Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Q3 2012 Earnings Presentation
20 slides from Partner Communications's earnings presentation, November 2012
Slide 1: Partner Communications Company Ltd. Company presentation Q3 2012
Partner Communications Company Ltd. Company presentation Q3 2012 November 2012
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 and 012 Smile brand Strong brand and market presence 30% estimated cellular market share Clear strategy to evolve into a diversified Multi-Service Communications and Content Media Service group, including
Slide 5: Q3/12 Highlights
Q3/12 Highlights Financial Results g Revenues of NIS 1.3 billion ($ 335 million) g Service Revenues of NIS 1.2 billion ($ 293 million) g Equipment Revenues of NIS 0.2 billion ($ 42 million) g EBITDA of NIS 401 million ($ 103 million), 30% of total revenues g Net profit of NIS 110 million ($ 28 milli
Slide 6: 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 7: Agenda
Agenda 1. Partner Highlights 2. The Israeli Telecommunications Market 3. Financial and Operational Performance 4. Partner’s Strategic Direction 7
Slide 8: The Cellular Market in Israel
The Cellular Market in Israel g Total Israeli telecom market revenues in 2011 were ~ NIS 32 billion, of which 58% are attributed to cellular Start of No. of Subscribers * Major Shareholder Operations Partner 1999 3,042k Scailex Corporation Cellcom 1995 3,338k IDB Group Pelephone 1986 2,839k Bezeq Ho
Slide 9: Main Regulatory Actions In The Communication Market
Main Regulatory Actions In The Communication Market* Increasing Exit Fines competition - two Handset Market Elimination for Liberalization new operators and Private segment MVNOs Reduction in royalty Final policy on fixed Reductions in rate to the line wholesale cellular interconnect Government for
Slide 10: Agenda
Agenda 1. Partner Highlights 2. The Israeli Telecommunications Market 3. Financial and Operational Performance 4. Partner’s Strategic Direction 10
Slide 11: Key Business Indicators
Key Business Indicators Cellular Subscribers (in 000’) * Fixed Subscribers (in 000’) 800 3,500 3,160 3,176 3,147 700 3,042 3,098 3,042 632 632 632 632 618 3,000 609 594 600 870 894 894 811 900 897 2,500 500 NIS millions 2,000 400 1,500 288 292 295 292 285 281 282 300 2,231 2,290 2,282 2,253 2,198 2,
Slide 12: Financial Performance
Financial Performance* Total Revenues (in NIS millions) in NIS millions Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 6,998 7,000 6,674 Revenues 1,751 1,589 1,571 1,428 1,315 6,079 987 1,748 6,000 Cost of Revenues 1,210 1,131 1,128 1,000 934 633 Gross Profit 541 458 443 428 381 5,000 S,G&A 257 222 222 213
Slide 13: Financial Performance
Financial Performance Net debt / EBITDA1 CAPEX2 / Revenue 6,998 5,500 3.5 7,000 6,674 16% 5,000 6,079 4,639 4,450 3.0 6,000 14% 4,500 4,209 4,072 4,000 5,000 12% Capex as % Total Revenues 2.5 3,395 2.4 2.4 2.5 3,500 Net Debt / EBITDA 2.3 2.0 4,000 10% NIS millions NIS millions 3,000 2,102 10% 9% 2,5
Slide 14: EBITDA Evolution Q2'12-Q3'12 (NIS M)
EBITDA Evolution Q2'12-Q3‘12 (NIS M) 423 18 401 22 2 3 57 36 Q2`12 Q3`12 Cellular Cellular Cellular Fixed Line Fixed Line Fixed Line Equipment Service Service Equipment Service Service Operating Revenues Expenses Gross Revenues Expenses 14 Profit Profit
Slide 15: EBITDA Evolution Q3'11-Q3'12 (NIS M)
EBITDA Evolution Q3‘11-Q3‘12 (NIS M) 529 74 2 44 401 33 178 133 Q3`11 Cellular Cellular Cellular Fixed Line Fixed Line Fixed Line Q3`12 Equipment Service Service Equipment Service Service Operating Revenues Expenses Gross Revenues Expenses Profit Profit 15
Slide 16: Partner Balance Sheet September 30, 2012 (NIS M)
Partner Balance Sheet September 30, 2012 (NIS M) Consolidated Balance Sheet September 30, 2012 (NIS M) Assets Liabilities and Equity Cash and cash equivalents 600 Long Term Borrowings, Current Maturities 25 Trade receivables and other 1,514 Trade Payables 879 Inventories 101 Other Current Liabilitie
Slide 17: Partner Dividend Distribution
Partner Dividend Distribution 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 79% 752 841 43% 40% 410 350 187 160 - 20% 2005 2006 2007 2008 2009 2010 2011 YTD 12 Dividend announced
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 Focus on “Customer Centric” while evolving into multi- service communication group Commitment to Growth in Customer centric Improve network quality and Strong Branding mobile strategy Efficiency technological broadband progress Excellence in Focused Integration with Capitalizing o
Slide 20: 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/ 20
Partner Communications Company — Q3 2012 Earnings Presentation on 6ix