Slide 1: Cellcom Israel Q3'20
Cellcom Israel Q3’20 1
Slide 2: Forward Looking Statements
The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can FORWARD identify these statements by forward-looking words such as “may,”
Slide 3: Full End-To-End Service Communications Group
Full End-To-End Service Communications Group (1) Appx. 3.6 million 34% Market Leading brand in Mobile subs share Israel’s mobile The largest cellular market provider in Israel (1) Mobile Appx. 289k 251k TV subs (1) Fixed line International Broadband subs (14% market share) telephony ca
Slide 4: Cellular Segment
Cellular Sales of bundled packages of cellular + fixed line products. Segment Maintaining Market Leadership Successful marketing of communications packages increases our total income per household even as cellular prices decrease Network sharing agreement with another MNO helps reducing opex a
Slide 5: Golan Telecom Purchase
Golan We concluded the purchase of Golan telecom and we intend to Telecom extract the synergies between the two companies Purchase Total purchase price is Appx. NIS 545 million The deal is expected to strengthen and improve Cellcom Israel's position as a leading communications company and make
Slide 6: Coronavirus Effects
Decrease in inbound and outbound roaming revenues from outgoing and incoming tourism Decrease in end user equipment sales as a result of selling Coronavirus points being closed. Effects The Company has taken significant measures to mitigate the impact on profitability during the pandemic quara
Slide 7: Cellcom tv
Leading the TV revolution in Israel with OTT TV service Cellcom tv Hybrid solution of DTT linear TV plus OTT TV Reaching 14% Market Share (VOD + channels) Advanced intuitive user experience Over 10,000 VOD assets for unlimited usage Highly competitive price Attractive Triple play offers Mu
Slide 8: Offering The Top Channels Viewers Really Want
Offering The Top Channels Viewers Really Want All the Current The leading series The world’s leading Entertainment, Cellcom tv sports events From The leading children’s channels leisure, channels studios science and nature 8
Slide 9: Continued Growth in TV and Broadband Subscribers
Continued Growth in TV and Broadband Subscribers TV Broadband Subscribers Subscribers Thousands Thousands 289 251 283 247 246 245 279 276 (1) Q3'19 Q1'20 Q2'20 Q3'20 Q3'19 Q1'20 Q2'20 Q3'20 (1) The number of TV subscribers decreased following a change in the counting method, applied retroactively, w
Slide 10: IBC
(1) IBC In July 2019 Cellcom Israel and Israel Infrastructure Fund Large scale deployment completed an investment transaction in IBC, through a joint in short time partnership which currently holds 70% of IBC and the additional 30% are held by the Israeli Electricity Company. Exclusive right to
Slide 11: Cellcom Israel IRU Agreement
Cellcom Israel IRU Agreement High return on investment IRU main points: Fiber to the home right of use for appx. 25 years IRU payments per household, paid over 9 years with interest Annual maintenance fee IRU benefits for Cellcom Israel: Reducing the Company's investments in fiber deployment
Slide 12: IBC
IBC In September 2020, Hot Telecommunication HOT Group to join IBC (1) entered into an investment transaction in IBC. Hot undertakes to purchase an IRU, to use IBC's fiber-optic network in addition to Cellcom Israel. The transaction will significantly accelerate the deployment of fiber optic o
Slide 13: Cellcom Business Solutions
Cellcom Business Solutions Internet Security Cloud services Transmission Telephony Handsets Hosting Services Integration services International IOT communication 13
Slide 14: Cellcom Smart City
Cellcom Smart City Offers end-to-end solutions The ability to connect things in a smart way that will lead to efficiency, business growth and life quality improvement. Combination of various solutions including: Energy Waste Sensors of Water efficiency management environmental management protection
Slide 15: Financial Overview
Financial Overview 15 15
Slide 16: Service Revenues
Service Revenues Mitigating cellular revenues erosion effect with fixed line revenues growth Cellular Service Revenues Fixed Line Service Revenues M’NIS M’NIS 1,929 1,215 1,258 1,730 1,679 1,166 311 327 439 414 (2) 1 1 1 Q3'19 Q3'20 1 1 1 Q3'19 Q3'20 Based on company reports (1) Cellular Service rev
Slide 17: Adjusted EBITDA and Operating Profit
Adjusted EBITDA and Operating Profit Adjusted EBITDA Operating Profit M’NIS M’NIS 940 101 687 271 231 36 24 (2) (3) 1 1 Q3'19 Q3'20 1 1 -6 (3) Q3'19 Q3'20 Based on company reports (1) Please see "Use of Non-IFRS financial measures" section the company’s quarterly report dated 13.08.2020. (2) Adjuste
Slide 18: Capex and Free Cash Flow
Capex and Free Cash Flow (1) Capex Free Cash Flow M’NIS M’NIS 234 391 593 557 149 181 108 44 (3) (2) (3) 1 1 Q3'19 Q3'20 1 1 Q3'19 Q3'20 Based on company reports (1) Please see "Use of Non-IFRS financial measures" section the company’s quarterly report dated 13.08.2020 (2) Free cash flow for 2019 in
Slide 19: Increase in Net financial Debt due to Golan Telecom Purchase
Increase in Net financial Debt due to Golan Telecom Purchase (1) Net Debt B’NIS 2.747 2.547 2.553 2.368 2.264 1.897 (2) 15 16 1 1 1 Q3'20 Based on company reports (1) Net Debt defined as credit and loans from banks and others, debentures and interest payable, net of cash and cash equivalents and cur
Slide 20: Conservative Financial Policy
Conservative Financial Policy Cash vs. Debt repayment (1) (1) Debt Repayment Schedule 2020-2021 M’NIS B’NIS 62 94 46 77 753 695 30 121 17 524 548 548 474 41 399 574 287 194 165 165 Cash 30.09.20 Repayments (2) 1 5 6 10/2020-2021 Interest Principal Based on company reports (1) As of September 30, 202
Slide 21: Contact us
Contact us Shai Amsalem Chief Financial Officer Elad Levy Investors Relations Manager Investors website: investors.cellcom.co.il E-mail: investors@Cellcom.co.il Tel : + 972 52 9989735 21