company presentation - partner · partner’s ownership structure 30.9 % 12.6% 1.4% 5.9 % 49.3 %...
TRANSCRIPT
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Company Presentation Q4 and Annual 2013 Results
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Revenues
Service Revenues
Equipment Revenues
Adjusted EBITDA*
Net profit
Free Cash Flow (before interest)
Cellular ARPU
Cellular Churn
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Revenues
Service Revenues
Equipment Revenues
Adjusted EBITDA*
Net profit
Free Cash Flow (before interest)
Cellular ARPU
Cellular Churn
8 8 As of January 31, 2014
Partner’s Ownership Structure
30.9%
12.6% 1.4%
5.9%
49.3%
S.B. Israel Telecom
Scailex
Suny
Phoenix-Excellence Group
Public
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in NIS millions Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 2012 2013
Revenues 1,258 1,144 1,130 1,118 1,127 5,572 4,519
Cost of Revenues 969 901 878 861 870 4,031 3,510
Gross Profit 289 243 252 257 257 1,541 1,009
SG&A 160 171 171 167 170 787 679
Other income 26 23 21 19 16 111 79
Operating Profit 155 95 102 109 103 865 409
Financial Costs, net 38 49 71 53 38 234 211
Income Taxes 15 15 11 18 19 153 63
Profit for the Period 102 31 20 38 46 478 135
Adjusted EBITDA* 340 268 280 284 282 1,602 1,114
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2,231 2,290 2,2822,102 2,102 2,103 2,127 2,133
811870 894
874 830 818 823 823
3,042 3,160 3,176
2,976 2,932 2,921 2,950 2,956
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2009 2010 2011 2012 Q1'13 Q2'13 Q3'13 Q4'13
Post-paid Pre-paid
14 14
292 285 281 282 288 293 294 295 299
632 618 609 594 587 581 572 575 583
-
100
200
300
400
500
600
700
800
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13
Number of Fixed Lines ISP Subscribers
15 15
122
111
97
83 87 81
366
397
450
522
483
539
250
300
350
400
450
500
-
25
50
75
100
125
150
2010 2011 2012 2013 Q4'12 Q4'13
MO
U (m
inu
tes
)
AR
PU
(N
IS)
ARPU MOU
16 16
8.2%8.0%
8.9%
10.4%10.9%
10.4%
9.4%
8.8%
10.7%
0%
2%
4%
6%
8%
10%
12%
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13
17 17
5,6625,224
4,640
3,784
1,036 922
1,012 1,774
932
735
222 205
6,674 6,998
5,572
4,519
1,258 1,127
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2010 2011 2012 2013 Q4'12 Q4'13
Service Revenues Equipment Revenues
18 18
2,570
2,178
1,602
1,114
340 282
39%
31%
29%
25%
27%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
500
1,000
1,500
2,000
2,500
2010 2011 2012 2013 Q4'12 Q4'13
% t
ota
l re
ven
ues
NIS
mil
lio
ns
Adjusted EBITDA EBITDA margin
19 19
889872
853
793
744720
700 696675
500
600
700
800
900
Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13
20 20
3,395
4,639
3,812
3,000
3,6223,446
3,2083,000
1.3
2.1
2.4
2.72.5
2.7 2.7 2.7
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
2010 2011 2012 2013 Q1'13 Q2'13 Q3'13 Q4'13
Ne
t D
eb
t / A
dju
ste
d E
BIT
DA
NIS
millio
ns
Net Debt Net debt / Adjusted EBITDA
21 21
2,175
1,707
1,110
639
219 175
-
400
800
1,200
1,600
2,000
2,400
2010 2011 2012 2013 Q4'12 Q4'13
22 22
395 471 492 475 121 107
6,6746,998
5,572
4,519
1,258 1,127 6%
7%
9%
11%
10% 9%
2%
4%
6%
8%
10%
12%
14%
16%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2010 2011 2012 2013 Q4'12 Q4'13
Cap
ex as %
of
To
tal
Reven
ues
NIS
mil
lio
ns
CAPEX Revenues CAPEX margin
23 23
1,502
1,082
1,234
1,041
323 278
-
200
400
600
800
1,000
1,200
1,400
1,600
2010 2011 2012 2013 Q4'12 Q4'13
24 24
9
2119
9
1
3
Cellular ServiceRevenues
Fixed LineService
Revenues
IntersegmentRevenues
Elimination
EquipmentGross Profit
OperatingService
Expenses
Other Income Q3 2013 Q4 2013
282 284
25 25
69
69
36
9 3
10
Cellular ServiceRevenues
Fixed LineService
Revenues
IntersegmentRevenues
Elimination
EquipmentGross Profit
OperatingService
Expenses
Other Income
340
282
Q4 2012 Q4 2013
26 26
1,602
1,114
2012
471
685
125
4671
32
Cellular ServiceRevenues
Fixed LineService
Revenues
IntersegmentRevenues
Elimination
EquipmentGross Profit
OperatingService
Expenses
Other Income 2013
27 27
Assets Liabilities and Equity
Cash and cash equivalents 481 Current maturities of Notes payables and loans 334
Trade receivables and other 1,129 Trade payables 761
Inventories 93 Other current liabilities 279
Total Current Assets 1,703 Total Current Liabilities 1,374
Trade receivables and other 419 Long term borrowings 3,147
Property and equipment 1,791 Other liabilities 92
Goodwill 407 Total Long-term Liabilities 3,239
Intangible assets 1,167
Total Long-term Assets 3,784 Equity 874
Total Assets 5,487 Total Liabilities and Equity 5,487
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Key benefits:
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•
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Excellence in
customer
experience
Advanced
quality service
High level of
customer
service
Customer value
management
Focused
marketing
strategy
Focus on
service,
innovation &
advanced
technology
Integration with
012 Smile
Realizing the full
marketing and
product
potential
Cost savings
Network sharing
Capitalizing on
the increased
demand for
mobile data
services and
devices
Opening of
wholesale fixed-
line market
including new
services
Innovative
products and
services
Commitment to
network quality
Preparing for 4G
network (LTE)
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The future is bright. The future is Orange