Investors Presentation

September 2016

Forward-Looking Statement

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that are not historical facts and may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include the factors indicated in our filings with the Securities and Exchange Commission (SEC). For more details, refer to our SEC filings and the amendments thereto, including our Annual Report on Form 20-F and Current Reports on Form 6-K. We undertake no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.

IGLD's Profile

Internet Gold (TASE and Nasdaq: IGLD) is a telecommunications-oriented holding company. Internet Gold's holds 64.8% interest in B Communications Ltd. ("BCOM") (TASE and Nasdaq: BCOM), which in turn holds the controlling interest (approximately 26.3%) in Bezeq − The Israel Telecommunication Corp., Israel's largest telecommunications provider (TASE: BEZQ).
Internet Gold is a subsidiary of Eurocom Communications Ltd.
IGLD's debt includes 2 series of debentures that are traded on TASE. During Q1/2016 the rating of the both series was notched-up to A3 local rating.
Trades at a discount to Net Asset Value.
On June 29, 2016, Internet Gold received a dividend of NIS 230 million from its subsidiary B Communications.) per share

Eurocom Group is one of the leading holding groups in Israel, highly experienced in the elecommunications market

Eurocom was founded in 1979.
One of Israel's largest holding companies in Israel.
Owned by Shaul Elovitch, Chairman of the Board of Directors (80% ownership) and Yossef Elovitch, Director 20% ownership).
Investments in telecommunications, satellite services, renewable energy, media, consumer electronics, real estate and additional fields.

Company's Management

Shaul Elovitch Founder & Chairman Over 40 years experience building leading communications businesses and other major investments businesses

Proven capabilities in:

• Strategy creation & strategic planning
• Marketing & brand development
• Operational & financial management
• Management of mergers & acquisitions
• Capital raising - 15 major transactions
- 2 IPOs – IGLD and BCOM
- 11 bond issues
- \$800 million Rule 144A offering
- Convertible bond issuance and 2 option series.

Doron Turgeman CEO since 2011 & CFO from 2001 till 2011 20 years experience in management 18 years experience in communications

Key Milestones for IGLD

From small entrepreneurial business to large holding company

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Group Structure

Source: Bezeq's investors presentation – http://ir.bezeq.co.il.

(1) Net debt figures are as of June 30, 2016. Holding percentage figures are as of September 1, 2016.

Reduction in LTV Based on BCOM's NAV (NIS Millions)

Reduction in LTV Based on BCOM's Market Value (NIS Millions)

Bezeq: Israel's Most Comprehensive Communications Infrastructure and Service Provider

Bezeq Financials (NIS Millions)

Bezeq's Dividend Policy

Distribution of 100% of its net income on a semi-annual basis

* Dividend Yield is based on average market cap during the period

• Based on its ownership interest, BCOM will receive ~ 26.3% of Bezeq's annual dividends.
• Since 2006, Bezeq has paid over NIS 25.8 billion (US\$ 6.8 billion) in dividends.
• On August 3, 2016, the Board of Directors of Bezeq resolved to recommend to the general meeting of its shareholders the distribution of a cash dividend of NIS 665 million, representing Bezeq's profits for the first half of 2016. The dividend will be paid on October 6, 2016 to shareholders of record as of September 20, 2016. Bcom's share in this distribution is NIS 175 million.

IGLD's Solo Net Debt

	J 3 0 2 0 1 6 u n e ,
	S i l l i N I m o n s
	U d i d t n a e u

h l b l S i i i i t t t o r e r m a e s	1 5 1
l b l L i i i i t t o n g e m a e s r	7 9 5
l l i b i l i i T t t o a a e s	9 4 6
d b l i i i L t q n e u y a a c s	0 4 1
N d b t t e e	5 4 5

IGLD's Solo Balance Sheet

	be De 3 1, 2 0 1 5 ce m r	Ju 3 0, 2 0 1 6 ne
S f in ia l i io ta te ts F Po t m en o an c s n	d i d A te u	d i d Un te au
A t s s e s
h d h l C i t a s a n c a s e q u v a e n s	3 8	2 3 8
i l d i d i i I t t t n e s m e n s n c n g e a e s v u r v v	2 3 9	6 3 1
h b l O i t e r r e c e v a e s	-	1
T l t t t o a c u r r e n a s s e s	2 7 7	4 0 2

f d D t t e e r r e a x a s s e	1 1	-
I i i t t t n e s m e n s n n e s e e v v	6 9 8	9 2 4
T l t t t o a n o n- c u r r e n a s s e s	0 9 7	9 2 4

T l t t o a a s s e s	9 8 6	3 2 1, 6
i b i l i i L t a e s
S h d b t- t t o e m e e n e s r r u r	1 3 0	1 3 0
O h b l t e r p a y a e s	2 4	2 2
l l i b i l i i T t t t o a c r r e n a e s u	1 5 4	1 5 2

b D t e e n u r e s	9 2 5	7 9 5
b T l l i i l i i t t t o a n o n- c u r r e n a e s	9 2 5	7 9 5
l l i b i l i i T t t o a a e s	1, 0 7 9	9 4 7

( ) S h h l d i i d f i i t t t a r e o e r s e q u y e q u y e c	( ) 9 3	3 9 7
T l l i b i l i i d i t t t o a a e s a n e q u y	9 8 6	1, 3 2 6

IGLD During Last 18 Months

	b D 3 1, 2 0 1 4 e c e m e r	J 3 0 2 0 1 6 u n e ,
( ) G h i k S i l l i I L D 's B 's M N I B t s a r e n c o m a r e c a p o n s	1 4 0	1 7 7
( ) I G L D 's h i B 's N A V N I S B i l l i s a r e n c o m o n s	2 2 1	2 2 8
( ) N F i i l D b N I S B i l l i t t e n a n c a e o n s	0 8 2	0 5 5
( ) N A V N I S B i l l i o n s	1 3 9	1 7 3
( ) b i h d i D W D I t t t e e g e u r a o n n y e a r s	3 5 0	2 9 7
L T V B d B C O M 's N A V a s e o n	3 7 1 %	2 3 9 %
L T V B d B C O M 's M k C t a s e o n a r e a p	8 % 5 6	3 9 % 0
l i f S i / C b L t B D t o c a r a n g o e r e s e e n r e s u	B B B +	A
C S i D b Y T M t e r e s e e n u r e s	4 4 8 %	1 7 4 %
S i D D b Y T M t e r e s e e n u r e s	6 8 % 5	2 3 1 %
( ) T l L i i d i N I S B i l l i t t o a q o n s u y	0 3 2	0 4 0

Projection of Future Debt Repayment (NIS millions)

• All amounts include future estimated interest payments
• As of September 1, 2016

The Bezeq Era

Thank you

Glossary

T e r m	D f i i i t e n o n
L i i d i b l t q u y a a n c e s	C h d h iva le d ho inv t t t t t a s a n c a s e q u n s a n s r e rm e s m e n s.
N d b t t e e	To l f ina ia l l ia b i l i ie in l iq i d i b la t t ty a nc s m u s u a nc e s.
L T V l L T V o a n o a e u –	S lo Ne d b C 's ha in Be 's ke t t t t o e o o m p a ny s re ze q m a r c a p.
D i i d d i l d v e n y e	To l d iv i d d i d by he du ing la hs C 's ke 1 2 t t t t t t a e n s p a c o m p a ny r s m o n o o m p a ny av e ra g e m a r c a p. du ing la 1 2 hs t t r s m o n
E B I T D A	Ea ing Be fo In Ta De ia io Am iza io t t, t t t rn s re e re s xe s, p re c n, o r n.
E i V l E V t n e r p r s e a u e -	M ke f s ha ho l d ' e i lu d b t ty t t. a r c a p. o re e rs q u p s ne e
B C i i ' N A V t o m m u n c a o n s	C Va lu f B ic io ' s ha in Be 's ke le B ic io lo d b t t t t t. e o o m m u n a ns re ze q m a r c a p s s c o m m u n a ns s o ne e
G I l d 's N A V t t n e r n e o	Va lu f In G l d 's ha in B C ic io ' N A V le In G l d 's lo d b t t t t t t t. e o e rn e o s re o m m n a ns s s e rn e o s o ne e u
N d b / E B I T D A t t e e	Pr io l n d b E B I T D A d ing 's ho l d ing io in i b i d ia ie t t t t t t t o p o r na e e o a c c o r o c o m p a ny ra s su s r s.
C M k i l i i t t t a r e a p a a o n z	M ke F ig in h is io f S b 1, 2 0 1 6. t t t t t a r c a p. re s p re s e n a n a re a s o e p e m e r u
F h f l r e e c a s o w	C h f low fro ing iv i ie in i l e d i t t t t tu a s s m o p e ra a c s m u s c a p a xp e n re s.

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