News Releases

Cellcom Israel Announces First Quarter 2020 Results
Cellcom Israel concludes the first quarter of 2020 with a loss of NIS 43 million.
The Adjusted EBITDA[1] increased by approximately 8.9% compared to the corresponding quarter in 2019, to NIS 244 million.
Free cash flow totaled NIS 57 million compared to NIS 46 million in the first quarter last year.

NETANYA, Israel, May 21, 2020 /PRNewswire/ --

First Quarter 2020 Highlights (compared to first quarter of 2019):

  • Total Revenues totaled NIS 892 million ($250 million) compared to NIS 928 million ($260 million) in the first quarter last year, a decrease of 3.9%
  • Service revenues totaled NIS 682 million ($191 million) compared to NIS 678 million ($190 million) in the first quarter last year, an increase of 0.6%
  • Operating income totaled NIS 18 million ($5 million) compared to NIS 9 million ($3 million) in the first quarter last year, an increase of 100%
  • Loss totaled NIS 43 million ($12 million) compared to NIS 16 million ($4 million) in the first quarter last year, an increase of 169%
  • Adjusted EBITDA1 totaled NIS 244 million ($68 million) compared to NIS 224 million ($63 million) in the first quarter last year, an increase of 8.9%
  • Net cash flow from operating activities totaled NIS 240 million ($67 million) compared to NIS 303 million ($85 million) in the first quarter last year, a decrease of 20.8%
  • Free cash flow1 totaled NIS 57 million ($16 million) compared to NIS 46 million ($13 million) in the first quarter last year, an increase of 23.9%

[1] Please see "Use of Non-IFRS financial measures" section in this press release.
[2] As of January 1, 2019 the Company is applying International Financial Reporting Standard IFRS 16, Leases. The effects of applying the standard in the first quarter of 2020 and the first quarter of 2019 amounted to an increase of NIS 66 million and NIS 63 million in Adjusted EBITDA respectively, an increase of NIS 75 million and NIS 74 million in Cash flows from operating activities respectively.

Avi Gabbay, the Company's Chief Executive Officer, referred to the results of the first quarter of 2020:

"In the first quarter we surpassed the crisis in our relations with the employees' representatives, which enabled us to take steps to improve our service to our customers and operational excellence and to take quick steps to mitigate some of the adverse effects of the Corona virus crisis.

In addition, we have signed a binding memorandum of understanding for the acquisition of Golan Telecom and we are acting vigorously to obtain the required regulatory approvals.

I believe that the proactive steps we are taking will enable the Company to cope with the Corona crisis and enter 2021 as a better and more focused company."

Shlomi Fruhling, the Company's Chief Financial Officer, said:

"The first quarter of 2020 has been characterized by continued competition in the mobile sector while the fixed line sector continued to grow. Quarterly results were partially affected by the Corona pandemic. We expect a greater impact to be seen in the second quarter, and we expect the crisis to continue to adversely affect the Company's results through this year.

The crisis adversely affected revenues from roaming services of customers travelling overseas as well as roaming services of tourists traveling to Israel. In addition, there was a decrease in the contribution of equipment sales as a result of the closing of service centers and points-of-sale during March. The Company's management has taken steps to reduce operating expenses during this period in order mitigate the impact of the decline in revenue.

The Company's adjusted EBITDA totaled NIS 244 million in the first quarter of 2020, up 9%. The adjusted EBITDA was positively impacted by NIS 28 million following a retrospective update of Bezeq's wholesale market tariffs by the Israeli Ministry of Communications, and this was partially offset by the negative impact of the Corona virus crisis.

Net financing expenses in the first quarter of 2020 totaled NIS 64 million. The increase in these expenses compared with the corresponding quarter last year was mainly due to losses in the Company's investment portfolio, which totaled NIS 37 million, as a result of market declines during the quarter. During April, some of these losses were offset due to the increases in securities prices in the capital markets.

Free cash flow for the first quarter of 2020 amounted to NIS 57 million, compared with NIS 46 million in the corresponding quarter last year. The increase in free cash flow was mainly due to a decrease in investments in fixed assets."

Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) ("Cellcom Israel" or the "Company" or the "Group") announced today its financial results for the first quarter of 2020.

The Company reported that revenues for the first quarter of 2020 totaled NIS 892 million ($250 million); Adjusted EBITDA for the first quarter of 2020 totaled NIS 244 million ($68 million), or 27.4% of total revenues; loss for the first quarter of 2020 totaled NIS 43 million ($12 million). Basic loss per share for the first quarter of 2020 totaled NIS 0.29 ($0.08).

MAIN CONSOLIDATED FINANCIAL RESULTS:


Q1/2020

Q1/2019

Change%

Q1/2020

Q1/2019


NIS million

US$ million

 (convenience translation)

Total revenues

892

928

(3.9)%

250

260

Operating Income

18

9

100%

5

3

Loss

(43)

(16)

(168.8)%

(12)

(4)

Free cash flow

57

46

23.9%

16

13

Adjusted EBITDA

244

224

8.9%

68

63

Adjusted EBITDA, as percent of total
revenues

27.4%

24.1%

13.7%



 

MAIN FINANCIAL DATA BY OPERATING SEGMENTS:


Cellular (*)

Fixed-line (**)

Consolidation
adjustments

(***)

Consolidated results

NIS million

Q1'20

Q1'19

Change

%

Q1'20

Q1'19

Change

%

Q1'20

Q1'19

Q1'20

Q1'19

Change

%

Total revenues

552

562

(1.8)%

381

409

(6.8)%

(41)

(43)

892

928

(3.9)%

Service
revenues

396

404

(2.0)%

327

317

3.2%

(41)

(43)

682

678

0.6%

Equipment
revenues

156

158

(1.3)%

54

92

(41.3)%

-

-

210

250

(16.0)%

Adjusted
EBITDA

131

146

(10.3)%

113

78

44.9%

-

-

244

224

8.9%

Adjusted
EBITDA, as
percent of total
revenues

23.7%

26.0%

(8.8)%

29.7%

19.1%

55.5%



27.4%

24.1%

13.7%

(*)      The segment includes the cellular communications services, end user cellular equipment and supplemental services.
(**)     The segment includes landline telephony services, internet infrastructure and connectivity services, television services, transmission services, end user fixed-line equipment and supplemental services.
(***)  Include cancellation of inter-segment revenues between "Cellular" and "Fixed-line" segments.

 

FINANCIAL REVIEW (FIRST QUARTER OF 2020 COMPARED TO FIRST QUARTER OF 2019):

Revenues for the first quarter of 2020 decreased 3.9% totaling NIS 892 million ($250 million), compared to NIS 928 million ($260 million) in the first quarter last year. The decrease in revenues is attributed to a 16.0% decrease in equipment revenues, which was partially offset by a 0.6% increase in service revenues.

Service revenues in the first quarter of 2020 totaled NIS 682 million ($191 million), a 0.6% increase compared to NIS 678 million ($190 million) in the first quarter last year.

Service revenues in the cellular segment totaled NIS 396 million ($111 million) in the first quarter of 2020, a 2.0% decrease compared to NIS 404 million ($113 million) in the first quarter last year. This decrease resulted mainly from decrease of the Company's roaming services activities as a result of the Corona virus crisis and the ongoing erosion in the cellular prices as a result of the intense competition.

Service revenues in the fixed-line segment totaled NIS 327 million ($92 million) in the first quarter of 2020, a 3.2% increase compared to NIS 317 million ($89 million) in the first quarter last year. This increase resulted mainly from an increase in revenues from internet and TV services.

Equipment revenues totaled NIS 210 million ($59 million) in the first quarter of 2020, a 16.0% decrease compared to NIS 250 million ($70 million) in the first quarter last year. The decrease resulted mainly from a decrease in the amount of end user equipment sold in the fixed-line segment.

Cost of revenues totaled NIS 644 million ($181 million) in the first quarter of 2020, a 7.3% decrease compared to NIS 695 million ($195 million) in the first quarter last year. The decrease in cost of revenues resulted mainly from decrease in the costs related to the internet services in the fixed line segment as a result of retrospective update of Bezeq's wholesale market tariffs by the MOC which resulted in one time expenses in amount of NIS 28 million, and from a decrease in end user equipment sold in the fixed-line segment.

Gross profit for the first quarter of 2020 totaled NIS 248 million ($70 million), a 6.4% increase compared to NIS 233 million ($65 million) in the first quarter of 2019. Gross profit margin for the first quarter of 2020 amounted to 27.8%, up from 25.1% in the first quarter of 2019.

Selling, Marketing, General and Administrative Expenses and Credit losses ("SG&A Expenses") for the first quarter of 2020 increased 2.6% to NIS 235 million ($66 million), compared to NIS 229 million ($64 million) in the first quarter of 2019. This increase is primarily a result of an increase in doubtful accounts expenses.

Operating income for the first quarter of 2020 increased 100.0% to NIS 18 million ($5 million) from NIS 9 million ($3 million) in the first quarter of 2019.

Adjusted EBITDA for the first quarter of 2020 increased 8.9% to NIS 244 million ($68 million), compared to NIS 224 million ($63 million) in the first quarter of 2019. Adjusted EBITDA as a percent of revenues for the first quarter of 2020 totaled 27.4%, up from 24.1% in the first quarter of 2019. The increase in Adjusted EBITDA is attributed to a 44.9% increase in the fixed-line segment Adjusted EBITDA, which was partially offset by 10.3% a decrease in the cellular segment Adjusted EBITDA.

Cellular segment Adjusted EBITDA for the first quarter of 2020 totaled NIS 131 million ($37 million), compared to NIS 146 million ($41 million) in the first quarter last year, a decrease of 10.3%, which resulted mainly from a decrease in roaming services activities and a decrease in the contribution of end-user equipment sales following the closure of the frontal selling points and the reduction of their costs as a result of the Corona virus pandemic.

Fixed-line segment Adjusted EBITDA for the first quarter of 2020 totaled NIS 113 million ($32 million), compared to NIS 78 million ($22 million) in the first quarter last year, a 44.9% increase, which resulted mainly from a decrease in the costs related to the internet services in the fixed line segment as a result of retrospective update of wholesale services tariffs by the MOC which resulted in one time expenses in amount of NIS 28 million, as well as from transfer of subscribers from wholesale infrastructure to fiber infrastructure.

Financing expenses, net for the first quarter of 2020 increased by 137.0% and totaled NIS 64 million ($17 million), compared to NIS 27 million ($8 million) in the first quarter of 2019. The increase resulted mainly from losses in the Company's tradable investment portfolio due to the losses in the securities market in the first quarter of 2020 due to the Corona virus pandemic, compared to a profit in the Company's tradable investment portfolio due to a rise in the securities market in the first quarter of 2019.

Loss for the first quarter of 2020 totaled NIS 43 million ($12 million), compared to NIS 16 million ($4 million) in the first quarter of 2019.

Basic loss per share for the first quarter of 2020 totaled NIS 0.29 ($0.08), compared to basic earnings per share of NIS 0.14 ($0.04) in the first quarter last year.

OPERATING REVIEW

Main Performance Indicators - Cellular segment:


Q1/2020

Q1/2019

Change (%)

Cellular subscribers at the end
of period (in thousands)

2,747

2,853

(3.7)%

Churn Rate for cellular
subscribers (in %)

8.8%

11.0%

(20.0)%

Monthly cellular ARPU (in NIS)

48.1

47.2

1.9%

Cellular subscriber base - at the end of the first quarter of 2020 the Company had approximately 2.747 million cellular subscribers. During the first quarter of 2020 the Company's cellular subscriber base increased by approximately 3 thousand net cellular subscribers.

Cellular Churn Rate for the first quarter of 2020 totaled to 8.8%, compared to 11.0% in the first quarter last year. As of the first quarter of 2020, the churn rate includes only the negative net churn of M2M subscribers, in order to eliminate changes that do not change the amount of lines held by the customers.

The monthly cellular Average Revenue per User ("ARPU") for the first quarter of 2020 totaled NIS 48.1 ($13.5), compared to NIS 47.2 ($13.2) in the first quarter last year. The increase in ARPU resulted mainly from erasing subscribers from the Company's cellular subscriber base at the end of the first quarter of 2019.

MAIN PERFORMANCE INDICATORS - FIXED-LINE SEGMENT:


Q1/2020

Q1/2019

Change (%)

Internet infrastructure field -
subscribers (households) at the
end of period (in thousands)

279

278

0.4%

TV field -  subscribers at the
end of period (in thousands)

246

227

8.4%

In the first quarter of 2020, the Company's subscriber base in the internet infrastructure field increased by approximately one thousand net households, and the Company's subscriber base in the TV field decreased by approximately 12 thousand net subscribers. The decrease in the TV field subscribers results from changing the counting method. As of the beginning of the first quarter of 2020, the Company changed the counting method in the way that subscribers with Cellcom tv light application will be counted only when they activate the service. The Company applied the change retroactively, and as a result, the company erased approximately 14 thousands subscribers from its active customer base.

FINANCING AND INVESTMENT REVIEW

Cash Flow

Free cash flow for the first quarter of 2020, totaled NIS 57 million ($16 million), compared to NIS 46 million ($13 million) in the first quarter of 2019, a 23.9% increase. The increase in free cash flow, resulted mainly from decrease in payments to end user equipment suppliers and investments in fixed assets.

Total Equity

Total Equity as of March 31, 2020 amounted to NIS 1,867 million ($524 million) primarily consisting of undistributed accumulated retained earnings of the Company.

Cash Capital Expenditures in Fixed Assets and Intangible Assets and others

During the first quarter of 2020, the Company invested NIS 118 million ($33 million) in fixed assets and intangible assets and others (including, among others, investments in the Company's communications networks, information systems, software and TV set-top boxes and capitalization of part of the customer acquisition costs as a result of IFRS 15), compared to NIS 184 million ($52 million) in the first quarter 2019.

Dividend

On May 20, 2020, the Company's Board of Directors decided not to declare a cash dividend for the first quarter of 2020. In making its decision, the board of directors considered the Company's dividend policy and business status and decided not to distribute a cash dividend at this time, given the intensified competition and its adverse effect on the Company's results of operations, and in order to strengthen the Company's balance sheet. The board of directors will re-evaluate its decision in future quarters. No future dividend declaration is guaranteed and is subject to the Company's board of directors' sole discretion, as detailed in the Company's annual report for the year ended December 31, 2019 on Form 20-F dated March 23, 2020, or the 2019 Annual Report, under "Item 8 - Financial Information – A. Consolidated Statements and Other Financial Information - Dividend Policy".

Debentures, Material Loans and Financial Liabilities

For information regarding the Company's outstanding debentures as of March 31, 2020, see "Disclosure for Debenture Holders" section in this press release.

OTHER DEVELOPMENTS DURING THE FIRST QUARTER OF 2020 AND SUBSEQUENT TO THE END OF THE REPORTING PERIOD

Update On The Corona Virus And Implications

As previously announced, the Company's results for the first quarter of 2020 reflect the negative effects of the Corona virus pandemic on the Company's roaming services and end-user equipment sales as well as on the Company's investment portfolio which recorded a loss of NIS 37 million (which was partly off-set in April 2020). The Company's FCF as of March 31, 2020 was not affected by the Corona virus.

As previously announced, the Company expects its roaming services to continue to be materially adversely affected by the Corona virus pandemic through 2020, as well as its end-user equipment during the second quarter of 2020 and thereafter, to the extent and for as long as the Corona virus limitations are maintained and affecting such sales, as well as lingering effects on the economy.

For additional details see the Company's 2019 Annual Report under Item 3. Risk Factors – The Corona Virus may adversely affect our results of operations" and "Item 5. Operating and Financial Review and Prospects – A. Operating Results - Overview – General".

Changes to the Board of Directors and Management

In March 2020, following Mr. Ami Erel's resignation from office as a chairman of the Board of Directors, the Company's board of directors appointed Mr. Doron Cohen as a director and Chairman of the Board of Directors of the Company, until the Company's next general shareholders meeting.

Mr. Cohen has served as the Company's chairman and as CEO of DIC and as a director of Elron Electronic Industries Ltd. since March 2020, as a director of Shufersal Ltd. and Epsilon Investment House Ltd. since April 2020, as chairman of the board and founding partner at Credito since 2015, as an external director of Lachish Industries since 2014 and as the president of the Israeli Institute of Internal Auditors (IIA) since 2013 and until May 2020. In addition, Mr. Cohen serves as a member of the committees of nominations and service of the Civil Service Commission and a Chairman of the board of ORT Braude College of Engineering. From 2015 to 2019, Mr. Cohen served as chairman of the board and CEO of IBC, from 2011 to 2013 as Director General of the Israeli Ministry of Finance and from 2009 to 2012 as the Director General of the Israeli Governmental Companies Authority. Mr. Cohen is a Certified Public Accountant and holds a B.A. in economics and accounting from the Tel-Aviv University and an M.A. in law, from the Bar-Ilan University

In April 2020, Mr. Eran Saar resigned his office as director of the Company, following termination of his office as CEO of the Company's indirect controlling shareholder.

In May 2020, the Company's board of directors appointed Mr. Aron Kaufman as a director of the Company, until the Company's next general shareholders meeting. Mr. Kaufman nominated Mr. Saul Zang as his alternate director.

Mr. Aaron Kaufman has served as CEO of IDB Development Corporation Ltd., or IDBD, Chairman of Modi'in Energy LP (and director since 2019), director of Mehadrin Ltd., IDB Tourism (2009) Ltd. and Israir Tourism and Aviation Ltd. since 2020, member of the committee of IDB fund for the Community since 2019, Director of private companies of IDBD group since 2017, VP Legal Counsel of Discount Investment Corporation Ltd., or DIC,  director of IDB Group Investments USA Inc. and director of private Companies of DIC group since 2016. From 2015 to 2020 he also served as VP Legal Counsel of IDBD. From 2005 to 2015 Mr. Kaufman was a partner in the law firm of Epstein, Homsky, Asnat and Co. Mr. Kaufman holds an LL.B from the Tel-Aviv University.

Mr. Saul Zang has served as First Vice-Chairman of the Board of IRSA Inversiones y Representaciones S.A. , first Vice-Chairman of the Board of IRSA Propiedades Comerciales S.A. , first Vice-Chairman of the Board of Cresud S.A.C.I.F y A , second vice-Chairman of Consultores Assets Management SA, Vice Chairman of Consultores Venture Capital Uruguay S.A., Vice-Chairman of Ritelco SA, Vice Chairman of Tyrus SA, Vice Chairman of Inversiones Financieras Del Sur SA, Vice Chairman of Elron Electronic Industries Ltd., director of BrasilAgro Companhia de Propriedades Agrícolas,  IFIS Limited, Banco Hipotecario S.A., Dolphin Fund Ltd., Dolphin IL Investment Ltd., Consultores Venture Capital Ltd, Dolphin Investment (Gibraltar) Ltd., Dolphin Netherlands BV, Austral Gold Ltd., Bacs Banco de Credito Y Securitizacion S.A., IRSA Foundation, Discount Investment Corporation Ltd., IDB Development Corporation Ltd., Property and Building Corporation Ltd., Bayside Land Corporation Ltd, member of the committee of IDB fund for the Community, and director of additional private corporations. Mr. Zang holds an LL.B. from Buenos Aires University.

In May 2020, the Company's board of directors appointed Mr. Samy Bakalash as a director of the Company, until the Company's next general shareholders meeting. Mr. Bakalash was nominated to the board by the Company's employees, as per the February 2020 collective employment agreement.

Mr. Bakalash has served as CEO of Bakalsah consulting and investment, as a chairman of Ayalon financial solutions Ltd., as a director of Kibbutz Ramat Rachel's holding company, the Israeli governmental company for tourism and various private companies, as member of the Oil Board in the Israeli Energy office, public representative in several committees in the Tel-Aviv courts and Ranana municipality and lectures on the capital market and corporate governance in several colleges, since 2010. Prior to that, Mr. Bakalash served as a director in various companies in the finance sector and Chirman of KLA education fund and held various CEO and CFO positions. Mr. Bakalash is a Certified Public Accountant and holds an LL.B and B.A. in accounting from the Tel-Aviv University and a B.A. in business management (finance) and economics, from the Bar-Ilan University.

In May 2020, Mr. Amos Maor, the Company's VP of Sales and Service and Mr. Shlomi Fruling, the Company's Chief Financial Officer, announced their intention to resign from office in the near term.

For additional details see the Company's annual report on Form 20-F dated March 23, 2020 under "Item 6. Directors, Senior Management and Employees – A. Directors and Senior Management" and "–D. Employees".

Results of Securities Offering In Israel

In May 2020, The Company concluded a public tender for units including its Series L debentures and Series 4 options to purchase its ordinary shares. The Company issued an aggregate of 222,000,000 Series L debentures and 2,220,000 Series 4 Options for an immediate total net consideration of approximately NIS 200 million.   

In addition, Standard & Poor's Maalot reaffirmed an ilA/negative rating for such offering of debentures of up to NIS 222,000,000 principal amount.

For additional details see the Company's current reports on Form 6-K dated May 6, 10, 11 and 12, 2020.

The offering described in this press release does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities. The offering described in this press release was made only in Israel and only to residents of Israel. The securities have not been registered under the U.S. Securities Act of 1933 and will not be offered or sold in the United States.

Extension Of Series 3 Options Exercise Period

In March 2020, the Economic Division of the Tel Aviv District Court granted the Company's motion, and extended the exercise period of the Company's Series 3 Options until June 30, 2020.

For additional details see the Company's annual report on Form 20-F for the year ended December 31, 2019, filed on March 23, 2020, under "Item 5B. Liquidity and Capital Resources – Issuances of equity securities" and the Company's current reports on Form 6-K dated March 25 and 26, 2020.

CONFERENCE CALL DETAILS

The Company will be hosting a conference call regarding its results for the first quarter of 2020 on Thursday, May 21, 2020 at 10:00 am ET, 07:00 am PT, 15:00 UK time, 17:00 Israel time. On the call, management will review and discuss the results, and will be available to answer questions. To participate, please either access the live webcast on the Company's website, or call one of the following teleconferencing numbers below. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1 888 668 9141             

Israel Dial-in Number: 03 918 0685               International Dial-in Number:  +972 3 918 0685

at: 10:00 am Eastern Time; 07:00 am Pacific Time; 15:00 UK Time; 17:00 Israel Time

To access the live webcast of the conference call, please access the investor relations section of Cellcom Israel's website: www.cellcom.co.il. After the call, a replay of the call will be available under the same investor relations section.

About Cellcom Israel

Cellcom Israel Ltd., established in 1994, is a leading Israeli communications group, providing a wide range of communications services. Cellcom Israel is the largest Israeli cellular provider, providing its approximately 2.747 million cellular subscribers (as at March 31, 2020) with a broad range of services including cellular telephony, roaming services for tourists in Israel and for its subscribers abroad, text and multimedia messaging, advanced cellular content and data services and other value-added services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an LTE 4 generation network and an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Cellcom Israel further provides OTT TV services, internet infrastructure  and connectivity services and international calling services, as well as landline telephone services in Israel. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://investors.cellcom.co.il.

Forward-Looking Statements

The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about the Company, may include projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. These statements are only predictions based on the Company's current expectations and projections about future events. There are important factors that could cause the Company's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to: changes to the terms of the Company's license, new legislation or decisions by the regulator affecting the Company's operations, new competition and changes in the competitive environment, the outcome of legal proceedings to which the Company is a party, particularly class action lawsuits, the Company's ability to maintain or obtain permits to construct and operate cell sites, and other risks and uncertainties detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including under the caption "Risk Factors" in its Annual Report for the year ended December 31, 2019. 

Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company assumes no duty to update any of these forward-looking statements after the date hereof to conform its prior statements to actual results or revised expectations, except as otherwise required by law.

The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). Unless noted specifically otherwise, the dollar denominated figures were converted to US$ using a convenience translation based on the New Israeli Shekel (NIS)/US$ exchange rate of NIS 3.565 = US$ 1 as published by the Bank of Israel for March 31, 2020.

Use of non-IFRS financial measures

Adjusted EBITDA is a non-IFRS measure and is defined as income before financing income (expenses), net; other income (expenses), net (excluding expenses related to employee voluntary retirement plans and gain (loss) due to sale of subsidiaries); income tax; depreciation and amortization and share based payments. This is an accepted measure in the communications industry. The Company presents this measure as an additional performance measure as the Company believes that it enables us to compare operating performance between periods and companies, net of any potential differences which may result from differences in capital structure, taxes, age of fixed assets and related depreciation expenses. Adjusted EBITDA should not be considered in isolation, or as a substitute for operating income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting Principles as measures of profitability or liquidity. Adjusted EBITDA does not take into account debt service requirements, or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that may be available for the Company's use. In addition, Adjusted EBITDA as presented by the Company may not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated. See the reconciliation of net income to Adjusted EBITDA under "Reconciliation of Non-IFRS Measures" in the press release.

Free cash flow is a non-IFRS measure and is defined as the net cash provided by operating activities (including the effect of exchange rate fluctuations on cash and cash equivalents) excluding a loan to Golan Telecom given by 2017, minus the net cash used in investing activities excluding short-term investment in tradable debentures and deposits and proceeds from sales of such debentures (including interest received in relation to such debentures) and its deposits, and from 2020, with the initial application of IFRS 16, lease payments are also deducted which are presented in financing activity. See "Reconciliation of Non-IFRS Measures" below.

Company Contact

Shlomi Fruhling

Chief Financial Officer                 

investors@cellcom.co.il

Tel: +972 52 998 9735

Investor Relations Contact

Ehud Helft

GK Investor & Public Relations

cellcom@GKIR.com  

Tel: +1 617 418 3096


Financial Tables Follow

 

 

Cellcom Israel Ltd.

(An Israeli Corporation)


Condensed Consolidated Interim Statements of Financial Position (Unaudited)








Convenience









translation









into US dollar





March 31,


March 31,


March 31,


December 31,



2019


2020


2020


2019



NIS millions


US$ millions


NIS millions










Assets









Cash and cash equivalents


1,031


807


226


1,006

Current investments, including derivatives


410


431


121


473

Trade receivables


1,176


1,109


311


1,142

Current tax assets


10


4


1


3

Other receivables


74


70


20


69

Inventory


85


72


20


66










Total current assets


2,786


2,493


699


2,759










Trade and other receivables


853


747


210


782

Property, plant and equipment, net


1,647


1,391


390


1,432

Intangible assets and others, net


1,305


1,287


361


1,294

Investments in equity accounted investees


-


151


42


150

Right-of-use assets, net and Investment property


771


697


196


745










Total non- current assets


4,576


4,273


1,199


4,403










Total assets


7,362


6,766


1,898


7,162










Liabilities









Current maturities of debentures and of loans from
financial institutions


618


323


91


509

Current tax liabilities


-


6


2


6

Current maturities of lease liabilities


217


213


60


226

Trade payables and accrued expenses


744


625


175


687

Provisions


108


96


27


99

Other payables, including derivatives


228


272


76


299










Total current liabilities


1,915


1,535


431


1,826










Long-term loans from financial institutions


400


263


73


300

Debentures


2,692


2,513


705


2,511

Long-term lease liabilities


560


494


139


533

Provisions


20


22


6


22

Other long-term liabilities


5


3


1


4

Liability for employee rights upon retirement, net


14


19


5


19

Deferred tax liabilities


95


50


14


60










Total non- current liabilities


3,786


3,364


943


3,449










Total liabilities


5,701


4,899


1,374


5,275










Equity attributable to owners of the Company









Share capital


1


2


1


2

Share premium


325


643


180


623

Receipts on account of share options


10


21


5


24

Capital reserves


-


2


1


-

Retained earnings


1,323


1,197


336


1,236

Non-controlling interest


2


2


1


2










Total equity


1,661


1,867


524


1,887










Total liabilities and equity


7,362


6,766


1,898


7,162

 

 

Cellcom Israel Ltd.


(An Israeli Corporation)




Condensed Consolidated Interim Statements of Income (Unaudited)










Convenience










translation 










into US dollar






Three-month
 period ended
  March 31,


Three- month

period ended
  March 31,


Year ended
December 31,




2019


2020


2020


2019




NIS millions


US$ millions


NIS millions












Revenues


928


892


250


3,708


Cost of revenues


(695)


(644)


(181)


(2,725)












Gross profit


233


248


69


983












Selling and marketing expenses


(158)


(145)


(41)


(610)


General and administrative expenses


(67)

 * 

(79)


(22)


(300)

*

Credit losses


(4)

 * 

(11)


(3)


(29)

*

Other income, net


5


5


1


(20)


Operating profit


9


18


4


24












Financing income


18


9


3


49


Financing expenses


(45)


(73)


(20)


(193)


Financing expenses, net


(27)


(64)


(17)


(144)












Share in losses of equity accounted

investees


-


(5)


(1)


(10)












Loss before taxes on income


(18)


(51)


(14)


(130)












Tax benefit


2


8


2


23


Loss for the period


(16)


(43)


(12)


(107)


Attributable to:










Owners of the Company


(16)


(43)


(12)


(107)


Non-controlling interests


-


-


-


-


Loss for the period


(16)


(43)


(12)


(107)












Loss per share










Basic loss per share (in NIS)


(0.14)


(0.29)


(0.08)


(0.90)












Diluted loss per share (in NIS)


(0.14)


(0.29)


(0.08)


(0.90)












Weighted-average number of shares used
in the calculation of basic loss per share
(in shares)


116,196,729


148,058,844


148,058,844


118,376,455












Weighted-average number of shares used

in the calculation of diluted loss per share
(in shares)


116,196,729


148,058,844


148,058,844


118,376,455












*Reclassified 










 

 

Cellcom Israel Ltd.

(An Israeli Corporation)


Condensed Consolidated Interim Statements of Cash Flows (Unaudited)








Convenience









translation









into US dollar





Three-month
 period ended
March 31,


Three- month
 period ended
  March 31,


Year ended
December 31,







2019


2020


2020


2019



NIS millions


US$ millions


NIS millions










Cash flows from operating activities









Loss for the period


(16)


(43)


(12)


(107)

Adjustments for: 









Depreciation and amortization


214


220


62


898

Share based payments


-


4


1


8

Gain on sale of property, plant and equipment, intangible
assets and others


-


-


-


(8)

Net change in fair value of  investment property


-


2


1


6

Tax benefit


(2)


(8)


(2)


(23)

Financing expenses, net


27


64


17


144

Other expenses


-


-


-


3

Share in losses of equity accounted investees


-


5


1


10










Changes in operating assets and liabilities:









Change in inventory


9


(6)


(2)


28

Change in trade receivables (including long-term amounts)


(16)


72


20


80

Change in other receivables (including long-term amounts)


13


(7)


(2)


13

Change in trade payables, accrued expenses and provisions


83


(47)


(13)


(27)

Change in other liabilities (including long-term amounts)


(5)


(2)


-


23

Payments for derivative hedging contracts, net


(1)


(12)


(3)


(10)

Income tax paid


(3)


(2)


(1)


(12)

Income tax received


-


-


-


10

Net cash from operating activities


303


240


67


1,036










Cash flows from investing activities









Acquisition of property, plant, and equipment


(127)


(66)


(19)


(324)

Additions to intangible assets and others


(57)


(52)


(14)


(233)

Acquisition of equity accounted investee


-


-


-


(16)

Change in current investments, net


2


9


3


(49)

Recepits from other derivative contracts, net


1


10


3


9

Proceeds from sale of property, plant and equipment and

intangible assets and others


-


-


-


181

Grant of long-term loans to equity accounted investees


-


(3)


(1)


(141)

Interest received 


4


1


-


13

Net cash used in investing activities


(177)


(101)


(28)


(560)

 

 


Cellcom Israel Ltd.

(An Israeli Corporation)


Condensed Consolidated Interim Statements of Cash Flows (Unaudited) (cont`d)








Convenience









translation









into US dollar





Three-month
 period ended
March 31,


Three- month
 period ended
  March 31,


Year ended
December 31,







2019


2020


2020


2019



NIS millions


US$ millions


NIS millions










Cash flows from financing activities









Payments for derivative contracts, net


-


(1)


-


(2)

Receipt of long-term loans from financial institutions


150


-


-


150

Payments for long-term loans from financial institutions


-


-


-


(212)

Repayment of debentures


(308)


(223)


(63)


(504)

Repurchase of own debentures


-


-


-


(10)

Interest paid


(70)

*

(63)


(18)


(151)

Equity offering


-


-


-


309

Proceeds from exercise of share options


-


17


5


4

Payment of principal of lease liabilities


(69)

*

(68)


(19)


(256)










Net cash from (used in) financing activities


(297)


(338)


(95)


(672)










Changes in cash and cash equivalents


(171)


(199)


(56)


(196)










Cash and cash equivalents as at the beginning of the period


1,202


1,006


282


1,202










Cash and cash equivalents as at the end of the period


1,031


807


226


1,006


* Reclassified

 

 

Cellcom Israel Ltd.

(An Israeli Corporation)


Reconciliation for Non-IFRS Measures


Adjusted EBITDA


The following is a reconciliation of net income to Adjusted EBITDA:



Three-month period ended

March 31,

Year ended

December 31,


2019

2020

Convenience

translation

into US dollar

2020

2019


NIS millions

US$ millions

NIS millions

Loss......................................................

(16)

(43)

(12)

(107)

Tax benefit............................................

(2)

(8)

(2)

(23)

Financing income..................................

(18)

(9)

(3)

(49)

Financing expenses..............................

45

73

20

193

Other income.........................................

1

2

1

10

Depreciation and amortization...............

214

220

62

898

Share of profit of equity accounted

investees...............................................

-

5

1

10

Share based payments.........................

-

4

1

8

Adjusted EBITDA...................................

224

244

68

940




Free cash flow


The following table shows the calculation of free cash flow:



Three-month period ended

March 31,

Year ended

December 31,


2019

2020

Convenience

translation

into US dollar

2020

2019


NIS millions

US$ millions

NIS millions

Cash flows from operating 
     activities(*)........................................

229

165

46

756

Cash flows from investing activities......

(177)

(101)

(28)

(560)

Purchase (Sale) of tradable 
     debentures and deposits (**)............

(6)

(10)

(3)

38

Investment in equity accounted 
     investees..........................................

-

3

1

157

Free cash flow......................................

46

57

16

391

(*)    Including the effects of exchange rate fluctuations in cash and cash equivalents and lease payments.
(**) Net of interest received in relation to tradable debentures.

 

 

Cellcom Israel Ltd.

(An Israeli Corporation)


Key financial and operating indicators


NIS millions unless otherwise stated

Q1-2019

Q2-2019

Q3-2019

Q4-2019

Q1-2020

FY-2019








Cellular service revenues

404

420

439

416

396

1,679

Fixed-line service revenues

317

312

311

318

327

1,258








Cellular equipment revenues

158

162

172

169

156

661

Fixed-line equipment revenues

92

63

47

69

54

271








Consolidation adjustments

(43)

(37)

(41)

(40)

(41)

(161)

Total revenues

928

920

928

932

892

3,708








Cellular adjusted EBITDA

146

163

185

133

131

627

Fixed-line adjusted EBITDA

78

70

86

79

113

313

Total adjusted EBITDA

224

233

271

212

244

940








Operating profit (loss)

9

6

36

(27)

18

24

Financing expenses, net

27

52

31

34

64

144

Loss for the period

(16)

(35)

(2)

(54)

(43)

(107)








Free cash flow

46

55

234

56

57

391








Cellular subscribers at the end of period (in 000's)

2,853

2,745

2,767

2,744

2,747

2,744

Monthly cellular ARPU (in NIS)

47.2

51.9

53.2

50.5

48.1

50.7

Churn rate for cellular subscribers (%)

11.0%

11.3%

11.4%

11.3%

8.8%

48.8%

 

 

Cellcom Israel Ltd.


Disclosure for debenture holders as of March 31, 2020


Aggregation of the information regarding the debenture series issued by the Company (1), in million NIS


Series

Original
Issuance
Date

Principal
on the
Date of
Issuance

As of 31.03.2020

As of 20.05.2020

Interest
Rate
(fixed)

Principal Repayment
Dates

Interest
Repayment
Dates (3)

Linkage

Trustee

Contact Details

Principal

Balance on
Trade

Linked
Principal
Balance

Interest
Accumulated
in Books

Debenture
Balance  
Value in
Books (2)

Market Value

Principal
Balance on
Trade

Linked
Principal
Balance

From

To

H (4)(5)(6)**

08/07/14

03/02/15*

11/02/15*

949.624

721.714

682.930

3.373

686.303

701.506

721.714

686.361

1.98%

05.07.18

05.07.24

January-5
and July-5

Linked to CPI

Mishmeret Trust Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel: 03-6374355.

I (4)(5)(6)**

08/07/14

03/02/15*

11/02/15*

28/03/16*

804.010

643.208

626.892

6.274

633.166

660.510

643.208

627.799

4.14%

05.07.18

05.07.25

January-5
and July-5

Not linked

Mishmeret Trust Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel: 03-6374355.

J (4)(5)

25/09/16

103.267

103.267

103.695

0.602

104.297

97.959

103.267

103.823

2.45%

05.07.21

05.07.26

January-5 and July-5

Linked to CPI

Mishmeret Trust Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel: 03-6374355.

K (4)(5)**

25/09/16

01/07/18*

10/12/18*

710.634

710.634

706.121

5.944

712.065

707.863

710.634

706.310

3.55%

05.07.21

05.07.26

January-5 and July-5

Not linked

Mishmeret Trust Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel: 03-6374355.

L (4)(5)(7)(8)**

24/01/18

10/12/18*

12/05/20*

835.937

602.979

579.936

3.552

583.488

559.624

824.979

773.042

2.50%

05.01.23

05.01.28

January-5

Not linked

Strauss Lazar Trust Company (1992) Ltd. Ori Lazar. 17 Yizhak Sadeh St., Tel Aviv. Tel: 03- 6237777.

Total

 


3,403.472

2,781.802

2,699.574

19.745

2,719.319

2,727.462

3,003.802

2,897.335







 

Comments:

(1) For a summary of the terms of the Company's outstanding debentures see the Company's 2019 Annual Report under "Item 5. Operating and Financial Review and Prospects - B. Liquidity and Capital Resources - Debt Service - Public Debentures". In the reporting period, the Company fulfilled all terms of the debentures and Indentures. Debentures financial covenants - as of March 31, 2020 the net leverage *** was 1.99. In the reporting period, no cause for early repayment occurred. (2) Including interest accumulated in the books. (3) Semi annual payments other than regarding Series L. (4) Regarding the debentures, the Company undertook not to create any pledge on its assets, as long as debentures or loans are not fully repaid, subject to certain exclusions. (5) Regarding the debentures - the Company has the right for early redemption under certain terms. (6) In February 2015, pursuant to an exchange offer of the Company's Series H and I debentures for a portion of the Company's outstanding Series D and E debentures, respectively, the Company exchanged approximately NIS 555 million principal amount of Series D debentures with approximately NIS 844 million principal amount of Series H debentures, and approximately NIS 272 million principal amount of Series E debentures with approximately NIS 335 million principal amount of Series I debentures. Series D and E debentures were fully repaid in July 2017 and in January 2017, respectively. (7) In December 2019, the Company repurchased Series L Debentures for approximately NIS 10 million. (8) In May 2020, after the end of the reporting period, the Company issued NIS 222 million principal amount of Debentures series L.

(*) On these dates additional debentures of the series were issued, the information in the table refers to the full series. (**) As of March 31, 2020, debentures Series H, I, K and L are material, which represent 5% or more of the total liabilities of the Company, as presented in the financial statements. (***) Net Leverage - the ratio of Net Debt to Adjusted EBITDA, excluding one-time influences. Net Debt defined as credit and loans from banks and others, debentures and interest payable, net of cash and cash equivalents and current investments in tradable securities. The definition of net leverage refers to Adjusted EBITDA for a period of 12 consecutive months. Accordingly, the net leverage ratio above includes the effects of the new standard IFRS 16 (applied by the Company as of January 1, 2019) on the Adjusted EBITDA for the year ended in March 31, 2020. For details of the effects of IFRS 16 on the Company's results see footnote 2 on page 1 of this press release and note 2 F to the Company's financial statement for the period ended on December 31, 2019.

Cellcom Israel Ltd.

Disclosure for debenture holders as of March 31, 2020 (cont`d)

Debentures Rating Details* 

Series

Rating
Company

Rating as of
31.03.2020 (1)

Rating as of
20.05.2020

Rating assigned upon
issuance of the Series

Recent date of rating
as of 20.05.2020

Additional ratings between original issuance and the recent date of rating as of 20.05.2020 (2)


Rating

F

S&P Maalot

A

A

AA

05/2020

05/2012, 11/2012, 06/2013, 06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019, 05/2020

AA,AA-,A+,A(2)

H

S&P Maalot

A

A

A+

05/2020

06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019, 05/2020

A+,A(2)

I

S&P Maalot

A

A

A+

05/2020

06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019, 05/2020

A+,A(2)

J

S&P Maalot

A

A

A+

05/2020

08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019, 05/2020

A+,A(2)

K

S&P Maalot

A

A

A+

05/2020

08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019, 05/2020

A+,A(2)

L

S&P Maalot

A

A

A+

05/2020

 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019, 05/2020

A+,A(2)

(1)       In August 2019, S&P Maalot updated the Company's rating outlook from an ""ilA+/negative" to an "ilA-/negative".

(2)       In May 2012, S&P Maalot updated the Company's rating from an "ilAA/negative" to an "ilAA-/negative". In November 2012, S&P Maalot affirmed the Company's rating of "ilAA/negative". In June 2013, S&P Maalot updated the Company's rating from an "ilAA-/negative" to an "ilA+/stable". In June 2014, August 2014, January 2015, September 2015, March 2016, August 2016, June 2017, January 2018, June 2018, August 2018 and December 2018 S&P Maalot affirmed the Company's rating of "ilA+/stable". In March 2019, S&P Maalot updated the Company's rating outlook from an "ilA+/stable" to an "ilA+/negative". In August 2019, S&P Maalot updated the Company's rating outlook from an "ilA+/negative" to an "ilA/negative". For details regarding the rating of the debentures see the S&P Maalot report dated May 10, 2020, included in the Company's current report filled in the Israeli Securities Authority website ("MAGNA") on May 10, 2020. In May 2020, S&P Maalot affirmed the Company's rating of "ilA/negative".

* A securities rating is not a recommendation to buy, sell or hold securities. Ratings may be subject to suspension, revision or withdrawal at any time, and each rating should be evaluated independently of any other rating.

Cellcom Israel Ltd.

Aggregation of the information regarding the Company's Material Loans (1), in million NIS

Loan

Provision
Date

Principal
Amount as of
31.03.2020

Interest
Rate

(nominal)

Principal Repayment Dates

(annual payments)

Interest Repayment
Dates (semi-annual
payments)

Linkage

From

To



Loan from financial
institution (2)(3)(4)(5)(6)

06/2016

100

4.60%

30.06.18

30.06.21

Jun-30 and December-

31, commencing
December 31, 2016
through June 30, 2021

Not linked

Loan from financial

institution (2)(3)(4)(5)(6)

06/2017

150

5.10%

30.06.19

30.06.22

June-30

and December-31,
commencing
December 31, 2017
through June 30, 2022

Not linked

Loan from bank (2)(3)(4)(5)(6)

03/2019

150

4.00%

31.03.21

31.03.24

March-31 and
September 30,
commencing
September 30, 2019
through March 31,
2024

Not linked

Total


400






Comments:

(1) For a summary of the terms of the Company's loan agreements see the Company's 2019 Annual Report under "Item 5. Operating and Financial Review and Prospects - B. Liquidity and Capital Resources - Other Credit Facilities" and the reference therein to "- Debt Service - Public Debentures". (2) In the reporting period, the Company fulfilled all terms of the loan agreements. (3) Loan agreements financial covenants - as of March 31, 2020 the net leverage* was 1.99. (4) In the reporting period, no cause for early repayment occurred. (5) In the loan agreements, the Company undertook not to create any pledge on its assets, as long as the loans are not fully repaid, subject to certain exclusions. (6) According to the loan agreements the Company may prepay the loans, subject to a prepayment fee. 

(*) Net Leverage - the ratio of Net Debt to Adjusted EBITDA, excluding one-time influences. Net Debt defined as credit and loans from banks and others, debentures and interest payable, net of cash and cash equivalents and current investments in tradable securities. The definition of net leverage refers to Adjusted EBITDA for a period of 12 consecutive months. Accordingly, the net leverage ratio above includes the effects of the new standard IFRS 16 (applied by the Company as of January 1, 2019) on the Adjusted EBITDA for the year ended in March 31, 2020. For details of the effects of IFRS 16 on the Company's results see footnote 2 on page 1 of this press release and note 2 F to the Company's financial statement for the period ended on December 31, 2019.

Cellcom Israel Ltd.

Summary of Financial Undertakings (according to repayment dates) as of March 31, 2020

a.       Debentures issued to the public by the Company and held by the public, excluding such debentures held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS).


Principal payments

Gross interest
payments
(without
deduction of

tax)

ILS linked to CPI

ILS not linked to CPI

Euro

Dollar

Other

First year

114,154

80,394

-

-

-

80,749

Second year

167,522

218,668

-

-

-

72,047

Third year

167,522

308,585

-

-

-

60,231

Fourth year

167,522

308,585

-

-

-

46,168

Fifth year and on

208,365

1,033,806

-

-

-

62,714

Total

825,085

1,950,038

-

-

-

321,909

b.      Private debentures and other non-bank credit, excluding such debentures held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS).


Principal payments

Gross interest
payments

(without
deduction of
tax)

ILS linked to CPI

ILS not linked to CPI

Euro

Dollar

Other

First year

-

100,000

-

-

-

9,812

Second year

-

100,000

-

-

-

4,955

Third year

-

50,000

-

-

-

1,264

Fourth year

-

-

-

-

-

-

Fifth year and on

-

-

-

-

-

-

Total

-

250,000

-

-

-

16,031

c.       Credit from banks in Israel based on the Company's "Solo" financial data (in thousand NIS).


Principal payments

Gross interest
payments
(without
deduction of
tax)

ILS linked to CPI

ILS not linked to CPI

Euro

Dollar

Other

First year

-

37,500

-

-

-

5,991

Second year

-

37,500

-

-

-

4,500

Third year

-

37,500

-

-

-

3,000

Fourth year

-

37,500

-

-

-

1,502

Fifth year and on

-

-

-

-

-

-

Total

-

150,000

-

-

-

14,993

d.      Credit from banks abroad based on the Company's "Solo" financial data (in thousand NIS) - None.

Cellcom Israel Ltd.

Summary of Financial Undertakings (according to repayment dates) as of March 31, 2020 (cont`d)

e.       Total of sections a - d above, total credit from banks, non-bank credit and debentures based on the Company's "Solo" financial data (in thousand NIS).


Principal payments

Gross interest
payments
(without
deduction of
tax)

ILS linked to CPI

ILS not linked to CPI

Euro

Dollar

Other

First year

114,154

217,894

-

-

-

96,553

Second year

167,522

356,168

-

-

-

81,502

Third year

167,522

396,085

-

-

-

64,496

Fourth year

167,522

346,085

-

-

-

47,670

Fifth year and on

208,365

1,033,806

-

-

-

62,714

Total

825,085

2,350,038

-

-

-

352,935

f.       Out of the balance sheet Credit exposure based on the Company's "Solo" financial data -  None.

g.      Out of the balance sheet Credit exposure of all the Company's consolidated companies, excluding companies that are reporting corporations and excluding the Company's data presented in section f above (in thousand NIS) - None.

h.      Total balances of the credit from banks, non-bank credit and debentures of all the consolidated companies, excluding companies that are reporting corporations and excluding Company's data presented in sections a - d above (in thousand NIS) - None.

i.        Total balances of credit granted to the Company by the parent company or a controlling shareholder and balances of debentures offered by the Company held by the parent company or the controlling shareholder (in thousand NIS) - None.

j.        Total balances of credit granted to the Company by companies held by the parent company or the controlling shareholder, which are not controlled by the Company, and balances of debentures offered by the Company held by companies held by the parent company or the controlling shareholder, which are not controlled by the Company (in thousand NIS).


Principal payments

Gross interest
payments
(without
deduction of
tax)

ILS linked to CPI

ILS not linked to CPI

Euro

Dollar

Other

First year

16

7

-

-

-

259

Second year

349

488

-

-

-

246

Third year

349

1,019

-

-

-

220

Fourth year

349

1,019

-

-

-

181

Fifth year and on

1,223

4,250

-

-

-

311

Total

2,286

6,783

-

-

-

1,217

k.    Total balances of credit granted to the Company by consolidated companies and balances of debentures offered by the Company held by the consolidated companies (in thousand NIS) - None.

 

 

 

SOURCE Cellcom Israel Ltd.