Cellcom Israel Announces Second Quarter 2015 Results

Aug 13, 2015, 02:35 ET from Cellcom Israel Ltd.

NETANYA, Israel, Aug. 13, 2015 /PRNewswire/ --

Revenues for the second quarter of 2015 totaled NIS 1,040 million, EBITDA[1] for the second quarter of 2015 totaled NIS 216 million and excluding a one-time effect[2] EBITDA totaled NIS 241 million

Net income for the second quarter of 2015 totaled NIS 12 million

Nir Sztern, the Company's CEO: "Cellcom tv success continues with full force in the second quarter as well. As of today, we have more than 40 thousand households enjoying Israel's new TV. In the framework of the wholesale market reform the Company is also experiencing great success with approximately 42 thousand households enjoying attractive prices and a unified internet service.  The expansion of the landline products offering and the launch of triple play provide us a competitive advantage in the market"

"The Company completed an additional voluntary retirement process with a one-time cost of approximately NIS 25 million, whose effects we will see as of the third quarter of 2015"

SECOND QUARTER 2015 HIGHLIGHTS (compared to second quarter of 2014): 

  • Total Revenues totaled NIS 1,040 million ($276 million) compared to NIS 1,158 million ($307 million) in the second quarter last year, a decrease of 10.2%
  • Service revenues totaled NIS 786 million ($209 million) compared to NIS 923 million ($245 million) in the second quarter last year, a decrease of 14.8%
  • Equipment revenues totaled NIS 254 million ($67 million) compared to NIS 235 million ($62 million) in the second quarter last year, an increase of 8.1%
  • EBITDA totaled NIS 216 million ($57 million) compared to NIS 314 million ($83 million) in the second quarter last year, a decrease of 31.2%
  • EBITDA excluding one-time effects[2] totaled NIS 241 million ($64 million) compared to NIS 331 million ($88 million) in the second quarter last year, a decrease of 27.2%
  • EBITDA margin 20.8%, down from 27.1%
  • EBITDA margin excluding one-time effects[2] 23.2%, down from 28.6%
  • Operating income totaled NIS 80 million ($21 million) compared to NIS 156 million ($41 million) in the second quarter last year, a decrease of 48.7%
  • Operating income excluding one-time effects[2] totaled NIS 105 million ($28 million) compared to NIS 173 million ($46 million) in the second quarter last year, a decrease of 39.3%
  • Net income totaled NIS 12 million ($3 million) compared to NIS 79 million ($21 million) in the second quarter last year, a decrease of 84.8%
  • Cellular subscriber base totaled approx. 2.848 million subscribers (at the end of June 2015)
  • Free cash flow[1] totaled NIS 119 million ($32 million) compared to NIS 361 million ($96 million) in the second quarter last year, a decrease of 67%

[1] Please see "Use of Non-IFRS financial measures" section in this press release.
[2] The results for the second quarter of 2015 include a one-time effect of NIS 25 million in Other Expenses regarding a voluntary retirement plan. The results for the second quarter of 2014 include two one-time effects, the first is a decrease by NIS 22 million in Cost of Revenues and the second is an increase in Other Expenses by NIS 39 million.

Nir Sztern, the Company's Chief Executive Officer, added:
"The influence of the fierce competition, apparent in the quarter's results, was manifested, among others, in erosion in revenues and profitability. The quarter was further influenced by high financing expenses in comparison to the former quarter and another voluntary retirement process, with a one-time cost of NIS 25 million, whose effects will be seen as of the third quarter of 2015.
With the operation of the landline wholesale market, we continued strengthening our position as a communications group providing value to its customers. In this frame, we have enlarged our landline offering towards the end of the quarter with a triple package, providing us a competitive advantage in the market and making us the only Group currently offering a real triple package combining tv services, internet infrastructure and provider and home telephony in one bill.
Cellcom tv success continues with full force in the second quarter as well. As of today, we have more than 40 thousand households enjoying Israel's new TV. In the framework of the wholesale market reform the Company is also experiencing great success with approximately 42 thousand households enjoying attractive prices and a unified internet service.
For the fifth consecutive year, the Company is granted the title of the leading cellular brand in Israel by the business newspaper 'Globes' and was chosen with 'Cellcom tv' as the year's winning launch both by Israel's marketing association and in a pole taken among Israel's leading marketing VPs".    

Shlomi Fruhling, Chief Financial Officer, commented: "Alongside enlarging our operation in the landline market and continuing to recruit customers to 'Cellcom tv',  the wholesale market service and triple package, in the second quarter of 2015 we experienced continued aggressive competition in the cellular market, demonstrated by continued decline in revenues from services. We expect the high competition level will continue in the next quarters.

Accordingly, the Group is committed and continues to act in order to adjust its expense structure to market conditions. In the second quarter of 2015, Selling, Marketing, General and Administrative Expenses reduced by NIS 34 million in comparison to the second quarter of last year. In addition, for a voluntary retirement plan the Group recorded in the quarter a one-time cost of NIS 25 million while the savings in payroll expenses we will gradually see as of the third quarter this year.
The Group continued to act also in the second quarter in order to reduce its net debt, which at the end of the quarter amounted to NIS 2.86 billion in comparison to a net debt of NIS 3.27 billion at the end of the second quarter last year. Free cash flow totaled NIS 119 million in the second quarter of 2015, a 67% decrease in comparison with the second quarter of last year. The decrease is mostly attributed to a decline in customers receipts for end user equipment and service revenues (including hosting services).

The Company's Board of Directors decided not to distribute a dividend for the second quarter of 2015, given the continued intensified competition in the market and its adverse effect on the Company's revenues and in order to further strengthen the Company's balance sheet. The Board of Directors will re-evaluate its decision as market conditions develop, and taking into consideration the Company's needs".

Cellcom Israel Ltd. (NYSE: CEL TASE: CEL) ("Cellcom Israel" or the "Company" or the "Group"), announced today its financial results for the second quarter of 2015. Revenues for the second quarter of 2015 totaled NIS 1,040 million ($276 million); EBITDA for the second quarter of 2015 totaled NIS 216 million ($57 million), which is 20.8% of total revenues; and net income for the second quarter of 2015 totaled NIS 12 million ($3 million). Basic earnings per share for the second quarter of 2015 totaled NIS 0.12 ($0.03).

MAIN CONSOLIDATED FINANCIAL RESULTS:


Q2/2015

Q2/2014

% Change

Q2/2015

Q2/2014


NIS million

US$ million
 (convenience translation)

Total revenues

1,040

1,158

(10.2%)

276

337

Operating Income

80

156

(48.7%)

21

45

Net Income

12

79

(84.8%)

3

23

Free cash flow

119

361

(67.0%)

32

105

EBITDA 

216

314

(31.2%)

57

91

EBITDA, as percent of total revenues

20.8%

27.1%

(23.2%)










MAIN FINANCIAL DATA BY OPERATING SEGMENTS:


Cellcom Israel (*)

Netvision (**)

Consolidation
adjustments

(***)

Consolidated
results

Q2/2015

NIS million

Total revenues

850

235

(45)

1,040

Service revenues

612

219

(45)

786

Equipment revenues

238

16

-

254

Operating Income

56

32

(8)

80

EBITDA

164

52

-

216

EBITDA, as percent of total revenues

19.3%

22.1%

-

20.8%



(*)

Cellcom Israel Ltd. and its subsidiaries, excluding Netvision Ltd. and its subsidiaries.

(**) 

Netvision Ltd. and its subsidiaries.

(***) 

Include elimination of inter-company revenues between Cellcom Israel and Netvision, and amortization expenses attributable to the merger.

 

MAIN PERFORMANCE INDICATORS (data refers to cellular subscribers only):


Q2/2015

Q2/2014

Change (%)

Cellular subscribers at the end of period (in thousands)

2,848

3,029

(6.0%)

Churn Rate for cellular subscribers (in %)

10.2%

11.1%

(8.1%)

Monthly cellular ARPU (in NIS)

65.5

75.4

(13.1%)

FINANCIAL REVIEW

Revenues for the second quarter of 2015 decreased 10.2% totaling NIS 1,040 million ($276 million), compared to NIS 1,158 million ($307 million) in the second quarter last year. The decrease in revenues is attributed to a 14.8% decrease in service revenues, which totaled NIS 786 million ($209 million) in the second quarter of 2015 as compared to NIS 923 million ($245 million) in the second quarter last year. This decrease was partially offset by an 8.1% increase in equipment revenues, which totaled NIS 254 million ($67 million) in the second quarter of 2015 as compared to NIS 235 million ($62 million) in the second quarter of 2014. Netvision's contribution to revenues for the second quarter of 2015 totaled NIS 190 million ($50 million) (excluding inter-company revenues) compared to NIS 209 million ($55 million) in the second quarter of 2014.

The decrease in second quarter 2015 service revenues resulted mainly from a decrease in cellular services revenues, due to the ongoing erosion in the price of these services as a result of the intensified competition in the cellular market. The decrease in service revenues also resulted from a decrease in revenues from long distance calls and hosting operators on the Company's communications networks. Netvision's contribution to service revenues for the second quarter of 2015 totaled NIS 174 million ($46 million) (excluding inter-company revenues) compared to NIS 195 million ($52 million) in the second quarter of 2014.

The increase in second quarter 2015 equipment revenues resulted mainly from an approximately 7% increase in the number of handsets sold during the second quarter of 2015 as compared with the second quarter of 2014. Netvision's contribution to equipment revenues for the second quarter of 2015 totaled NIS 16 million ($4 million), compared to NIS 14 million ($4 million) in the second quarter of 2014.

Cost of revenues for the second quarter of 2015 totaled NIS 682 million ($181 million), compared to NIS 671 million ($178 million) in the second quarter of 2014, a 1.6% increase. This increase resulted from content costs related to the TV field which the Company entered as of the end of 2014, as well as from a one-time cancelation of a provision for communications cables expenses in the amount of NIS 22 million in the second quarter of 2014. This increase was partially offset by a decrease in direct cost as a result of the decrease in revenues, decrease in depreciation expenses and efficiency measures.

Gross profit for the second quarter of 2015 totaled NIS 358 million ($95 million) compared to NIS 487 million ($129 million) in the second quarter of 2014, a 26.5% decrease. Gross profit margin for the second quarter of 2015 amounted to 34.4%, down from 42.1% in the second quarter of 2014.

Selling, Marketing, General and Administrative Expenses ("SG&A Expenses") for the second quarter of 2015 decreased 11.7% to NIS 256 million ($68 million), compared to NIS 290 million ($77 million) in the second quarter of 2014. This decrease is primarily the result of the efficiency measures implemented by the Company, which led to a decrease in advertising, payroll expenses, rent, depreciation and other expenses.

Other expenses for the second quarter of 2015 totaled NIS 22 million ($6 million), compared with other expenses of NIS 41 million ($11 million) in the second quarter of 2014. Other expenses for the second quarter of 2015 primarily include a one-time expense for an employee voluntary retirement plan in the amount of approximately NIS 25 million ($7 million), compared to a one-time expense in the second quarter of 2014 also for an employee voluntary retirement plan in the amount of approximately NIS 39 million ($10 million).

Operating income for the second quarter of 2015 decreased 48.7% to NIS 80 million ($21 million) from NIS 156 million ($41 million) in the second quarter of 2014. Operating income for the second quarter of 2015, was affected by a one-time expense for voluntary employee retirement plan in the amount of approximately NIS 25 million ($7 million), and a decrease in revenues primarily due to the ongoing erosion in service revenues.

EBITDA for the second quarter of 2015 decreased 31.2% totaling NIS 216 million ($57 million), compared to NIS 314 million ($83 million) in the second quarter of 2014. EBITDA for the second quarter of 2015, as a percent of second quarter revenues, totaled 20.8%, down from 27.1% in the second quarter of 2014. Excluding the one-time effects described above, EBITDA for the second quarter of 2015 totaled NIS 241 million ($64 million), a 27.2% decrease compared with the second quarter of 2014 excluding one-time effects. EBITDA for the second quarter of 2015, as a percent of second quarter revenues, excluding the one-time effects, totaled 23.1%, down from 28.6% in the second quarter of 2014. Netvision's contribution to the EBITDA for the second quarter of 2015 totaled NIS 52 million ($14 million), compared to NIS 90 million ($24 million) in the second quarter of 2014, a 42.2% decrease. Netvision's contribution to EBITDA for the second quarter of 2015, excluding the one-time effects of a cancelation of a provision for communications cables expenses in the amount of NIS 22 million in the second quarter of 2014 and of voluntary employee retirement plans in the second quarter of 2015 and in the second quarter of last year, totaled NIS 57 million ($15 million), compared to NIS 73 million ($19 million) in the second quarter of 2014, a 21.9% decrease.

Financing expenses, net for the second quarter of 2015 decreased 3.1% and totaled NIS 62 million ($16 million), compared to NIS 64 million ($17 million) in the second quarter of 2014. The decrease resulted mainly from a decrease in interest expenses, as a result of a decrease in the Company's debentures debt level, which was partially offset with losses from hedging transactions on the Israeli Consumer Price Index and losses in the Company's investment portfolio.

Taxes on income for the second quarter of 2015 totaled NIS 6 million ($2 million), compared to NIS 13 million ($3 million) in the second quarter of 2014. The decrease is mainly attributed to the decrease in profit before taxes.

Net Income for the second quarter of 2015 totaled NIS 12 million ($3 million), compared to NIS 79 million ($21 million) in the second quarter of 2014, an 84.8% decrease. This decrease is mainly due to the continued erosion in cellular service revenues resulting from the intensified competition in the cellular market that was partially offset by a decrease in operational expenses.

Basic earnings per share for the second quarter of 2015 totaled NIS 0.12 ($0.03), compared to NIS 0.79 ($0.21) in the second quarter of last year.

OPERATING REVIEW (data refers to cellular subscribers only)

Cellular subscriber base – at the end of June 2015 the Company had approximately 2.848 million cellular subscribers. During the second quarter of 2015 the Company's cellular subscriber base decreased by approximately 37,000 net cellular subscribers, all pre-paid subscribers.

Cellular Churn Rate for the second quarter of 2015 totaled 10.2%, compared to 11.1% in the second quarter of 2014. The cellular churn rate was primarily affected by the continued intensified competition in the cellular market.

The monthly cellular Average Revenue per User ("ARPU") for the second quarter of 2015 totaled NIS 65.5 ($17.4), compared to NIS 75.4 ($20.2) in the second quarter of 2014. The decrease in ARPU resulted from the ongoing erosion in the price of cellular services, resulting from the intensified competition in the cellular market.

FINANCING AND INVESTMENT REVIEW

Cash Flow
Free cash flow for the second quarter of 2015, decreased by 67% to NIS 119 million ($32 million), compared to NIS 361 million ($96 million) in the second quarter of 2014. The decrease in free cash flow was mainly due to a decrease in proceeds from customers due to the decrease in revenues in the second quarter of 2015 compared with the second quarter of 2014, resulting from the intensified competition in the cellular market as well as a decrease from proceeds from handsets sold in previous years.  

Total Equity
Total Equity as of June 30, 2015 amounted to NIS 1,130 million ($300 million), primarily consisting of accumulated undistributed retained earnings of the Company.

Investment in Fixed Assets and Intangible Assets
During the second quarter of 2015, the Company invested NIS 119 million ($32 million) in fixed assets and intangible assets (including, among others, the acquisition of frequencies and fixed assets for the Company's 4G network), compared to NIS 104 million ($28 million) in the second quarter of 2014.

Dividend
On August 12, 2015, the Company's board of directors decided not to declare a cash dividend for the second quarter of 2015. In making its decision, the board of directors considered the Company's dividend policy and business status and decided not to distribute a dividend at this time, given the intensified competition and its adverse effect on the Company's revenues, 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, 2014 on Form 20-F, under "Item 8 - Financial Information – A. Consolidated Statements and Other Financial Information - Dividend Policy".

Debentures
For information regarding the Company's summary of financial liabilities and details regarding the Company's outstanding debentures as of June 30, 2015, see "Disclosure for Debenture Holders" section in this press release.

OTHER DEVELOPMENTS DURING THE SECOND QUARTER OF 2015 AND SUBSEQUENT TO THE END OF THE REPORTING PERIOD

Network Sharing Agreements
In July 2015, the Israeli Antitrust Commissioner approved the previously reported co-operation agreement regarding maintenance services for passive elements of cell sites, between the Company and Pelephone Communications Ltd., which includes unifying passive elements and streamlining costs through a common contractor. The approval is for a period of ten years and is subject to certain conditions.

Following the previously reported network sharing agreements between the Company and Golan Telecom Ltd., or Golan, which are subject to the approvals of the Israeli Ministry of communications, or MOC, and the Israeli Antitrust Commissioner, the parties recently held communications with the MOC in which the parties were required to make material changes to the principles of the agreements between them, as a condition for the MOC's approval, including network sharing in the 3G and 4G radio networks, which includes ownership of half the radio networks active components by each company, effective right of use in the passive infrastructure, common management and sharing of the radio networks' construction, operation and maintenance costs. The Company and Golan are conducting negotiations in order to reach agreements according to such principles.  The Company estimates that a new agreement, if reached, would result in substantial additional payments to the Company.

According to the existing agreements between the Company and Golan, if approvals for the network sharing agreements are not received by December 31, 2015, then (unless otherwise agreed by the parties), Golan will be required to pay the Company  (1) the difference between the reduced payment it actually paid and the full payment it is required to pay according to the national roaming agreement, for the national roaming services provided and to be provided by the Company to Golan from July 2014 until December 31, 2015, which amounts to approximately NIS 300 million as of the end of the second quarter of 2015 (which the Company has not recorded as revenues), and expected to continue to substantially  increase until December 31, 2015, and (2) as of that date, full payment in accordance with the national roaming agreement, all in accordance with Golan's customers usage of the Company's networks, as may be. Should the Company and Golan reach such new agreements which will change the current agreement as to this matter as mentioned above, the payment of the difference and future amounts will be subject to such new agreements and such accrued amount of the difference could be reduced materially or eliminated.  In addition, the Company can provide no assurances that Golan will not contest any such amounts or that the Company will be able to collect such amounts in full or at all.

  The Company cannot guarantee such agreements will be reached nor that regulatory approvals will be granted based on such agreements, if reached.

For additional details see the Company's most recent annual report for the year ended December 31, 2014 on Form 20-F, filed on March 16, 2015, or 2014 Annual Report, under "Item 3. Key Information – D. Risk Factors – Risks Related to our Business – We operate in a heavily regulated industry, which can harm our results of operations. In recent years, regulation in Israel has materially adversely affected our results" and "We face intense competition in all aspects of our business", and "Item 4. Information on the Company – B. Business Overview – Network and Technology - Network and Cell Sites Sharing Agreements" and "Government Regulation – Network Sharing".

4 Generation Network
In August 2015, following the award of additional 1800MHz frequencies for 4G technologies to the Company in January 2015, the MOC amended the Company's cellular license to include 4G services and allocated such frequencies to the Company.

For additional details see the Company's 2014 Annual Report under "Item 4. Information on the Company – B. Business Overview – Network and Technology – Spectrum Allocation".

Rights Offering
In June 2015, the Company filed a registration statement with the Securities and Exchange Commission, or the SEC, and the Israeli Securities Authority, or the ISA, in preparation for a possible rights offering that would be expected to raise approximately NIS 120-150 million (assuming a full exercise of subscription rights), or "the Rights Offering".  Discount Investment Corporation Ltd., or DIC, the Company's controlling shareholder, has announced that if such Rights Offering will be effected by the Company, DIC intends to exercise all subscription rights offered to it and purchase additional shares if possible, pursuant to the Rights Offering, for a total investment amount which will not exceed NIS 100 million.

The execution, timing, terms (including subscription ratio) and amount of such possible Rights Offering have not yet been determined and are subject to further approvals of the Company's Board of Directors, declaration of effectiveness of the registration statement by the SEC, and approvals of the ISA, the Tel Aviv Stock Exchange and the New York Stock Exchange. There is no assurance that such approvals will be received or that the Rights Offering will be executed, nor as to its timing, terms or amount.

This announcement does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States or in Israel. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended, and may not be sold in Israel absent an exemption under Section 35-29 of the Israeli Securities Law 5728-1968 and a permit from the ISA. Any offering of securities in the United States and Israel, if the Company determines to pursue the Rights Offering, will be made by means of a prospectus that may be obtained from the Company.

2015 Share Incentive Plan
In June 2015, the Company's Board of Directors annulled its March 2015 decision to grant options to certain non-director officers and senior employees under the Company's 2015 Share Incentive Plan, or the Plan, which had not been granted.

In August 2015, the Company's board of directors resolved to make a certain reduction in the options acceleration events to be granted under the Plan and to grant 2,660,000 options to certain non-director officers (preceded by the Company's compensation committee's resolution to this end) and senior employees, of which 1,740,000 options will be granted to the Company's executive officers, including 525,000 options to Mr. Sztern, the Company's CEO, at an exercise price of US$ 6.68 (or, subject to the approval of the Israeli Tax Authority – NIS 25.65) per share. Mr. Sztern's grant is subject to shareholders approval in accordance with the Israeli Companies Law. The options granted will be vested in three equal installments on each of the first, second and third anniversary of the date of grant. The options of the first installment may be exercised within 24 months from their vesting, and the options of the second and third installments may be exercised with 18 month from their vesting.
For additional details please see "Item 6. Directors, Senior Management and Employees – E. Share Ownership – 2015 Share Incentive Plan" of 2014 Annual Report.

Voluntary Retirement Plan

In April 2015, the Group, in collaboration with the employees' representatives, launched a new voluntary retirement plan for employees, following which, the Company recorded a one-time expense in an amount of approximately NIS 25 million in the second quarter of 2015 with respect to employees joining this plan.

CONFERENCE CALL DETAILS

The Company will be hosting a conference call on Thursday, August 13, 2015 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 for the second quarter of 2015, 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: 1 888 281 1167


UK Dial-in Number: 0 800 917 5108

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 the largest Israeli cellular provider; Cellcom Israel provides its approximately 2.848 million subscribers (as at June 30, 2015) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. In addition, at the end of 2014, the Company launched television services over the internet (Over the top TV or OTT TV). The Company operates an LTE 4 generation network (currently partially deployed) 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. Through its broad customer service network Cellcom Israel offers technical support, account information, direct to the door parcel delivery services, internet and fax services, dedicated centers for hearing impaired, etc. Cellcom Israel further provides through its wholly owned subsidiaries internet connectivity services and international calling services, as well as landline telephone communication services in Israel, in addition to data communication services. 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 www.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, 2014. 
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 3.769 = US$ 1 as published by the Bank of Israel for June 30, 2015.

Use of non-IFRS financial measures
EBITDA is a non-IFRS measure and is defined as income before financing income (expenses), net; other income (expenses), net (excluding one-time expenses related to employee retirement plans); 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. 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. 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, 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 EBITDA under "Reconciliation for Non-IFRS Measures" below.

Free cash flow is a non-IFRS measure and is defined as the net cash provided by operating activities 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 deposits. See "Reconciliation for Non-IFRS Measures" below.

 

Company Contact

Investor Relations Contact

Shlomi Fruhling

Ehud Helft

Chief Financial Officer

GK Investor & Public Relations in partnership with LHA

investors@cellcom.co.il

cellcom@GKIR.com

Tel: +972 52 998 9755

Tel: +1 617 418 3096

 

 

Financial Tables Follow

 

 

Cellcom Israel Ltd.
(An Israeli Corporation)

 

Condensed Consolidated Interim Statements of Financial Position
















Convenience









translation









into US dollar





June 30,


June 30,


June 30,


December 31,



2014


2015


2015


2014



NIS millions


US$ millions


NIS millions










Assets









Cash and cash equivalents


1,083


894


237


1,158

Current investments, including derivatives


520


375


99


521

Trade receivables


1,541


1,311


348


1,417

Other receivables


132


89


24


65

Inventory


88


85


22


89










Total current assets


3,364


2,754


730


3,250










Trade and other receivables


784


772


205


824

Property, plant and equipment, net


1,796


1,797


477


1,834

Intangible assets, net


1,339


1,291


343


1,315

Deferred tax assets


22


15


4


17










Total non- current assets


3,941


3,875


1,029


3,990










Total assets


7,305


6,629


1,759


7,240










Liabilities









Current maturities of debentures and long term loans and short term credit 


1,093


736


195


1,092

Trade payables and accrued expenses


630


643


171


773

Current tax liabilities


86


68


18


77

Provisions


170


117


31


101

Other payables, including derivatives


420


368


98


370










Total current liabilities


2,399


1,932


513


2,413










Debentures


3,791


3,397


901


3,548

Provisions


21


23


6


21

Other long-term liabilities


15


8


2


12

Liability for employee rights upon retirement, net


12


12


3


14

Deferred tax liabilities


139


127


34


140










Total non- current liabilities


3,978


3,567


946


3,735










Total liabilities


6,377


5,499


1,459


6,148










Equity attributable to owners of the Company









Share capital


1


1


-


1

Cash flow hedge reserve


(6)


(3)


(1)


(3)

Retained earnings


920


1,115


296


1,078










Non-controlling interest


13


17


5


16










Total equity


928


1,130


300


1,092










Total liabilities and equity


7,305


6,629


1,759


7,240

Cellcom Israel Ltd.
(An Israeli Corporation)

 

Condensed Consolidated Interim Statements of Income




















Convenience






Convenience








translation 






translation 








into US dollar






into US dollar




For the six
  months ended
  June 30,


For the six 
months ended
  June 30,


For the three 
months ended
  June 30,


For the three
months ended
  June 30,


For the
 year ended
December 31,


2014


2015


2015


2014


2015


2015


2014


NIS millions


US$ millions


NIS millions


US$ millions


NIS millions















Revenues

2,288


2,102


558


1,158


1,040


276


4,570

Cost of revenues

(1,335)


(1,404)


(373)


(671)


(682)


(181)


(2,727)















Gross profit

953


698


185


487


358


95


1,843















Selling and marketing                 expenses

(334)


(304)


(81)


(170)


(148)


(39)


(672)

General and administrative        expenses

(238)


(239)


(63)


(120)


(108)


(29)


(463)

Other expenses, net

(40)


(20)


(5)


(41)


(22)


(6)


(46)















Operating profit

341


135


36


156


80


21


662















Financing income

63


33


9


31


27


7


100

Financing expenses

(154)


(113)


(30)


(95)


(89)


(23)


(298)

Financing expenses, net

(91)


(80)


(21)


(64)


(62)


(16)


(198)















Profit before taxes on income

250


55


15


92


18


5


464















Taxes on income

(57)


(17)


(5)


(13)


(6)


(2)


(110)

Profit for the period

193


38


10


79


12


3


354

Attributable to:














Owners of the Company

193


37


10


79


12


3


351

 Non-controlling interests

-


1


-


-


-


-


3

Profit for the period

193


38


10


79


12


3


354















Earnings per share














Basic earnings per share (in NIS)

1.94


0.37


0.10


0.79


0.12


0.03


3.51















Diluted earnings per share (in NIS)

1.91


0.37


0.10


0.78


0.12


0.03


3.48















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

99,533,099


100,584,490


100,584,490


99,533,099


100,584,490


100,584,490


99,924,306















Weighted-average number of shares used in the calculation of diluted earnings per share (in shares)

100,702,823


100,584,490


100,584,490


100,711,161


100,584,490


100,584,490


100,706,282

 

Cellcom Israel Ltd.
(An Israeli Corporation)

 

Condensed Consolidated Interim Statements of Cash Flows




















Convenience






Convenience








translation






translation








into US dollar






into US dollar




For the six
 months ended 
June 30,


For the six 
months ended
  June 30,


For the three
 months ended 
June 30,


For the three 
months ended
  June 30,


For the
 year ended
December 31,







2014


2015


2015


2014


2015


2015


2014


NIS millions


US$ millions


NIS millions


US$ millions


NIS millions















Cash flows from operating activities














Profit for the period

193


38


10


79


12


3


354

Adjustments for: 














Depreciation and amortization

310


281


75


155


138


37


610

Share based payment

2


-


-


1


-


-


3

Loss (gain) on sale of property,
plant and equipment

2


(2)


-


2


-


-


7

Income tax expense

57


17


5


13


6


2


110

Financing expenses, net

91


80


21


64


62


16


198















Changes in operating assets and liabilities:














Change in inventory

(4)


4


1


(5)


24


6


(5)

Change in trade receivables
(including long-term amounts)

295


113


30


123


23


6


422

Change in other receivables
(including long-term amounts)

(83)


(24)


(6)


(14)


(8)


(2)


(35)

Changes in trade payables,
accrued expenses and provisions

26


(71)


(19)


(19)


(25)


(7)


(24)

Change in other liabilities
(including long-term amounts)

66


17


4


68


25


7


36

Payments for derivative hedging
contracts, net

(6)


-


-


(1)


-


-


(6)

Income tax paid

(55)


(36)


(10)


(25)


(9)


(2)


(119)

Income tax received

-


-


-


-


-


-


6

Net cash from operating activities

894


417


111


441


248


66


1,557















Cash flows from investing activities














Acquisition of property, plant
and equipment

(127)


(162)


(43)


(63)


(86)


(23)


(289)

Acquisition of intangible assets

(44)


(59)


(15)


(19)


(39)


(11)


(77)

Change in current investments, net

(14)


137


36


88


146


39


(15)

Proceeds (payments) for other
derivative contracts, net

(2)


-


-


(1)


(1)


-


4

Proceeds from sale of property,
plant and equipment

3


4


1


-


-


-


4

Repayment of a long term deposit

-


48


13


-


-


-


-

Interest received 

17


13


3


5


2


1


23

Net cash from (used in) investing activities

(167)


(19)


(5)


10


22


6


(350)

 

Cellcom Israel Ltd.
(An Israeli Corporation)

 

Condensed Consolidated Interim Statements of Cash Flows (cont'd)







Convenience






Convenience








translation






translation








into US dollar






into US dollar




For the six
 months ended 
June 30,


For the six 
months ended
  June 30,


For the three
 months ended 
June 30,


For the three 
months ended
  June 30,


For the
 year ended
December 31,







2014


2015


2015


2014


2015


2015


2014


NIS millions


US$ millions


NIS millions


US$ millions


NIS millions















Cash flows from financing activities














Payments for derivative contracts, net

(14)


(9)


(2)


(13)


(7)


(2)


(29)

Repayment of long term loans from banks

(11)


-


-


-


-


-


(12)

Repayment of debentures

(523)


(523)


(139)


-


-


-


(1,092)

Proceeds from issuance of debentures, net of issuance costs

-


(3)


(1)


-


(3)


(1)


326

Dividend paid

(4)


-


-


-


-


-


(4)

Interest paid

(149)


(124)


(33)


-


-


-


(295)















Net cash used in financing activities

(701)


(659)


(175)


(13)


(10)


(3)


(1,106)















Changes in cash and cash equivalents

26


(261)


(69)


438


260


69


101















Cash and cash equivalents as at the beginning of the period

1,057


1,158


307


645


637


169


1,057















Effect of exchange rate fluctuations on cash and cash equivalents

-


(3)


(1)


-


(3)


(1)


-















Cash and cash equivalents as at the end of the period

1,083


894


237


1,083


894


237


1,158

 

 

Cellcom Israel Ltd.
(An Israeli Corporation)

 

Reconciliation for Non-IFRS Measures

 

EBITDA

 

The following is a reconciliation of net income to EBITDA:






Three-month period ended
June 30,


Year ended

December 31,


2014

NIS millions


2015

NIS millions


Convenience

translation

into US dollar

2015

US$ millions


2014

NIS millions

Profit for the period

79


12


3


354

Taxes on income

13


6


2


110

Financing income

(31)


(27)


(7)


(100)

Financing expenses

95


89


23


298

Other expenses (income) (*)

2


(2)


(1)


7

Depreciation and amortization

155


138


37


610

Share based payments

1


-


-


3

EBITDA

314


216


57


1,282


(*) Other expenses for the second quarter of 2015 exclude a one-time expense for an employee retirement plan in the amount of approximately NIS 25 million ($7 million).

 

 

Free cash flow

 

The following table shows the calculation of free cash flow:






Three-month period ended
June 30,


Year ended

December 31,


2014

NIS millions


2015

NIS millions


Convenience

translation

into US dollar

2015

US$ millions


2014

NIS millions

Cash flows from operating activities

441


248


66


1,557

Cash flows from investing activities

10


22


6


(350)

Short-term Investment in (sale of) tradable debentures and deposits (*)

(90)


(151)


(40)


(3)

Free cash flow

361


119


32


1,204


(*) Net of interest received in relation to tradable debentures.

Cellcom Israel Ltd.
(An Israeli Corporation)

 

Key financial and operating indicators (unaudited)


NIS millions unless otherwise stated

Q2-2013

Q3-2013

Q4-2013

Q1-2014

Q2-2014

Q3-2014

Q4-2014

Q1-2015

Q2-2015

FY-2013

FY-2014













Cellcom service revenues

790

789

774

728

728

680

648

619

612

3,112

2,784

Netvision service revenues

246

251

229

223

220

226

214

224

219

979

883













Cellcom equipment revenues

213

205

208

188

221

250

274

245

238

882

933

Netvision equipment revenues

13

6

24

15

14

15

33

32

16

60

77













Consolidation adjustments

(26)

(27)

(26)

(24)

(25)

(29)

(29)

(58)

(45)

(106)

(107)

Total revenues

1,236

1,224

1,209

1,130

1,158

1,142

1,140

1,062

1,040

4,927

4,570













Cellcom EBITDA

271

286

258

265

224

268

210

136

164

1,066

967

Netvision EBITDA

68

61

77

75

90

78

72

60

52

269

315

Total EBITDA

339

347

335

340

314

346

282

196

216

1,335

1,282













Operating profit

169

173

170

185

156

190

131

55

80

651

662

Financing expenses, net

78

92

30

27

64

51

56

18

62

246

198

Profit for the period

67

52

102

114

79

106

55

26

12

288

354













Free cash flow

345

389

308

366

361

303

174

127

119

1,210

1,204













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

3,151

3,156

*3,092

3,049

3,029

3,010

2,967

2,885

2,848

3,092

2,967

Monthly cellular ARPU (in NIS)

79.7

79.6

78.7

74.7

75.4

70.6

67.8

65.5

65.5

78.5

72.1

Churn rate for cellular subscribers (%)

9.0%

8.9%

9.9%

11.1%

11.1%

11.0%

11.5%

11.9%

10.2%

36.8%

44.0%


* After a removal of approximately 64,000 pre-paid subscribers from the Company's cellular subscriber base following a change to the subscribers counting mechanism.

 

 

 

Cellcom Israel Ltd.

Disclosure for debenture holders as of June 30, 2015

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 30.06.2015

As of 12.08.2015

Interest Rate (fixed)

Principal Repayment Dates

Interest Repayment Dates (3)

Linkage

Trustee

Contact Details

Principal

Linked Principal Balance

Interest Accumulated in Books

Debenture Balance Value in Books (2)

Market Value

Principal Balance on Trade

Linked Principal Balance

From

To


Balance on Trade


(4) **

22/12/05

925.102








5.30%

05.01.13

05.01.17


Linked to CPI

Hermetic Trust (1975) Ltd. 
Meirav Ofer Oren. 
113 Hayarkon St., Tel Aviv. Tel: 03-
5274867.

02/01/06*









05/01/06*









10/01/06*









31/05/06*

370.041

443.192

11.336

454.529

473.763

370.041

444.905

January-05

(7)(8) **

07/10/07

2,423.075








5.19%

01.07.13

01.07.17

July-01

Linked to CPI

Hermetic Trust (1975) Ltd. 
Meirav Ofer Oren. 113 
Hayarkon St., Tel Aviv. Tel: 03-
5274867.

03/02/08*








06/04/09*








30/03/11*








18/08/11*

898.804

1,057.125

54.008

1,111.133

744.749

599.203

702.909

(7) **

06/04/09

1,798.962








6.25%

05.01.12

05.01.17

January-05

Not linked

Hermetic Trust (1975) Ltd. 
Meirav Ofer Oren. 113 
Hayarkon St., Tel Aviv. Tel: 03-
5274867.

30/03/11*








18/08/11*

327.266

326.131

9.863

335.994

351.091

327.266

327.266

(4)(5)(6) **

20/03/12

714.802








4.60%

05.01.17

05.01.20


Linked to CPI

Strauss Lazar Trust Company 
(1992) Ltd.








January-05

Ori Lazar

714.802

736.784

16.293

753.077

819.592

714.802

736.773

and July-05

17 Yizhak Sadeh St., Tel Aviv. 
Tel: 03- 6237777

(4)(5)(6) **

20/03/12

285.198








6.99%

05.01.17

05.01.19


Not linked

Strauss Lazar Trust Company 
(1992) Ltd.








January-05

Ori Lazar

285.198

285.688

9.613

295.301

316.456

285.198

285.198

and July-05

17 Yizhak Sadeh St., Tel Aviv. 
Tel: 03- 6237777

(4)(5)(7)**

08/07/14

949.624








1.98%

05.07.18

05.07.24


Linked to CPI

Mishmeret Trust Company Ltd.

03/02/15*








January-05

Rami Sebty

11/02/15*

949.624

789.962

9.066

799.028

852.192

949.624

949.624

and July-05

48 Menachem Begin Rd. Tel-
Aviv. Tel 03-6374355

(4)(5)(7)**

08/07/14

557.705








4.14%

05.07.18

05.07.25


Not linked

Mishmeret Trust Company Ltd.

03/02/15*








January-05

Rami Sebty

11/02/15*

557.705

494.246

11.133

505.379

513.479

557.705

557.705

and July-05

48 Menachem Begin Rd. Tel-
Aviv. Tel 03-6374355

Total


7,654.468

4,103.440

4,133.128

121.312

4,254.440

4,071.322

3,803.839

4,004.380























Comments:

(1) In the reporting period, the company fulfilled all terms of the debentures. The company also fulfilled all terms of the Indentures. Debentures Series F through I financial covenants  - as of June 30, 2015  the net leverage (net debt to EBITDA excluding one time events ratio- see definition in the Company's annual report for the year ended December 31, 2014 on Form 20-F, under "Item 5. Operating and Financial Review and Prospects – B. Liquidity and Capital Resources – Debt Service") was 2.73 (the net leverage without excluding one-time events was 2.75). In the reporting period, no cause for early repayment occurred. (2) Including interest accumulated in the books. (3) Annual payments, excluding Series F through I debentures in which the payments are semi annual. (4) Regarding debenture Series B and F through I, the Company undertook not to create any pledge on its assets, as long as debentures are not fully repaid, subject to certain exclusions. (5) Regarding debenture Series F through I - the Company has the right for early redemption under certain terms (see the Company's annual report for the year ended December 31, 2014 on Form 20-F, under "Item 5. Operating and Financial Review and Prospects– B. Liquidity and Capital Resources – Debt Service". (6) Regarding debenture Series F and G - in June 2013, following a second decrease of the Company's debenture rating since their issuance, the annual interest rate has been increased by 0.25% to 4.60% and 6.99%, respectively, beginning July 5, 2013. (7) 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, or the Exchange Offer, 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. (8) On July 1, 2015, after the end of the reporting period, the Company repaid a principal payment of approximately NIS 350 million (the ex-date of which was June 19, 2015).

(*) On these dates additional debentures of the series were issued, the information in the table refers to the full series.
(**) As of June 30, 2015, debenture all Series are material, which represent 5% or more of the total liabilities of the Company, as presented in the financial statements.



Cellcom Israel Ltd.

 

Disclosure for debenture holders as of June 30, 2015 (cont.)

 

Debentures Rating Details*

 











Series

Rating
Company

Rating as of
30.06.2015 (1)

Rating as of
12.08.2015

Rating assigned
upon issuance of the
Series

Recent date of
rating as of
12.08.2015

Additional ratings between original issuance and the recent date
of rating as of 12.08.2015 (2)



Rating


B

S&P Maalot

A+

A+

AA-

01/2015

5/2006, 9/2007, 1/2008, 10/2008, 3/2009, 9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012, 6/2013, 6/2014, 8/2014, 01/2015

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


D

S&P Maalot

A+

A+

AA-

01/2015

1/2008, 10/2008, 3/2009, 9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012, 6/2013, 6/2014, 8/2014,01/2015

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


E

S&P Maalot

A+

A+

AA

01/2015

9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012, 6/2013, 6/2014, 8/2014, 01/2015

AA,AA-,A+ (2)


F

S&P Maalot

A+

A+

AA

01/2015

5/2012, 11/2012, 6/2013, 6/2014, 8/2014, 01/2015

AA,AA-,A+ (2)


G

S&P Maalot

A+

A+

AA

01/2015

5/2012, 11/2012, 6/2013, 6/2014, 8/2014,01/2015

AA,AA-,A+ (2)


H

S&P Maalot

A+

A+

A+

01/2015

6/2014, 8/2014, 1/2015

A+ (2)


I

S&P Maalot

A+

A+

A+

01/2015

6/2014, 8/2014, 1/2015

A+ (2)











(1) In January 2015, S&P Maalot affirmed the Company's rating of "ilA+/stable".


(2) In September 2007, S&P Maalot issued a notice that the AA- rating for debentures issued by the Company was in the process of recheck with positive implications (Credit Watch Positive). In October 2008, S&P Maalot issued a notice that the AA- rating for debentures issued by the Company is in the process of recheck with stable implications (Credit Watch Stable). This process was withdrawn upon assignment of AA rating in March 2009. In August 2011, S&P Maalot issued a notice that the AA rating for debentures issued by the Company is in the process of recheck with negative implications (Credit Watch Negative). 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 and January 2015, S&P Maalot affirmed the Company's rating of "ilA+/stable". For details regarding the rating of the debentures see the S&P Maalot report dated August 18, 2014.

 

* 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.

 

Summary of Financial Undertakings (according to repayment dates) as of June 30, 2015


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

561,963

162,950

-

-

-

191,088

Second year

634,496

219,770

-

-

-

151,499

Third year

562,690

142,050

-

-

-

104,602

Fourth year

328,679

139,453

-

-

-

64,531

Fifth year and on

1,032,181

488,005

-

-

-

136,530

Total

3,120,008

1,152,227

-

-

-

648,250

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) - None



c.  

Credit from banks in Israel based on the Company's "solo" financial data (in thousand NIS) - None



d.    

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



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

561,963

162,950

-

-

-

191,088

Second year

634,496

219,770

-

-

-

151,499

Third year

562,690

142,050

-

-

-

104,602

Fourth year

328,679

139,453

-

-

-

64,531

Fifth year and on

1,032,181

488,005

-

-

-

136,530

Total

3,120,008

1,152,227

-

-

-

648,250

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


Cellcom Israel Ltd.

 

Summary of Financial Undertakings (according to repayment dates) as of June 30, 2015 (cont.)

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

10,221

683

-

-

-

3,049

Second year

11,144

903

-

-

-

2,471

Third year

8,077

549

-

-

-

1,834

Fourth year

5,644

1,877

-

-

-

1,332

Fifth year and on

23,856

13,929

-

-

-

3,602

Total

58,943

17,941

-

-

-

12,289



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.



RELATED LINKS

http://www.cellcom.co.il