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Investor Presentation • May 17, 2023

Bezeq Group Investor Presentation Financial Results Q1 2023 Pelephone

Forward-Looking Information and Statement (Disclaimer)

This presentation contains general data and information as well as forward looking statements about Bezeq - The Israel 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 Group | Focus on Growth

Record quarterly revenues since 2018, with growth in all group segments

Record quarter in fiber take-up - both retail and wholesale

yes TV + Bezeq fiber bundle combined with agreements with international content providers

Consistent growth in subscribers with 5G plans reaching 860k (33%),* contributing to ARPU growth

Dividend payout upgraded to 60%, reflecting dividend yield of ~4%

Upgrade in credit rating outlook to "positive" due to continued financial debt reduction and improved debt leverage ratios

3

Technological & Business Roadmap

*As compared to Q4-2020

Bezeq Group | Q1-2023 Summary

Revenues NIS 2.31 billion

Highest quarterly revenues since 2018 Adjusted EBITDA margin of 40.6%

2.4% 2.3% 0.3%

Upgrade in credit rating outlook to "Positive"

All results are compared to Q1-2022 unless otherwise stated

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(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 | Q1-2023 Summary (Cont'd)

Bezeq Group | Q1-2023 Key Financial Highlights NIS Million

Adjusted Net Profit (1) Adjusted EBITDA (1)

% - Adjusted EBITDA margin

CapEx Free Cash Flow

• Record quarterly revenues since 2018 driven by an increase in revenues in all group segments
• Decrease in Adjusted EBITDA due to a one-time grant to permanent fixed-line employees following a salary agreement in principle in the public sector as well as an MOC driven decrease in telephony tariffs
• Free cash flow was impacted by timing differences in working capital due to employee sanctions resulting in higher free cash flow in Q1-2022

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

% - Capex/Sales

Bezeq Group | Key Operational Metrics

Growth in cellular, retail Internet and TV subscribers

First quarterly increase in wholesale subscribers since 2018

strategic agreements with international content providers

Bezeq Group | Financial Debt

5.6 5.6 5.6 5.6 5.3 2.1 2.4 2.4 1.7 2.4 7.7 8.0 8.0 7.3 7.7 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023

Financial Debt (NIS billion)

Net Debt Cash and short-term investments Gross Debt

Continued decrease in net debt

• Decrease of NIS 331 million, or 6% y-o-y

Further improvement in Net debt/EBITDA ratio

• Decreased to 1.6 from 1.7 as of March 31, 2022

Debt ratings

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

The Group strives to maintain its credit rating within the AA group

Increase in Israeli rating agencies outlook to "positive" due to continued improvement in Group financial ratios

9

Bezeq Group | 2023 Guidance Unchanged

	Results 2022	2023 Outlook
Adjusted EBITDA (1)	3.74 NIS billion	3.8 NIS billion
Adjusted net profit (1)	1.2 NIS billion	1.2 NIS billion
CAPEX	1.71 NIS billion	1.75 NIS billion
Free cash flow	1.41 NIS billion
Fiber deployment	1.5 million households	2.0 million households Approx.
Financial stability		Maintain High Credit Rating, within the AA group

(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 | ESG Milestones, Ambitions and Targets

Bezeq is connecting Israel to a better future

Bezeq Fixed-Line | Q1-2023 Summary

Record fiber take-up of 84k, of which 48k retail and 36k wholesale

Fiber network homes passed reached 1.75m with 380k customer take-up (21.7%) (1)

58% of retail broadband subscribers are combined infrastructure + ISP customers

1.4% revenue growth despite the MOC telephony tariff reduction

10.4% growth in broadband Internet revenues; cloud and digital service revenues grew 7.4%

Bezeq Fixed-Line | Q1-2023 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

12.8%

Adjusted EBITDA* Adjusted Net Profit*

• Revenue growth in broadband Internet, data and cloud & digital services, partially offset by decrease in telephony revenues
• Decrease in Adjusted EBITDA mainly due to a one-time grant to permanent employees following a salary agreement in principle in the public sector as well as the MOC decrease in telephony tariffs
• Decrease in free cash flow primarily due to changes in working capital

* 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 | Q1-2023 Broadband Internet

Broadband Revenues (NIS million)

Retail ARPU (NIS)

Retail Broadband Lines (thousands)

Wholesale Broadband Lines (thousands)

• Significant increase in fiber customer take up
• Double digit growth in broadband revenues
• Continued growth in retail ARPU positively impacted by fiber customer take up and an increase in ISP customers

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

Total Retail Fiber Take-Up (Thousands)

Significant acceleration of retail take-up starting in H2-2022 Accelerated wholesale take-up began in Q1-2023

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

Homes Passed (thousands) 42% 44% 40% 43% 42% 43% 42% 1,193 1,308 1,442 1,526 1,689 1,749 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 As of

reporting date

66% y-o-y increase in average broadband speed to 250 Mbps

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

Bezeq is leading in fiber take-up (retail + wholesale)

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Bezeq Fixed-Line | Technology Roadmap

Technology is progressing and Bezeq will be there

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

Transmission & Data

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Cloud & Digital

• Continued growth in data revenues offset by a decrease in traffic revenues from ISP companies
• Growth in cloud & digital revenues driven by an increase in revenues from virtual exchange services
• Decrease in telephony revenues mainly due to MOC tariff reduction beginning Q2-2022
• Increase in other revenues mainly due to revenues from infrastructure projects

Bezeq Fixed-Line | Operating Expenses | NIS million

Depreciation & Amortization Other Expenses

Operating Expenses

• Increase in salaries mainly due to a one-time grant to permanent employees following a salary agreement in principle in the public sector as well as employee recruitment relating to the fiber project

• Increase in operating expenses mainly due to higher subcontractor and materials expenses relating to fiber and other infrastructure projects
• Decrease in other operating expenses mainly due to higher provisions for legal claims in Q1- 2022

Bezeq Fixed-Line | Key Takeaways

Accelerated fiber take-up as part of "acceleration plan", combined with continued increase in ARPU

IRU agreement with Partner - Strengthening Bezeq's position in wholesale fiber market

Continued migration to combined infrastructure + ISP service

Growth in broadband revenues offset impact of MOC telephony tariff reduction

Growth in business sector revenues driven by increased demand for data and communications solutions, with decrease in revenues from ISP operators

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

Pelephone | Q1-2023 Summary

Record quarterly revenues since 2018 with 2.7% year-over-year increase, driven by increase in roaming revenues, growth in subscribers and in 5G subscriber plans as well as an increase in equipment revenues

ARPU, excluding interconnect fees, increased NIS 1

Improved profitability after adjusting for an update in estimated right-of-use assets for past periods recorded in Q1-2022

Growth in postpaid subscribers with 11k net adds; 860k subscribers (33%) with 5G plans contributing to ARPU (1)

Pelephone | Q1-2023 Key Financial Highlights NIS Million

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

Adjusted Net Profit (1)

• Revenue growth due to an increase in roaming revenues, growth in subscribers and in 5G subscriber plans as well as an increase in equipment revenues
• Adjusted EBITDA and Adjusted Net Profit decreased due to the termination of the Ministry of Education project as well as an update in estimated right-of-use assets for past periods recorded in Q1- 2022
• Free cash flow was impacted by timing differences in working capital related to the deferral of customer debt collections from 2021 to 2022 due to employee sanctions

(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 | Q1-2023 Key Operational Metrics

(1) One-time removal of 96k prepaid subscribers in Q4-22 who did not meet the definition of an active subscriber

Subscribers on 5G Plans (Thousands)

• Subscribers on 5G plans were 33% of total subscribers and 39% of postpaid subscribers*
• ARPU, excluding interconnect fees, increased NIS 1 y-o-y mainly due to an increase in roaming and transition to 5G subscriber plans, partially offset by the termination of the Ministry of Education project and a decrease in content services in 4G plans

Pelephone | Continued Turnaround in Service Revenues NIS Million

• Growth in service revenues driven by recovery in roaming revenues, increase in subscribers and growth in 5G subscriber plans
• Service revenues in Q1-2023 were higher than Q1-2019 (pre-COVID period)

yes | Q1-2023 Summary

Revenue growth of 4.1% driven by the launch of TV + Bezeq fiber bundle, together with agreements with leading international content providers

Tenth consecutive quarter of subscriber growth

Free cash flow increased 115.4% to NIS 56 million due to timing differences in working capital

yes is the largest Israeli IPTV operator with 356k customers watching TV through IP broadcasting (61% of total subscribers), of which 110k are STINGTV customers (1)

Improved Adjusted Net Profit(2) – breakeven in Q1-2023 compared to net loss of NIS 7 million in Q1-2022

yes | Q1-2023 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

Adjusted Net Profit (Loss) (1) Adjusted EBITDA (1)

• Revenue growth driven by the launch of TV + Bezeq fiber bundle, together with agreements with leading international content providers
• Decrease in Adjusted EBITDA mainly due to an increase in content expenses as well as the launch of the TV/fiber bundle
• Significant improvement in free cash flow due to 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

yes | Key Operational Metrics

^{311 287 268 250 232 253 280 307 329 348} 564 567 575 579 580 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Satellite subscribers IP subscribers (1) 2.8%

STINGTV Subscribers (Thousands)

• Tenth consecutive quarter of net subscriber growth
• ARPU grew NIS 4 sequentially, driven by agreements with international content providers
• 61% of yes subscribers watch IPTV(2)

(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

yes | Revenue Growth Turnaround NIS Million

-45

-35

-25

-15

-5

Bezeq International | Q1-2023 Summary

Revenue growth driven by increase in ICT activity, which offset the decrease in consumer ISP revenues

Focus on expansion of ICT activities for B2B market

Significant improvement in Adjusted EBITDA and Adjusted Net Profit

Reduction in consumer ISP activity due to regulatory removal of Internet infrastructure-ISP separation as of April 2022

Bezeq International | Q1-2023 Key Financial Highlights NIS Million

Revenues

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

Adjusted Net Profit (1) Adjusted EBITDA (1)

• Revenue growth due to increase in ICT activity which offset the decrease in consumer ISP revenues following the regulatory reform for unified Internet service in Q2-2022
• Significant increase in Adjusted EBITDA and Adjusted Net Profit mainly due to lower expenses driven by decrease in consumer ISP activity
• Free cash flow was impacted 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 from payments for retirement in Q1-2023

% - 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 | Focus on Growth

Record quarterly revenues since 2018, with growth in all group segments

Record quarter in fiber take-up - both retail and wholesale

yes TV + Bezeq fiber bundle combined with agreements with international content providers

Consistent growth in subscribers with 5G plans reaching 860k (33%),* contributing to ARPU growth

Dividend payout upgraded to 60%, reflecting dividend yield of ~4%

Upgrade in credit rating outlook to "positive" due to continued financial debt reduction and improved debt leverage ratios

Bezeq Group is executing on its strategy while focusing on growth

Thank You!

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