1.
|
Cellcom Israel Announces First Quarter 2013 Results
|
2.
|
Cellcom Israel Ltd. and Subsidiaries - Financial Statements as at March 31, 2013
|
§
|
Free cash flow increased by 16.7% to NIS 168 million ($46 million)
|
§
|
Total Revenues decreased 20.6% to NIS 1,258 million ($345 million)
|
§
|
Service revenues decreased 16.9% to NIS 985 million ($270 million)
|
§
|
EBITDA1 decreased 33.9% to NIS 314 million ($86 million)
|
§
|
EBITDA margin 25%, down from 30%
|
§
|
Operating income decreased 49.5% to NIS 139 million ($38 million)
|
§
|
Net income decreased 61.3% to NIS 67 million ($18 million)
|
§
|
Cellular subscriber base totaled approx. 3.166 million subscribers (at the end of March 2013)
|
Q1/2013
|
Q1/2012
|
% Change
|
Q1/2013
|
Q1/2012
|
|
million NIS
|
million US$
(convenience translation)
|
||||
Total revenues
|
1,258
|
1,585
|
(20.6%)
|
344.8
|
434.5
|
Operating Income
|
139
|
275
|
(49.5%)
|
38.1
|
75.4
|
Net Income
|
67
|
173
|
(61.3%)
|
18.4
|
47.4
|
Free cash flow
|
168
|
144
|
16.7%
|
46.1
|
39.5
|
EBITDA
|
314
|
475
|
(33.9%)
|
86.1
|
130.2
|
EBITDA, as percent of total revenues
|
25.0%
|
30.0%
|
(16.7%)
|
Cellcom Israel
without
Netvision
|
Netvision
|
Consolidation
adjustments
(*)
|
Consolidated
results
|
|
Q1/2013
|
||||
million NIS
|
||||
Total revenues
|
1,014
|
271
|
(27)
|
1,258
|
Service revenues
|
758
|
254
|
(27)
|
985
|
Equipment revenues
|
256
|
17
|
-
|
273
|
Operating Income
|
121
|
37
|
(19)
|
139
|
EBITDA
|
251
|
63
|
-
|
314
|
EBITDA, as percent of total revenues
|
24.8%
|
23.2%
|
-
|
25.0%
|
(*)
|
Include inter-company revenues between Cellcom Israel and Netvision, and amortization expenses attributable to the merger.
|
Q1/2013
|
Q1/2012
|
Change (%)
|
|
Cellular subscribers at the end of period (in thousands)
|
3,166
|
3,362
|
(5.8%)
|
Churn Rate for cellular subscribers (in %)
|
9.4%
|
6.3%
|
49.2%
|
Monthly cellular ARPU (in NIS)
|
75.9
|
90.5
|
(16.1%)
|
Average Monthly cellular MOU (in minutes)
|
432
|
365
|
18.4%
|
US Dial-in Number: 1 866 652 8972
|
UK Dial-in Number: 0 800 917 9141
|
Israel Dial-in Number: 03 918 0692
|
International Dial-in Number: +972 3 918 0692
|
Company Contact
Yaacov Heen
Chief Financial Officer
investors@cellcom.co.il
Tel: +972 52 998 9755
|
IR Contacts
Porat Saar
CCG Investor Relations Israel & US
cellcom@ccgisrael.com
Tel: +1 646 233 2161
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
March 31,
|
March 31,
|
March 31,
|
December 31,
|
|||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
588 | 846 | 232 | 1,414 | ||||||||||||
Current investments, including derivatives
|
902 | 492 | 135 | 493 | ||||||||||||
Trade receivables
|
1,868 | 1,828 | 501 | 1,856 | ||||||||||||
Other receivables
|
110 | 83 | 23 | 67 | ||||||||||||
Inventory
|
163 | 118 | 32 | 112 | ||||||||||||
Total current assets
|
3,631 | 3,367 | 923 | 3,942 | ||||||||||||
Trade and other receivables
|
1,419 | 1,119 | 307 | 1,219 | ||||||||||||
Property, plant and equipment, net
|
2,155 | 2,023 | 554 | 2,077 | ||||||||||||
Intangible assets, net
|
1,643 | 1,482 | 406 | 1,515 | ||||||||||||
Deferred tax assets
|
37 | 32 | 9 | 34 | ||||||||||||
Total non- current assets
|
5,254 | 4,656 | 1,276 | 4,845 | ||||||||||||
Total assets
|
8,885 | 8,023 | 2,199 | 8,787 | ||||||||||||
Liabilities
|
||||||||||||||||
Short term credit and current maturities of long term loans and debentures
|
752 | 1,087 | 298 | 1,129 | ||||||||||||
Trade payables and accrued expenses
|
930 | 676 | 185 | 827 | ||||||||||||
Current tax liabilities
|
84 | 75 | 21 | 87 | ||||||||||||
Provisions
|
149 | 178 | 49 | 175 | ||||||||||||
Other payables, including derivatives
|
471 | 386 | 106 | 492 | ||||||||||||
Dividend declared
|
72 | - | - | - | ||||||||||||
Total current liabilities
|
2,458 | 2,402 | 659 | 2,710 | ||||||||||||
Long-term loans from banks
|
19 | 10 | 3 | 10 | ||||||||||||
Debentures
|
5,879 | 4,845 | 1,328 | 5,368 | ||||||||||||
Provisions
|
21 | 20 | 5 | 21 | ||||||||||||
Other long-term liabilities
|
46 | 20 | 5 | 21 | ||||||||||||
Liability for employee rights upon retirement, net
|
15 | 16 | 4 | 12 | ||||||||||||
Deferred tax liabilities
|
165 | 145 | 40 | 145 | ||||||||||||
Total non- current liabilities
|
6,145 | 5,056 | 1,385 | 5,577 | ||||||||||||
Total liabilities
|
8,603 | 7,458 | 2,044 | 8,287 | ||||||||||||
Equity attributable to owners of the Company
|
||||||||||||||||
Share capital
|
1 | 1 | - | 1 | ||||||||||||
Cash flow hedge reserve
|
- | (17 | ) | (5 | ) | (12 | ) | |||||||||
Retained earnings
|
277 | 579 | 159 | 509 | ||||||||||||
Non-controlling interest
|
4 | 2 | 1 | 2 | ||||||||||||
Total equity
|
282 | 565 | 155 | 500 | ||||||||||||
Total liabilities and equity
|
8,885 | 8,023 | 2,199 | 8,787 |
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three-month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Revenues
|
1,585 | 1,258 | 345 | 5,938 | ||||||||||||
Cost of revenues
|
(899 | ) | (784 | ) | (215 | ) | (3,463 | ) | ||||||||
Gross profit
|
686 | 474 | 130 | 2,475 | ||||||||||||
Selling and marketing expenses
|
(236 | ) | (181 | ) | (50 | ) | (865 | ) | ||||||||
General and administrative expenses
|
(172 | ) | (153 | ) | (42 | ) | (629 | ) | ||||||||
Other income (expenses), net
|
(3 | ) | (1 | ) | - | 4 | ||||||||||
Operating profit
|
275 | 139 | 38 | 985 | ||||||||||||
Financing income
|
45 | 41 | 11 | 181 | ||||||||||||
Financing expenses
|
(81 | ) | (87 | ) | (24 | ) | (440 | ) | ||||||||
Financing expenses, net
|
(36 | ) | (46 | ) | (13 | ) | (259 | ) | ||||||||
Profit before taxes on income
|
239 | 93 | 25 | 726 | ||||||||||||
Taxes on income
|
(66 | ) | (26 | ) | (7 | ) | (195 | ) | ||||||||
Profit for the period
|
173 | 67 | 18 | 531 | ||||||||||||
Attributable to:
|
||||||||||||||||
Owners of the Company
|
173 | 67 | 18 | 530 | ||||||||||||
Non-controlling interests
|
- | - | - | 1 | ||||||||||||
Profit for the period
|
173 | 67 | 18 | 531 | ||||||||||||
Earnings per share
|
||||||||||||||||
Basic earnings per share (in NIS)
|
1.74 | 0.67 | 0.18 | 5.34 | ||||||||||||
Diluted earnings per share (in NIS)
|
1.74 | 0.67 | 0.18 | 5.33 |
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three-month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Profit for the period
|
173 | 67 | 18 | 531 | ||||||||||||
Adjustments for:
|
||||||||||||||||
Depreciation and amortization
|
196 | 171 | 47 | 765 | ||||||||||||
Share based payments
|
1 | 3 | 1 | 7 | ||||||||||||
Loss on sale of property, plant and equipment
|
1 | 1 | - | 2 | ||||||||||||
Gain on sale of shares in an associate
|
- | - | - | (6 | ) | |||||||||||
Income tax expense
|
66 | 26 | 7 | 195 | ||||||||||||
Financing expenses, net
|
36 | 46 | 13 | 259 | ||||||||||||
Other expenses
|
1 | - | - | 2 | ||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Change in inventory
|
7 | (7 | ) | (2 | ) | 52 | ||||||||||
Change in trade receivables (including long-term amounts)
|
(58 | ) | 150 | 41 | 183 | |||||||||||
Change in other receivables (including long-term amounts)
|
(18 | ) | (20 | ) | (5 | ) | 6 | |||||||||
Change in trade payables, accrued expenses and provisions
|
(69 | ) | (112 | ) | (31 | ) | (89 | ) | ||||||||
Change in other liabilities (including long-term amounts)
|
19 | (11 | ) | (3 | ) | (92 | ) | |||||||||
Proceeds from (payments for) derivative hedging contracts, net
|
3 | (1 | ) | - | 20 | |||||||||||
Income tax paid
|
(55 | ) | (35 | ) | (10 | ) | (209 | ) | ||||||||
Income tax received
|
- | - | - | 15 | ||||||||||||
Net cash from operating activities
|
303 | 278 | 76 | 1,641 | ||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Acquisition of property, plant, and equipment
|
(135 | ) | (88 | ) | (24 | ) | (457 | ) | ||||||||
Acquisition of intangible assets
|
(27 | ) | (26 | ) | (7 | ) | (97 | ) | ||||||||
Change in current investments, net
|
(621 | ) | (4 | ) | (1 | ) | (212 | ) | ||||||||
Proceeds from (payments for) other derivative contracts, net
|
2 | (3 | ) | (1 | ) | 9 | ||||||||||
Proceeds from sale of property, plant and equipment
|
- | 5 | 1 | 7 | ||||||||||||
Interest received
|
2 | 11 | 3 | 35 | ||||||||||||
Proceeds from sale of shares in a consolidated company
|
- | - | - | 7 | ||||||||||||
Loan to equity accounted investee
|
(1 | ) | - | - | - | |||||||||||
Net cash used in investing activities
|
(780 | ) | (105 | ) | (29 | ) | (708 | ) |
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three-month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Cash flows from financing activities
|
||||||||||||||||
Payments for derivative contracts, net
|
(1 | ) | - | - | (12 | ) | ||||||||||
Repayment of long term loans from banks
|
- | - | - | (16 | ) | |||||||||||
Repayment of debentures
|
(479 | ) | (561 | ) | (154 | ) | (660 | ) | ||||||||
Proceeds from issuance of debentures, net of issuance costs
|
992 | - | - | 992 | ||||||||||||
Dividend paid
|
(189 | ) | - | - | (391 | ) | ||||||||||
Interest paid
|
(181 | ) | (180 | ) | (49 | ) | (352 | ) | ||||||||
Net cash from (used in) financing activities
|
142 | (741 | ) | (203 | ) | (439 | ) | |||||||||
Cash balance presented under assets held for sale
|
3 | - | - | - | ||||||||||||
Changes in cash and cash equivalents
|
(332 | ) | (568 | ) | (156 | ) | 494 | |||||||||
Cash and cash equivalents as at the beginning of the period
|
920 | 1,414 | 388 | 920 | ||||||||||||
Cash and cash equivalents as at the end of the period
|
588 | 846 | 232 | 1,414 |
Three-month period ended
March 31,
|
Year ended
December 31,
|
|||||||||||||||
2012
NIS millions
|
2013
NIS millions
|
Convenience
translation
into US dollar
2013
US$ millions
|
2012
NIS millions
|
|||||||||||||
Profit for the period
|
173 | 67 | 18 | 531 | ||||||||||||
Taxes on income
|
66 | 26 | 7 | 195 | ||||||||||||
Financing income
|
(45 | ) | (41 | ) | (11 | ) | (181 | ) | ||||||||
Financing expenses
|
81 | 87 | 24 | 440 | ||||||||||||
Other expenses (income)
|
3 | 1 | - | (4 | ) | |||||||||||
Depreciation and amortization
|
196 | 171 | 47 | 765 | ||||||||||||
Share based payments
|
1 | 3 | 1 | 7 | ||||||||||||
EBITDA
|
475 | 314 | 86 | 1,753 |
Three-month period ended
March 31,
|
Year ended
December 31,
|
|||||||||||||||
2012
NIS millions
|
2013
NIS millions
|
Convenience
translation
into US dollar
2013
US$ millions
|
2012
NIS millions
|
|||||||||||||
Cash flows from operating activities
|
303 | 278 | 76 | 1,641 | ||||||||||||
Cash flows from investing activities
|
(780 | ) | (105 | ) | (29 | ) | (708 | ) | ||||||||
Short-term Investment in (sale of) tradable debentures and deposits (*)
|
621 | (5 | ) | (1 | ) | 197 | ||||||||||
Free cash flow
|
144 | 168 | 46 | 1,130 |
NIS millions unless otherwise stated
|
Q1-2012 | Q2-2012 | Q3-2012 | Q4-2012 | Q1-2013 |
FY-2011
|
FY-2012
|
|||||||||||||||||||||
Cellcom service revenues
|
945 | 942 | 902 | 828 | 758 | 4,420 | 3,617 | |||||||||||||||||||||
Netvision service revenues
|
258 | 258 | 276 | 260 | 254 | 365 | 1,052 | |||||||||||||||||||||
Cellcom equipment revenues
|
382 | 297 | 285 | 310 | 256 | 1,712 | 1,274 | |||||||||||||||||||||
Netvision equipment revenues
|
17 | 19 | 15 | 31 | 17 | 35 | 82 | |||||||||||||||||||||
Consolidation adjustments
|
(17 | ) | (18 | ) | (30 | ) | (22 | ) | (27 | ) | (26 | ) | (87 | ) | ||||||||||||||
Total revenues
|
1,585 | 1,498 | 1,448 | 1,407 | 1,258 | 6,506 | 5,938 | |||||||||||||||||||||
Cellcom EBITDA
|
410 | 399 | 355 | 306 | 251 | 2,084 | 1,470 | |||||||||||||||||||||
Netvision EBITDA
|
65 | 75 | 75 | 68 | 63 | 83 | 283 | |||||||||||||||||||||
Total EBITDA
|
475 | 474 | 430 | 374 | 314 | 2,167 | 1,753 | |||||||||||||||||||||
Operating profit
|
275 | 282 | 239 | 189 | 139 | 1,422 | 985 | |||||||||||||||||||||
Financing expenses, net
|
36 | 117 | 64 | 42 | 46 | 293 | 259 | |||||||||||||||||||||
Profit for the period
|
173 | 121 | 124 | 113 | 67 | 825 | 531 | |||||||||||||||||||||
Free cash flow
|
144 | 284 | 414 | 288 | 168 | 937 | 1,130 | |||||||||||||||||||||
Cellular subscribers at the end of period (in 000's)
|
3,362 | 3,333 | 3,338 | * 3,199 | 3,166 | 3,349 | 3,199 | |||||||||||||||||||||
Monthly cellular ARPU (in NIS)
|
90.5 | 90.3 | 86.7 | 82.4 | 75.9 | 106 | 87.5 | |||||||||||||||||||||
Average monthly cellular MOU (in minutes)
|
365 | 375 | 399 | 428 | 432 | 346 | 390 | |||||||||||||||||||||
Churn rate for cellular subscribers (%)
|
6.3 | % | 8.1 | % | 8.6 | % | 8.7 | % | 9.4 | % | 25.1 | % | 31.5 | % |
Series
|
Original Issuance Date
|
Principal on the Date of Issuance
|
As of 31.03.2013
|
As of 12.05.2013
|
Interest Rate(fixed)
|
Principal Repayment Dates (3)
|
Interest Repayment Dates
|
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
|
|||||||
B(4) **
|
22/12/05
*02/01/06
*05/01/06
*10/01/06
*31/05/06
|
925.102
|
740.081
|
875.855
|
10.810
|
886.665
|
967.065
|
740.081
|
877.601
|
5.30%
|
05.01.13
|
05.01.17
|
January 5
|
Linked to CPI
|
Hermetic Trust (1975) Ltd. Meirav Ofer Oren. 113 Hayarkon St., Tel Aviv. Tel: 03-5274867.
|
D **
|
07/10/07
*03/02/08
*06/04/09
*30/03/11
*18/08/11
|
2,423.075
|
2,423.075
|
2,797.870
|
108.609
|
2,906.478
|
3,160.417
|
2,423.075
|
2,803.449
|
5.19%
|
01.07.13
|
01.07.17
|
July 1
|
Linked to CPI
|
Hermetic Trust (1975) Ltd. Meirav Ofer Oren. 113 Hayarkon St., Tel Aviv. Tel: 03-5274867.
|
E **
|
06/04/09
*30/03/11
*18/08/11
|
1,798.962
|
1,199.308
|
1,199.308
|
17.456
|
1,216.764
|
1,288.777
|
1,199.308
|
1,199.308
|
6.25%
|
05.01.12
|
05.01.17
|
January 5
|
Not linked
|
Hermetic Trust (1975) Ltd. Meirav Ofer Oren. 113 Hayarkon St., Tel Aviv. Tel: 03-5274867.
|
F(4) (5) **
|
20/03/12
|
714.802
|
714.802
|
725.218
|
7.347
|
732.565
|
807.941
|
714.802
|
726.665
|
4.35%
|
05.01.17
|
05.01.20
|
January 5
and July 5
|
Linked to CPI
|
Strauss Lazar Trust Company (1992) Ltd
Ori Lazar
17 Yizhak Sadeh St., Tel Aviv. Tel: 03- 6237777
|
G(4) (5)
|
20/03/12
|
285.198
|
285.198
|
285.198
|
4.559
|
289.757
|
321.133
|
285.198
|
285.198
|
6.74%
|
05.01.17
|
05.01.19
|
January 5
and July 5
|
Not linked
|
Strauss Lazar Trust Company (1992) Ltd
Ori Lazar
17 Yizhak Sadeh St., Tel Aviv. Tel: 03- 6237777
|
Total
|
6,147.139
|
5,362.464
|
5,883.449
|
148.780
|
6,032.230
|
6,545.333
|
5,362.464
|
5,892.221
|
Series
|
Rating Company
|
Rating as of
31.03.2013(1)
|
Rating as of 12.05.2013
|
Rating assigned upon issuance of the Series
|
Recent date of rating as of 12.05.2013
|
Additional ratings between original issuance and the recent date of rating as of 12.05.2013 (2)
|
|
Rating
|
|||||||
B
|
S&P Maalot
|
AA-
|
AA-
|
AA-
|
11/2012
|
5/2006, 9/2007, 1/2008, 10/2008, 3/2009, 9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012
|
AA-, AA,AA- (2)
|
D
|
S&P Maalot
|
AA-
|
AA-
|
AA-
|
11/2012
|
1/2008, 10/2008, 3/2009, 9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012
|
AA-, AA,AA- (2)
|
E
|
S&P Maalot
|
AA-
|
AA-
|
AA
|
11/2012
|
9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012
|
AA,AA- (2)
|
F
|
S&P Maalot
|
AA-
|
AA-
|
AA
|
11/2012
|
5/2012, 11/2012
|
AA,AA- (2)
|
G
|
S&P Maalot
|
AA-
|
AA-
|
AA
|
11/2012
|
5/2012, 11/2012
|
AA,AA- (2)
|
(1)
|
In May 2012, S&P Maalot updated the Company's rating from an "ilAA/negative" to an “ilAA-/negative”.
|
(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”. For details regarding the rating of the debentures see the S&P Maalot report dated November 4, 2012.
|
*
|
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.
|
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
|
735,651
|
290,049
|
-
|
-
|
-
|
303,275
|
Second year
|
735,651
|
290,049
|
-
|
-
|
-
|
246,739
|
Third year
|
735,651
|
290,049
|
-
|
-
|
-
|
190,204
|
Fourth year
|
805,839
|
346,884
|
-
|
-
|
-
|
133,804
|
Fifth year and on
|
1,160,531
|
227,342
|
-
|
-
|
-
|
103,473
|
Total
|
4,173,322
|
1,444,372
|
-
|
-
|
-
|
977,495
|
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
|
735,651
|
290,049
|
-
|
-
|
-
|
303,275
|
Second year
|
735,651
|
290,049
|
-
|
-
|
-
|
246,739
|
Third year
|
735,651
|
290,049
|
-
|
-
|
-
|
190,204
|
Fourth year
|
805,839
|
346,884
|
-
|
-
|
-
|
133,804
|
Fifth year and on
|
1,160,531
|
227,342
|
-
|
-
|
-
|
103,473
|
Total
|
4,173,322
|
1,444,372
|
-
|
-
|
-
|
977,495
|
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).
|
Principal payments
|
Gross interest payments (without deduction of tax)
|
|||||
ILS linked to CPI
|
ILS not linked to CPI
|
Euro
|
Dollar
|
Other
|
||
First year
|
-
|
8,681
|
-
|
-
|
-
|
949
|
Second year
|
-
|
5,041
|
-
|
-
|
-
|
452
|
Third year
|
-
|
5,041
|
-
|
-
|
-
|
150
|
Fourth year
|
-
|
4
|
-
|
-
|
-
|
-
|
Fifth year and on
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
-
|
18,767
|
-
|
-
|
-
|
1,550
|
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).
|
Principal payments
|
Gross interest payments (without deduction of tax)
|
|||||
ILS linked to CPI
|
ILS not linked to CPI
|
Euro
|
Dollar
|
Other
|
||
First year
|
-
|
12
|
-
|
-
|
-
|
3
|
Second year
|
-
|
12
|
-
|
-
|
-
|
2
|
Third year
|
-
|
12
|
-
|
-
|
-
|
1
|
Fourth year
|
-
|
12
|
-
|
-
|
-
|
1
|
Fifth year and on
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
-
|
46
|
-
|
-
|
-
|
7
|
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
|
42,887
|
9,767
|
-
|
-
|
-
|
14,078
|
Second year
|
42,887
|
9,767
|
-
|
-
|
-
|
11,228
|
Third year
|
42,887
|
9,767
|
-
|
-
|
-
|
8,378
|
Fourth year
|
45,221
|
9,971
|
-
|
-
|
-
|
5,532
|
Fifth year and on
|
51,740
|
817
|
-
|
-
|
-
|
3,498
|
Total
|
225,622
|
40,088
|
-
|
-
|
-
|
42,714
|
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
|
Cellcom Israel Ltd.
and Subsidiaries
Condensed Consolidated
Interim Financial Statements As at March 31, 2013
(Unaudited)
|
Page
|
|
Condensed Consolidated Interim Statements of Financial position
|
3
|
Condensed Consolidated Interim Statements of Income
|
4
|
Condensed Consolidated Interim Statements of Comprehensive Income
|
5
|
Condensed Consolidated Interim Statements of Changes in Equity
|
6
|
Condensed Consolidated Interim Statements of Cash Flows
|
8
|
Notes to the Condensed Consolidated Interim Financial Statements
|
10
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
(Note 2D)
|
||||||||||||||||
March 31,
|
March 31,
|
March 31,
|
December 31,
|
|||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
588 | 846 | 232 | 1,414 | ||||||||||||
Current investments, including derivatives
|
902 | 492 | 135 | 493 | ||||||||||||
Trade receivables
|
1,868 | 1,828 | 501 | 1,856 | ||||||||||||
Other receivables
|
110 | 83 | 23 | 67 | ||||||||||||
Inventory
|
163 | 118 | 32 | 112 | ||||||||||||
Total current assets
|
3,631 | 3,367 | 923 | 3,942 | ||||||||||||
Trade and other receivables
|
1,419 | 1,119 | 307 | 1,219 | ||||||||||||
Property, plant and equipment, net
|
2,155 | 2,023 | 554 | 2,077 | ||||||||||||
Intangible assets, net
|
1,643 | 1,482 | 406 | 1,515 | ||||||||||||
Deferred tax assets
|
37 | 32 | 9 | 34 | ||||||||||||
Total non- current assets
|
5,254 | 4,656 | 1,276 | 4,845 | ||||||||||||
. | ||||||||||||||||
Total assets
|
8,885 | 8,023 | 2,199 | 8,787 | ||||||||||||
Liabilities
|
||||||||||||||||
Short term credit and current maturities of long term loans and debentures
|
752 | 1,087 | 298 | 1,129 | ||||||||||||
Trade payables and accrued expenses
|
930 | 676 | 185 | 827 | ||||||||||||
Current tax liabilities
|
84 | 75 | 21 | 87 | ||||||||||||
Provisions
|
149 | 178 | 49 | 175 | ||||||||||||
Other payables, including derivatives
|
471 | 386 | 106 | 492 | ||||||||||||
Dividend declared
|
72 | - | - | - | ||||||||||||
Total current liabilities
|
2,458 | 2,402 | 659 | 2,710 | ||||||||||||
Long-term loans from banks
|
19 | 10 | 3 | 10 | ||||||||||||
Debentures
|
5,879 | 4,845 | 1,328 | 5,368 | ||||||||||||
Provisions
|
21 | 20 | 5 | 21 | ||||||||||||
Other long-term liabilities
|
46 | 20 | 5 | 21 | ||||||||||||
Liability for employee rights upon retirement, net
|
15 | 16 | 4 | 12 | ||||||||||||
Deferred tax liabilities
|
165 | 145 | 40 | 145 | ||||||||||||
Total non- current liabilities
|
6,145 | 5,056 | 1,385 | 5,577 | ||||||||||||
Total liabilities
|
8,603 | 7,458 | 2,044 | 8,287 | ||||||||||||
Equity attributable to owners of the Company
|
||||||||||||||||
Share capital
|
1 | 1 | - | 1 | ||||||||||||
Cash flow hedge reserve
|
- | (17 | ) | (5 | ) | (12 | ) | |||||||||
Retained earnings
|
277 | 579 | 159 | 509 | ||||||||||||
Non-controlling interest
|
4 | 2 | 1 | 2 | ||||||||||||
Total equity
|
282 | 565 | 155 | 500 | ||||||||||||
Total liabilities and equity
|
8,885 | 8,023 | 2,199 | 8,787 |
Date of approval of the condensed consolidated financial statements: May 13, 2013.
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
(Note 2D)
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three-month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||||
Revenues
|
1,585 | 1,258 | 345 | 5,938 | ||||||||||||
Cost of revenues
|
(899 | ) | (784 | ) | (215 | ) | (3,463 | ) | ||||||||
Gross profit
|
686 | 474 | 130 | 2,475 | ||||||||||||
Selling and marketing expenses
|
(236 | ) | (181 | ) | (50 | ) | (865 | ) | ||||||||
General and administrative expenses
|
(172 | ) | (153 | ) | (42 | ) | (629 | ) | ||||||||
Other income (expenses), net
|
(3 | ) | (1 | ) | - | 4 | ||||||||||
Operating profit
|
275 | 139 | 38 | 985 | ||||||||||||
Financing income
|
45 | 41 | 11 | 181 | ||||||||||||
Financing expenses
|
(81 | ) | (87 | ) | (24 | ) | (440 | ) | ||||||||
Financing expenses, net
|
(36 | ) | (46 | ) | (13 | ) | (259 | ) | ||||||||
Profit before taxes on income
|
239 | 93 | 25 | 726 | ||||||||||||
Taxes on income
|
(66 | ) | (26 | ) | (7 | ) | (195 | ) | ||||||||
Profit for the period
|
173 | 67 | 18 | 531 | ||||||||||||
Attributable to:
|
||||||||||||||||
Owners of the Company
|
173 | 67 | 18 | 530 | ||||||||||||
Non-controlling interests
|
- | - | - | 1 | ||||||||||||
Profit for the period
|
173 | 67 | 18 | 531 | ||||||||||||
Earnings per share
|
||||||||||||||||
Basic earnings per share (in NIS)
|
1.74 | 0.67 | 0.18 | 5.34 | ||||||||||||
Diluted earnings per share (in NIS)
|
1.74 | 0.67 | 0.18 | 5.33 |
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
Three-month
period ended
March 31,
|
(Note 2D)
|
Year ended
December 31,
|
||||||||||||||
Three-month
period ended
March 31,
|
||||||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||||
Profit for the period
|
173 | 67 | 18 | 531 | ||||||||||||
Other comprehensive income
|
||||||||||||||||
Changes in fair value of cash flow hedges transferred to profit or loss
|
(1 | ) | 1 | - | (18 | ) | ||||||||||
Changes in fair value of cash flow hedges
|
(8 | ) | (8 | ) | (2 | ) | (7 | ) | ||||||||
Actuarial losses on defined benefit plan
|
- | - | - | (1 | ) | |||||||||||
Tax benefit on other comprehensive income
|
2 | 2 | - | 6 | ||||||||||||
Other comprehensive loss for the period, net of tax
|
(7 | ) | (5 | ) | (2 | ) | (20 | ) | ||||||||
Total comprehensive income for the period
|
166 | 62 | 16 | 511 | ||||||||||||
Total comprehensive income attributable to:
|
||||||||||||||||
Owners of the Company
|
166 | 62 | 16 | 510 | ||||||||||||
Non-controlling interests
|
- | - | - | 1 | ||||||||||||
Total comprehensive income for the period
|
166 | 62 | 16 | 511 |
Attributable to owners of the Company
|
Non-controlling
interests
|
Total equity
|
Convenience translation into US dollar (Note 2D)
|
|||||||||||||||||||||||||
Share
capital
|
Capital
reserve
|
Retained
earnings
|
Total | |||||||||||||||||||||||||
NIS millions
|
US$ millions
|
|||||||||||||||||||||||||||
For the three-month period ended March 31, 2013 (Unaudited)
|
||||||||||||||||||||||||||||
Balance as of January 1, 2013
|
||||||||||||||||||||||||||||
(Audited)
|
1 | (12 | ) | 509 | 498 | 2 | 500 | 138 | ||||||||||||||||||||
Comprehensive income for the period
|
||||||||||||||||||||||||||||
Profit for the period
|
- | - | 67 | 67 | - | 67 | 18 | |||||||||||||||||||||
Other comprehensive loss for the period, net of tax
|
||||||||||||||||||||||||||||
Net changes in fair value of cash flow hedges
|
- | (5 | ) | - | (5 | ) | - | (5 | ) | (2 | ) | |||||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||||||||||
Share based payments
|
- | - | 3 | 3 | - | 3 | 1 | |||||||||||||||||||||
Balance as of March 31, 2013
(Unaudited) |
1 | (17 | ) | 579 | 563 | 2 | 565 | 155 |
Attributable to owners of the Company
|
Non-controlling
interests
|
Total equity
|
Convenience translation into US dollar (Note 2D)
|
|||||||||||||||||||||||||
Share capital
|
Capital reserve
|
Retained earnings
|
Total
|
|||||||||||||||||||||||||
NIS millions
|
US$ millions
|
|||||||||||||||||||||||||||
For the three-month period ended
March 31, 2012 (Unaudited)
|
||||||||||||||||||||||||||||
Balance as of January 1, 2012
(Audited)
|
1 | 7 | 175 | 183 | 4 | 187 | 51 | |||||||||||||||||||||
Comprehensive income for the period
|
||||||||||||||||||||||||||||
Profit for the period
|
- | - | 173 | 173 | - | 173 | 48 | |||||||||||||||||||||
Other comprehensive loss for the period, net of tax
|
||||||||||||||||||||||||||||
Net changes in fair value of cash flow hedges
|
- | (7 | ) | - | (7 | ) | - | (7 | ) | (2 | ) | |||||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||||||||||
Share based payments
|
- | - | 1 | 1 | - | 1 | - | |||||||||||||||||||||
Dividend declared
|
- | - | (72 | ) | (72 | ) | - | (72 | ) | (20 | ) | |||||||||||||||||
Balance as of March 31, 2012
(Unaudited)
|
1 | - | 277 | 278 | 4 | 282 | 77 |
Attributable to owners of the Company
|
Non-controlling
interests
|
Total equity
|
Convenience translation into US dollar (Note 2D)
|
|||||||||||||||||||||||||
Share
capital
|
Capital reserve
|
Retained earnings
|
Total
|
|||||||||||||||||||||||||
NIS millions
|
US$ millions
|
|||||||||||||||||||||||||||
For the year ended December 31, 2012 (Audited)
|
||||||||||||||||||||||||||||
Balance as of January 1, 2012 (Audited)
|
1 | 7 | 175 | 183 | 4 | 187 | 51 | |||||||||||||||||||||
Comprehensive income for the year
|
||||||||||||||||||||||||||||
Profit for the year
|
- | - | 530 | 530 | 1 | 531 | 145 | |||||||||||||||||||||
Other comprehensive loss for the year, net of tax
|
||||||||||||||||||||||||||||
Net changes in fair value of cash flow hedges
|
- | (19 | ) | - | (19 | ) | - | (19 | ) | (5 | ) | |||||||||||||||||
Actuarial losses on defined benefit plan | - | - | (1 | ) | (1 | ) | - | (1 | ) | - | ||||||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||||||||||
Share based payments
|
- | - | 7 | 7 | - | 7 | 2 | |||||||||||||||||||||
Dividend paid in cash
|
- | - | (202 | ) | (202 | ) | - | (202 | ) | (55 | ) | |||||||||||||||||
Derecognition of non-controlling interests due to loss of control in a consolidated company
|
- | - | - | - | (3 | ) | (3 | ) | (1 | ) | ||||||||||||||||||
Balance as of December 31, 2012 (Audited)
|
1 | (12 | ) | 509 | 498 | 2 | 500 | 137 |
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
(Note 2D)
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three-month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Profit for the period
|
173 | 67 | 18 | 531 | ||||||||||||
Adjustments for:
|
||||||||||||||||
Depreciation and amortization
|
196 | 171 | 47 | 765 | ||||||||||||
Share based payments
|
1 | 3 | 1 | 7 | ||||||||||||
Loss on sale of property, plant and equipment
|
1 | 1 | - | 2 | ||||||||||||
Gain on sale of shares in an associate
|
- | - | - | (6 | ) | |||||||||||
Income tax expense
|
66 | 26 | 7 | 195 | ||||||||||||
Financing expenses, net
|
36 | 46 | 13 | 259 | ||||||||||||
Other expenses
|
1 | - | - | 2 | ||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Change in inventory
|
7 | (7 | ) | (2 | ) | 52 | ||||||||||
Change in trade receivables (including long-term amounts)
|
(58 | ) | 150 | 41 | 183 | |||||||||||
Change in other receivables (including long-term amounts)
|
(18 | ) | (20 | ) | (5 | ) | 6 | |||||||||
Change in trade payables, accrued expenses and provisions
|
(69 | ) | (112 | ) | (31 | ) | (89 | ) | ||||||||
Change in other liabilities (including long-term amounts)
|
19 | (11 | ) | (3 | ) | (92 | ) | |||||||||
Proceeds from (payments for) derivative hedging contracts, net
|
3 | (1 | ) | - | 20 | |||||||||||
Income tax paid
|
(55 | ) | (35 | ) | (10 | ) | (209 | ) | ||||||||
Income tax received
|
- | - | - | 15 | ||||||||||||
Net cash from operating activities
|
303 | 278 | 76 | 1,641 | ||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Acquisition of property, plant, and equipment
|
(135 | ) | (88 | ) | (24 | ) | (457 | ) | ||||||||
Acquisition of intangible assets
|
(27 | ) | (26 | ) | (7 | ) | (97 | ) | ||||||||
Change in current investments, net
|
(621 | ) | (4 | ) | (1 | ) | (212 | ) | ||||||||
Proceeds from (payments for) other derivative contracts, net
|
2 | (3 | ) | (1 | ) | 9 | ||||||||||
Proceeds from sale of property, plant and equipment
|
- | 5 | 1 | 7 | ||||||||||||
Interest received
|
2 | 11 | 3 | 35 | ||||||||||||
Proceeds from sale of shares in a consolidated company
|
- | - | - | 7 | ||||||||||||
Loan to equity accounted investee
|
(1 | ) | - | - | - | |||||||||||
Net cash used in investing activities
|
(780 | ) | (105 | ) | (29 | ) | (708 | ) |
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
(Note 2D)
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three-month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2012
|
2013
|
2013
|
2012
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||||
Cash flows from financing activities
|
||||||||||||||||
Payments for derivative contracts, net
|
(1 | ) | - | - | (12 | ) | ||||||||||
Repayment of long term loans from banks
|
- | - | - | (16 | ) | |||||||||||
Repayment of debentures
|
(479 | ) | (561 | ) | (154 | ) | (660 | ) | ||||||||
Proceeds from issuance of debentures, net of issuance costs
|
992 | - | - | 992 | ||||||||||||
Dividend paid
|
(189 | ) | - | - | (391 | ) | ||||||||||
Interest paid
|
(181 | ) | (180 | ) | (49 | ) | (352 | ) | ||||||||
Net cash from (used in) financing activities
|
142 | (741 | ) | (203 | ) | (439 | ) | |||||||||
Cash balance presented under assets held for sale
|
3 | - | - | - | ||||||||||||
Changes in cash and cash equivalents
|
(332 | ) | (568 | ) | (156 | ) | 494 | |||||||||
Cash and cash equivalents as at the beginning of the period
|
920 | 1,414 | 388 | 920 | ||||||||||||
Cash and cash equivalents as at the end of the period
|
588 | 846 | 232 | 1,414 |
A.
|
Statement of compliance
|
B.
|
Functional and presentation currency
|
C.
|
Basis of measurement
|
D.
|
Convenience translation into U.S. dollars (“dollars” or “$”)
|
E.
|
Use of estimates and judgments
|
F.
|
Exchange rates and known Consumer Price Indexes are as follows:
|
Exchange rates
of US$
|
Consumer Price
Index (points)*
|
|||||||
As of March 31, 2013
|
3.648 | 219.42 | ||||||
As of March 31, 2012
|
3.715 | 216.27 | ||||||
As of December 31, 2012
|
3.733 | 219.39 | ||||||
Increase (decrease) during the period:
|
||||||||
Three months ended March 31, 2013
|
(2.3% | ) | 0.01% | |||||
Three months ended March 31, 2012
|
(2.8% | ) | - | |||||
Year ended December 31, 2012
|
(2.3% | ) | 1.44% | |||||
*According to 1993 base index.
|
a.
|
IFRS 10, Consolidated Financial Statements
|
b.
|
IFRS 13, Fair Value Measurement
|
c.
|
Amendment to IAS 19, Employee Benefits
|
|
—
|
Cellcom - the segment includes Cellcom Israel Ltd. and its subsidiaries, excluding Netvision Ltd. and its subsidiaries.
|
|
—
|
Netvision - the segment includes Netvision Ltd. and its subsidiaries.
|
Three-month period ended March 31, 2013
|
||||||||||||||||
NIS millions
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Cellcom
|
Netvision
|
Reconciliation
for
consolidation
|
Consolidated
|
|||||||||||||
External revenues
|
999 | 259 | - | 1,258 | ||||||||||||
Inter-segment revenues
|
15 | 12 | (27 | ) | - | |||||||||||
EBITDA*
|
251 | 63 | - | 314 | ||||||||||||
Reconciliation of reportable segment EBITDA to profit for the period | ||||||||||||||||
Depreciation and amortization
|
(126 | ) | (26 | ) | (19 | ) | (171 | ) | ||||||||
Taxes on income
|
(21 | ) | (10 | ) | 5 | (26 | ) | |||||||||
Financing income
|
41 | |||||||||||||||
Financing expenses
|
(87 | ) | ||||||||||||||
Other expenses
|
(1 | ) | ||||||||||||||
Share based payments
|
(3 | ) | ||||||||||||||
Profit for the period
|
54 | 27 | (14 | ) | 67 |
Three-month period ended March 31, 2012
|
||||||||||||||||
NIS millions
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Cellcom
|
Netvision
|
Reconciliation
for
consolidation
|
Consolidated
|
|||||||||||||
External revenues
|
1,321 | 264 | - | 1,585 | ||||||||||||
Inter-segment revenues
|
6 | 11 | (17 | ) | - | |||||||||||
EBITDA*
|
410 | 65 | - | 475 | ||||||||||||
Reconciliation of reportable segment EBITDA to profit for the period | ||||||||||||||||
Depreciation and amortization
|
(144 | ) | (27 | ) | (25 | ) | (196 | ) | ||||||||
Taxes on income
|
(62 | ) | (11 | ) | 7 | (66 | ) | |||||||||
Financing income
|
45 | |||||||||||||||
Financing expenses
|
(81 | ) | ||||||||||||||
Other expenses
|
(3 | ) | ||||||||||||||
Share based payments
|
(1 | ) | ||||||||||||||
Profit for the period
|
166 | 25 | (18 | ) | 173 |
Year ended December 31, 2012
|
||||||||||||||||
NIS millions
|
||||||||||||||||
(Audited)
|
||||||||||||||||
Cellcom
|
Netvision
|
Reconciliation
for
consolidation
|
Consolidated
|
|||||||||||||
External revenues
|
4,861 | 1,077 | - | 5,938 | ||||||||||||
Inter-segment revenues
|
30 | 57 | (87 | ) | - | |||||||||||
EBITDA*
|
1,470 | 283 | - | 1,753 | ||||||||||||
Reconciliation of reportable segment EBITDA to profit for the year | ||||||||||||||||
Depreciation and amortization
|
(554 | ) | (107 | ) | (104 | ) | (765 | ) | ||||||||
Taxes on income
|
(190 | ) | (31 | ) | 26 | (195 | ) | |||||||||
Financing income
|
181 | |||||||||||||||
Financing expenses
|
(440 | ) | ||||||||||||||
Other income
|
4 | |||||||||||||||
Share based payments
|
(7 | ) | ||||||||||||||
Profit for the year
|
464 | 145 | (78 | ) | 531 |
*
|
EBITDA as reviewed by the CODM, represents earnings before interest (financing expenses, net), taxes, other income (expenses), depreciation and amortization and share based payments, as a measure of operating profit. EBITDA is not a financial measure under IFRS and may not be comparable to other similarly titled measures for other companies.
|
(1)
|
Fair value as compared to book value
|
March 31, 2013
|
|||||||||
Book value
|
Fair value
|
||||||||
NIS millions
|
|||||||||
Debentures including current maturities and accrued interest
|
(6,073 | ) | (6,545 | ) |
(2)
|
Fair value hierarchy
|
Level 1:
|
quoted prices (unadjusted) in active markets for identical instruments.
|
Level 2:
|
inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
|
Level 3:
|
inputs that are not based on observable market data (unobservable inputs).
|
March 31, 2013
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
NIS millions
|
||||||||||||||||
Financial assets at fair value through profit or loss
|
||||||||||||||||
Current investments in debt securities
|
490 | - | - | 490 | ||||||||||||
Long-term receivables
|
- | 44 | - | 44 | ||||||||||||
Derivatives
|
- | 2 | - | 2 | ||||||||||||
Total assets
|
490 | 46 | - | 536 | ||||||||||||
Financial liabilities at fair value through profit or loss
|
||||||||||||||||
Derivatives
|
- | (40 | ) | - | (40 | ) | ||||||||||
Total liabilities
|
- | (40 | ) | - | (40 | ) |
(3)
|
Valuation methods to determine fair value
|
|
US$/NIS forward contracts - fair value is measured on the basis of the capitalization of the difference between the forward price in the contract and the current price for the residual period until redemption, using appropriate interest curves used for derivative pricing.
|
|
CPI/NIS forward contracts - fair value is measured on the basis of the capitalization of the difference between the transaction price and the future expected CPI, using appropriate NIS yield curve based on government and short-term bonds.
|
CELLCOM ISRAEL LTD.
|
||||||
Date: |
May 13, 2013
|
By: |
/s/ Liat Menahemi Stadler
|
|||
Name: |
Liat Menahemi Stadler
|
|||||
Title: |
General Counsel
|