B Communication

Investor Presentation • Mar 13, 2024

Bezeq Group Investor Presentation

2023 Financial Results Pelephone

Forward-Looking Information and Statement (Disclaimer)

This presentation contains general data and information as well as forward looking statements about Bezeq - The Israeli Telecommunications Corp., Ltd. ("Bezeq"). Such statements, along with explanations and clarifications presented by Bezeq's representatives, include expressions of management's expectations about new and existing programs, opportunities, technology and market conditions. Although Bezeq believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. These statements should not be regarded as a representation that anticipated events will occur or that expected aspirations will be achieved. In addition, the realization and/or otherwise of the forward looking information will be affected by factors that cannot be assessed in advance, and which are not within the control of Bezeq, including the risk factors that are characteristic of its operations, developments in the general environment, external factors, and the regulation that affects Bezeq's operations.

This presentation contains partial information from the public reports of Bezeq under the Israeli Securities Law 5728-1968 (the "Securities Law"), which can be accessed on the Israeli Securities Authority's website, www.magna.isa.gov.il. A review of this presentation is not a substitute for a review of the detailed reports of Bezeq under the Securities Law and is not meant to replace or qualify them; rather, the presentation is prepared merely for the convenience of the reader, with the understanding that the detailed reports are being reviewed simultaneously. No representation is made as to the accuracy or completeness of the information contained herein.

The information included in this presentation is based on information included in Bezeq's public filings. However, some of the information may be presented in a different manner and/or breakdown and/or is differently edited. In any event of inconsistency between Bezeq's public filings and the information contained in this presentation, the information included in the public filings shall prevail.

The information contained in this presentation or which will be provided orally during the presentation thereof, does not constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Bezeq or any other entity, nor shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with or relating to any action, contract, commitment or to the securities of Bezeq. The presentation does not constitute a recommendation or opinion or substitute for the discretion of any investor.

Bezeq's Compass – Strategy Update

Bezeq Group | Key Strategic Pillars (Reminder)

Fiber as growth engine

01 Bezeq is leading the fiber revolution in Israel. Within the next few years, most Israeli homes will have access to Bezeq's fiber

02 yes as a 'triple-play' growth engine to accelerate fiber growth yes markets a TV & Internet bundle while actively migrating into Full-IP

5G as revenue growth driver

03 Pelephone is leading the 5G revolution in Israel and within the next few years most of its subscriber base is expected to move to 5G, while increasing data usage and contributing to ARPU

04 Developing a leading, growthfocused ICT company Bezeq International is focused on the

growing areas of the ICT market: migration to the public cloud and cyber security services, among others

05

06

Business portfolio diversification to create additional growth sources

The group will identify opportunities for expansion into adjacent areas which are relevant to its core capabilities and in 2024 announced its entrance into the electricity supply sector

Maintain balanced capital structure and return to dividend distribution

The group has returned to dividend distributions while maintaining an optimal leverage and credit rating within the AA group

Creation of significant growth engines while continuing streamlining process

Bezeq's Compass | Transformation, Growth and Value Creation

2020-2022 Transformation

2023 Focus on Growth and Investments

Mid-termValue Creation and Sustainability

• Launch of nationwide fiber optics plan
• 5G spectrum auction
• Launch of yes migration from satellite to IP
• Restructuring and cost-saving plan at subsidiaries
• Leverage reduction and improved debt maturity curve
• Record retail fiber net adds
• 2.1m fiber homes passed with 27% take-up rate
• 68% of yes' subscribers are on IP
• Over 1m 5G subscriber plans
• Launch of operational excellence plan (early 2024)
• Increase in dividend payout ratio to 70% (early 2024)
• 40% take-up rate; retail Internet ARPU > NIS 140
• ARPU cellular: NIS 45-50 (excl. interconnect fees)
• Completion of migration from satellite to IP, TV ARPU NIS 155-160
• Operational efficiency improvement to save OpEx and CapEx
• The Company is acting to remove the structural separation

Bezeq's Compass | Financial Highlights

Bezeq's Compass | Technological & Business Roadmap

(2) IP subscribers - the number of yes subscribers viewing IP broadcasting through the yes+ and STINGTV services. This includes subscribers that use satellite services as well

7

Bezeq's Compass | Multi-year Operational Efficiency Project

Self service and digital

Reduce customer inquiries and length of handling them through expansion of selfservice

Costs of turnover - recruitment, training, apprenticeship and time needed to reach high productivity

AI and data based

Proactive, remote solutions and reduction in idle visits

Digitization and automation of administrative procedures

Electric cars, agreements with new suppliers, PV and storage sites evaluation

Reduction in occupied area and improved agreements

Methods and tools for effective project management and maintenance

Prioritization, reduction of administrative time and effective management of orders

The operational efficiency project will be integrated with the completion of the fiber rollout and end of satellite to IP migration. Together they hold potential for significant reduction in OpEx and CapEx

Bezeq Group	ESG Milestones, Ambitions and Targets
• ESG targets set	• Bezeq subsidiaries adopt ESG targets	• Equal representation of
• Bezeq publishes first ESG report since 2010	• Bezeq signs UN Women's Empowerment Principles to advance gender equality	women in Bezeq management and at least 40% on the BoD
• Publication of human rights policy	• Transition to hybrid vehicles – more than 50% of fleet
• Improvement in Company ESG ratings	• Doubled the scope of electronic waste recycling in two years to 95 tons	Reduce GHG emissions to net zero
• Approved Company policies	• Reduced electricity and water consumption as well as carbon footprint
• CDP registration	• Committed to reducing the digital divide in Israel:
• Join Ma'ala rating	• Over 550 NGOs receive donation of Bezeq services
• Over 10,000 employee volunteer hours for the community
	• Pelephone and yes adopted the Givati Brigade and will provide support in the coming years
	• yes supports the Young-Docu project, which accompanies at-risk youth in the creation of documentary films
2020-2022	2023	2030	2050

Bezeq is connecting Israel to an enhanced future

Fiber deployment brings the periphery closer to the center and reduces energy use

Bezeq Group | 2023 Summary

Strong execution in strategic growth drivers – robust fiber take-up, consistent growth in 5G subscriber plans in Pelephone reaching over 1 million

Increase in dividend payout to 60% in March 2023 and distribution of NIS 638 million during 2023

Highest Bezeq Fixed-Line revenues in the last decade; highest Pelephone service revenues (excluding interconnect) since 2017; highest yes revenues since 2019

Adj. EBITDA rose 2.2% to NIS 3.8 billion; 11% increase in Adj. Net Profit to NIS 1.33 billion;

Upgrade in credit outlook to "positive" by both domestic rating agencies

Bezeq Group is executing on its strategy while focusing on growth

Bezeq Group | 2023 Summary

Revenues NIS 9.1 billion

2.2% Adj. EBITDA (1) NIS 3.8 billion Adjusted EBITDA margin of 42.0% 1.3% 11.0%

Adj. Net Profit(1) NIS 1.3 billion

Decrease in Net Debt NIS 427 million

All results are compared to 2022 or Q4-2022 unless otherwise stated

11

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

Bezeq Group | 2023 Summary (Cont'd)

Bezeq Group | 2023 Key Financial Highlights | NIS million

13

7.7%

% - Adjusted EBITDA margin

Adj. Net Profit (1) Adj. EBITDA (1)

• Revenue growth driven by 2.5% increase in Bezeq Fixed-Line and yes revenues, despite the second tranche of the MOC telephony reform in July 2023 and the decrease in Pelephone interconnect revenues in June 2023
• Increase in Adj. EBITDA and Adj. Net Profit due to improved business results in most of the group's activities
• Free cash flow was impacted unduly by timing differences in working capital related to the deferral of customer debt collections from 2021 to 2022 due to employee sanctions as well as improved terms with acquiring companies in 2022

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

Bezeq Group | Q4-2023 Key Financial Highlights | NIS million

Adj. Net Profit (1) Adj. EBITDA (1)

• Stable revenues despite the impact of the war and the second tranche of the MOC telephony reform in July 2023 as well as the decrease in Pelephone interconnect revenues in June 2023
• Adj. Net Profit grew 20% primarily due to a decrease in depreciation and financing expenses
• Free cash flow was impacted by the increase in CapEx and timing differences in working capital

14

% - CapEx/Sales

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

Bezeq Group | Annual Key Operational Metrics

Growth in Pelephone subscribers

Continued decrease in telephony subscribers

(1) Cellular ARPU - excluding interconnect fees

Bezeq Group | Quarterly Key Operational Metrics

Subscribers (end of period, in thousands)

2,580	2,585	2,593	2,618	2,618
1,503	1,488	1,473	1,454	1,442
1,032	1,031	1,028	1,029	1,028
579	580	579	576	574
472	474	477	471	467
Q4-2022	Q1-2023	Q2-2023	Q3-2023	Q4-2023

Stable Internet subscribers

Moderate decrease in TV subscribers

ARPU (NIS)

^{117 120 122 124 125}

^{181 185 185 182 175}

16

Bezeq Group | Financial Debt

Financial Debt (NIS billion)

Decrease in net debt

• Decrease of NIS 3.7 billion, or 41% since 2018
• Decrease of NIS 430 million, or 8% y-o-y

Further improvement in Net debt/Adjusted EBITDA(1) ratio

• Decreased to 1.6 from 2.5 as of Dec 31st, 2018

Debt ratings

-1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0

Rating Agency	Rating	Outlook
S&P Global Maalot	ilAA-	Positive
Midroog	Aa3.il	Positive

The Group maintains its high credit rating, within the AA group

17

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

Bezeq Group | Dividend Policy Update

• The Company's Board of Directors decided to update its dividend distribution policy, according to which the Company will distribute to its shareholders on a semi-annual basis, a cash dividend of 70% of the semi-annual profit (after tax) according to the Company's consolidated financial statements, commencing from the upcoming distribution (for the second half of 2023)
• Further to the dividend policy, the Company's Board of Directors decided to recommend to the General Meeting of Shareholders a dividend distribution in a total amount of NIS 374 million, which as of the date of the approval of this resolution equaled to NIS 0.135 per share. The effective date and the ex-dividend date will be on May 1st, 2024, while the payment day will be on May 9th, 2024
• The recommended dividend reflects a yield of approx. 6% on an annual basis

	2021	2022	2023	2024
Payout ratio	-	50%	60%	70%

Bezeq Group | 2024 Guidance

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation.

(2) Updated in July 2023

19

(3) The Company will report, as required, deviations of more/less than 10% of the amounts stated in the outlook.

(4) CapEx includes a one-time increase due to two projects – building a new data center for the group and upgrading core infrastructure networks

Bezeq Group ^| Mid-Term Ambitions Update

			Ambitions Mid-term Mar 2023	Ambitions Mid-term
u E ,p o> CL Is c c	EBITDA Adj.	CAGR	1%	1.5%-2.0%
		Adjusted EBITDA Margin	41%-43%	42%-44%
	CapEx (gross)		CapEx/Sales until and 2025; Stable CapEx gradual reduction thereafter	CapEx/Sales 16%-18%
	CapEx EBITDA less Adj.			of Increase million 400-500 NIS
	cash AL Free flow	cagr	single digit Mid	7%-9%
	stability Financial		within the group Credit AA Maintain Rating High	Unchanged
	Dividend		dividend payout to to Increase ratio (subject 70% in maintaining credit within rating the AA group)	to maintaining (subject credit dividend Increase in rating within the AA group)
co ' s— W) c L. <D Q. o	take-up Fiber		Approx. million households 2.7	Take-up of rate (retail + wholesale) ~40%
	- ARPU Retail Internet		Above 130)1) NIS	Above NIS 140
	Pelephone ARPU -		interconnect 45-50, excl. NIS (1)	interconnect excl. (Unchanged) 45-50, NIS
	ARPU yes -		155 ~NIS <1(	NIS 155-160

Bezeq Fixed-Line | 2023 Summary

Revenues grew 2.5% to NIS 4.4 billion – highest in the last decade. Growth in all activities except for telephony revenues which decreased mainly due to MOC reduction in tariffs

Fiber net adds of 300k, of which 170k retail and 130k wholesale

Adj. Net Profit grew 8.3% to NIS 1.02 billion - highest since 2020. Free cash flow increased 14.1% to NIS 1.1 billion

Fiber network homes passed reached 2.2m with 619k customer take-up rate (28.6%) (1)

7.9% growth in retail Internet ARPU, reaching NIS 123

Entrance into electricity supply sector through joint venture

Bezeq Fixed-Line | 2023 Key Financial Highlights | NIS million

% - Adjusted EBITDA margin

Adj. Net Profit(1) Adj. EBITDA(1)

• Revenue growth recorded in all activity segments, except for telephony services
• Increase in Adj. EBITDA and Adj. Net Profit, primarily due to higher revenues and lower net financing expenses
• Increase in free cash flow due to improved business results and timing differences in working capital

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

Bezeq Fixed-Line | Q4-2023 Key Financial Highlights | NIS million

618 654 681 646 637 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 59% 59% 60% 60% 59% 3.1%

% - Adjusted EBITDA margin

CapEx Free Cash Flow

Adj. Net Profit(1) Adj. EBITDA(1)

• Revenue growth recorded in all activity segments, except for telephony services due to the second tranche of MOC tariff reductions
• Increase in Adj. EBITDA and Adj. Net Profit despite the decrease in fixedline telephony tariffs
• Free cash flow was impacted by timing differences in working capital

23

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

Bezeq Fixed-Line | 2023 Broadband Internet

Broadband Revenues (NIS million)

Retail ARPU (NIS)

Retail Broadband Lines (thousands)

• Significant increase in fiber customer take up
• Significant growth in broadband revenues

• Continued growth in retail ARPU, positively impacted by fiber customer take up

Bezeq Fixed-Line | Q4-2023 Broadband Internet

Broadband Revenues (NIS million)

Retail ARPU (NIS)

Retail Broadband Lines (thousands)

Wholesale Broadband Lines (thousands)

• Significant increase in fiber customer take up
• Significant growth in broadband revenues
• Continued growth in retail ARPU, positively impacted by fiber customer take up

Bezeq Fixed-Line | Accelerated Fiber Take-Up – Retail and Wholesale

Total Retail Fiber Take-Up (Thousands)

Q4-23 – slowdown in subcontractor activity due to the war and temporary dispute with labor union 190% y-o-y increase in wholesale take-up in 2023

Total Wholesale Fiber Take-Up (Thousands)

26

Bezeq Fixed-Line | Continued Fiber Deployment with Increased Take-up Focus

Homes Passed (thousands)

Customers with Unified Internet Service

Total Fiber Net Adds (thousands) (Retail and Wholesale)

Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Total Fiber Take-Up (thousands) (Retail and Wholesale)

-10.0% -5.0% 0.0 % 5.0 % 10. 0% 15. 0% 20. 0% 25. 0% 30. 0%

More than 500k active subscribers on Bezeq's fiber network

Over 2m homes passed

Bezeq Fixed-Line | Data, Telephony, Cloud & Digital Revenues | NIS million

Transmission & Data

Cloud & Digital

• Continued growth in data revenues offset by a decrease in traffic revenues from ISP companies
• Telephony revenues were impacted by MOC tariff reductions in 2022 and 2023. In 2023, telephony revenues were 15% of total revenues
• Growth in cloud & digital revenues driven by higher virtual exchange services
• Increase in other revenues, mainly due to infrastructure projects

Bezeq Fixed-Line | Data, Telephony, Cloud & Digital Revenues | NIS million

Telephony Other 21.3% 183 182 176 148 144 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Cloud & Digital

• Continued growth in data revenues offset by a decrease in traffic revenues from ISP companies
• Telephony revenues were impacted by the second tranche of MOC tariff reductions in July 2023. In Q4-2023, telephony revenues were 13% of total revenues
• Growth in cloud & digital revenues driven by higher virtual exchange services
• Increase in other revenues, mainly due to infrastructure projects

Bezeq Fixed-Line | Operating Expenses | NIS million

30

• Increase in salaries mainly due to salary updates, employee recruitment relating to the fiber project and the public sector wage agreement which impacts tenured employees

• Increase in operating expenses mainly due to higher materials and sub-contractor expenses for the fiber project and various infrastructure projects
• Other expenses were impacted by higher provisions, including a special grant to be paid to employees pursuant to the amendment of the labor agreement, subject to certain conditions being met in the future

Bezeq Fixed-Line | Operating Expenses | NIS million

Operating Expenses

Depreciation & Amortization Other Expenses

• Increase in salaries mainly due to salary updates as well as employee recruitment relating to the fiber project
• Decrease in operating expenses mainly due to lower interconnect payments to telecom operators as tariffs decreased as of June 2023, as well as lower payments to the fund for incentivizing deployment of fiber optics pursuant to an MOC decision
• Other expenses were impacted by a provision of NIS 55 million for early retirement

Bezeq's Entrance into Electricity Sector

Electricity market reform

• Jan 2024 - A revolution in the Israeli electricity market with the opening of the supply sector for residential customers and small businesses to competition

• Competitive market in 2030 - NIS 10 billion(1) :

• 1.3 million residential customers 40% competitive market share
• 150k business customers (low and general voltage) 50% competitive market share
• Competitive protection Israel Electric Corp. is prohibited from offering discounts until it loses 40% market share
• Past experience in regulatory reforms shows there is an advantage for operators who entered the market early

The electricity market is undergoing a fundamental structural change, which creates a unique business opportunity

Bezeq's Entrance into Electricity Sector (Cont'd)

Joint Venture

Bezeq rationale

• ✓ Electricity supply adjacent and complementary growth activity
• ✓ Increase in customer stickiness
• ✓ No economic correlation with Bezeq's core activities
• ✓ No exposure to telecom regulation
• ✓ No significant CapEx
• ✓ Exposures (exchange rate, electricity prices, CPI, etc) create a natural hedge for group

For the first Bezeq enters into a new and strategic sector, not connected to the telecom industry, which allows for growth and profitability with no significant CapEx

33 The JV aims to reach market share of 400k residential customers and tens of thousands of business customers by the end of 2030

Bezeq Fixed-Line | Key Takeaways

Growth in all key financial metrics in 2023

Accelerated retail fiber takeup, combined with continued increase in ARPU

8.8% growth year-overyear in Internet revenues offset the MOC decrease in telephony tariffs

Entrance into electricity supply sector through joint venture

Strong and growing cash flow - 14% yearover-year growth in free cash flow in 2023

Growth in business sector revenues driven by increased demand for data and communications solutions

Widespread fiber deployment combined with accelerated fiber take-up is reflected in continued growth in the residential market

Pelephone | 2023 Summary

Highest revenues from services (excl. interconnect fees) since 2017 with 1.5% growth reaching NIS 1.39 billion, driven by an increase in ARPU, increase in 5G subscriber plans as well as an increase in postpaid subscribers

ARPU (excl. interconnect fees) increased NIS 1 to NIS 44

5G subscriber plans grew by 250k reaching 1.1 million (41%) (1) contributing to ARPU, alongside growth of 53k in postpaid subscribers

Acquisition of Roamability, a company specializing in providing solutions in the global roaming market through the eSIM technology

Growth in ARPU and revenues from services (excl. interconnect fees) despite impact of war on roaming revenues in Q4-2023

Pelephone |

Positive Trends in Service Revenues (excl. interconnect fees) and 5G Subscriber Plans

Subscribers on 5G plans were 41% of total subscribers and 49% of postpaid subscribers

Pelephone | 2023 Key Financial Highlights | NIS Million

Revenues (excl. interconnect fees)

Adj. EBITDA (1)

^{253 295 311} 2021 2022 2023 CapEx Free Cash Flow % - CapEx/Sales 5.4% 11% 12% 13%

37

Adj. Net Profit (1)

• Highest revenues from services (excl. interconnect fees) since 2017, driven by growth in postpaid subscribers and increase in ARPU

• Adj. EBITDA decreased by only NIS 11 million despite the impact of the war, due to an increase in revenues from services (excl. interconnect fees), offset by an increase in operating expenses resulting from CPI and the shekel devaluation

• Adjusted Net Profit was impacted by the war as well as a decrease in interest income from the parent company

• Free cash flow was impacted by timing differences in working capital

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

Pelephone | Q4-2023 Key Financial Highlights | NIS Million

% - Adjusted EBITDA margin Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Adj. Net Profit (1)

• Revenues from services (excl. interconnect fees) decreased 1.4% due to the impact of the war on roaming revenues, offset by growth in postpaid subscribers, including 5G plans
• Adj. EBITDA decreased by only NIS 6 million despite the impact of the war, due to an increase in subscribers and ARPU
• Adj. Net Profit was impacted by the war as well as a decrease in interest income from the parent company
• CapEx and free cash flow were impacted by a refund of NIS 74 million from the State related to the frequency tender in the corresponding period

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

38

Pelephone | Q4-2023 Key Operational Metrics

Subscribers (Thousands) ARPU (NIS)

• ARPU (excl. interconnect fees) was impacted by the decrease in roaming revenues in Q4-2023 due to the war

• Prepaid subscribers in Q4-2023 were impacted by the war

yes | 2023 Summary

Highest revenues since 2019, with growth of 2.5% to NIS 1.31 billion, driven by the launch of TV + Bezeq fiber bundle, together with agreements with leading international content providers

Adj. EBITDA grew 3.5% to NIS 239 million (2)

Transition to positive Adj. Net Profit (proforma) of NIS 3 million, compared to an Adj. net loss of NIS 38 million in 2022 (2)

yes is the largest Israeli IP operator with 408k customers watching TV through IP broadcasting (71% of total subscribers) (1) , an increase of 63k in 2023

Continued growth in fiber subscribers reaching 44k (1) , 11% of total IP subscribers

Free cash improved significantly to NIS 11 million, compared to negative free cash flow of NIS 17 40 million in 2022

yes | Revenue Growth Turnaround | NIS Million

-200

-150

-100

-50

0

50

100

150

200

100

41

300

500

700

900

1100

1300

1500

1700

yes | 2023 Key Financial Highlights | NIS Million

180 180 181 2021 2022 2023 % - CapEx/Sales 0.6% 14% 14% 14%

• Revenue growth driven by the launch of TV + Bezeq fiber bundle, together with agreements with leading international content providers
• Increase in Adj. EBITDA driven by higher revenues. Adj. Net Profit grew due to higher revenues and lower depreciation expenses
• Free cash flow increased due to improved business results as well as timing differences in working capital

42

(1) Pro-forma; After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

yes | Q4-2023 Key Financial Highlights | NIS Million

% - Adjusted EBITDA margin

Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

• Revenues were impacted by lower sales of content compared to Q4-2022 as well as by the war
• Adj. EBITDA was impacted by lower revenues and an increase in the USD/NIS exchange rate in Q4-2023
• Adj. Net Profit was impacted by higher financing expenses
• Free cash flow was impacted by timing differences in working capital

% - Capex/Sales

(1) Pro-forma; After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

43

yes | Q4-2023 Key Operational Metrics

• Continued growth in IP subscribers to 71% of yes subscribers (2)
• Continued growth in fiber subscribers
• ARPU in Q4-2023 was impacted by the war and the continued transition of premium subscribers to discount plans

(1) IP subscribers - the number of yes subscribers viewing IP broadcasting through the yes+ and STINGTV services. This includes subscribers that use satellite services as well

(2) As of reporting date

(3) Compared to Q3-2023

44

Bezeq International | 2023 Summary

Increase in ICT activity offset most of the decrease in consumer ISP revenues

Focus on growth in ICT market with emphasis on cyber, integration, public cloud and data centers

Cost savings due to reduction in consumer ISP activity

11.9% growth in Adjusted EBITDA to NIS 198 million in 2023

Adjusted Net Profit grew 24.4% in 2023 to NIS 51 million

Bezeq International | 2023 Key Financial Highlights | NIS Million

% - Adjusted EBITDA margin

81

2021 2022 2023

26

67.9%

Adj. Net Profit (1) Adj. EBITDA (1)

24.4% 51

• Increase in revenues from business services due to activity growth and CloudEdge acquisition, offset by decrease in consumer ISP revenues following the regulation on unified Internet
• Significant increase in Adj. EBITDA and Adj. Net Profit mainly due to lower expenses driven by decrease in consumer ISP activity
• Free cash flow was impacted by payments for employee retirement in 2023 as well as timing differences in working capital related to the deferral of customer debt collections from 2021 to 2022 due to employee sanctions in 2021

% - CapEx/Sales

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

0

46

Bezeq International | Q4-2023 Key Financial Highlights | NIS Million

^{20 26}

4% 7% 9% 12%

37

% - Adjusted EBITDA margin Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Adj. Net Profit (1) Adj. EBITDA (1)

• Increase in revenues from business services due to activity growth, offset by a decrease in consumer ISP revenues

• Adj. EBITDA grew 11.6% due to lower expenses driven by decrease in consumer ISP activity
• Free cash flow was impacted by an increase in CapEx and changes in working capital

Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

% - CapEx/Sales ⁴⁷

5%

17 13

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

Bezeq Group | 2023 Summary

Strong execution in strategic growth drivers – robust fiber take-up, consistent growth in 5G subscriber plans in Pelephone reaching over 1 million

Highest Bezeq Fixed-Line revenues in the last decade; highest Pelephone service revenues (excluding interconnect) since 2017; highest yes revenues since 2019

Adj. EBITDA rose 2.2% to NIS 3.8 billion; 11% increase in Adj. Net Profit to NIS 1.33 billion;

Increase in dividend payout to 60% in March 2023 and distribution of NIS 638 million during 2023

Upgrade in debt outlook to "positive" by both domestic rating agencies

Bezeq Group is executing on its strategy while focusing on growth

Thank You!

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