B Communication — Investor Presentation 2024

Nov 19, 2024

Bezeq Group Q3-2024 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.

Bezeq Group | Q3-2024 Summary

2.1% growth in core revenues(1) to NIS 2.02 billion, due to 3.6% growth in Bezeq Fixed-Line and despite the war's impact on Pelephone's roaming revenues

Adj. EBITDA was impacted by the reversal of the provision for the universal fiber fund in Q3-2023 (NIS 30 million difference), as well as the war's impact on roaming revenues. After adjusting for the above, Adj. EBITDA decreased by 1%

Net debt decreased by NIS 290 million to NIS 4.7 billion. Continued growth in free cash flow in the first nine months of 2024

Continued growth in strategic drivers – 50% increase in fiber take-up, 6% in retail broadband ARPU and 25% in 5G postpaid subscriber plans.

2% growth in Bezeq Group retail broadband subscribers(2) while fiber infrastructure take-up reaches 31% with 781k fiber customers today

Focus on group core activities – sale of Bezeq Online for NIS 50 million

Bezeq Group is executing on its strategy while focusing on growth

All results are compared to Q3-2023 unless otherwise stated

(1) Group revenues excluding Bezeq Fixed-Line telephony revenues, Pelephone interconnect fees and Bezeq International consumer revenues

(2) Bezeq Fixed-Line retail broadband and yes fiber bundle subscribers

Bezeq Group | Q3-2024 Summary

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

4

Bezeq Group | Q3-2024 Summary (cont'd)

(2) Compared to Q2-2024

(3) Unless otherwise stated, Pelephone revenues and ARPU in this presentation excl. interconnect fees

(4) 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

Technology upgrades and business focus enhance growth potential

(1) As compared to Q4-2020

6

(2) 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

Bezeq Group | Q3-2024 Key Financial Highlights | NIS million

Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Fixed-line telephony, Pelephone interconnect and Bezeq Intl consumer Core revenues )2(

7

10.1%

365

178

• Core revenues increased 2.1%)2( due to growth in core revenues of Bezeq Fixed-Line
• Adj. EBITDA and Adj. Net Profit were impacted by the continued provision for the universal fiber fund compared to the reversal of the provision in Q3-2023 (NIS 30 million impact), as well as the impact of the war on Pelephone's roaming revenues
• Free cash flow was impacted by the increase in CapEx

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

)2( Total Group revenues exc. Bezeq Fixed-Line telephony revenues, Pelephone interconnect fees and Bezeq International consumer revenues (3) % change in core revenues

Bezeq Group | 9M-2024 Key Financial Highlights | NIS million

9M-2023 9M-2024

• )1( After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation )2( Total Group revenues exc. Bezeq Fixed-Line telephony revenues, Pelephone interconnect fees and Bezeq International consumer revenues
• (3) % change in core revenues

% - Capex/Sales

8

9M-2023 9M-2024

Bezeq Group | Key Operational Metrics

2,618	2,618	2,611	2,615	2,639
1,454	1,442	1,419	1,409	1,397
1,029	1,028	1,019	1,014	1,012
576	574	571	567	563
471	467	470	472	474
Q3-2023	Q4-2023	Q1-2024	Q2-2024	Q3-2024

Continued increase in cellular subscribers

Moderating decline in retail broadband subscribers

Bezeq Group | Financial Debt

Decrease in net debt

• Decrease of NIS 290 million, or 5.8% y-o-y, to NIS 4.7 billion

Net debt/Adjusted EBITDA ratio – 1.5 times

Debt ratings

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

Bezeq Fixed-Line | Q3-2024 Summary

Fixed-Line core revenues(1) increased 3.6% to NIS 970 million, mainly due to higher revenues from broadband services, transmission and data communications as well as infrastructure projects

Retail fiber customers reached over 500k as of today, with 5.6% growth in retail broadband ARPU reaching NIS 131

Adj. EBITDA decreased 1.2%, primarily due to the reversal of the provision for the universal fiber fund in Q3-2023 (NIS 16 million impact), as well as higher salary expenses

Fiber network homes passed reached 2.5m with 781k take-up (31%)(2)

(1) Total Fixed-Line revenues excluding telephony revenues (2) Retail and wholesale, as of reporting date

Bezeq Fixed-Line | Q3-2024 Key Financial Highlights | NIS million

449

646 637 649 633 638

60% 59% 60% 59% 58%

192

258

16.8%

1.2%

12

(3) Fixed-line revenues excluding telephony revenues

(1) After adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation (2) % change in core revenues

^{310 251}

% - Adjusted EBITDA margin

• Core revenues(3) increased 3.6% to NIS 970 million, mainly due to higher revenues from broadband services, transmission and data communications as well as infrastructure projects
• Adj. EBITDA decreased 1.2%, primarily due to the reversal of the provision for the universal fiber fund in Q3-2023, as well as higher salary expenses
• Free cash flow was impacted by higher CapEx

Bezeq Fixed-Line | 9M-2024 Key Financial Highlights | NIS million

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

13 (2) % change in core revenues

(3) Fixed-line revenues excluding telephony revenues

Bezeq Fixed-Line | Q3-2024 Broadband Internet

5.6% 124 125 127 129 131 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024

Retail ARPU (NIS) Wholesale Broadband Lines (Thousands)

• Continued increase in fiber take-up to 31%
• Continued growth in broadband retail ARPU, positively impacted by fiber net adds
• Moderate growth in revenues from broadband services due to a decrease in wholesale tariffs for use of the passive network

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

Fiber subscribers represent 50% of total retail subscribers 61% 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)

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

Total Fiber Net Adds (thousands, Retail and Wholesale) Homes Passed (thousands) 82 59 70 ^{59 65} Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024

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

¹⁶ Over 780k active subscribers on Bezeq's fiber network Over 2.5m homes passed

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

Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024

• Continued growth in revenues from transmission and data communications, partially offset by lower revenues from ISP companies
• Telephony revenues, represented 12% of total Fixed-Line revenues in Q3-24
• Other revenues were positively impacted by higher revenues from infrastructure projects

Bezeq Fixed-Line | Operating Expenses | NIS million

• Higher salary expenses due to an increase in minimum wage as well as salary creep, partially offset by employee retirement and reimbursement received from National Insurance for employees in military reserve duty
• Operating expenses were impacted by higher expenses for the universal fiber fund due the reversal of the provision in Q3-2023, as well as higher subcontractor expenses related to infrastructure projects for the defense industry at relatively lower margins
• The decrease in other expenses was due to a provision of NIS 75 million in Q3-2023 for a special future grant to employees pursuant to the amendment of the labor agreement and subject to the conditions being met

Pelephone | Q3-2024 Summary

Stable revenues (exc. interconnect fees) despite the impact of the war, mainly on roaming revenues (NIS 20 million impact)

Adjusted EBITDA decreased 5.9% to NIS 191 million, due to the impact of the war as well as the timing of the provision for the universal fiber fund. After adjusting for these effects, Adjusted EBITDA would have increased by 6%

5G subscriber plans grew by 52k reaching over 1.2 million (53% of postpaid subscribers)(1) , alongside growth of 23k in postpaid subscribers(2)

Free cash flow decreased 14.4% to NIS 89 million, due to timing differences in payment of frequency fees

Stable revenues from services despite impact of war on roaming services

19 (1) As of reporting date (2) Compared to Q2-2024

Pelephone | Service Revenues and 5G Subscriber Plans

Subscribers on 5G plans represent 53% of postpaid subscribers

Pelephone | Q3-2024 Key Financial Highlights | NIS million

49 ^{28 36 41 41} Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Adjusted Net Profit (1) Adjusted EBITDA (1) 16.3%

• Revenues were impacted by higher equipment revenues and slightly lower revenues from services, despite the war impact on roaming services
• Adj. EBITDA was impacted by the war and the reversal of the provision for the universal fiber fund in Q3-2023
• Decrease in Adj. Net Profit primarily due to lower Adj. EBITDA and interest income from the parent company
• Free cash flow was negatively impacted by timing differences in the payment of frequency fees

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

Pelephone | 9M-2024 Key Financial Highlights | NIS million

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

Pelephone | Q3-2024 Key Operational Metrics

• Continued increase in postpaid subscribers, including 5G subscriber plans
• Lower prepaid subscribers in Q3-24 due to war impact

• ARPU increased NIS 2 sequentially and decreased NIS 1 year-overyear, due to the impact of the war on roaming revenues, partially offset by higher ARPU from cellular plans

yes | Q3-2024 Summary

Stable revenues for the fourth consecutive quarter. Revenues were impacted by increased competition and the war, mainly the non-billing of customers in the line of conflict, partially offset by higher revenues from the TV + fiber bundle

ARPU increased NIS 1 sequentially to NIS 175, and decreased NIS 7 year-overyear (impact of war estimated at NIS 3 of ARPU)

Continued acceleration of migration from satellite to IP(2) with 456k customers watching TV through IP broadcasting(1) (81% of total subscribers)

Continued growth in fiber subscribers reaching 68k (1) , 15% of total IP subscribers

(2) 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 | Q3-2024 Key Financial Highlights | NIS Million

% - Capex/Sales

Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 % - Adjusted EBITDA margin

Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024

• Revenues were impacted by increased competition and the war, mainly the nonbilling of customers in the line of conflict, partially offset by higher revenues from the TV + fiber bundle
• Adj. EBITDA and Adj. Net Profit were impacted by the decrease in revenues and the timing of the provision for the universal fiber fund, partially offset by lower content expenses
• Free cash flow was positively impacted by timing differences in CapEx

(1) Pro-forma; after adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

yes | 9M-2024 Key Financial Highlights | NIS Million

% - Capex/Sales

(1) Pro-forma; after adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock-based compensation

yes | Q3-2024 Key Operational Metrics

IP Subscribers(1) (Thousands)

• Decrease in subscribers due to increased competition
• Lower ARPU due to the transition of premium subscribers to discount plans and the impact of the war (mainly non-billing of subscribers in line of conflict)
• Continued growth in IP subscribers to 81% of yes subscribers(2)
• Continued growth in fiber subscribers

(1) IP subscribers - number of yes subscribers viewing IP broadcasting through the yes+ and STINGTV services. This includes subscribers that use satellite services as well

27 (2) As of reporting date

Bezeq International | Q3-2024 Summary

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

Cost savings following reduction in consumer ISP activity

Revenues decreased 11%, mainly due to a decrease in the ISP consumer activity further to the regulatory reform in unified Internet services

Free cash flow reached NIS 20 million, compared to NIS 1 million in the corresponding quarter, due to timing differences in working capital, a decrease in CapEx and lower employee severance payments compared to Q3-2023

Bezeq International | Q3-2024 Key Financial Highlights | NIS Million

• Revenues were impacted by lower consumer and business ISP revenues as well as lower ILD revenues. The decrease was partially offset by higher revenues from ICT, mainly in cloud activities
• Adj. EBITDA and Adj. Net Profit were impacted by the decrease in revenues
• Free cash flow was positively impacted by timing differences in working capital, a decrease in CapEx and lower employee severance payments compared to Q3-2023

% - Capex/Sales

29

(1) 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 | 9M-2024 Key Financial Highlights | NIS Million

(1) 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 | Q3-2024 Summary

2.1% growth in core revenues(1) to NIS 2.02 billion, due to 3.6% growth in Bezeq Fixed-Line and despite the war's impact on Pelephone's roaming revenues

Adj. EBITDA was impacted by the reversal of the provision for the universal fiber fund in Q3-2023 (NIS 30 million difference), as well as the war's impact on roaming revenues. After adjusting for the above, Adj. EBITDA decreased by 1%

Net debt decreased by NIS 290 million to NIS 4.7 billion. Continued growth in free cash flow in the first nine months of 2024

Continued growth in strategic drivers – 50% increase in fiber take-up, 6% in retail broadband ARPU and 25% in 5G postpaid subscriber plans.

2% growth in Bezeq Group retail broadband subscribers(2) while fiber infrastructure take-up reaches 31% with 781k fiber customers today

Focus on group core activities – sale of Bezeq Online for NIS 50 million

Bezeq Group is executing on its strategy while focusing on growth

31 (1) Group revenues excluding Bezeq Fixed-Line telephony revenues, Pelephone interconnect fees and Bezeq International consumer revenues (2) Bezeq Fixed-Line retail broadband and yes fiber bundle subscribers

Thank You!

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