B Communication

Investor Presentation • Aug 6, 2025

Bezeq Group Q2-2025 Investor Presentation

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.

Glossary

• Q2-2025 and H1-2025 results in this earnings release are presented in comparison to Q2-2024 and H1-2024 results, respectively, unless otherwise stated
• Adjusted EBITDA and Adjusted Net Profit After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation
• Free cash flow Cash flow from operating activities less net payments for investments and leases
• Group Core Revenues Group revenues excluding Bezeq Fixed-Line telephony revenues, Pelephone interconnect fees, Bezeq International consumer revenues and Bezeq Online revenues
• Bezeq Fixed-Line Core Revenues Total fixed-line revenues excluding telephony revenues
• Pelephone revenues and ARPU in this presentation are excluding interconnect fees, unless stated otherwise
• yes ARPU Subscribers includes TV and fiber activity
• 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
• yes financial data in this presentation are proforma numbers

Bezeq Group | Q2-2025 Summary

3.1% growth in core revenues to NIS 1.95 billion, due to ARPU and core revenue growth across all key Group segments

Continued growth in strategic drivers – 31% increase in fiber take-up, 5% in retail broadband ARPU, 15% in 5G subscriber plans and 5% in mobile ARPU

2.2% growth in Bezeq Group retail broadband subscribers(1) with fiber infrastructure take-up at 33%(2)

Adj. EBITDA grew 11.3% and Adj. Net Profit rose 46%, mainly due to yes' higher valuation

In addition, the Group announced a further upward revision in its 2025 Outlook, now expecting Adj. Net Profit of NIS 1.45b and Adj. EBITDA of NIS 3.85b

MoU signed for the acquisition of Excelera Telecom for \$160 million

Letter of intent submitted to acquire Hot Mobile for NIS 2 billion

Regulatory developments - hearing on the update of wholesale tariffs and on the gradual removal of wholesale tariff supervision in Israel following a two-year transition period; Further progress regarding the removal of structural separation

3

Bezeq's Compass | Technological & Business Roadmap

Migration to fiber Transition to 5G

Launch of fiber project

• 2.81m homes passed
• 924k subscriber take-up (retail + wholesale) ~63% of total broadband subs
• 33% take-up rate
• 33% increase in broadband ARPU(1) to NIS 136
• Completion of fiber roll-out
• 40% take-up rate (retail + wholesale)
• Retail ARPU above NIS 140

5G Tender Award

• ~1.33m postpaid subscribers (58% of postpaid subscribers)
• 80k 5GMAX subs
• ARPU NIS 46
• Approx. 80% 5G subscriber plans
• Cellular ARPU NIS 45-50

Migration to IP Satellite to IP migration 483k IP(2) subscribers (86%) ~ 100k fiber subscribers ARPU – NIS 189 • IP migration completed

• OpEx and CapEx savings
• ARPU subscribers (3)– NIS 190-195

Strategic investments in infrastructure continue to provide a solid foundation for growth

Today

2020

Mid-term

Bezeq Group | Q2-2025 Summary

Core Revenues NIS 1.95 billion

Adj. EBITDA NIS 1.01 million Adjusted EBITDA margin of 47.4%

Adj. Net Profit NIS 427 million

3.1% 11.3% 46.2%

Free Cash Flow NIS 230 million 29%

Decrease in Net Debt NIS 104 million

2.1%

Bezeq Group | Q2-2025 Summary (cont'd)

2.7%

(1) As of reporting date (2) Compared to Q1-2025

Bezeq Group | Q2-2025 Key Financial Highlights | NIS million

% - Adjusted EBITDA margin

• Higher core revenuesacross all key group segments
• Adj. EBITDA and Adj. Net Profit were positively impacted by yes' higher valuation
• Free cash flow was positively impacted by timing differences in working capital

7

Bezeq Group | H1-2025 Key Financial Highlights | NIS million

% - Capex/Sales

8

Bezeq Group | Operating Expenses | NIS million

Depreciation & Amortization Other Expenses (Income)

• Lower salary expenses due to the sale of Bezeq Online and its deconsolidation as of Q2-2025
• Lower operating expenses and depreciation mainly due to the change in yes' valuation
• Other income was positively impacted by the cancellation of a provision for legal claims

Bezeq Group | Key Quarterly Operational Metrics

ARPU (NIS) Subscribers (end of period, in thousands)

Bezeq Group | Financial Debt

Financial Debt (NIS billion)

1.6	1.5	1.5	1.4	1.5
7.9	7.9	7.6	7.7	7.5
2.9	3.2	2.7	3.0	2.6
5.0	4.7	4.9	4.7	4.9
Q2-2024	Q3-2024	Q4-2024	Q1-2025	Q2-2025

Net debt Cash and short-term investments Net Debt / Adjusted EBITDA

Decrease in net debt

• Decrease of NIS 104 million, or 2.1%, to NIS 4.9 billion

Net debt/Adjusted EBITDA ratio – 1.5 times

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	Stable
Midroog	Aa2.il	Stable

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

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0

Bezeq Group | Dividend Distribution

• In accordance with the Company's dividend policy, the Board of Directors has recommended to the General Meeting of the Company's shareholders to distribute a dividend of NIS 583 million, equal to NIS 0.21 per share

-5% 5% 15% 25% 35% 45% 55% 65% 75% 85%

	Bezeq Group 2025 Outlook
	Original Outlook March 12, 2025	Outlook as of May 11, 2025	Outlook)1( Revised July 30, 2025
Adj. EBITDA (1)	NIS 3.7 billion	NIS 3.75 billion	NIS 3.85 billion
Adj. net profit (1)	1.2 NIS billion	1.32 NIS billion	1.45 NIS billion
CapEx	1.75 NIS billion	Unchanged	Unchanged
Fiber deployment	2.9 million households	Unchanged	Unchanged
Financial stability	Maintain high credit rating, within the AA group	Unchanged	Unchanged

(1) The Company will report, as required, deviations of more/less than 10% of the financial amounts stated in the revised outlook (Adjusted net profit, Adjusted EBITDA and CapEx)

Bezeq Fixed-Line | Q2-2025 Summary

Fixed-Line core revenues increased 4.5% to NIS 979 million, driven by an increase across all core revenue items

Adj. EBITDA increased 1.6% to NIS 643 million, primarily due to higher revenues

Adj. Net Profit decreased 8.1% to NIS 216 million, due to higher financing expenses resulting from the impact of the USD/ILS exchange rate on hedging transactions

Retail fiber customers reached 592k as of today, with 5.4% growth in retail broadband ARPU reaching NIS 136

Fiber network homes passed reached 2.81m with 924k takeup (33%)(1) representing ~63% of total broadband subscribers

MOC publication of hearing on changes to wholesale market tariffs and the gradual removal of most of the wholesale tariff supervision within two years

Bezeq Fixed-Line | Q2-2025 Key Financial Highlights | NIS million

220 230

1.6%

19.8%

• 4.5% growth in core revenues driven by an increase across all core revenue items
• Decrease in Adj. Net Profit due to higher financing expenses resulting from the impact of the dollar-shekel exchange rate on hedging transactions
• Free cash flow was positively impacted by proceeds received from real estate sales

Bezeq Fixed-Line | Continued Fiber Deployment and Take-Up Focus

Total Fiber Take-Up (thousands, Retail and Wholesale)					Homes Passed (thousands)
30%	31%	32%	32%	33%	33%
120 0 100 0 694 800	759	810	863	907	924 30. 0% 25. 0% 20. 0% 15. 0%
600 400 200 0					10. 0% 5.0 % 0.0 % -5.0% -10.0%
Q2-2024	Q3-2024	Q4-2024	Q1-2025 Take-up rate	Q2-2025	As of reporting date

Over 900k active subscribers on Bezeq's fiber network Over 2.8m homes passed

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

Fiber subscribers represent 58% of total retail subscribers 29% y-o-y increase in wholesale take-up

Retail Fiber – Net Adds (Thousands) Wholesale Fiber – Net Adds (Thousands)

Total Retail Fiber Take-Up (Thousands) Total Wholesale Fiber Take-Up (Thousands)

17

Bezeq Fixed-Line | Q2-2025 Revenues | NIS million

14.3%

• Growth in revenues from broadband services, despite the decrease in wholesale tariffs for use of the passive network
• Continued growth in revenues from transmission and data communications, partially offset by lower revenues from ISP companies
• Other revenues were positively impacted by higher revenues from infrastructure projects

Pelephone | Q2-2025 Summary

Higher service revenues driven by continued growth in postpaid subscribers, including 5G subscriber plans, despite the impact on roaming revenues in June due to the war with Iran

Adj. EBITDA and Adj. Net Profit were impacted by the war with Iran, as well as the increase in frequency fees resulting from the termination of the MOC discount period

ARPU was NIS 46, up 4.5%, a Y-o-Y increase of NIS 2

5G postpaid subscriber plans grew by 39k reaching 1.33 million (58% of postpaid subscribers)(1)

5GMAX subscribers reached 80k (1) ; Increasing our target to reach 150k by year end

Pelephone | Q2-2025 Key Financial Highlights | NIS million

• Higher service revenues driven by continued growth in postpaid subscribers, including 5G subscriber plans, despite the impact on roaming revenues in June due to the war with Iran
• Adj. EBITDA and Adj. Net Profit were impacted by the war with Iran, as well as the increase in frequency fees resulting from the termination of the MOC discount period
• Free cash flow was positively impacted by timing differences in working capital

% - Capex/Sales

Pelephone | Growth in Service Revenues and 5G Plans

• 5G postpaid subscriber plans were 58% of postpaid subscribers

Pelephone | Q2-2025 Key Operational Metrics

• Continued growth in postpaid subscribers, including 5G subscriber plans

• APRU rose NIS 2 year-over-year

(1) As of reporting date

yes | Q2-2025 Summary

Revenues increased 1.3% to NIS 320 million, due to higher revenues from the TV + fiber bundle

Adj. EBITDA rose 30% to NIS 56 million, driven by higher revenues and streamlining of expenses

ARPU subscribers increased NIS 5 year-over-year to NIS 189, due to higher revenues from the TV + fiber bundle

TV subscribers increased by 1k sequentially, reaching 562k, representing the first quarterly increase since Q1-2023

Continued growth in fiber subscribers reaching over 100k (1) , 21% of total IP subscribers

Continued migration from satellite to IP with 483k customers (1) watching TV through IP broadcasting (86% of total subscribers)(1)

yes | Q2-2025 Key Financial Highlights | NIS Million

Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025

• Revenues rose due to higher revenues from the TV + fiber bundle
• Adj. EBITDA growth due to higher revenues and streamlining of expenses
• Adj. Net Profit was impacted by higher financing expenses due to a decrease in the value of hedging transactions resulting from a decline in the USD/ILS exchange
• Free cash flow was impacted by timing differences in working capital

yes | Q2-2025 Key Operational Metrics

IP Subscribers (Thousands)

• Total subscribers increased Q-o-Q, for the first quarterly growth since Q1-2023
• ARPU subscribers rose NIS 5 y-o-y, due to higher revenues from fiber plans
• Continued growth in IP subscribers to 86% of yes subscribers(2)
• Continued growth in fiber subscribers

Bezeq International | Q2-2025 Summary

Continued transition from consumer ISP focus to development of ICT business activity: communications, data centers, integration, public cloud and cyber

Revenues increased 1% to NIS 263 million, mainly due to higher revenues from cloud activities, sale of business equipment as well as international telephony services

Free cash flow in H1-2025 totaled NIS 19 million, compared to NIS 13 million in the corresponding period

Continued streamlining plan, including implementation of employee retirement agreement for the period 2025 - 2027

Q2-2024 Q3-2024 Q4-2024 Q1-2025 Q2-2025 % - Adjusted EBITDA margin

Thank You!

For more information please visit us ir.bezeq.co.il