Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Q4 2020 Earnings Presentation
28 slides from Partner Communications's earnings presentation, Mar 25, 2021
Slide 1: Company & Financial Overview Q4 & FY 2020
Company & Financial Overview Q4 & FY 2020 March 25, 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 27% MS ~30% penetration ~13% MS Based Internet Leading Leading >500K Households service provider service provider connec
Slide 5: Operating and Financial highlights - 2020
Operating and Financial highlights - 2020* Cellular subs. Cellular Churn Rate -Fiber-Optic subs. TV subs. (thousands) (thousands) (thousands) ° 39 2,836 30% #£~!i ~232 Strong increase Further decrease in Subs. base growth of Fastest growing TV in net adds churn rate 83% in 2020 platform in Israel Se
Slide 6: Operating and Financial highlights - Q4'20
Operating and Financial highlights - Q4’20* Cellular subs. Cellular Churn Rate -Fiber-Optic subs. TV subs. (thousands) (thousands) (thousands) 2,836 7.2% ~139 ~232 eT er ae Service Revenues Adjusted EBITDA Profit Adjusted FCF (NIS, million) (NIS, million) (NIS, million) before interest (NIS, million
Slide 7: COVID-19 - update
COVID-19 - update Decline in roaming – Significant decline in international travel since March 2020 has led to continuous material negative impact on our roaming service revenues. Cost cutting measures– Company took proactive cost cutting measures in a number of areas and also through making adj
Slide 8: 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 9: Cellular Subscribers & Cellular Market Share
Cellular Subscribers & Cellular Market Share (EOP, '000s) 9
Slide 10: Cellular ARPU & Churn
Cellular ARPU & Churn Consistent decline in churn rate Cellular ARPU (NIS) Cellular churn (%) 10
Slide 11: 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 12: Partner's Fiber-Optic Homes Passed
Partner's Fiber-Optic Homes Passed (EOP, '000s) Reached ~38% of households in Israel with internet connection * > *Estimate based on Central Bureau of Statistics (CBS) reports from November 2019 and September 2020 12
Slide 13: Partner's Fiber-Optic Homes Connected
Partner's Fiber-Optic Homes Connected* (EOP, '000s) Penetration rate of ‘PARTNER FIBER’ at end-2020 reached 30% vs. 23% at end-2019 > * The total number of residential households (Homes Connected) within buildings connected to Partner’s fiber-optic infrastructure 13
Slide 14: Partner's Fiber-Optic subscriber Base
Partner's Fiber-Optic subscriber Base* (EOP, '000s) 63K net adds in 2020, 19K in Q4’20 vs. 11k in Q1’20 > * Active subscribers to an end-to-end service including both Partner’s fiber-optic infrastructure and access to the internet 14
Slide 15: 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 15
Slide 16: Fiber reach from Eilat in the south to Naharia in the north
Afula Lod Ashdod Ashkelon Ma'ale Adumim Modi’in-Maccabim-Re’ut from Eilat in the Azor Bat Yam Naharia Netanya south to Naharia in Be'er Ya'akov Be’er Sheva Ness Ziona Nesher the north Eilat Netivot Givat Shmuel Or Yehuda Givatayim Or Akiva Ganei Tikva Pardes Hanna-Karkur Petah Tikva Reached more tha
Slide 17: Partner TV
Super Aggregator strategy, with traditional TV services (linear Partner TV channels, VOD, etc.) included Partnership with Netflix (including unique TV bundle offering), Amazon Prime Video & Spotify Offering comprehensive channels & add-on packages for sports fans (Sport 1, Sport 5, ONE), and A
Slide 18: Partner TV subscriber base
Partner TV subscriber base (EOP, '000s) 18
Slide 19: Partner's Business Solutions
Partner's Business Solutions Integrated Hybrid Solutions Hosting IT Networking Cellular Wired International Integration Security Integration Telephony Communications 19
Slide 20: Financial Overview
Financial Overview
Slide 21: OPEX
OPEX Consistent growth in fixed-line segment while maintaining operating discipline 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
Slide 22: 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 23: Decrease in net debt by 31% in last 2 years
Decrease in net debt by 31% in last 2 years Successful capital raising in January 2020 in the amount of NIS 276 million, net Debt/Net Debt (NIS, billion) Repayment Schedule Notes** & Loans (NIS, million) As of December 31, 2020 * * Future notes issuance assuming full exercise of option warrants in r
Slide 24: 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. 24
Slide 25: Equipment Sales
Equipment Sales Quarterly gross profit growth as sales recovery continues, along with favourable sales mix, despite lockdowns Equipment sales revenues and gross profit 25
Slide 26: 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 27: IR contacts
IR contacts Tamir Amar CFO & VP Fiber-Optics +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 28: Thank you
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Partner Communications Company — Q4 2020 Earnings Presentation on 6ix