Slide 1: Company & Financial Overview Q2 2021
Company & Financial Overview Q2 2021 August 18, 2021
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 Infrastructure ISP operation Business Solutions 28% MS ~30% penetration ~13% MS Based Internet Leading Leading 600K Households service provider service provider connect
Slide 5: Highlights
Highlights Building new management team with new executive appointments and restructuring Focus on revenue growth engines, market leadership and profitability improvement New fiber campaign, fiber subscriber base constitutes more than half of Partner's infrastructure based internet subscriber
Slide 6: Operating and Financial Highlights - Q2'21 vs. Q2'20
Operating and Financial Highlights - Q2’21 vs. Q2’20 Cellular subs. Cellular Churn Rate -Fiber-Optic subs. TV subs. (thousands) (thousands) (thousands) 2,970 7.2% 173 223 a h of Strong net adds increase Subs. base growth o : 10K in Q2'21** Further decrease in Subs. base growth of Subs. base growth o
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 - received the highest grant among 5G services as a potential growth engine all comm
Slide 8: Cellular Subscribers & Cellular Market Share
Cellular Subscribers & Cellular Market Share (EOP, '000s) 8
Slide 9: Cellular ARPU & Churn
Cellular ARPU & Churn decline in churn rate compared with Q2’20 Cellular ARPU (NIS) Cellular churn (%) 9
Slide 10: Partner's Fiber-Optic Network
Partner's Fiber-Optic Network Partner is an infrastructure player in the fixed-line market Massive coverage deployment of potential households in Israel, and expect to complete major rollout phase during 2023 OPEX savings - replacing wholesale infrastructure with independent infrastructure App
Slide 11: Partner's Fiber-Optic Subs & Homes Connected
Partner's Fiber-Optic Subs* & Homes Connected** (EOP, '000s) Penetration rate of ‘PARTNER FIBER’ at Q2’21 end reached 30% vs. 26% at Q1’20 end > * Active subscribers to an end-to-end service including both Partner’s fiber-optic infrastructure and access to the internet ** The total number of residen
Slide 12: Partner's Infrastructure-Based Internet Subscriber Base
Partner's Infrastructure-Based Internet Subscriber Base* (EOP, '000s) * Active subscribers to an end-to-end service including both infrastructure (either through the wholesale market on Bezeq/Hot infrastructure or through Partner's fiber-optic infrastructure) and access to the internet 12
Slide 13: 52 municipalities from Eilat in the south to Naharia in the north
Afula Lod Ashdod Ma'ale Adumim Ashkelon Modi’in-Maccabim-Re’ut Azor Bat Yam Naharia Netanya 52 municipalities Be'er Ya'akov Be’er Sheva Ness Ziona Nesher from Eilat in the Netivot Eilat Givat Shmuel Or Yehuda south to Naharia in Givatayim Or Akiva Ganei Tikva Oranit the north Hod Hasharon Pardes Han
Slide 14: Partner TV
Super Aggregator strategy, with traditional TV services (linear Partner TV channels, VOD, etc.) included Partnership with Netflix & Amazon Prime Video (including unique TV bundle offering). Offering comprehensive channels & add-on packages for sports fans (Sport 1, Sport 5, ONE), and Android T
Slide 15: Partner TV subscriber base
Partner TV subscriber base (EOP, '000s) Excluding subscribers removal (see comment below), the subscriber base increased by 10 thousand in the second quarter * * In the second quarter of 2021, the Company removed from its TV subscriber base approximately 21 thousand subscribers who had joined the Co
Slide 16: Equipment Sales
Equipment Sales Quarterly gross profit growth compared to Q2’20 as sales recovery continues, along with favourable sales mix Equipment sales revenues and gross profit 16
Slide 17: Partner's Business Solutions
Partner's Business Solutions Integrated Hybrid Solutions Hosting IT Networking Cellular Wired International Integration Security Integration Telephony Communications 17
Slide 18: Financial Overview
Financial Overview
Slide 19: OPEX
OPEX Consistent growth in fixed-line segment with stability in OPEX NIS, million * OPEX includes cost of service revenues, selling, marketing and administrative expenses and credit losses, and excludes depreciation and amortization expenses and other expenses (mainly amortization of employee share b
Slide 20: Adjusted EBITDA and Adjusted FCF
Adjusted EBITDA and Adjusted FCF Significant CAPEX outlay in new revenue engines of fiber-optic infrastructure and TV from 2017 Adjusted EBITDA & Adjusted EBITDA* margin (NIS, million) Adjusted Free Cash Flow (before interest) (NIS, million) * Adjusted EBITDA figures from 2019 include impact of adop
Slide 21: Decrease in net debt over years
Decrease in net debt over years Debt/Net Debt (NIS, billion) Repayment Schedule Notes & Loans (NIS, million) As of June 30, 2021 21
Slide 22: 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 and short and long-term deposits divided by Adjusted EBITDA for the last 4 quarters. 22
Slide 23: Partner's strengths
Partner’s strengths Strong 5G rollout, widest 4G coverage, leading customer service, network sharing agreement, expanding Independent fiber-optic infrastructure Foundations Defined Transforming into a Total Telecommunications Group, diversified revenue sources from private and business customers, in
Slide 24: IR contacts
IR contacts Tamir Amar Deputy CEO & 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 25: Thank you
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