Bezeq Israel Telecommunication : Group updates 2021 guidance

Immediate Report - Bezeq Group's Updated Forecast for 2021.pdf288.1 KB

Immediate Report - Bezeq Group's Updated Forecast for 2021

The Company is hereby updating the Group's forecast for 2021, which was published in the Company's immediate report dated March 25, 2021 and in Section 1.6 of the chapter entitled Description of the Corporation's Business in the Company's 2020 Periodic Report published on the same date (hereinafter - the "Periodic Report"), based on the information currently known to it, as follows:

• Adjusted net profit^[1] attributable to shareholders is expected to be approximately NIS 1.1 billion (compared with approximately NIS 1 billion in the original forecast).

• Adjusted EBITDA^[2] is expected to be approximately NIS 3.65 billion (compared with approximately NIS 3.5 billion in the original forecast).

• CAPEX^[3] is expected to be approximately NIS 1.8 billion (compared with approximately NIS 1.7 billion in the original forecast).

The Company forecasts stated in this immediate report are forward looking information in its meaning in the Securities Law, 1968. The forecasts are based on the Company's estimates, assumptions and expectations.

The forecasts are based, among other things, on the Group's estimates regarding the structure of the competition in the communications market and the regulation of the sector, on the current economic situation in Israel, and accordingly - on the Group's ability to continue to implement its plans for 2021, taking into account the changes in the above, the business conditions and the impact of regulatory decisions, technological changes, developments in the structure of the communications market, etc., or if one or more of the risk factors listed in the Periodic Report materializes. In addition, there is no certainty that the forecast will fully or partially materialize, inter alia, due to the COVID-19 pandemic and the significant uncertainty resulting therefrom.

The Company will report, as required, on deviations of ± 10% or more from the amounts specified in the forecast.

Yours sincerely,
"Bezeq" The Israel Telecommunication Corp., Limited

The above information constitutes a translation of theImmediate Reportpublished by the Company. The Hebrew version wassubmitted by the Company tothe relevant authorities pursuant to Israeli law, and represents the bindingversion and the only onehaving legal effect. This translation was preparedfor convenience purposes only.

[1]Adjusted Net Profit and Adjusted EBITDA - after adjusting for other operating expenses/income, net, one-time losses/gains from impairment/increase in value of assets and stock based compensation.

[2]See Footnote 1.

[3]CAPEX - gross payments for investments in fixed and intangible assets.