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Investor Presentation • Aug 9, 2023

Bezeq Group Investor Presentation Financial Results Q2 2023 Pelephone

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 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.

Bezeq Group | Focus on Growth

3.3% growth in Group revenues, to NIS 2.3 billion, driven by Bezeq Fixed-Line (+5.9%) and yes (+6.3%)

Record profit quarterly results in last five years – 6.8% increase in Adjusted EBITDA to NIS 987 million; 14.2% growth in Adjusted Net Profit to NIS 354 million

Strong execution in strategic growth drivers – robust fiber take-up in Bezeq Fixed-Line and yes, consistent growth in 5G subscriber plans in Pelephone

Board recommendation to distribute semi-annual dividend of NIS 392 million, 0.14 per share, reflecting a dividend yield of ~5%

ESG – MSCI upgrade to AA rating

3

Technological & Business Roadmap

*As compared to Q4-2020

Bezeq Group | Q2-2023 Summary

Revenues NIS 2.3 billion Highest since 2018

Adjusted EBITDA (1) NIS 987million

Adjusted EBITDA margin of 42.9%

6.8%

Highest since 2017

Adjusted Net Profit(1) NIS 354 million

3.3% 14.2%

Free Cash Flow NIS 238 million

33.7%

Decrease in Net Debt NIS 222 million

All results are compared to Q2-2022 unless otherwise stated

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Bezeq Group | Q2-2023 Summary (Cont'd)

All results are compared to Q2-2022 unless otherwise stated

(1) As of reporting date

(2) Compared to Q1-2023

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Bezeq Group | Q2-2023 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

Adjusted Net Profit (1) Adjusted EBITDA (1)

• Revenue growth driven by increases of 5.9% in Bezeq Fixed-Line and 6.3% in yes
• Highest quarterly Adjusted EBITDA since 2018 and Adjusted Net Profit since 2017
• Free cash flow was impacted by changes in working capital

% - Capex/Sales

7

Bezeq Group | H1-2023 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

• Revenue growth driven by increases of 3.6% in Bezeq Fixed-Line and 5.2% in yes
• Increase in Adjusted EBITDA and Adjusted Net Profit driven by improved business results in Bezeq Fixed-Line and yes
• Free cash flow was impacted by changes in working capital

% - Capex/Sales

8

Bezeq Group | Key Operational Metrics

Growth in TV subscribers y-o-y

* Cellular ARPU - excluding interconnect fees

Bezeq Group | Financial Debt

Financial Debt (NIS billion)

Net Debt Cash and short-term investments Gross Debt

Decrease in net debt

• Decrease of NIS 222 million, or 4% y-o-y

Further improvement in Net debt/EBITDA ratio

• Decreased to 1.6 from 1.7 as of June 30, 2022

Debt ratings

• Increase in Israeli rating agencies' outlook in Q2-2023 from "stable" to "positive" due to continued improvement in Group financial ratios

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

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

Bezeq Group | 2023 Updated Guidance

	Previous Outlook	Updated Outlook
Adjusted EBITDA (1)	3.8 NIS billion	Unchanged
Adjusted net profit (1)	1.2 NIS billion	1.32 NIS billion
CAPEX	1.75 NIS billion	Unchanged
Fiber deployment	2 million households	Unchanged
Financial stability	Maintain High Credit Rating, within the AA group	Unchanged

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Bezeq Fixed-Line | Q2-2023 Summary

Fiber net adds of 73k, of which 43k retail and 30k wholesale

Fiber network homes passed reached 1.88m with 457k customer take-up (24%) (1)

65% of retail broadband subscribers are combined infrastructure + ISP customers

Highest quarterly revenues since 2012 reaching NIS 1.13 billion, an increase of 5.9%

Highest quarterly Adjusted EBITDA since 2018 – NIS 681 million, up 5.6%

8.0% growth in retail Internet ARPU reaching NIS 122

Bezeq Fixed-Line | Q2-2023 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

8.1%

• Strong growth in Adjusted EBITDA and Adjusted Net Profit
• Free cash flow growth primarily due to improved business results

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% - Capex/Sales

Bezeq Fixed-Line | H1-2023 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

Adjusted EBITDA* Adjusted Net Profit*

• Revenue growth recorded in all activity segments except for telephony services
• Increase in Adjusted Net Profit, primarily due to an increase in revenues and a decrease in net financing expenses
• Increase in free cash flow primarily due to improved business results

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% - Capex/Sales

Bezeq Fixed-Line | Q2-2023 Broadband Internet

Broadband Revenues (NIS million)

Retail ARPU (NIS)

Retail Broadband Lines (thousands)

Wholesale Broadband Lines (thousands)

• Significant increase in fiber customer take up
• Continued significant growth in broadband revenues
• Continued growth in retail ARPU positively impacted by fiber customer take up

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

Significant acceleration of retail take-up starting in H2-2022 Accelerated wholesale take-up began in Q1-2023

Bezeq Fixed-Line | Continued Fiber Deployment with Increased Take-up Focus

Homes Passed (thousands)

Customers with Be router (thousands)

70% y-o-y increase in average broadband speed to 278 Mbps

Total Fiber Net Adds (thousands) (Retail and Wholesale)

	Q2-2022	Q3-2022	Q4-2022	Q1-2023	Q2-2023
--	---------	---------	---------	---------	---------

Total Fiber Take-Up (thousands) (Retail and Wholesale)

-10.0% -5.0% 0.0 % 5.0 % 10. 0% 15. 0% 20. 0%

Bezeq is leading in fiber take-up (retail + wholesale)

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

Telephony Other 189 188 183 182 176 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 6.9%

• Continued growth in data revenues offset by a decrease in traffic revenues from ISP companies
• Growth in cloud & digital revenues driven by an increase in virtual exchange services
• Increase in other revenues mainly due to infrastructure projects

Bezeq Fixed-Line | Operating Expenses | NIS million

• Increase in salaries mainly due to salary updates as well as employee recruitment relating to the fiber project

• Increase in operating expenses mainly due to higher materials and subcontractor expenses relating to fiber and other infrastructure projects, as well as timing differences in advertising expenses

Bezeq Fixed-Line | Key Takeaways

Accelerated retail fiber takeup as part of "acceleration plan", combined with continued increase in ARPU

IRU agreement with Partner - Improving 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 revenues driven by increased demand for data and communications solutions, with decrease in revenues from ISP operators

Widespread fiber deployment combined with accelerated fiber take-up is reflected in Bezeq's continued growth in the residential market

Pelephone | Q2-2023 Summary

2.9% growth in revenues from services excluding interconnect fees, driven by an increase in roaming revenues and growth in subscribers, including 5G subscriber plans

Stable Adjusted EBITDA and Adjusted Net Profit

ARPU, excluding interconnect fees, increased NIS 2 year-over-year

plans reaching 920k (35%) (1) contributing to ARPU, alongside growth in postpaid subscribers with 7k net adds;

Pelephone | Continued Turnaround in Service Revenues Excluding Interconnect Fees NIS Million

• Growth in service revenues excluding interconnect fees, driven by recovery in roaming revenues, increase in subscribers and growth in 5G subscriber plans
• Service revenues excluding interconnect fees in Q2-2023 were higher than Q2-2019 (pre-COVID period)

Pelephone | Q2-2023 Key Financial Highlights NIS Million

Adjusted EBITDA (1)

% - Adjusted EBITDA margin Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023

66 157 0 ^{57 83} Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 % - Capex/Sales Refund of NIS 74 m received for tender frequencies Payment of NIS 88m for tender frequencies 11% 26% 9% 14% 25.8%

• 2.9% growth in revenues from services excluding interconnect fees, driven by an increase in roaming revenues and growth in subscribers, including 5G plans
• Free cash flow was impacted by the upfront payment of frequency fees for the year 2023 in the current quarter, as well as changes in working capital in the corresponding quarter

23

Pelephone | H1-2023 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

Adjusted Net Profit (1)

• Adjusted EBITDA increase in revenues from services excluding interconnect fees, offset by a decrease in equipment revenues and an increase in operating expenses due to negative macroeconomic factors
• Adjusted Net Profit was impacted by an increase in depreciation, due to an update in estimated rightof-use assets for past periods recorded in the corresponding period
• Free cash flow was impacted by the upfront payment of frequency fees for the year 2023 in H1- 2023, as well as timing differences in working capital related to the deferral of customer debt collections from 2021 to 2022 due to employee sanctions

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% - Capex/Sales

Pelephone | Q2-2023 Key Operational Metrics

(1) The decrease is due to a one-time removal of 96k prepaid subscribers in Q4-22 who did not meet the definition of an active subscriber

• Subscribers on 5G plans were 35% of total subscribers and 42% of postpaid subscribers (3)
• ARPU, excluding interconnect fees, increased NIS 2 y-o-y mainly due to an increase in roaming and transition to 5G subscriber plans, partially offset by the termination of the Ministry of Education project and a decrease in content services in 4G plans

yes | Q2-2023 Summary

Revenue growth of 6.3% driven by the launch of TV + Bezeq fiber bundle, together with agreements with leading international content providers

ARPU growth year-over-year due to agreements with leading international content providers

Growth in fiber subscribers reaching 25k (1)

yes is the largest Israeli IPTV operator with 370k customers watching TV through IP broadcasting (64% of total subscribers), of which 113k are STINGTV customers (1)

Highest quarterly Adjusted Net Profit since 2016 reaching NIS 17 million; Adjusted EBITDA grew 14.3% reaching NIS 72 million(2)

yes | Revenue Growth Turnaround NIS Million

-45

-25

-5

yes | Q2-2023 Key Financial Highlights NIS Million

Revenues 6.3% 316 315 330 329 336 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023

% - Adjusted EBITDA margin

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

• Third consecutive quarter of y-o-y revenue growth driven by the launch of TV + Bezeq fiber bundle, together with agreements with leading international content providers
• Significant growth in Adjusted EBITDA, driven by an increase in revenues. Adjusted Net Profit grew due to higher revenues and lower depreciation expenses
• CapEx was impacted by timing differences between Q1-2023 and Q2-2023
• Free cash flow was impacted by changes in working capital

% - Capex/Sales

yes | H1-2023 Key Financial Highlights NIS Million

122 127 H1-2022 H1-2023 19.3% 19.1% 4.1%

% - Adjusted EBITDA margin

CapEx Free Cash Flow

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

• Revenue growth driven by the launch of TV + Bezeq fiber bundle, together with agreements with leading international content providers
• Increase in Adjusted EBITDA driven by higher revenues. Adjusted Net Profit grew due to higher revenues and lower depreciation expenses
• Increase in free cash flow due to improved business results as well as changes in working capital

% - Capex/Sales

yes | Key Operational Metrics

STINGTV Subscribers (Thousands)

Fiber Subscribers (Thousands)

• Continued growth in IP subscribers - 64% of yes subscribers watch IPTV(2)
• ARPU growth year-overyear driven by agreements with international content providers
• Growth in fiber subscribers

(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 (2) As of reporting date

Bezeq International | Q2-2023 Summary

0.9% increase in LTM revenues reaching 1.2 billion, compared to corresponding period

Adjusted Net Profit reached NIS 33 million in the first half of 2023, compared with NIS 11 million in H1-2022

23.5% increase in Adjusted EBITDA to NIS 100 million in the first half of 2023

Focus on growth in ICT market with emphasis on cyber, integration, public cloud and data centers

Cost savings due to reduction in consumer ISP activity

Bezeq International | Q2-2023 Key Financial Highlights NIS Million

Revenues 302 311 319 312 293 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 3.0%

Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023

% - Adjusted EBITDA margin

CapEx Free Cash Flow

Adjusted Net Profit (1) Adjusted EBITDA (1)

• Decrease in revenues due a reduction in the consumer ISP activity following the regulatory reform for unified Internet service in Q2-2022, partially offset by an increase in ICT activity
• Increase in Adjusted EBITDA mainly due to lower expenses driven by decrease in consumer ISP activity
• Significant improvement in free cash flow, mainly due to changes in working capital

32

Bezeq International | H1-2023 Key Financial Highlights NIS Million

% - Adjusted EBITDA margin

H1-2022 H1-2023

Adjusted Net Profit (1) Adjusted EBITDA (1)

• Increase in revenues from business services due to activity growth and CloudEdge acquisition, offset by decrease in consumer ISP revenues following the regulatory reform for unified Internet service
• Significant increase in Adjusted EBITDA and Adjusted Net Profit mainly due to lower expenses driven by decrease in consumer ISP activity
• Free cash flow was impacted by payments for retirement in H1-2023 as well as changes in working capital related to the deferral of customer debt collections from 2021 to 2022 due to employee sanctions

% - Capex/Sales

Bezeq Group | Focus on Growth

3.3% growth in Group revenues, to NIS 2.3 billion, driven by Bezeq Fixed-Line (+5.9%) and yes (+6.3%)

Record profit quarterly results in last five years – 6.8% increase in Adjusted EBITDA to NIS 987 million; 14.2% growth in Adjusted Net Profit, to NIS 354 million

Strong execution in strategic growth drivers – robust fiber take-up in Bezeq Fixed-Line and yes, consistent growth in 5G subscriber plans in Pelephone

Board recommendation to distribute semi-annual dividend of NIS 392 million, 0.14 per share, reflecting a dividend yield of ~5%

ESG – MSCI upgrade to AA rating

Bezeq Group is executing on its strategy while focusing on growth

Thank You!

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