B Communication — Investor Presentation 2022

Aug 10, 2022

Bezeq Group

Q2 2022 ^I nvestor 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 underthe 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 ^| Key Takeaways

Revenue growth of 3-4% y-o-y in Bezeq Fixed-Line and Pelephone

Accelerated deployment of fiber optics, increase in take-up and continued growth in retail broadband ARPU

Roaming recovery and transition to 5G plans with higher ARPU

Subscriber growth in Pelephone and yes

Significant improvement in Pelephone financials and positive free cash flow in yes in H1-2022

Continued decrease in net debt, combined with dividend distributions

Continued focus and improvement in ESG

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

Bezeq Group ^| Q2 2022 Summary

All results are compared to Q1-2022 unless otherwise stated

* After adjusting forother operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation ** As of early August 8

4

Bezeq Group ^| Q2-2022 Financial Highlights NIS millions

• Bezeq Fixed-Line and Pelephone
• Increase in Adjusted Net Profit mainly due to improved profitability in Pelephone
• Free cash flow was positively impacted by timing differences in working capital in Bezeq Fixed-Line and improved profitability and working capital in Pelephone

% -Capex/Sales

* After adjusting forother operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation ⁵ 8

Bezeq Group ^| H1-2022 Financial Highlights NIS millions

• Group revenue growth led by Bezeq Fixed-Line and Pelephone
• Increase in Adjusted EBITDA and Adjusted Net Profit mainly due to improved profitability in Pelephone
• Strong free cash flow generation mainly due to timing differences and improved working capital

% -Capex/Sales

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

Bezeq Group ^| Key Operational Metrics

Decrease in telephony ARPL due to MOC tariff reduction

Moderate decrease in TV ARPU (change in subscriber mix)

Stable retail Internet subs as fiber take-up offset copper churn ⁷ 8

Bezeq Group ^| Financial Debt NIS billions

Cash and short-term investments Net Debt -— Gross Debt

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

Continued decrease in net debt

• Decrease of over NIS ¹ billion, or 15%, yearover-year

Further improvement in Net debt/EBITDAratio

• Decreased to 1.7 from 2.0 a year ago

Debt ratings

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

Group Bezeq	Updated 2022	Guidance
	Outlook Previous	Updated Outlook
Adjusted EBITDA *	billion NIS 3.6-3.7	billion NIS 3.65-3.75
Adjusted net profit *	billion NIS 1.0-1.1	billion NIS 1.1-1.2
CapEx	billion NIS 1.7-1.8	billion (unchanged) NIS 1.7-1.8
Fiber Deployment (Homes Passed)	million households 1.4	million Approx. 1.5 households
stability Financial	credit the group Maintain rating within AA high

* After adjustingfor other operatingexpenses/income, net, one-time losses/gainsfrom impairment/increase in value ofassets and stock-based compensation ⁹ 8

Bezeq Fixed-Line

Bezeq Fixed-Line Q2 2022 Summary

Total revenues increased 2.7% to NIS 1.07 billion despite the MOC telephony tariff reduction

urther deployment of fiber and ustomer take-up. We reached .36 m homes passed and 180k

Broadband Internet revenues increased 10% driven by fiber take up, retail ARPU growth and wholesale tariff update

Continued business sector revenue growth

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

Removal of separation between broadband infrastructure and Internet access (ISP) as of April 2022

Bezeq Fixed-Line ^| Q2-2022 Financial Highlights NIS millions

• Continued top-line growth driven by broadband Internet and business services
• Minor decline in Adjusted EBITDA and Adjusted Net Profit following MOC telephony tariff reduction
• Significant increase in free cash flow primarily due to timing differences in working capital

% -Capex/Sales

12

* After adjusting forotheroperating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation 8

Bezeq Fixed-Line ^| H1-2022 Financial Highlights NIS millions

1,320 1,319

63% 61%

H1-2022

• 3% top-line growth in H1-2022 reflects resilient revenue base as MOC telephony tariff reduction kicks in as of Q2-2022
• Strong free cash flow driven by timing differences and improved working capital

% -Capex/Sales

¹³ * After adjusting forotheroperating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation 8

Bezeq Fixed-Line Broadband Internet

Retail Broadband Lines (thousands) 1,009 1,014 1,023 1,024 1,022 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022

Broadband Revenues (nis m)

Broadband Bandwidth (Mbps, avg.)

• Continued increase in broadband revenues driven by increase in retail and wholesale ARPU, positively impacted by fiber subscriber connections, an increase in customer premises equipment and an increase in ISP customers
• Fiber take-up offsets copper churn

Bezeq is Sweeping the Nation with Fiber Optics

Focus on increasing fiber subs

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

• Continued growth in revenues from the business sector
• Increase in other revenues due to the Blue-Raman submarine cable project with Google
• Decrease in telephony revenues due to MOC tariff reduction beginning Q2-2022

Bezeq Fixed-Line ^| Expenses Development NIS millions

Depreciation & Amortization Other Expenses

• Increase in salaries due to employee recruitment relating to fiber project
• Increase in operating expenses mainly due to higher subcontractor and materials expenses relating to the fiber project
• Increase in depreciation expenses driven mainly by CapEx increase

Bezeq Fixed-Line ^| Summary

Deployment of fiber at accelerated pace combined with increase in customer ta ke-up

Growth in broadband revenues offset impact of MOC telephony tariff reduction

Continued success in sales of Be router and Wi-Fi enhancers

Growth in business sector driven by increased demand for data and communications solutions

Accelerated fiber deployment combined with increased focus on take-up reflects potential for continued growth and strengthening of Bezeq's position in the residential market

Pelephone Q2-2022 Summary

Continued growth in subscribers with 53k net adds in Q2 2022; 702k subscribers* with 5G plans contributing to ARPU

Improved Adjusted EBITDA, Adjusted Net Profit and Free Cash Flow

Fifth consecutive quarterwith year-over-year increase in service revenues driven by recovery in

roaming revenues, increase in subscribers and growth in 5G subscriber plans ¹⁹ * As of ea rly August 8

Pelephone ^| Q2-2022 Financial Highlights NIS millions

• Record quarterly service revenues in last three years
• 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
• Growth in Free Cash Flow mainly due to improved profitability as well as working capital changes

* After adjusting forother operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation ²⁰ 8

Pelephone ^| H1-2022 Financial Highlights NIS millions

• significant improvement in Adjusted EBITDA and Adjusted Net Profit due to a recovery in roaming revenues and growth in 5G subscriber plans
• Free cash flow was positively impacted by timing differences relating to customer debt collection due to employee sanctions in the second half of 2021

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

Pelephone NIS millions Continued Turnaround in Service Revenues

Pelephone ^| Key Operational Metrics

• ARPU increase of 5.6% y-o-y due to recovery in roaming revenues and an increase in 5G subscriber plans

• Net subscriber adds of 53k in Q2 2022, of which 29k were postpaid subscribers

yes Continued subscriber growth and migration to IP

Continued growth in subscribers and record net adds in last seven years

Over 291k yes customers watching TV through IP broadcasting (51%), of which 97k are STINGTV customers*

^r " Agreement for the distribution of the Disney+ streaming service in Israel as well as the launch of a TV-Internet bundle

yes continues to lead in production of professional and high quality TV content

Stable revenues and positive free cash flow in H1-2022

Savings in opex and capex upon completion of migration from satellite to IPTV in 2026

yes ^| Q2-2022 Financial Highlights NIS millions

• Stable revenues on slightly lower ARPU due to an increase in STINGTV subscribers
• Decrease in Adjusted EBITDA due to an increase in content and original production expenses
• Free cash flow was impacted by timing differences in payments for content

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

yes ^| H1-2022 Financial Highlights NIS millions

yes ^| Key Operational Metrics

• Continued subscriber growth
• Moderate decrease in ARPU due to change in subscriber mix with growth in STINGTV subscribers
• Over half of yes subscribers watch IPTV **

*IP subscribers -the numberof yes subscribers viewing IP broadcasting through the yes+ and STINGTV services. This includes subscribers that use satellite services as well. ²⁷ ** As of ea rly August 8 Bezeq International ^| Focus on Business Solutions - A Significant Operator in a Growing Market

Focus on expansion of ICT activities for B2B market

Reduction in ISP consumer activity due to regulatory remova ^l of ^I nternet infrastructure-ISP separation as of April 2022

Growth in cloud solutions (business applications) and service contracts

Supply chain issues continues to impact business equipment operations

Bezeq International ^| Q2-2022 Financial Highlights NIS millions

• Moderate decrease in revenues due to reduced ISP activity, partially offset by an increase in business services
• Improvement in Adjusted Net Profit mainly due to lower depreciation and amortization expenses

²⁹ * After adjusting forother operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation 8

Bezeq International ^| H1-2022 Financial Highlights NIS millions

• Decrease in ISP revenues partially offset by an increase in revenues from business services
• Free cash flow was positively impacted by timing differences in working capital relating to customer debt collection due to employee sanctions in the second half of 2021

Bezeq Group ^| Key Takeaways

Revenue growth of 3-4% y-o-y in Bezeq Fixed-Line and Pelephone

Accelerated deployment of fiber optics, increase in take-up and continued growth in retail broadband ARPU

Roaming recovery and transition to 5G plans with higher ARPU

Subscriber growth in Pelephone and yes

Significant improvement in Pelephone financials and positive free cash flow in yes in H1-2022

Continued decrease in net debt, combined with dividend distributions

Continued focus and improvement in ESG

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

ThankYou!

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