Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Q2 2019 Earnings Presentation
25 slides from Partner Communications's earnings presentation, Aug 27, 2019
Slide 1: Company & Financial Overview
Company & Financial Overview August 27, 2019
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 Highlights
Partner Highlights A comprehensive Israeli communications group Saban Capital Group - Controlling shareholder since 2013 More than 3 million connections in all activities Fastest growing TV platform in Israel +19K sub. in Q2 2019 (over 8% MS) Fastest deployment of Fiber Optic network in Is
Slide 5: Partner Group LOB
Partner Group LOB Cellular Broadband & Fiber Business TV Solutions 5
Slide 6: Partner leading Israeli Telco group
Partner leading Israeli Telco group More than 3 million connections in all activities Partner Fiber Partner TV Cellular Broadband and Business Solutions Approximately Over 8% MS 25% MS ISP operation Leading 25% of retail fiber within 2 years service provider deployment +480K 170 K sub.* 2,616 K sub.
Slide 7: Partner's Fiber Optic network
Partner's Fiber Optic network Fiber deployment: Aiming for the mass market Low deployment cost compared to other Intention to deploy massive coverage of companies in the world potential households in Israel within approx. 3 years Speeds of up to 1 Gbps CAPEX relating to F.O. network is expected to r
Slide 8: Partner's Fiber Optic network: EBITDA Impact Sensitivity Analysis
Partner's Fiber Optic network Company EBITDA Impact Sensitivity Analysis (NIS M) Incremental ARPU/Opex Saving (NIS per month) 75 80 85 90 95 No. Customers (000s) 45 48 51 54 57 90 96 102 108 114 135 144 153 162 171 180 192 204 216 228 225 240 255 270 285 270 288 306 324 342 8
Slide 9: Presence in over 50% of the cities in Israel
Afula Kiryat Mozkin Ashdod Lod Ashkelon Modi’in-Maccabim-re’ut Bat Yam Netanya Be'er Ya'akov Ness Ziona Beer Sheva Nesher Bnei Brak Or Yehuda Givat Shmuel Or Akiva Givatayim Pardes Hanna-Karkur Presence in Ganei Tikva Petah Tikva Hod Hasharon Ra'anana over 50% of Rehovot Herzliya Hadera Rosh HaAyin
Slide 10: Partner's Cellular network
Partner's Cellular network Providing the widest 4G deployment in the country (Based on benchmark data of Ookla network intelligence during 2018) Network sharing agreement with Hot Mobile Completion of cover and call continuity by WiFi calling First to launch a VoLTE service 10
Slide 11: Cellular ARPU & Churn
Cellular ARPU & Churn Cellular ARPU (NIS) Cellular churn (%) * * ARPU for Q2 2018, excluding a one-time provision of NIS 15 million for a class action, is NIS 59 11
Slide 12: Fastest growing TV platform in Israel
Fastest growing TV platform in Israel Partnership with Netflix Collaboration with Amazon Prime Video Flexible content costs model Potential ARPU growth - Android set top box Competitors will need to adjust technology –massive CAPEX Leveraging TV service operation to fixed line equipment
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 Integration Wired Telephony International Integration Security Communications 14
Slide 15: Infrastructure & IoT Pro
Infrastructure & IoT Pro Machines are the customers of the future Connected & Autonomous Smart Tracking Industrial Smart Smart New Vehicles Home Devices Automation Cities Health Hobbies 15
Slide 16: Financial Overview
Financial Overview 16
Slide 17: 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 18: Net Debt decreased by ~51% in three years
Net Debt decreased by ~ 51% in three years Repayment Schedule Notes* & Loans (NIS, million) Debt/Net Debt (NIS, billion) Debt figures for year-end 2019 include a deferred issuance of Notes Series F in an amount of NIS * Including future issuance of Notes Series F (in December 2019) & expected issuan
Slide 19: Net Debt to Adjusted EBITDA
Net Debt to Adjusted EBITDA* * Notes payable and borrowings less cash & cash equivalents (incl. ST deposits) divided by Adjusted EBITDA for the last 4 quarters Adjusted EBITDA figures from 2019 include impact of adoption of IFRS 16 (NIS 38 million in Q2’19 and NIS 39 million in Q1’19). For more deta
Slide 20: Equipment
Equipment Stable profit and quality sales Equipment revenues and gross profit 20
Slide 21: Competitive Advantages
Competitive Advantages Cellular network with the widest deployment of LTE/LTE Advanced in Israel Highest growth rate among TV operators in 2018 and 2019 Lowest financial debt level and lowest net debt/EBITDA ratio of all the leading traded communication groups in Israel Strong and experienced manage
Slide 22: 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 23: Company Management
‘\ Adam Chesnoff Isaac Benbenisti Yuval Keinan Tamir Amar Terry Yaskil Yakov Truzman Chairman CEO Deputy CEO Chief Financial VP Marketing VP Business Division Officer Liran Dan Yaron Eisenstein Noach Hacker Hadar Vismunski Einat Rom Sigalit Cohen VP Strategy & VP Technologies VP Regulation & VP Chie
Slide 24: IR contacts
IR contacts Tamir Amar CFO +972 (54) 781 4951 Liat Glazer Shaft 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 25: Thank you
Thank you
Partner Communications Company — Q2 2019 Earnings Presentation on 6ix