company presentation - partner · partner’s ownership structure 30.9 % 12.6% 1.4% 5.9 % 49.3 %...

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1 Company Presentation Q4 and Annual 2013 Results

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Page 1: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

1

Company Presentation Q4 and Annual 2013 Results

Page 2: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

2 2

Page 3: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

3 3

Page 4: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

4 4

Page 5: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

5 5

Page 6: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

6 6

Revenues

Service Revenues

Equipment Revenues

Adjusted EBITDA*

Net profit

Free Cash Flow (before interest)

Cellular ARPU

Cellular Churn

Page 7: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

7 7

Revenues

Service Revenues

Equipment Revenues

Adjusted EBITDA*

Net profit

Free Cash Flow (before interest)

Cellular ARPU

Cellular Churn

Page 8: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 9: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

9 9

Page 10: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

10

Page 11: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

11 11

Page 12: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

12 12

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

Page 13: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

13 13

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

Page 14: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 15: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 16: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 17: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 18: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 19: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 20: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 21: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 22: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 23: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 24: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 25: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 26: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 27: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

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

Page 28: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

28 28

Page 29: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

29 29

Key benefits:

Page 30: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

30 30

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)

Page 31: Company Presentation - Partner · Partner’s Ownership Structure 30.9 % 12.6% 1.4% 5.9 % 49.3 % S.B. Israel Telecom Scailex ... 231 2, 290 2, 282 2, 102 2, 102 2, 103 2, 127 2, 133

31 31