B Communication

Investor Presentation • May 24, 2022

Bezeq Group

Q1 2022 Investor Presentation

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 objectives 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 isnot 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 | Q1 2022 Summary

All results are compared to Q1-2022 unless otherwise stated

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

** As of date of publication of reports

Bezeq Group | Q1 2022 Financial Highlights NIS millions

• Increase of 4-5% in revenues of Bezeq Fixed-Line and Pelephone
• Increase in Adjusted EBITDA and Adjusted Net Profit mainly due to Pelephone
• Free cash flow was positively impacted by timing differences in working capital in the subsidiary companies

* 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 | Key Operational Metrics

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

Increase in cellular and retail Internet subscribers; decrease in wholesale Internet subscribers

Bezeq Group | Financial Debt NIS billions

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

• Decrease of NIS 977 million, or 15%, yearover-year
• Further improvement in coverage ratio – Net debt/EBITDA ratio decreased to 1.7 from 2.0 a year ago

Debt ratings reaffirmed in May 2022

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

Bezeq Group 2022 Guidance Unchanged
	Results 2021	2022 Outlook
Adjusted EBITDA*	NIS 3.71 billion	NIS 3.6-3.7 billion
Adjusted net profit*	NIS 1.15 billion	NIS 1.0-1.1 billion
CapEx	NIS 1.69 billion	NIS 1.7-1.8 billion
Fiber Deployment	1.17 million households (homes passed) as of today	1.4 million households (homes passed)
Financial stability		Maintain high credit rating within the AA group

* 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

Bezeq Fixed-Line | Q1 2022 Summary

Total revenues increased 4.0%

Broadband Internet revenues increased 9.0%

Continued business sector revenue growth

Further deployment of fiber and customer connections. We reached 1.25 m homes passed and 143k customer connections as of today

Fiber connections and robust sales of equipment led to increased retail broadband ARPU

Preparation for the cancellation of the separation between broadband infrastructure and Internet access (ISP)

Bezeq Fixed-Line | Key Financial Metrics NIS billions

• Highest quarterly revenues since end of 2015 mainly due to an increase in broadband Internet as well as data communication revenues
• Decrease in adjusted net profit due to an increase in depreciation and finance expenses
• Decrease in free cash flow primarily due to sales of real estate in the corresponding quarter

10 * 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 | Broadband Internet

Broadband Revenues (NIS m) Retail Broadband Lines (thousands)

1,001 1,009 1,014 1,023 1,024 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 2.3%

• Continued increase in broadband revenues due to growth in retail broadband lines and ARPU which were positively impacted by increases in fiber customer connections and customer premises equipment

• Average broadband speed grew 94% due to fiber customer connections

Bezeq is Sweeping the Nation with Fiber Optics

Homes Passed (thousands) 310 597 848 1,064 1,193 1,250 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 22/05/2022 Homes Connected (thousands) Customers with Be router (thousands) Customers with Be Spot and Be Mesh (thousands) ^{579 609 635 666 688 699} Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 22/05/2022 ^{277 299 323 357 374 380} ~68% of the Company's retail customers choose to connect via the Be router , which significantly reduces churn 1 16 44 84 124 143 2.7% 5.2% 7.9% 10.4% 11.4% 2.0 % 4.0 % 6.0 % 8.0 % 10. 0% 12. 0% 14. 0% 50 100 150 200 250 300 350 400

0.0 %

Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 22/05/2022

Homes Connected Penetration Rate

Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 22/05/2022

Bezeq Fixed-Line | Data, Telephony and Other Revenues NIS millions

• Continued growth in revenues from the business sector
• Increase in other revenues due to the Blue-Raman submarine cable system project with Google
• The increase in revenues from the business and other sectors offset the decrease in telephony revenues

Bezeq Fixed-Line | Expenses NIS millions

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

• Increase in salaries due to employee recruitment relating to fiber project
• Increase in depreciation expenses driven mainly by CapEx increase
• Increase in operating expenses mainly due to higher subcontractor expenses and cost of equipment relating to the fiber project
• Other expenses was primarily impacted by an increase in provisions for legal claims in the current quarter and higher capital gains from real estate sales in the corresponding quarter

Bezeq Fixed-Line | Summary

Nationwide deployment of fiber at unprecedented pace

Growth in retail broadband revenues driven by increase in subscribers and ARPU

Success in sales of Be router and Wi-fi enhancers

Leading telecom supplier to the business sector

Accelerated fiber deployment combined with high-quality service reflects potential for continued growth and strengthening of Bezeq's position in the residential broadband Internet market

Subsidiary Companies | Q1 2022 Highlights

Pelephone - subscriber growth of 4%, growth in revenues from services and significant improvement in profitability and financial metrics

Continued increase in number of Pelephone subscribers with 5G plans to 624k* contributing to ARPU

Growth in Bezeq International's business operations with investments focused on growth in ICT

Over 265k yes customers watching TV through IP broadcasting (47% of total customers), of which 91k are STINGTV customers* yes is the largest Israeli IPTV operator

yes – Growth in subscribers, moderate decrease in ARPU due to increase in STINGTV subscribers; positive free cash flow

yes – strategic agreement signed with Disney+

Key Subsidiaries | 2022-2024 and Next Steps

1 2 Reduction of Bezeq International's ISP consumer activity following the removal of the separation between broadband infrastructure and Internet access (ISP)

3 4 Potential for significant cost and CAPEX reductions in Bezeq International ISP activity in parallel to accelerated reduction in its ISP operations

Set up yes ISP activity in order to turn yes into the group's "triple play" arm combining fiber and TV, expected in H2 2022

On conclusion of this move, Bezeq International will become a growthfocused ICT company

Pelephone – Growth in Revenues and Profitability

Continued gradual deployment of 5G network

5G network capabilities will create future growth drivers

Exclusive frequencies will provide Pelephone with a competitive edge

624k subscribers* with 5G plans contributing to increase in ARPU

Continued streamlining in operating expenses

Pelephone was the first company to launch and operate its 5G network in Israel and it continues to lead in the field

Pelephone | Key Financial Metrics NIS millions

% - Adjusted EBITDA margin Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022

• Continued revenue growth, significant improvement in net profit and EBITDA due to growth in 5G subscribers and a partial recovery in roaming revenues
• Free cash flow was positively impacted by timing differences relating to customer debt collection due to employee sanctions in the second half of 2021

¹⁹ * After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

Pelephone | Key Operational Metrics

• Net subscriber adds of 7k in Q1 2022 was lower than in previous quarters due to higher customer charges further to employee sanctions which resulted in delays in collections at the end of 2021
• ARPU - Increase of 3.6% q-o-q and 7.5% y-o-y; Roaming revenues contribution were ~70% of Q1 2019 ARPU (pre COVID)

Pelephone | Continued Turnaround in Service Revenues NIS millions

-60

-40

-20

0

20

40

60

Growth in service revenues due to an increase in revenues from Pelephone's 5G plans as well as a partial recovery in roaming revenues

0

50

100

150

200

250

300

350

400

yes | Improved customer experience along with savings in expenses

Continued growth in subscribers

Over 265k yes customers watching TV through IP broadcasting (47%), of which 91k are STING TV customers*

Stable revenues and positive free cash flow

Streamlining of operating expenses primarily in content and salaries

Leader in original production- yes continues to lead in production of professional and high quality local content

Savings in satellite costs after full transition to IP in 2026

Savings in transition from expensive + set-top boxes to cheaper streamers

yes | Key Financial Metrics NIS millions

Adjusted Net Profit*

• Stable revenues, improved adjusted EBITDA and positive free cash flow

23 * 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

• Continued subscriber growth for the sixth consecutive quarter

24

STINGTV Subscribers (Thousands)

Bezeq International | Leader in Business Solutions – Significant Operator in a Growing Market

Wide Range of Business Solutions

Acquisition of CloudEdge – a company specializing in the public cloud field

Growth in cloud solutions (business applications) and service contracts

Reduction in ISP consumer activity due to regulatory change in infrastructure-ISP separation beginning in April 2022

Supply chain issues with business equipment operations

Bezeq International | Key Financial Metrics NIS millions

234.8%

• Decrease in revenues from ISP activity
• Free cash flow was positively impacted by timing differences relating to customer debt collection due to employee sanctions in the second half of 2021

Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 % - Capex/Sales 10% 9% 9% 5% 9% 23

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

Bezeq International | Timeline

• Accelerated reduction in ISP consumer activity and transition to independent ICT company with significant growth potential
  • Leader in integration and ICT market in Israel for enterprise and mid-market customers
  • Bezeq International will enable the accelerated migration of companies and organizations to the public cloud (cloud migration provider)
    • Cyber protection service and solutions in cooperation with leading information security suppliers in the world
• 05 Response to increased demand in data center field with provision of hybrid ICT services as service provider

International data services for global Israeli companies and operators abroad while leveraging Bezeq International's international infrastructure and submarine cable

01

02

03

04

Bezeq Group | Key Takeaways

Revenue growth of 4-5% y-o-y in Bezeq Fixed-Line and Pelephone

Subscriber growth in Pelephone and yes

Accelerated deployment of fiber optics and increase in connected customers

Significant improvement in Pelephone financials and positive free cash flow in yes

Transition to 5G plans with higher ARPU

Continued focus and improvement in ESG

The group is progressing in the implementation of its strategy while focusing on growth

Thank You!

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