Cellcom Israel 1 Full End-To-End Service Communications Group - - PowerPoint PPT Presentation

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Cellcom Israel 1 Full End-To-End Service Communications Group - - PowerPoint PPT Presentation

Dec 09, 2022 153 likes •400 views

Cellcom Israel 1 Full End-To-End Service Communications Group (1) Appx. 2.8 million 26% Market Leading brand in Mobile subs share Israel s mobile The largest cellular market Mobile provider in Israel Fixed line

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Cellcom

Israel

1

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Mobile

  • Appx. 2.8 million

Mobile subs

  • 26% Market

share

  • Leading brand in

Israel’s mobile market Fixed line Residential

  • Appx. 248k

Broadband subs

  • 195k TV subs

(11% market share)

  • Fixed line

telephony

  • International

calls Fixed line Business

  • Cyber security
  • Cloud services
  • Transmission
  • Hosting services
  • Integration services

2

Leading the TV revolution in Israel with OTT TV service The largest cellular provider in Israel

(1) As of Q2’18 based on companies’ reports and Company’s estimation

Full End-To-End Service Communications Group

(1) (1)
  • IOT
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3

  • from a cellular

company to a comprehensive telecom group

  • Optimization of
  • cost structure
  • New Growth

Engines

Strategy

Cellcom Israel

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A cellular company From To a

Telecommunications Group

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  • Sales of bundled packages of cellular + fixed line products

The first and only operator in Israel to offer quad play

  • Successful marketing of complete communication package increases
  • ur total income per household even as cellular prices decrease
  • Upsale of data packages
  • Sales of VAS products (cyber security, streaming music,

backup, etc.)

Cellular Segment

Maintaining Market Leadership

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Cellular Network Sharing Agreements

  • The company signed a network hosting and sharing agreement

with Golan Telecom (Israeli MNO) which came into effect at the beginning of Q2- 2017

  • The Golan agreement is for a minimum of 10 years with average

annual payments of approx. M’NIS 210-220 per year, starting with lower annual payments and increasing over time

  • The company entered an additional hosting and sharing agreement

with Xfone (New Israeli MNO) which entered the cellular market in April 2018. The agreement (for the period of no less than 5 years) contains minimum annual payments, ranging between approx. M’NIS 20 in the first year and M’NIS 110 in the fifth year*

* After the fifth year of the agreement, the payment mechanism between the parties changes
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TV Service

Reaching 11% Market Share in TV in Three Years

  • Launched new TV service in December 2014
  • Highly competitive price – NIS 99

Attractive Quad and Triple play offers

  • Hybrid solution of DTT linear TV plus OTT TV (VOD + channels)
  • Multi screen strategy (IOS ,Android smart tv, set top boxes,

Apple tv)

  • Cutting edge technology: full catch up and cloud PVR
  • Over 10,000 VOD assets for unlimited usage
  • Advanced intuitive user experience
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Offering The Top Channels viewers

All the sports

really Want

Current events The world’s leading children’s channels Entertainment, leisure, science and nature Cellcom channels The leading series from The leading studios

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9

Thousands

Fast Growth in The TV Market

Cellcom tv subscribers since launch (Dec 2014) 37 50 63 74 87 99 111 124 137 154 170 184 195

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

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40% of wholesale market

10

Continued Growth in Broadband

32 70 94 120 136 146 156 173 189 206 222 235 248

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

(1) According to bezeq’s reports for Q1’18 (1)
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Israel Internet infrastructure is lagging behind

Israel

(1) Mean download speed according to Cable 2018 report published on M-Lab site

Mb/sec

Internet Speed

Israel ranks 70th in the world

The reasons:

  • Duopoly in the infrastructure segment created a non-competitive market
  • There is no real incentive to invest in infrastructure
(1)
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Cellcom Israel’s opportunity

 Unfulfilled need of high-speed internet  High market prices  Low Internet speed  Opportunity to change market shares

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 IBC has the exclusive right to deploy an optical infrastructure on the IEC infrastructure  IBC has a significant advantage in deployment costs in areas with high electricity infrastructure

IBC owned by Cellcom Israel will revolutionize Internet infrastructure in Israel

 High performance capabilities of IEC  Reducing the need for deployment permits  There is an existing deployment to about 150,000 households

Households reach target

Cellcom Israel + IBC

(Thousand)

(1) The transaction is conditional on entering into final agreements and regulatory approvals. There is no certainty that the transaction will be completed. For full information, see the Company's Immediate Report of dated August 8, 2018.

(1)

500 900 1,200

After 3 Years After 5 Years After 10 Years

Above Above
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Benefits for Cellcom Israel

 Integrates with Cellcom Israel’s strategy – leading the revolution in the fixed line market  Another product in the communications products basket that Cellcom Israel offers  Providing higher quality TV services  Providing new and advanced services  Significant savings in the amounts paid for Bezeq's Internet infrastructure and improved profitability in the fixed-line segment

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IBC – The transaction

  • Cellcom Israel will hold 70% of IBC shares for approx. NIS 100

million

  • An additional 30% will be held by the Israel Electric Company
  • Cellcom Israel reached agreements with the Israel Electric company

regarding the rates of the works (deployment on the electricity network infrastructure) as the main contractor

(1) The transaction is conditional on entering into final agreements and regulatory approvals. There is no certainty that the transaction will be completed. For full information, see the Company's Immediate Report of August 8, 2018.

(1)

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  • Reduction of head count
  • launch of a new voluntary retirement plan

that will be another layer in our ongoing expenses reduction process

  • Dealer commissions reduction
  • Reduction of advertising and sales

promotion expenses

  • IT systems and building maintenance

expenses reduction

  • Warranty and repair services expense

reduction

  • Reduction in ‘walk in center’ branches

and office space

FTE Positions SG&A

(M’Nis)

Aggressive Cost Reduction

7,254 3,358 2011 2017 1,676 905 2011 2017

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IOT as a

Growth Engine

IOT – The Internet Of Things

The ability to connect things in a smart way that will lead to efficiency, business growth and life quality improvement

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Smart City Solution

The

Cellcom

Combination of various solutions including :

Energy efficiency Waste management Sensors of environmental protection Water management

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  • Own communications network
  • Integration
  • Information security
  • Extensive knowledge and experience in

providing various solutions

  • Collaboration with leading vendors

Security

End equipment and sensors Communication Platform Analysis Services and applications

Cellcom Israel “Smart City”

  • ffers end-to-end solutions
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Winning Strategic Tendors of IoT

(1) In cooperation with Team 3 Protection Systems Ltd

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The Home Front Command Tender of IDF(1)- Turning The Old Shelters in Israel into “Smart Shelters”

Management & Control systems (100 local authorities) Public announcement system for delivering messages Remote locking & Opening of the shelter WiFi Connection Command & Control System Endpoints Existing System Upgrade

The first tender in Israel, which is a complete “Smart City” in The City of Tel – Aviv – jaffa

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Q2 2018 Key Financial Summary

(1)

M’Nis Q2’17 Q2’18 YoY % Total Revenues 962 927

  • 3.6%

Service Revenues 731 694

  • 5.1%

Equipment Revenues 231 233 +0.9% EBITDA 237 133

  • 43.9%

Net Income (loss) 45 (37) N.A. Free Cash Flow 77 56

  • 27.3%

(1) All data should be reviewed in conjunction with the Company's press release and financial report for the Second quarter of 2018

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Substantial Reduction of Financial Debt

M’NIS

4,553 3,842 2,951 2,747 2,547 2,553 2012 2013 2014 2015 2016 2017

Financial Debt, Net

(1) Based on company reports for the relevant years

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Shlomi Fruhling

Chief Financial Officer

Elad Levy

Investors Relations Manager

E-mail: investors@Cellcom.co.il Tel : + 972 52 9989735 Fax: + 972 52 9989700

Contact us