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Investor Presentation • Mar 14, 2023

Bezeq Group Investor Presentation Financial Results 2022

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 reports can be accessed at 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 | Focused on Growth

Accelerated fiber take-up as growth driver

Growth and improved performance in Pelephone

yes launched TV + Bezeq fiber bundle

Dividend payout ratio upgrade

Continued decrease in financial debt

Bezeq Group is executing on its strategy while focusing on growth

Technological & Business Roadmap

*As compared to 2020

Bezeq Group | Growth and Improved Operations in 2022

1.9% y-o-y growth in revenues reaching NIS 9 billion

Increase in Adjusted EBITDA reaching NIS 3.74 billion

3.6% growth in Adjusted Net Profit reaching NIS 1.2 billion

Strong growth in fiber subscribers and Retail ARPU

Bezeq Group | 2022 Summary

All results are compared to FY 2021 and Q4 2021 unless otherwise stated

(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) As of early March 2023

6

(3) Prepaid subscriber removal increased ARPU by NIS 2

Bezeq Group | 2022 Key Financial Highlights NIS Million

7

% - Adjusted EBITDA margin

• Revenues increased for the second consecutive year due to growth of 5% in Pelephone and 3% in Bezeq Fixed-Line despite the MOC reduction in telephony tariffs
• Increase in Adjusted EBITDA and Adjusted Net Profit mainly due to increased profitability in Pelephone
• Double digit growth in free cash flow mainly due to timing differences and improved working capital

Bezeq Group | Q4-2022 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

8

CapEx Free Cash Flow 77.6% 254 570 359 30 451

Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022

Adjusted Net Profit (1) Adjusted EBITDA (1)

• Revenues impacted by decrease in Pelephone handset revenues and the MOC telephony tariff reduction
• Decrease in Adjusted Net Profit due to increase in depreciation and financing expenses
• Free cash flow was impacted by timing differences in working capital due to subsidiaries' employee sanctions in Q4-2021

Bezeq Group | Key Operational Metrics

Subscribers (end of period, in thousands)

Growth in TV and retail Internet subscribers

Q-o-Q decrease in cellular subs due to removal of 96k prepaid subs

Bezeq Group Financial Debt | NIS Billion

Net Debt (NIS billions)

Net Debt Cash and short-term investments Gross Debt

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

Continued decrease in net debt

• Decrease of NIS 500 million, or 8% compared to the end of 2021
• Decrease of NIS 3.2 billion, or 37%, compared to end of 2018

Further improvement in Net debt/EBITDA ratio

• Decreased to 1.7 from 1.8 a year ago

Debt ratings

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

Bezeq Group | 2022 Guidance and Mid-Term Ambitions

	Results 2022	2023 Outlook	Mid-Term Ambitions
Adjusted EBITDA (1)	3.74 NIS billion	3.8 NIS billion	CAGR of 1% with adjusted EBITDA margins of 41% - 43%
Adjusted net profit (1)	1.2 NIS billion	1.2 NIS billion
CAPEX	1.71 NIS billion	1.75 NIS billion	Stable CapEx and CapEx/Sales until 2025; gradual reduction thereafter
Free cash flow	1.41 NIS billion		Mid single-digit CAGR
Fiber deployment	1.5 million households	2.0 million households Approx.	Approx. 2.7 million households
Dividend			70% of net profit, subject to maintaining credit rating in the AA group
Financial stability		Maintain High Credit Rating within the AA group

11

Bezeq Group | Dividend Policy

• 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 60% 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 2022)
• 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 246 million, which as of the date of the approval of this resolution equaled to NIS 0.09 per share. The effective date and the ex-dividend date will be on May 4, 2023, while the payment day will be on May 11, 2023
• The Company will strive to update its dividend policy to distribute 70% of the semi-annual profit (after tax) according to the company's consolidated financial statements, subject to maintaining the Company's credit rating in the AA group

Bezeq Fixed-Line | 2022 Summary

Increased focus on fiber connections led to fiber customer take-up of 183k, of which 133k retail and 50k wholesale

The number of homes passed reached 1.65 m with 332k customer take-up (1)

47% of retail broadband subscribers are combined infrastructure + ISP customers

Continued business sector revenue growth

3% revenue growth despite the MOC telephony tariff reduction

Broadband Internet revenues grew 10%

Bezeq Fixed-Line | 2022 Key Financial Highlights NIS Million

Revenues

% - Adjusted EBITDA margin

Adjusted Net Profit (1) Adjusted EBITDA (1)

• Revenue growth of 3%, despite MOC decrease in telephony rates in Q2-22, due to growth in broadband revenues and business sector
• Adjusted EBITDA was impacted by the MOC decrease in telephony rates, among other factors
• Decrease in Adjusted Net Profit mainly due to an increase in depreciation expenses related to the fiber deployment as well as other infrastructure projects

14

Bezeq Fixed-Line | Q4-2022 Key Financial Highlights NIS Million

Revenues 0.5% 1,052 1,096 1,067 1,086 1,057 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022

% - Adjusted EBITDA margin

15

Adjusted EBITDA* Adjusted Net Profit*

• Revenue growth partially offset by decrease in telephony and Other revenues
• Decrease in Adjusted Net Profit mainly due to an increase in depreciation and financing expenses
• Free cash flow was impacted by payments received for the sale of real estate in Q4-2021

Bezeq Fixed-Line | 2022 Broadband Internet

Broadband Revenues (NIS m)

• 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

Wholesale Broadband Lines (thousands)

Bezeq Fixed-Line | Q4-2022 Broadband Internet

Broadband Revenues (NIS m)

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

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

Wholesale Fiber – Net Adds (Thousands) 11 12 11 13 14 28 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 As of reporting date* IRU Agreement with Partner

Total Wholesale Fiber Take-Up

*Net adds from beginning of the year until reporting date

Continued fiber deployment with increased take-up focus

42% 44% 40% 43% 42% 43% 42% 1,064 1,193 1,308 1,442 1,526 1,654 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 As of reporting date

Homes Passed (thousands)

70% y-o-y increase in average broadband speed to 220 Mbps

19

Total Fiber Net Adds (thousands)

Customers with Be router (thousands) Total Fiber Take-Up (thousands)

^*Net adds from beginning of the year until reporting date

Bezeq Fixed-Line – 2022 Data, Telephony and Cloud & Digital Revenues | NIS millions

Cloud & Digital

14.2%

^{240 274}

2021 2022

• Continued growth in revenues from the business sector
• Decrease in telephony revenues mainly due to MOC tariff reduction beginning Q2-22
• Increase in other revenues mainly due to growth in infrastructure projects

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

Transmission & Data

Telephony Other 222 220 189 188 183 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 17.6%

Cloud & Digital

• Continued growth in revenues from the business sector
• Decrease in telephony revenues mainly due to MOC tariff reduction beginning Q2-22
• Decrease in other revenues due to timing differences in infrastructure projects

21

Bezeq Fixed-Line – 2022 Operating Expenses | NIS millions

Depreciation & Amortization Other Expenses

Operating Expenses

• Increase in salaries mainly due to employee recruitment relating to fiber project
• Increase in operating expenses mainly due to higher subcontractor and materials expenses relating to fiber and other infrastructure projects
• Increase in depreciation expenses driven mainly by CapEx increase over previous periods
• Increase in other operating expenses mainly due to capital gains from the sale of real estate in 2021

Bezeq Fixed-Line – Quarterly Operating Expenses | NIS millions

Depreciation & Amortization Other Expenses

Operating Expenses

• Increase in salaries mainly due to employee recruitment relating to fiber project
• Increase in operating expenses mainly due to higher subcontractor and materials expenses relating to fiber and other infrastructure projects
• Increase in depreciation expenses driven mainly by CapEx increase over previous periods
• Increase in other operating expenses mainly due to capital gains from the sale of real estate in Q4-2021

Bezeq Fixed-Line | Key Takeaways

Accelerated fiber take-up combined with continued widespread deployment of fiber network

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 driven by increased demand for data and communications solutions

Widespread fiber deployment combined with accelerated fiber take-up reflects potential for Bezeq's continued growth in the residential market

Pelephone | 2022 Summary

Record revenues since 2018 with 5% year-over-year increase, driven by recovery in roaming revenues, increase in subscribers and growth in 5G subscriber plans

Adjusted EBITDA grew 20% to NIS 761 million and Adjusted Net Profit increased 155% to NIS 193 million

Free cash flow totaled NIS 351 million compared to negative free cash flow of NIS 47 million in 2021

Growth in postpaid subscribers with 53k net adds in 2022; 813k subscribers (32%) with 5G plans contributing to ARPU *

Pelephone | 2022 Key Financial Highlights NIS Million

2,289 2,399 2021 2022 Revenues 4.8%

Adjusted Net Profit(1) Adjusted EBITDA (1)

• Service revenue growth, significant improvement in Adjusted EBITDA and Adjusted Net Profit due to a recovery in roaming revenues and growth in 5G subscriber plans
• Significant growth in free cash flow due to increased profitability, improved working capital and timing differences relating to customer debt collection due to employee sanctions in the second half of 2021

26

Pelephone | Q4-2022 Key Financial Highlights NIS Million

Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022

87

• Revenues decreased due to lower handsets sold
• Significant improvement in Adjusted EBITDA and Adjusted Net Profit due to a recovery in roaming revenues, an increase in the number of subscribers and growth in 5G subscriber plans
• Improved free cash flow due to timing differences in working capital related to employee sanctions in Q4-21

27

Pelephone | Continued Turnaround in Service Revenues NIS Million

-150

-100

-50

Growth in service revenues driven by recovery in roaming revenues, increase in subscribers and growth in 5G subscriber plans

Pelephone | Key Operational Metrics

Subscribers (Thousands) ARPU (NIS)

• 2.5% y-o-y increase, or 53k, in postpaid subscribers in 2022
• One-time removal of 96k prepaid subscribers in Q4-22 who did not meet the definition of an active subscriber

ARPU - excluding interconnect fees Interconnect fees

• The one-time removal of prepaid subscribers led to a NIS 2 increase in ARPU in Q4-22
• As part of the regulatory reform to lower interconnect rates that will gradually apply from June 2023 until June 2025, ARPU is also presented excluding interconnectfees

yes | 2022 Summary

Net subscriber growth of 16k; highest yearly subscriber growth since 2014

yes is the largest Israeli IPTV operator with 344k customers watching TV through IP broadcasting (60%), of which 107k are STINGTV customers (1)

Agreement with leading international content providers – Disney+, Discovery+, Netflix

yes continues to lead in original production of TV content with 45 nominations for the Israel Television Academy Awards

yes launched bundle combining TV + Bezeq fiber

30

yes | 2022 Key Financial Highlights NIS Million

Adjusted Net Loss (1) Adjusted EBITDA (1)

• Revenue growth for the first time since 2014 mainly due to sales of content
• Decrease in Adjusted EBITDA and Adjusted Net Profit mainly due to an increase in content expenses, salary expenses impacted by the collective labor agreement as well as the launch of the TV/fiber bundle
• Free cash flow was impacted by timing differences related to payments for content as well as lower profitability

yes | Q4-2022 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

CapEx Free Cash Flow (20) 26 (12) (36) 5 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022

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

• Revenue growth mainly due to sales of content
• Decrease in Adjusted EBITDA and Adjusted Net Profit mainly due to an increase in content expenses, salary expenses impacted by the collective labor agreement as well as the launch of the TV/fiber bundle
• Free cash flow was impacted by changes in working capital

% - Capex/Sales

32

yes | Key Operational Metrics

^{337 311 287 268 250 226 253 280 307 329} 563 564 567 575 579 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Satellite subscribers IP subscribers (1) 2.8%

STINGTV Subscribers (Thousands)

• Net subscriber growth of 16k with 4k in Q4-22; highest annual subscriber growth since 2014
• Decrease in ARPU due to change in subscriber mix with growth in STINGTV subscribers ( 18% of subscribers)
• 60% of yes subscribers watch IPTV (as of date of report)

(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.

Bezeq International | 2022 Summary

Revenue growth from business services following CloudEdge acquisition

Focus on expansion of ICT activities for B2B market

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

Implementation of agreement with labor union for voluntary retirement of employees

Bezeq International | 2022 Key Financial Highlights NIS Million

Revenues 0.2% 1,237 1,239 2021 2022

81

% - Adjusted EBITDA margin

Adjusted Net Profit (1) Adjusted EBITDA (1)

• Increase in revenues from business services due to activity growth and CloudEdge acquisition, partially offset by decrease in consumer ISP revenues
• Increase in Adjusted Net Profit mainly due to lower depreciation and tax expenses
• Free cash flow was positively impacted by timing differences in working capital due to employee sanctions in 2021

35

Bezeq International | Q4-2022 Key Financial Highlights NIS Million

Revenues

% - Adjusted EBITDA margin

Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022

(27)

30

Adjusted Net Profit (1) Adjusted EBITDA (1)

• Revenue and Adjusted EBITDA decline due to reduction in consumer ISP activity due to regulatory removal of Internet infrastructure-ISP separation as of April 2022
• Increase in Adjusted Net Profit mainly due to lower depreciation expenses
• Free cash flow was positively impacted by timing differences in working capital due to employee sanctions in Q4-21

% - 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

(73)

Bezeq Group | Focused on Growth

Growth and improved performance in Pelephone

yes launched TV + Bezeq fiber bundle

Dividend payout ratio upgrade

Continued decrease in financial debt

Bezeq Group is executing on its strategy while focusing on growth

Thank You!

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