Company Contact
Yaacov Heen
Chief Financial Officer
investors@cellcom.co.il
Tel: +972 52 998 9755
|
Investor Relations Contact
Porat Saar
CCG Investor Relations Israel & US
cellcom@ccgisrael.com
Tel: +1 646 233 2161
|
Page
|
|
Consolidated Statements of Financial Position
|
2
|
Consolidated Statements of Comprehensive Income
|
3
|
Consolidated Statement of Changes in Equity
|
4-6
|
Consolidated Statements of Cash Flows
|
7-9
|
Page
|
|
Condensed Consolidated Interim Statements of Financial position
|
10
|
Condensed Consolidated Interim Statements of Comprehensive Income
|
11
|
Condensed Consolidated Interim Statements of Changes in Equity
|
12-14
|
Condensed Consolidated Interim Statements of Cash Flows
|
15-17
|
December 31,
|
December 31,
|
|||||||
2009
|
2010
|
|||||||
NIS thousands
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
325,948 | 79,329 | ||||||
Sort-term investments
|
- | 187,264 | ||||||
Trade receivables, net
|
261,857 | 262,375 | ||||||
Other receivables
|
46,435 | 49,120 | ||||||
Inventory of purchased products
|
6,609 | 5,176 | ||||||
640,849 | 583,264 | |||||||
Non-current assets
|
||||||||
Other receivables
|
13,230 | 13,189 | ||||||
Rights of use of communication lines
|
242,390 | 261,732 | ||||||
Property, plant and equipment, net
|
208,692 | 199,868 | ||||||
Goodwill
|
530,737 | 531,098 | ||||||
Intangible assets, net
|
54,612 | 39,548 | ||||||
Deferred tax assets
|
50,510 | 46,652 | ||||||
1,100,171 | 1,092,087 | |||||||
1,741,020 | 1,675,351 | |||||||
Current liabilities
|
||||||||
Short term bank credit and current maturities of loans from banks
|
36,335 | 41,843 | ||||||
Trade payables
|
202,583 | 204,155 | ||||||
Other payables
|
122,094 | 129,845 | ||||||
Current maturities of long-term liabilities to trade payables
|
4,293 | 4,018 | ||||||
Current maturities of convertible debentures
|
15,293 | 177 | ||||||
380,598 | 380,038 | |||||||
Non-current liabilities
|
||||||||
Loans from banks
|
146,805 | 112,650 | ||||||
Convertible debentures
|
15,246 | - | ||||||
Deferred revenues in respect of rights of use of communication lines
|
62,123 | 56,995 | ||||||
Long-term liabilities to trade payables
|
14,236 | 9,885 | ||||||
Employee benefit liabilities
|
14,388 | 17,506 | ||||||
252,798 | 197,036 | |||||||
Equity attributable to owners of the Company
|
||||||||
Share capital
|
31,205 | 32,422 | ||||||
Share premium
|
1,047,393 | 1,091,830 | ||||||
Proceeds from conversion option on debentures
|
5,337 | 31 | ||||||
Adjustments arising from translating financial statements
|
(600 | ) | (956 | ) | ||||
Reserve for transaction with non-controlling interests
|
- | (182 | ) | |||||
Retained earnings (accumulated losses)
|
15,878 | (28,981 | ) | |||||
Non-controlling interest
|
8,411 | 4,113 | ||||||
Total equity
|
1,107,624 | 1,098,277 | ||||||
1,741,020 | 1,675,351 |
March 9, 2011
|
(Signed)
|
(Signed)
|
(Signed)
|
|||
Date of approval of
|
Ami Erel
|
Nir Sztern
|
Ofir Sarid
|
|||
financial statements
|
Chairman of the Board of
|
Chief Executive Officer
|
Chief Financial Officer
|
|||
Directors
|
Year ended
|
Year ended
|
Year ended
|
||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||
2008
|
2009
|
2010
|
||||||||||
NIS thousands (except earnings per share data)
|
||||||||||||
Revenues
|
1,234,584 | 1,250,159 | 1,302,908 | |||||||||
Cost of revenues
|
981,822 | 977,063 | 1,060,463 | |||||||||
Gross profit
|
252,762 | 273,096 | 242,445 | |||||||||
Selling and marketing expenses
|
52,108 | 49,663 | 53,662 | |||||||||
General and administrative expenses
|
75,118 | 67,833 | 65,672 | |||||||||
Impairment of subsidiary activity
|
- | - | 8,036 | |||||||||
Impairment of intangible assets
|
14,143 | - | - | |||||||||
Operating profit
|
111,393 | 155,600 | 115,075 | |||||||||
Financing income
|
10,733 | 3,844 | 5,347 | |||||||||
Financing expenses
|
(19,395 | ) | (22,604 | ) | (19,524 | ) | ||||||
Other income, net
|
382 | 1,826 | 344 | |||||||||
Income before taxes on income
|
103,113 | 138,666 | 101,242 | |||||||||
Taxes on income
|
16,359 | 33,018 | 19,696 | |||||||||
Net income
|
86,754 | 105,648 | 81,546 | |||||||||
Other comprehensive loss (net of
tax effect):
|
||||||||||||
Adjustments arising from translating financial statements of foreign operations
|
- | (1,144 | ) | (517 | ) | |||||||
Actuarial loss from defined benefit plans, net
|
(8,746 | ) | (1,242 | ) | (2,192 | ) | ||||||
Total other comprehensive loss, net
|
(8,746 | ) | (2,386 | ) | (2,709 | ) | ||||||
Total comprehensive income
|
78,008 | 103,262 | 78,837 | |||||||||
Net income attributable to:
|
||||||||||||
Equity holders of the Company
|
86,754 | 105,607 | 84,871 | |||||||||
Non-controlling interests
|
- | 41 | (3,325 | ) | ||||||||
86,754 | 105,648 | 81,546 | ||||||||||
Total comprehensive income attributable to:
|
||||||||||||
Equity holders of the Company
|
78,008 | 103,740 | 82,467 | |||||||||
Non-controlling interests
|
- | (478 | ) | (3,630 | ) | |||||||
78,008 | 103,262 | 78,837 | ||||||||||
Net earnings per share attributable to equity holders of the Company (in NIS)
|
||||||||||||
Basic net earnings
|
2.99 | 3.54 | 2.74 | |||||||||
Diluted net earnings
|
2.70 | 3.45 | 2.66 |
Attributable to equity holders of the Company
|
||||||||||||||||||||||||||||||||||||||||
Share capital
|
Share premium
|
Options
(Series 1)
|
Conversion option on debentures (Series B)
|
Adjustments arising from translating financial statements
|
Reserve for transactions with non-controlling interests
|
Retained earnings (accumulated losses)
|
Total
|
Non-controlling
interests
|
Total equity
|
|||||||||||||||||||||||||||||||
NIS thousands
|
||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2010 | 31,205 | 1,047,393 | - | 5,337 | (600 | ) | - | 15,878 | 1,099,213 | 8,411 | 1,107,624 | |||||||||||||||||||||||||||||
Net income (loss)
|
- | - | - | - | - | - | 84,871 | 84,871 | (3,325 | ) | 81,546 | |||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
- | - | - | - | (356 | ) | - | (2,048 | ) | (2,404 | ) | (305 | ) | (2,709 | ) | |||||||||||||||||||||||||
Total comprehensive income (loss)
|
- | - | - | - | (356 | ) | - | 82,823 | 82,467 | (3,630 | ) | 78,837 | ||||||||||||||||||||||||||||
Amortization of Share-based compensation
|
- | - | - | - | - | - | 4,802 | 4,802 | - | 4,802 | ||||||||||||||||||||||||||||||
Conversion of debentures (Series B) into shares
|
1,040 | 34,076 | - | (5,223 | ) | - | - | - | 29,893 | - | 29,893 | |||||||||||||||||||||||||||||
Exercise of employee share options
|
177 | 10,278 | - | - | - | - | (7,484 | ) | 2,971 | - | 2,971 | |||||||||||||||||||||||||||||
Repayment of debentures (Series B)
|
- | 83 | - | (83 | ) | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Subsidiary shares buyback from non-controlling interests
|
- | - | - | - | - | (182 | ) | - | (182 | ) | (668 | ) | (850 | ) | ||||||||||||||||||||||||||
Dividend
|
- | - | - | - | - | - | (125,000 | ) | (125,000 | ) | - | (125,000 | ) | |||||||||||||||||||||||||||
Balance as of December 31, 2010 | 32,422 | 1,091,830 | - | 31 | (956 | ) | (182 | ) | (28,981 | ) | 1,094,164 | 4,113 | 1,098,277 |
Attributable to equity holders of the Company
|
||||||||||||||||||||||||||||||||||||||||
Share capital
|
Share premium
|
Options
(Series 1)
|
Conversion option on debentures (Series B)
|
Adjustments arising from translating financial statements
|
Reserve for transactions with non-controlling interests
|
Retained earnings (accumulated losses)
|
Total
|
Non-controlling
interests
|
Total equity
|
|||||||||||||||||||||||||||||||
NIS thousands
|
||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2009
|
30,086 | 998,556 | 9,727 | 8,206 | - | - | 29,087 | 1,075,662 | - | 1,075,662 | ||||||||||||||||||||||||||||||
Net income
|
- | - | - | - | - | - | 105,607 | 105,607 | 41 | 105,648 | ||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
- | - | - | - | (600 | ) | - | (1,267 | ) | (1,867 | ) | (519 | ) | (2,386 | ) | |||||||||||||||||||||||||
Total comprehensive income (loss)
|
- | - | - | - | (600 | ) | - | 104,340 | 103,740 | (478 | ) | 103,262 | ||||||||||||||||||||||||||||
Amortization of Share-based compensation
|
- | - | - | - | - | - | 3,650 | 3,650 | - | 3,650 | ||||||||||||||||||||||||||||||
Conversion of debentures into shares
|
25 | 870 | - | (134 | ) | - | - | - | 761 | - | 761 | |||||||||||||||||||||||||||||
Exercise of share options (Series 1)
|
867 | 35,233 | (9,708 | ) | - | - | - | - | 26,392 | - | 26,392 | |||||||||||||||||||||||||||||
Vesting of share options (Series 1)
|
- | 19 | (19 | ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Exercise of employee share options
|
227 | 9,980 | - | - | - | - | (5,199 | ) | 5,008 | - | 5,008 | |||||||||||||||||||||||||||||
Repayment of debentures (Series B)
|
- | 2,735 | - | (2,735 | ) | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Acquisition of initially consolidated subsidiary
|
- | - | - | - | - | - | - | - | 6,215 | 6,215 | ||||||||||||||||||||||||||||||
Vesting of put option to non-controlling interests in a subsidiary
|
- | - | - | - | - | - | - | - | 3,140 | 3,140 | ||||||||||||||||||||||||||||||
Dividend
|
- | - | - | - | - | - | (116,000 | ) | (116,000 | ) | (466 | ) | (116,466 | ) | ||||||||||||||||||||||||||
Balance as of December 31, 2009 | 31,205 | 1,047,393 | - | 5,337 | (600 | ) | - | 15,878 | 1,099,213 | 8,411 | 1,107,624 |
Attributable to equity holders of the Company
|
||||||||||||||||||||||||||||||||||||
Share capital
|
Share premium
|
Options (Series 1)
|
Conversion option on debentures (Series B)
|
Adjustments arising from translating financial statements
|
Retained earnings (accumulated losses)
|
Total
|
Non-controlling
interests
|
Total equity
|
||||||||||||||||||||||||||||
NIS thousands
|
||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2008
|
29,641 | 981,775 | - | - | - | (53,787 | ) | 957,629 | 284 | 957,913 | ||||||||||||||||||||||||||
Net income
|
- | - | - | - | - | 86,754 | 86,754 | - | 86,754 | |||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
- | - | - | - | - | (8,746 | ) | (8,746 | ) | - | (8,746 | ) | ||||||||||||||||||||||||
Total comprehensive income
|
- | - | - | - | - | 78,008 | 78,008 | - | 78,008 | |||||||||||||||||||||||||||
Amortization of Share-based compensation
|
- | - | - | - | - | 7,066 | 7,066 | - | 7,066 | |||||||||||||||||||||||||||
Equity component of convertible debentures
|
- | - | - | 9,574 | - | - | 9,574 | - | 9,574 | |||||||||||||||||||||||||||
Conversion of debentures into shares
|
293 | 11,559 | - | (1,368 | ) | - | - | 10,484 | - | 10,484 | ||||||||||||||||||||||||||
Classification of liability in respect of options (Series 1)
|
- | - | 9,971 | - | - | - | 9,971 | - | 9,971 | |||||||||||||||||||||||||||
Exercise of share options (Series 1)
|
22 | 949 | (244 | ) | 727 | - | 727 | |||||||||||||||||||||||||||||
Exercise of employee share options
|
130 | 4,273 | - | - | - | (2,200 | ) | 2,203 | - | 2,203 | ||||||||||||||||||||||||||
Classification of non-controlling interests to goodwill in respect of put option to non-controlling interests in subsidiary
|
- | - | - | - | - | - | - | (284 | ) | (284 | ) | |||||||||||||||||||||||||
Balance as of December 31, 2008
|
30,086 | 998,556 | 9,727 | 8,206 | - | 29,087 | 1,075,662 | - | 1,075,662 |
Year ended
|
Year ended
|
Year ended
|
||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||
2008
|
2009
|
2010
|
||||||||||
NIS thousands
|
||||||||||||
Cash flows from operating activities
|
||||||||||||
Net income
|
86,754 | 105,648 | 81,546 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Adjustments to the profit or loss items:
|
||||||||||||
Depreciation and amortization
|
130,694 | 115,623 | 121,233 | |||||||||
Impairment of intangible assets
|
14,143 | - | - | |||||||||
Impairment of subsdiary activity
|
- | - | 8,036 | |||||||||
Amortization of Share-based compensation
|
7,066 | 3,650 | 4,802 | |||||||||
Revaluation (erosion) of short-term deposits
|
423 | - | (756 | ) | ||||||||
Revaluation of convertible debentues (Series A) presented at fair value through profit or loss
|
(5,151 | ) | - | - | ||||||||
Increase in value of options (Series 1), net
|
(1,602 | ) | - | - | ||||||||
Increase (decrease) in liabilities for employee benefits, net
|
(7,052 | ) | (3,242 | ) | 925 | |||||||
Decrease (increase) in deferred taxes
|
15,079 | 1,660 | (184 | ) | ||||||||
Taxes on income
|
1,280 | 31,358 | 19,880 | |||||||||
Financial expenses, net
|
2,952 | 6,023 | 7,843 | |||||||||
Gain from vesting of put option to non-controlling interest in a subsidiaty
|
- | (1,523 | ) | - | ||||||||
Capital loss (gain)
|
(382 | ) | 2 | - | ||||||||
157,450 | 153,551 | 161,779 | ||||||||||
Changes in operating assets and liability items:
|
||||||||||||
Decrease (increase) in trade receivables
|
(45,159 | ) | 26,656 | (716 | ) | |||||||
Decrease in other receivables
|
1,628 | 1,251 | 1,045 | |||||||||
Decrease (increase) in inventory of purchased products
|
2,073 | (66 | ) | 1,376 | ||||||||
Decrease in trade payables
|
(35,624 | ) | (8,274 | ) | (5,345 | ) | ||||||
Increase (decrease) in other payables
|
16,568 | (3,420 | ) | 1,652 | ||||||||
Decrease (increase) in other long-term receivables
|
(2,013 | ) | (3,535 | ) | 42 | |||||||
Increase (decrease) in long-term liabilities for trade payables
|
(278 | ) | 2,609 | (4,626 | ) | |||||||
Payment for rights of use of communication lines
|
(38,001 | ) | (37,550 | ) | (46,956 | ) | ||||||
Exercise of rights of communication lines
|
6,561 | 6,715 | 6,333 | |||||||||
Decrease in deferred revenues in respect of sale of rights of use of communication lines
|
(3,616 | ) | (2,935 | ) | (5,128 | ) | ||||||
(97,861 | ) | (18,549 | ) | (52,323 | ) | |||||||
Cash paid and received during the year for:
|
||||||||||||
Interest paid
|
(6,905 | ) | (9,687 | ) | (10,944 | ) | ||||||
Interest received
|
4,044 | 3,739 | 3,113 | |||||||||
Taxes paid
|
(58 | ) | (24,395 | ) | (21,513 | ) | ||||||
Taxes received
|
- | 225 | 5,772 | |||||||||
(2,919 | ) | (30,118 | ) | (23,572 | ) | |||||||
Net cash provided by operating activities
|
143,424 | 210,532 | 167,430 |
Year ended
|
Year ended
|
Year ended
|
||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||
2008
|
2009
|
2010
|
||||||||||
NIS thousands
|
||||||||||||
Cash flows from investing activities
|
||||||||||||
Purchase of property, plant and equipment
|
(72,309 | ) | (103,181 | ) | (65,205 | ) | ||||||
Purchase of intangible assets
|
(6,228 | ) | (7,130 | ) | (10,334 | ) | ||||||
Purchase of marketable securities
|
- | - | (228,936 | ) | ||||||||
Cash used in acquisition of initially consolidated
subsidiaries and activities (a)
|
(23,300 | ) | (7,742 | ) | - | |||||||
Proceeds from sale of marketable securities and short-term
deposits
|
37,514 | - | 42,428 | |||||||||
Proceeds from sale of investments in previously
consolidated subsidiaries (b)
|
213 | - | - | |||||||||
Indemnification from insurance company for damage to property, plant and equipment
|
- | 6,054 | - | |||||||||
Net cash used in investing activities
|
(64,110 | ) | (111,999 | ) | (262,047 | ) | ||||||
Cash flows from financing activities
|
||||||||||||
Subsidiary shares buyback from non-controlling interests
|
- | - | (850 | ) | ||||||||
Exercise of options and employee options
|
2,930 | 31,400 | 2,971 | |||||||||
Short-term bank credit, net
|
53,107 | (85,656 | ) | 5,501 | ||||||||
Repayment of debentures (Series B)
|
- | (15,675 | ) | (482 | ) | |||||||
Repayment of long-term loans
|
- | (8,750 | ) | (36,148 | ) | |||||||
Receipt of long-term loans
|
- | 191,727 | 2,000 | |||||||||
Dividend paid to equity holders of the Company
|
- | (116,466 | ) | (125,000 | ) | |||||||
Net cash from (used in) financing activities
|
56,037 | (3,420 | ) | (152,008 | ) | |||||||
Exchange differences on balances of cash and
cash equivalents
|
- | (31 | ) | 6 | ||||||||
Increase (decrease) in cash and cash equivalents
|
135,351 | 95,082 | (246,619 | ) | ||||||||
Cash and cash equivalents at the beginning of the year
|
95,515 | 230,866 | 325,948 | |||||||||
Cash and cash equivalents at the end of the year
|
230,866 | 325,948 | 79,329 |
Year ended
|
Year ended
|
Year ended
|
|||||||||||
December 31,
|
December 31,
|
December 31,
|
|||||||||||
2008
|
2009
|
2010
|
|||||||||||
NIS thousands
|
|||||||||||||
(a)
|
Cash used in acquisition of initially consolidated
subsidiaries and activities
|
||||||||||||
The subsidiaries' assets and liabilities at the date of acquisition:
|
|||||||||||||
Working capital (excluding cash and cash equivalents)
|
198 | 8,541 | - | ||||||||||
Property, plant and equipment, net
|
(1,059 | ) | (1,320 | ) | - | ||||||||
Intangible assets, net
|
(22,439 | ) | (21,412 | ) | - | ||||||||
Liabilities for employee benefits
|
- | 234 | - | ||||||||||
Non-controlling interests
|
- | 6,215 | - | ||||||||||
(23,300 | ) | (7,742 | ) | - | |||||||||
(b)
|
Proceeds from sale of investments in previously
consolidated subsidiaries:
|
||||||||||||
The subsidiary's assets and liabilities at the date of sale:
|
|||||||||||||
Working capital (excluding cash and cash equivalents)
|
(169 | ) | - | - | |||||||||
Capital gain
|
382 | - | - | ||||||||||
213 | - | - | |||||||||||
(c)
|
Significant non-cash transactions:
|
||||||||||||
Conversion of debentures into shares
|
10,484 | 761 | 29,893 | ||||||||||
Purchase of property, plant and equipment on credit
|
(23,984 | ) | (21,421 | ) | (26,004 | ) | |||||||
Classification of equity component of convertible
debentures from liability to equity
|
9,574 | - | - | ||||||||||
Classification of receipts on account of options (Series 1)
from liabilities to equity
|
9,971 | - | - | ||||||||||
Deferred taxes recorded against reduction of goodwill
|
17,845 | 19,456 | - |
December 31,
|
June 30,
|
June 30,
|
||||||||||
2010
|
2010
|
2011
|
||||||||||
Audited
|
Unaudited
|
|||||||||||
NIS thousands
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
79,329 | 183,628 | 102,730 | |||||||||
Sort-term investments
|
187,264 | 96,060 | 60,170 | |||||||||
Trade receivables, net
|
262,375 | 258,048 | 247,996 | |||||||||
Other receivables
|
49,120 | 51,746 | 63,102 | |||||||||
Inventory of purchased products
|
5,176 | 6,218 | 4,393 | |||||||||
583,264 | 595,700 | 478,391 | ||||||||||
Non-current assets
|
||||||||||||
Long-term receivables
|
13,189 | 13,219 | 16,632 | |||||||||
Rights of use of communication lines
|
261,732 | 252,965 | 267,495 | |||||||||
Property, plant and equipment, net
|
199,868 | 195,823 | 185,356 | |||||||||
Goodwill
|
531,098 | 530,516 | 531,112 | |||||||||
Intangible assets, net
|
39,548 | 49,092 | 36,647 | |||||||||
Deferred tax assets
|
46,652 | 50,250 | 38,787 | |||||||||
1,092,087 | 1,091,865 | 1,076,029 | ||||||||||
1,675,351 | 1,687,565 | 1,554,420 | ||||||||||
Current liabilities
|
||||||||||||
Short-term bank credit and current maturities of
loans from banks
|
41,843 | 36,353 | 16,485 | |||||||||
Trade payables
|
204,155 | 195,746 | 186,355 | |||||||||
Other payables
|
129,845 | 118,471 | 128,898 | |||||||||
Current maturities of long-term liabilities to trade payables
|
4,018 | 4,995 | 5,308 | |||||||||
Current maturities of convertible debentures
|
177 | 440 | - | |||||||||
380,038 | 356,005 | 337,046 | ||||||||||
Non-current liabilities
|
||||||||||||
Loans from banks
|
112,650 | 124,709 | 28,340 | |||||||||
Deferred revenues in respect of rights of use of communication lines
|
56,995 | 59,715 | 55,181 | |||||||||
Long-term liabilities to trade payables
|
9,885 | 11,653 | 12,172 | |||||||||
Employee benefit liabilities
|
17,506 | 15,442 | 10,010 | |||||||||
197,036 | 211,519 | 105,703 | ||||||||||
Equity attributable to owners of the Company
|
||||||||||||
Share capital
|
32,422 | 32,282 | 32,489 | |||||||||
Share premium
|
1,091,830 | 1,084,266 | 1,094,613 | |||||||||
Proceeds from conversion option on debentures
|
31 | 77 | - | |||||||||
Adjustments arising from translating financial statements
|
(956 | ) | (550 | ) | - | |||||||
Reserve for transaction with non-controlling interests
|
(182 | ) | - | (182 | ) | |||||||
Accumulated losses
|
(28,981 | ) | (4,360 | ) | (19,168 | ) | ||||||
Non-controlling interest
|
4,113 | 8,326 | 3,919 | |||||||||
Total equity
|
1,098,277 | 1,120,041 | 1,111,671 | |||||||||
1,675,351 | 1,687,565 | 1,554,420 |
August 8, 2011
|
(Signed)
|
(Signed)
|
(Signed)
|
|||
Date of approval of
|
Ami Erel
|
Nir Sztern
|
Ofir Sarid
|
|||
financial statements
|
Chairman of the Board of
|
Chief Executive Officer
|
Chief Financial Officer
|
|||
Directors
|
Year ended
December 31, |
Three-month period ended
June 30,
|
Six-month period ended
June 30,
|
||||||||||||||||||
2010
|
2010
|
2011
|
2010
|
2011
|
||||||||||||||||
Audited
|
Unaudited
|
|||||||||||||||||||
NIS thousands
|
||||||||||||||||||||
Revenues
|
1,302,908 | 314,024 | 315,063 | 628,035 | 638,741 | |||||||||||||||
Cost of revenues
|
1,060,463 | 250,658 | 240,653 | 504,294 | 496,593 | |||||||||||||||
Gross profit
|
242,445 | 63,366 | 74,410 | 123,741 | 142,148 | |||||||||||||||
Selling and marketing expenses
|
53,662 | 12,846 | 11,245 | 28,241 | 25,429 | |||||||||||||||
General and administrative expenses
|
65,672 | 16,723 | 16,570 | 32,603 | 31,920 | |||||||||||||||
Other operating expenses (income):
|
||||||||||||||||||||
Lawsuit settlement
|
- | - | 8,964 | - | 8,964 | |||||||||||||||
Other income, net, from sale of
subsidiary and other activities
|
8,036 | - | (376 | ) | - | (376 | ) | |||||||||||||
Operating profit
|
115,075 | 33,797 | 38,007 | 62,897 | 76,211 | |||||||||||||||
Financing income
|
5,347 | 938 | 1,048 | 1,877 | 1,308 | |||||||||||||||
Financing expenses
|
(19,524 | ) | (4,359 | ) | (3,097 | ) | (8,911 | ) | (7,234 | ) | ||||||||||
Other income
|
344 | 344 | 312 | 344 | 312 | |||||||||||||||
Income before taxes on income
|
101,242 | 30,720 | 36,270 | 56,207 | 70,597 | |||||||||||||||
Taxes on income
|
19,696 | 6,719 | 9,104 | 12,172 | 18,071 | |||||||||||||||
Net income
|
81,546 | 24,001 | 27,166 | 44,035 | 52,526 | |||||||||||||||
Other comprehensive income (loss), net of tax effect:
|
||||||||||||||||||||
Adjustments arising from translating
financial statements of foreign
operations
|
(517 | ) | 307 | - | 155 | - | ||||||||||||||
Realization of capital reserve in respect of a foreign operation which has been sold
|
- | - | 956 | - | 956 | |||||||||||||||
Actuarial loss from defined benefit
plans, net
|
(2,192 | ) | - | - | - | - | ||||||||||||||
Total other comprehensive
income (loss), net
|
(2,709 | ) | 307 | 956 | 155 | 956 | ||||||||||||||
Total comprehensive income
|
78,837 | 24,308 | 28,122 | 44,190 | 53,482 | |||||||||||||||
Net income attributable to:
|
||||||||||||||||||||
Equity holders of the Company
|
84,871 | 24,051 | 27,117 | 44,225 | 51,846 | |||||||||||||||
Non-controlling interests
|
(3,325 | ) | (50 | ) | 49 | (190 | ) | 680 | ||||||||||||
81,546 | 24,001 | 27,166 | 44,035 | 52,526 | ||||||||||||||||
Total comprehensive income
attributable to:
|
||||||||||||||||||||
Equity holders of the Company
|
82,467 | 24,205 | 28,073 | 44,275 | 52,802 | |||||||||||||||
Non-controlling interests
|
(3,630 | ) | 103 | 49 | (85 | ) | 680 | |||||||||||||
78,837 | 24,308 | 28,122 | 44,190 | 53,482 | ||||||||||||||||
Net earnings per share
attributable to equity holders of the Company (in NIS)
|
||||||||||||||||||||
Basic net earnings
|
2.74 | 0.78 | 0.86 | 1.45 | 1.64 | |||||||||||||||
Diluted net earnings
|
2.66 | 0.73 | 0.86 | 1.38 | 1.64 |
Attributable to equity holders of the Company
|
||||||||||||||||||||||||||||||||||||
Share capital
|
Share premium
|
Conversion option
(Series B)
|
Adjustments arising from translating financial statements
|
Reserve for transactions with non-controlling interests
|
Retained earnings (accumulated losses)
|
Total
|
Non-controlling
interests
|
Total equity
|
||||||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||||||||||||||
NIS thousands
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2011 (audited) | 32,422 | 1,091,830 | 31 | (956 | ) | (182 | ) | (28,981 | ) | 1,094,164 | 4,113 | 1,098,277 | ||||||||||||||||||||||||
Amortization of Share-based compensation
|
- | - | - | - | - | 1,079 | 1,079 | - | 1,079 | |||||||||||||||||||||||||||
Exercise of employee share options
|
63 | 2,650 | - | - | - | (2,112 | ) | 601 | - | 601 | ||||||||||||||||||||||||||
Conversion of debentures (Series B) into shares
|
4 | 133 | (31 | ) | - | - | - | 106 | - | 106 | ||||||||||||||||||||||||||
Dividend
|
- | - | - | - | - | (41,000 | ) | (41,000 | ) | (874 | ) | (41,874 | ) | |||||||||||||||||||||||
Total comprehensive income
|
- | - | - | 956 | - | 51,846 | 52,802 | 680 | 53,482 | |||||||||||||||||||||||||||
Balance as of June 30, 2011 | 32,489 | 1,094,613 | - | - | (182 | ) | (19,168 | ) | 1,107,752 | 3,919 | 1,111,671 | |||||||||||||||||||||||||
Balance as of January 1, 2010 (audited)
|
31,205 | 1,047,393 | 5,337 | (600 | ) | - | 15,878 | 1,099,213 | 8,411 | 1,107,624 | ||||||||||||||||||||||||||
Amortization of Share-based compensation
|
- | - | - | - | - | 2,576 | 2,576 | - | 2,576 | |||||||||||||||||||||||||||
Exercise of employee share options
|
46 | 3,009 | - | - | - | (2,039 | ) | 1,016 | - | 1,016 | ||||||||||||||||||||||||||
Conversion of debentures (Series B) into shares
|
1,031 | 33,864 | (5,260 | ) | - | - | - | 29,635 | - | 29,635 | ||||||||||||||||||||||||||
Dividend
|
- | - | - | - | - | (65,000 | ) | (65,000 | ) | - | (65,000 | ) | ||||||||||||||||||||||||
Total comprehensive income
|
- | - | - | 50 | - | 44,225 | 44,275 | (85 | ) | 44,190 | ||||||||||||||||||||||||||
Balance as of June 30, 2010
|
32,282 | 1,084,266 | 77 | (550 | ) | - | (4,360 | ) | 1,111,715 | 8,326 | 1,120,041 |
Attributable to equity holders of the Company
|
||||||||||||||||||||||||||||||||||||
Share capital
|
Share premium
|
Conversion option
(Series B)
|
Adjustments arising from translating financial statements
|
Reserve for transactions with non-controlling interests
|
Retained earnings (accumulated losses)
|
Total
|
Non-controlling
interests
|
Total equity
|
||||||||||||||||||||||||||||
Unaudited
|
||||||||||||||||||||||||||||||||||||
NIS thousands
|
||||||||||||||||||||||||||||||||||||
Balance as of April 1, 2011
|
32,481 | 1,094,322 | 31 | (956 | ) | (182 | ) | (46,748 | ) | 1,078,948 | 3,870 | 1,082,818 | ||||||||||||||||||||||||
Amortization of Share-based compensation
|
- | - | - | - | - | 625 | 625 | - | 625 | |||||||||||||||||||||||||||
Exercise of employee share options
|
4 | 158 | - | - | - | (162 | ) | - | - | - | ||||||||||||||||||||||||||
Conversion of debentures (Series B) into shares
|
4 | 133 | (31 | ) | - | - | - | 106 | - | 106 | ||||||||||||||||||||||||||
Total comprehensive income
|
- | - | - | 956 | - | 27,117 | 28,073 | 49 | 28,122 | |||||||||||||||||||||||||||
Balance as of June 30, 2011
|
32,489 | 1,094,613 | - | - | (182 | ) | (19,168 | ) | 1,107,752 | 3,919 | 1,111,671 | |||||||||||||||||||||||||
Balance as of April 1, 2010
|
31,334 | 1,053,488 | 4,845 | (704 | ) | - | (29,252 | ) | 1,059,711 | 8,223 | 1,067,934 | |||||||||||||||||||||||||
Amortization of Share-based compensation
|
- | - | - | - | - | 981 | 981 | - | 981 | |||||||||||||||||||||||||||
Exercise of employee share options
|
11 | 129 | - | - | - | (140 | ) | - | - | - | ||||||||||||||||||||||||||
Conversion of debentures (Series B) into shares
|
937 | 30,649 | (4,768 | ) | - | - | - | 26,818 | - | 26,818 | ||||||||||||||||||||||||||
Total comprehensive income
|
- | - | - | 154 | - | 24,051 | 24,205 | 103 | 24,308 | |||||||||||||||||||||||||||
Balance as of June 30, 2010
|
32,282 | 1,084,266 | 77 | (550 | ) | - | (4,360 | ) | 1,111,715 | 8,326 | 1,120,041 |
Attributable to equity holders of the Company
|
||||||||||||||||||||||||||||||||||||
Share capital
|
Share premium
|
Conversion option
(Series B)
|
Adjustments arising from translating financial statements
|
Reserve for transactions with non-controlling interests
|
Retained earnings (accumulated losses)
|
Total
|
Non-controlling
interests
|
Total equity
|
||||||||||||||||||||||||||||
NIS thousands
|
||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2010 (audited)
|
31,205 | 1,047,393 | 5,337 | (600 | ) | - | 15,878 | 1,099,213 | 8,411 | 1,107,624 | ||||||||||||||||||||||||||
Net income (loss)
|
- | - | - | - | - | 84,871 | 84,871 | (3,325 | ) | 81,546 | ||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
- | - | - | (356 | ) | - | (2,048 | ) | (2,404 | ) | (305 | ) | (2,709 | ) | ||||||||||||||||||||||
Total comprehensive income (loss)
|
- | - | - | (356 | ) | - | 82,823 | 82,467 | (3,630 | ) | 78,837 | |||||||||||||||||||||||||
Amortization of Share-based compensation
|
- | - | - | - | - | 4,802 | 4,802 | - | 4,802 | |||||||||||||||||||||||||||
Conversion of convertible debentures (Series B)
|
1,040 | 34,159 | (5,306 | ) | - | - | - | 29,893 | - | 29,893 | ||||||||||||||||||||||||||
Exercise of employee share options
|
177 | 10,278 | - | - | - | (7,484 | ) | 2,971 | - | 2,971 | ||||||||||||||||||||||||||
Subsidiary shares buyback from non-controlling interests
|
- | - | - | - | (182 | ) | - | (182 | ) | (668 | ) | (850 | ) | |||||||||||||||||||||||
Dividend declared
|
- | - | - | - | - | (125,000 | ) | (125,000 | ) | - | (125,000 | ) | ||||||||||||||||||||||||
Balance as of December 31, 2010 (audited)
|
32,422 | 1,091,830 | 31 | (956 | ) | (182 | ) | (28,981 | ) | 1,094,164 | 4,113 | 1,098,277 |
Year ended
December 31, |
Three-month period ended
June 30,
|
Six-month period ended
June 30,
|
||||||||||||||||||
2010
|
2010
|
2011
|
2010
|
2011
|
||||||||||||||||
Audited
|
Unaudited
|
|||||||||||||||||||
NIS thousands
|
||||||||||||||||||||
Cash flows from operating activities
|
||||||||||||||||||||
Net income
|
81,546 | 24,001 | 27,166 | 44,035 | 52,526 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||||||
Adjustments to the profit or loss items:
|
||||||||||||||||||||
Depreciation and amortization
|
121,233 | 29,763 | 29,155 | 58,203 | 57,024 | |||||||||||||||
Impairment of subsdiary activity
|
8,036 | - | 956 | - | 956 | |||||||||||||||
Amortization of Share-based compensation
|
4,802 | 981 | 625 | 2,576 | 1,079 | |||||||||||||||
Erosion of short-term deposits
|
(756 | ) | - | (580 | ) | - | (481 | ) | ||||||||||||
Increase (decrease) in liabilities for employee benefits, net
|
925 | 703 | (499 | ) | 1,054 | (599 | ) | |||||||||||||
Decrease (increase) in deferred taxes
|
(184 | ) | 2,451 | 3,977 | 260 | 7,866 | ||||||||||||||
Taxes on income
|
19,880 | 4,268 | 5,127 | 11,912 | 10,205 | |||||||||||||||
Financial expenses, net
|
7,843 | 1,817 | 1,204 | 3,522 | 2,976 | |||||||||||||||
Capital gain from sale of of property, plant and equipment
|
- | - | - | - | (71 | ) | ||||||||||||||
161,779 | 39,983 | 39,965 | 77,527 | 78,955 |
Year ended
December 31, |
Three-month period ended
June 30,
|
Six-month period ended
June 30,
|
||||||||||||||||||
2010
|
2010
|
2011
|
2010
|
2011
|
||||||||||||||||
Audited
|
Unaudited
|
|||||||||||||||||||
NIS thousands
|
||||||||||||||||||||
Changes in operating assets and liability items:
|
||||||||||||||||||||
Decrease (increase) in trade receivables
|
(716 | ) | (3,372 | ) | (437 | ) | 4,178 | 14,379 | ||||||||||||
Decrease (increase) in other receivables
|
1,045 | 55 | 198 | (5,119 | ) | (10,783 | ) | |||||||||||||
Decrease in inventory of purchased products
|
1,376 | 733 | 828 | 391 | 783 | |||||||||||||||
Increase (decrease) in trade payables
|
(5,345 | ) | (7,890 | ) | (15,763 | ) | 1,856 | (9,324 | ) | |||||||||||
Increase (decrease) in other payables
|
1,652 | 293 | (73 | ) | (3,454 | ) | (3,488 | ) | ||||||||||||
Decrease (increase) in long-term receivables
|
42 | (1,138 | ) | 262 | 11 | (3,444 | ) | |||||||||||||
Increase (decrease) in long-term liabilities for trade payables
|
(4,626 | ) | (1,120 | ) | (1,806 | ) | (1,881 | ) | 3,576 | |||||||||||
Payment for rights of use of communication lines
|
(46,956 | ) | (10,882 | ) | (11,967 | ) | (22,167 | ) | (24,706 | ) | ||||||||||
Exercise of rights of communication lines
|
6,333 | 1,579 | 1,581 | 3,138 | 3,139 | |||||||||||||||
Decrease in deferred revenues in respect of sale of rights of use of communication lines
|
(5,128 | ) | (1,291 | ) | (800 | ) | (2,409 | ) | (1,794 | ) | ||||||||||
(52,323 | ) | (23,033 | ) | (27,977 | ) | (25,456 | ) | (31,662 | ) | |||||||||||
Cash paid and received during the year for:
|
||||||||||||||||||||
Interest paid
|
(10,944 | ) | (2,615 | ) | (1,588 | ) | (5,479 | ) | (4,931 | ) | ||||||||||
Interest received
|
3,113 | 746 | 384 | 1,915 | 1,955 | |||||||||||||||
Taxes paid
|
(21,513 | ) | (4,937 | ) | (9,358 | ) | (11,925 | ) | (14,594 | ) | ||||||||||
Taxes received
|
5,772 | - | - | - | - | |||||||||||||||
(23,572 | ) | (6,806 | ) | (10,562 | ) | (15,489 | ) | (17,570 | ) | |||||||||||
Net cash provided by operating activities
|
167,430 | 34,145 | 28,592 | 80,617 | 82,249 |
Year ended
December 31, |
Three-month period ended
June 30,
|
Six-month period ended
June 30,
|
||||||||||||||||||
2010
|
2010
|
2011
|
2010
|
2011
|
||||||||||||||||
Audited
|
Unaudited
|
|||||||||||||||||||
NIS thousands
|
||||||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||||||
Purchase of property, plant and equipment
|
(65,205 | ) | (15,969 | ) | (16,541 | ) | (35,286 | ) | (30,325 | ) | ||||||||||
Purchase of intangible assets
|
(10,334 | ) | (2,405 | ) | (2,661 | ) | (5,014 | ) | (5,320 | ) | ||||||||||
Purchase of marketable securities
|
(228,936 | ) | (96,006 | ) | - | (96,006 | ) | - | ||||||||||||
Proceeds from sale of property, plant and equipment
|
- | - | - | - | 234 | |||||||||||||||
Proceeds from sale of marketable securities and short-term
deposits
|
42,428 | - | 29,923 | - | 127,575 | |||||||||||||||
Net cash provided by (used in) investing activities
|
(262,047 | ) | (114,380 | ) | 10,721 | (136,306 | ) | 92,164 | ||||||||||||
Cash flows from financing activities
|
||||||||||||||||||||
Subsidiary shares buyback from non-controlling interests
|
(850 | ) | - | - | - | - | ||||||||||||||
Exercise of employee options
|
2,971 | - | - | 1,016 | 601 | |||||||||||||||
Short-term bank credit, net
|
5,501 | - | 2,009 | - | 538 | |||||||||||||||
Repayment of debentures (Series B)
|
(482 | ) | (477 | ) | (71 | ) | (477 | ) | (71 | ) | ||||||||||
Repayment of long-term loans
|
(36,148 | ) | (16,897 | ) | (3,919 | ) | (22,078 | ) | (111,088 | ) | ||||||||||
Receipt of long-term loans
|
2,000 | - | 202 | - | 882 | |||||||||||||||
Dividend paid to equity holders of the Company
|
(125,000 | ) | (65,000 | ) | (41,000 | ) | (65,000 | ) | (41,874 | ) | ||||||||||
Net cash used in financing activities
|
(152,008 | ) | (82,374 | ) | (42,779 | ) | (86,539 | ) | (151,012 | ) | ||||||||||
Exchange differences on balances of cash and cash equivalents
|
6 | (102 | ) | - | (92 | ) | - | |||||||||||||
Increase (decrease) in cash and cash equivalents
|
(246,619 | ) | (162,711 | ) | (3,466 | ) | (142,320 | ) | 23,401 | |||||||||||
Cash and cash equivalents at the beginning of the year
|
325,948 | 346,339 | 106,196 | 325,948 | 79,329 | |||||||||||||||
Cash and cash equivalents at the end of the year
|
79,329 | 183,628 | 102,730 | 183,628 | 102,730 | |||||||||||||||
(a) Significant non-cash transactions:
|
||||||||||||||||||||
Conversion of debentures into shares
|
29,893 | 26,818 | 106 | 29,635 | 106 | |||||||||||||||
Purchase of property, plant and equipment on credit
|
(26,004 | ) | (5,769 | ) | (1,869 | ) | (9,738 | ) | (9,039 | ) |
|
A.
|
Business combination
|
|
B.
|
Pro forma condensed consolidated income statement
|
Year ended December 31, 2011
|
||||||||||||||||||||
NIS millions
|
||||||||||||||||||||
Cellcom
|
Netvision
|
Reconciliation for consolidation
|
Consolidated
|
Note
|
||||||||||||||||
Revenues
|
6,131 | 1,200 | (74 | ) | 7,257 | 1 | ||||||||||||||
Cost of revenues
|
(3,144 | ) | (865 | ) | 74 | (3,935 | ) | 1 | ||||||||||||
Gross profit
|
2,987 | 335 | - | 3,322 | ||||||||||||||||
Selling and marketing expenses
|
(911 | ) | (80 | ) | (115 | ) | (1,106 | ) | 2 | |||||||||||
General and administrative expenses
|
(651 | ) | (108 | ) | - | (759 | ) | |||||||||||||
Other expenses, net
|
(1 | ) | (7 | ) | - | (8 | ) | |||||||||||||
Operating profit
|
1,424 | 140 | (115 | ) | 1,449 | |||||||||||||||
Financing income
|
114 | 5 | 15 | 134 | 3 | |||||||||||||||
Financing expenses
|
(405 | ) | (11 | ) | (60 | ) | (476 | ) | 3 | |||||||||||
Financing expenses, net
|
(291 | ) | (6 | ) | (45 | ) | (342 | ) | ||||||||||||
Profit before taxes on income
|
1,133 | 134 | (160 | ) | 1,107 | |||||||||||||||
Taxes on income
|
(312 | ) | (24 | ) | 28 | (308 | ) | 4 | ||||||||||||
Profit for the year
|
821 | 110 | (132 | ) | 799 |
|
C.
|
Explanatory notes
|
|
1.
|
Elimination of intercompany transactions, mainly interconnect and roaming services.
|
|
2.
|
Depreciation and amortization expenses based on the allocated purchase price of net assets acquired.
|
|
3.
|
Theoretical financing income and expenses, assuming Netvision had been acquired on January 1, 2011.
|
|
4.
|
Tax benefit in respect of depreciation and amortization of purchase price allocations, assuming Netvision had been acquired on January 1, 2011.
|
CELLCOM ISRAEL LTD.
|
||||||
Date:
|
March 13, 2012
|
By:
|
/s/ Liat Menahemi Stadler
|
|||
Name:
|
Liat Menahemi Stadler
|
|||||
Title:
|
General Counsel
|