 slides from Partner Communications's earnings presentation, Nov 25, 2020
Slide 1: Company & Financial Overview
Company & Financial Overview November 25, 2020
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
Slide 3: Company Overview
Company Overview
Slide 4: Partner leading Israeli Telco group
Partner leading Israeli Telco group Strengthening customer reach through growth engines and value Cellular Partner Fiber Partner TV Broadband and Business Solutions 26% MS ~13% MS ISP operation Leading service provider 2,762K sub. ~700K ~229K sub.* households reached* * As of November 25, 2020 4
Slide 5: Subscribers by segment (thousands)
(thousands) * Change in Q3 2020 vs. Q2 2020 ** As of November 25th, 2020 5
Slide 6: Coronavirus Crisis - update
Coronavirus Crisis - update 6
Slide 7: Cellular – main points
Cellular – main points Advanced network Partner More - Value Strategy & 012 mobile - Low cost brand Acquired 5G frequencies from the MoC and has a compatible 5G core to enable 5G services 5G frequencies tender - expected to receive the highest Value offerings to the customer – More for More gr
Slide 8: Cellular ARPU & Churn
Cellular ARPU & Churn Consistent decline in churn rate Cellular ARPU (NIS) Cellular churn (%) ~30%* * Annual rate for 2020 on a run-rate basis 8
Slide 9: Partner's Fiber Optic network
Partner's Fiber Optic network Partner is an infrastructure player in the fixed line market Intention to deploy massive coverage of potential households in Israel within approx. 2.5 years Expected payback period of 7 years OPEX savings - replacing wholesale infrastructure with independent infra
Slide 10: Fiber Optic network EBITDA impact sensitivity analysis
Partner's Fiber Optic network Company EBITDA Impact Sensitivity Analysis (NIS M) Potential Opex saving vs wholesale market payments (NIS per month) 75 80 85 90 95 No. Customers (000s) 50 45 48 51 54 57 100 90 96 102 108 114 150 135 144 153 162 171 200 180 192 204 216 228 250 225 240 255 270 285 300
Slide 11: Presence in ~65% of cities in Israel
Afula Lod Ashdod Ma'ale Adumim Ashkelon Modi’in-Maccabim-Re’ut Azor Naharia Bat Yam Netanya Be'er Ya'akov Ness Ziona Be’er Sheva Nesher Presence in ~65% Eilat Netivot Givat Shmuel Or Yehuda of of cities in Israel Givatayim Or Akiva Ganei Tikva Pardes Hanna-Karkur Hod Hasharon Petah Tikva Herzliya Ra
Slide 12: Partner TV
Partner TV Strategy of super aggregator as well as offering traditional TV services (linear channels, VOD etc) Partnership with Netflix (including joint TV packages), Amazon Prime Video & Spotify Offering cloud gaming service as a supplementary service to our TV platform Flexible content cos
Slide 13: Partner TV subscriber base
Partner TV subscriber base (EOP, '000s) 13
Slide 14: Partner's Business Solutions
Partner's Business Solutions Integrated Hybrid Solutions Hosting IT Networking Cellular Wired International Integration Security Integration Telephony Communications 14
Slide 15: Financial Overview
Financial Overview <5
Slide 16: Adjusted EBITDA and Adjusted FCF
Adjusted EBITDA and Adjusted FCF Significant CAPEX outlay in new revenue engines of fiber optic network and TV from 2017 Adjusted EBITDA & Adjusted EBITDA* margin (NIS, million) Adjusted Free Cash Flow (before interest) (NIS, million) * Adjusted EBITDA figures from 2017 include impact of adoption of
Slide 17: Decrease in net debt over years & extension of average debt duration
Decrease in net debt over years & extension of average debt duration Debt/Net Debt (NIS, billion) Repayment Schedule Notes** & Loans (NIS, million) As of September 30, 2020 * * Notes – future debt: Future notes issuance assuming full exercise of option warrants in respect of Notes series G (not incl
Slide 18: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA* * Notes payable and borrowings and financial liability at fair value, less cash and cash equivalents (incl. ST deposits) divided by Adjusted EBITDA for the last 4 quarters. 18
Slide 19: Equipment Sales
Equipment Sales Return to normal equipment sales profit levels with partial reopening of sales points and an increase in sales through alternative sales channels Equipment sales revenues and gross profit 19
Slide 20: Partner's strengths
Partner’s strengths Strong Widest 4G coverage, leading customer service, network Foundations sharing agreement, more than 22 hundred kilometers of fiber optics Defined Transforming into a Total Telecommunications Group, diversified revenue sources from private and business customers, increasing digi
Slide 21: IR contacts
IR contacts Tamir Amar CFO +972 (54) 781 4951 Amir Adar Head of Investor Relations & Corporate Projects +972 (54) 781 5051 investors@partner.co.il Investor website: www.partner.co.il/en/Investors-Relations/lobby
Slide 22: Thank you
Sipaitner hello future y Thank you
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