Israel - IGLD

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2 Νοε 2013 (πριν από 3 χρόνια και 1 μήνα)

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NASDAQ

NM / TASE


symbol: IGLD

Leveraging

Israel’s Broadband
Phenomenon


Eli Holtzman, CEO

Doron Turgeman, CFO

March 2006

Internet Gold

Leading Israeli IP Group


2

Forward Looking Statement



The statements contained herein that are not
purely historical are forward
-
looking
statements.

These forward
-
looking statements involve risks
and uncertainties and actual results could

differ materially from such results discussed in
these statements.

3

IGLD’s smile brand: major presence across all

Internet
-
related business sectors

4

2005
: another year of strong revenue growth



03
/ ’
04


Mass Broadband Deployment


Launch of int’l telephony


2005


Build
-
out of International

VoIP Telephony services


Expansion of Internet

Advertising


Expansion of Business

Services


Successful re
-
branding will
contribute to future profitability

Primary drivers:

up

36%

in NIS millions

up

22%

5

2006
: riding the expansion of our markets

to the next level of revenues and profits

Online
Advertising

We expect our advertising revenues will
grow as media budgets shift to the Internet

VoIP

Telephony

Continued effort to drive market
-
share from
8
-
9% to ~ 20% in coming 2
-
3 years

Business

Services

We expect to carry out a larger number of
major infrastructure projects

Efficiency

We trust that streamlining carried out in ‘05
will improve our profitability in ’06 and on

6

Investment highlights





Positioned to lead rapidly
growing new markets

As leading IP Group, IGLD is positioned to
benefit from the strong growth forecast for
Online Advertising and e
-
Commerce markets

Working from strong cash
generating platform

IGLD’s ISP, VAS and telephony businesses are
strong and profitable cash
-
generating platforms

Financial Strength

IGLD’s solid cash position will enable it to
continue consolidating its markets

Proven management

& ownership

IGLD’s established management team, working
together with Eurocom (its controlling
shareholder), has proven capable of carrying
out aggressive growth / leadership strategies

7

IGLD’s next major growth driver

8

2005
: the inflection point for Online Advertising


Marketers are shifting more
of their advertising budgets
online…

As consumers spend a
larger percentage of their media
time online, it is natural for
the
flow of advertising dollars to
follow.”
David Silverman, Partner,
PricewaterhouseCoopers LLP



“Almost half of all marketers
plan to increase online ad
spending by decreasing
spending in other
channels…”
Forrester Research

Source: PWC IAB Internet Advertising Report,
Sept. ‘
05

US Internet Advertising

CAGR = 19%

Source: Market surveys & IGLD estimates

Israel Internet Advertising

CAGR =
43
%

39%

22
%

63
%

83
%

53
%

25%

9

Israeli Online Advertising is ripe for growth

Israel’s broadband
penetration is among the
highest in the world


>60% of Israeli households have

Internet access > 90% are connected
via broadband!


>40% of users are online >10 hours
per week. 2.7M users per day!

Israel’s online advertising

budgets are low compared
to “eyeball” exposure


ad spending always
follows rating


Internet Advertising in Israel is
currently > 5% of overall media
spending (~ $900M in 05’),
and growing fast



Immediate growth potential:
SEARCH
revenues are just 15% of the mix in
Israel compared to 40% in the US


10

IGLD
-

positioned to benefit

msn
-
Israel

50.1%

Hebrew language

MSN
Messenger, Hotmail Israel &
MSN Search Israel

msn
-
jobs

50.1%

Hebrew language job search

start

100%

Search engine & directory

zahav.ru

100%

Russian language portal

V
-
games

100%

Games content portal

seret

51%

Cinema portal

getprice

51%

Price comparison

TheMoney

50.1%

Lead
-
generation financial portal

tipo

50%

Children’s portal

nirshamim

50%

Portal for academics

netex

Exclusive
marketing rights

Search engine & directory

goop

Youth portal

11


Joint venture
-

IGLD (
50.1
%) & Microsoft Corp. (
49.9
%)


Strong, productive sales force


Perfect synergy between Microsoft’s technology and brand,

and IGLD’s sales capabilities and local knowledge


Strong user statistics:


4
M unique users per month


160
M page views


Mass usage of MSN tools (D
ec
. ’
05
)





Co
-
operations with recognized global and regional brands on content
-
branded channels
(Coca Cola / P&G and more)


IGLD’s anchor media property: Israel

messenger

hotmail

search

jobs


12

Israel’s e
-
Commerce market will follow the growth
pattern of online advertising…

Online shopping

is already a

force in Israel


2005 revenues: ~NIS 1B,

growing at a rate of 20% per year


90% of revenues generated by

auction and group sale sites (online
marketplaces)


40% of surfers buy online regularly,
(electronics and computer
-
related items are
the most popular)

The market is

highly centralized


4 sites currently account for 80%

of Israel’s online sales



our

,

Olsale, Nana Shops (Netvision)
& Walla Shops (Bezeq Int’l)

Source: CIA & Gaon Capital Markets

& IGLD estimates

13

…and IGLD is positioned to benefit

P
1000

100%


One of Israel’s top 4 e
-
Commerce sites


Outlet for >100 of Israel’s largest
consumer product suppliers


Growing revenues, positive EBIT


Low
-
risk commission model with

fulfillment directly from suppliers

msn
shops

50.1%


Ventures between MSN
-
Israel and retailers

dbook

50%


Israel’s “Amazon”

getprice

51%


Israel’s #2 price comparison site

14

(NIS millions)

Smile media ~
22
% of Israeli market

15

A Strong & Consistent Revenue Generator

16

While ISP residential business has leveled off,


biz revenues & VAS sales continue to grow

residential



Anti
-
spam & anti
-
virus

solutions


WiFi home networking


e
-
Safe Secured Internet
Access (server
-
based)



smile.biz services



Professional services


large
-
scale infrastructure projects


and
24
/
7
outsourcing services



Specialized content



Website hosting



Co
-
location development



Web security



Global roaming



Training


17

Pioneers of VoIP Telephony

in Israel

Smile.
015
-

an alternative provider



Existing customer base ~
300
k residential +
5
,
000
business users



Brand capital



Leveraging existing operations / services / tech infrastructure



Effective / low cost investment in VoIP technology

Smile.
075


the additional home line



Rely on existing switches and tech platform



Lower investment required (~$
300
,
000
-

$
500
,
000
)



State of the art services at lower / flat costs

18

19

EBIT for Q
3
/
0
4

and Q
4
/
04

reflects investment of NIS
8.5
M to launch
015
business Towards end of Q
4
/
04
this activity broke even and it is already

contributing positively to our EBIT

(NIS millions)

*

*

*

Stable and profitable performer


20

Strong balance sheet



18
consecutive quarters of positive net cash flow


from operations



Current ratio:
3.7



Return on Equity (ROE): ~
12
% for FY
2005


($
4
M profit / $
32.3
M equity)



Shareholders’ equity:
30
% of total balance sheet



$
55
million net cash reserves



Strong cash flow from operations: $
3
M in Q
4 05



Low credit risk: most receivables covered by credit cards or


standing bank orders

21

Comparable media players

Interesting market opportunity…

22

23

Strong Shareholders / Dedicated Management



Public ~
31
%



Eurocom Communications ~
69
%


Focused, communications
-
oriented controlling parent group


Leading Israeli private communications group representing Nokia,

Panasonic, GE and more


Also holds equity in radio stations, satellite communications, cellular

and more



Closely
-
knit, results
-
oriented management team


Most all level of management grows from within


24

Investment highlights





Positioned to lead rapidly
growing new markets

As leading IP Group, IGLD is positioned to
benefit from the strong growth forecast for
Online Advertising and e
-
Commerce markets

Working from strong cash
generating platform

IGLD’s ISP, VAS and telephony businesses are
strong and profitable cash
-
generating platforms

Financial Strength

IGLD’s solid cash position will enable it to
continue consolidating its markets

Proven management

& ownership

IGLD’s established management team, working
together with Eurocom (its controlling
shareholder), has proven capable of carrying
out aggressive growth / leadership strategies