1 August 28, 2013

Partner Communications Company Ltd.

Company presentation

Q2 2013 Results

22

This presentation includes forward-looking statements within the meaning of Section 27A ofthe US Securities Act of 1933, as amended, Section 21E of the US Securities Exchange Act of1934, as amended, and the safe harbor provisions of the US Private Securities LitigationReform Act of 1995. Words such as "believe", "anticipate", "expect", "intend", "seek", "will","plan", "could", "may", "project", "goal", "target" and similar expressions often identify forward-looking statements but are not the only way we identify these statements. All statements otherthan statements of historical fact included in this press release regarding our futureperformance, plans to increase revenues or margins or preserve or expand market share inexisting or new markets, reduce expenses and any statements regarding other future eventsor our future prospects, are forward-looking statements.

We have based these forward-looking statements on our current knowledge and our presentbeliefs and expectations regarding possible future events. These forward-looking statementsare subject to risks, uncertainties and assumptions about Partner, consumer habits andpreferences in cellular telephone usage, trends in the Israeli telecommunications industry ingeneral, the impact of current global economic conditions and possible regulatory and legaldevelopments. For a description of some of the risks we face, see "Item 3D. Key Information -Risk Factors", "Item 4. - Information on the Company", "Item 5. - Operating and FinancialReview and Prospects", "Item 8A. - Consolidated Financial Statements and Other FinancialInformation - Legal and Administrative Proceedings" and "Item 11. - Quantitative andQualitative Disclosures about Market Risk" in the Company's 2012 Annual Report (20-F) filedwith the SEC on March 19, 2013. In light of these risks, uncertainties and assumptions, theforward-looking events discussed in this press release might not occur, and actual results maydiffer materially from the results anticipated. We undertake no obligation to publicly update orrevise any forward-looking statements, whether as a result of new information, future events orotherwise.

Safe Harbor Statement

33

1. Partner Highlights

2. The Israeli Telecommunications Market

3. Financial and Operational Performance

4. Partner’s Strategic Direction

Agenda

44

1. Partner Highlights

55

At a Glance

A leading communications group operating

under the “orange” and 012 Smile

brands

Strong brand and

market presence

29%estimated

cellular market share

Strong subscriber

base

Evolving intoa diversifiedMulti-Service

Communicationsand Media group

High Speed Network,

LTE Ready

66

Revenues of NIS 1,130 million ($ 312 million)

Service Revenues of NIS 950 million ($ 263 million)

Equipment Revenues of NIS 180 million ($ 50 million)

EBITDA* of NIS 280 million ($ 77 million), 25% of total revenues

Net profit of NIS 20 million ($ 6 million)

Free Cash Flow (before Interest): NIS 287million (US$ 79 million)

Cellular ARPU: NIS 83 ($23)

Cellular Churn: 9.4%

Q2 2013 Financial and Operational Highlights

* EBITDA – Adjusted EBITDA represents earnings before interest (finance costs, net), taxes, depreciation, amortization (including amortization of intangible assets, deferred expenses-right of use, and share based compensation expenses) and impairment charges, as a measure of operating profit.

Please refer to the section “Use of Non-GAAP Financial Measures “ in the Company’s quarterly press release.

77

S.B. Israel Telecom Ltd. is an affiliate of Saban Capital Group, Inc. ("SCG"). SCG is a leading private investment firm based in Los Angeles specializing in the media, entertainment, and communication industries.

SCG was established by Mr. Haim Saban, co-founder of Fox Family Worldwide, a global television broadcasting, production, distribution and merchandising company owned in partnership with Rupert Murdoch and The News Corporation following its sale to The Walt Disney Company in October 2001. The firm currently makes both controlling and minority investments in public and private companies and takes an active role in its portfolio companies.

Ownership Structure

As of June 30, 2013

Partner’s Ownership Structure

88

2. The Israeli Telecommunications Market

9

Main Regulatory Actions*

Increasing competition - two

new operators and three MVNOs

Financial sanctions on licensees that

violate their license conditions

MOC has published a consultation

suggesting a tariff of 0.99 agora per minute

for fixed line interconnection.

MOC published the policy on fixed

line wholesale market

Reduction in cellular royalty rate to the Government for

2012 - 1.3%, 2013 - 0%

IEC fiber optic project-an agreement was

signed with ViaEuropafor the set-up of a FTTH infrastructure company

* Please also refer to the Company's 2012 Annual Report (20-F) filed with the SEC and the press release of March 19, 2013, and the Company’s Q2 2013 PR.

1010

3. Financial and Operational Performance

1111

Q2 2013 Financial Highlights

in NIS millions Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Revenues 1,428 1,315 1,258 1,144 1,130

Cost of Revenues 1,000 934 969 901 878

Gross Profit 428 381 289 243 252

S,G&A 213 192 160 171 171

Other income 30 28 26 23 21

Operating Profit 245 217 155 95 102

Financial Costs, net 73 68 38 49 71

Income Taxes 52 39 15 15 11

Net Profit 120 110 102 31 20

EBITDA* 423 401 340 268 280

* EBITDA – Adjusted EBITDA represents earnings before interest (finance costs, net), taxes, depreciation, amortization (including amortization of intangible assets, deferred expenses-right of use, and share based compensation expenses) and impairment charges, as a measure of operating profit.

Please refer to the section “Use of Non-GAAP Financial Measures “ in the Company’s quarterly press release.

1212

Cellular Subscribers (In thousands)

* Cellular subscribers at the end of the period

2,231 2,290 2,282 2,102 2,102 2,103

811 870 894874 830 818

3,042 3,160 3,176

2,976 2,932 2,921

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2009 2010 2011 2012 Q1'13 Q2'13

Post-paid Pre-paid

1313

Fixed Line Subscribers (In thousands)

292 295 292 285 281 282 288 293 294

632 632 632 618 609 594 587 581 572

0

100

200

300

400

500

600

700

800

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

Number of Fixed Lines ISP Subscribers

1414

151

122 111

97 101

83

364 366

397

450 437

532

250

300

350

400

450

500

-

25

50

75

100

125

150

2009 2010 2011 2012 Q2'12 Q2'13

MO

U (m

inut

es)

ARPU

(NIS

)

ARPU MOU

Cellular ARPU and MOU

* The ARPU for 2010 has been restated under the interconnect tariff of 2011, for purposes of comparison

MOU- the Company believes that reporting MOU is no longer beneficial to understanding the results of operation, and therefore the Company is considering ending reporting MOU as of the end of 2013.

*

1515

Quarterly Cellular Churn Rate

6.5%7.2%

8.2% 8.0%

8.9%

10.4%10.9%

10.4%

9.4%

0%

2%

4%

6%

8%

10%

12%

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13

1616

Total Revenues (In million NIS)

Results include 012 Smile from March 2011

5,424 5,6625,224

4,640

1,213 950

6551,012 1,774

932

215180

6,079 6,674

6,998

5,572

1,428 1,130

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011 2012 Q2'12 Q2'13

Service Revenues Equipment Revenues

1717

EBITDA* (In million NIS)

* EBITDA represents earnings before interest (finance costs, net), taxes, depreciation, amortization (including amortization of intangible assets, deferred expenses-right of use, and share based compensation expenses) and impairment charges, as a measure of operating profit.Please refer to the section “Use of Non-GAAP Financial Measures “ in the Company’s quarterly press release Results include 012 Smile from March 2011

2,304

2,570

2,178

1,602

423 280

38% 39%

31%29% 30%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

500

1,000

1,500

2,000

2,500

2009 2010 2011 2012 Q2'12 Q2'13

% t

otal

reve

nues

NIS

mill

ions

EBITDA EBITDA margin

1818

OPEX (In million NIS)

OPEX includes cost of service revenues, and selling, marketing and administrative expenses, and excludes depreciation and amortization and impairment charges

913

952

889872

853

793

744720

700

500

600

700

800

900

Q2' 11 Q3' 11 Q4' 11 Q1' 12 Q2' 12 Q3' 12 Q4' 12 Q1' 13 Q2' 13

1919

Net Debt / EBITDA*

Net Debt at the end of the period, EBITDA for the last four quarters

2,102

3,395

4,639

3,812 3,622 3,446

0.9

1.3

2.12.4

2.52.7

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

2009 2010 2011 2012 Q1'13 Q2'13

Net D

ebt /

EBI

TDA

NIS

milli

ons

Net Debt Net debt / EBITDA

* EBITDA represents earnings before interest (finance costs, net), taxes, depreciation, amortization (including amortization of intangible assets, deferred expenses-right of use, and share based compensation expenses) and impairment charges, as a measure of operating profit.Please refer to the section “Use of Non-GAAP Financial Measures “ in the Company’s quarterly press release

2020

EBITDA - CAPEX* (In million NIS)

* Cash capital expenditures in fixed assets including intangible assets but excluding capitalized subscriber acquisition and retention costs, net,

1,747

2,175

1,707

1,110

310 158

-

400

800

1,200

1,600

2,000

2,400

2009 2010 2011 2012 Q2'12 Q2'13

* EBITDA represents earnings before interest (finance costs, net), taxes, depreciation, amortization (including amortization of intangible assets, deferred expenses-right of use, and share based compensation expenses) and impairment charges, as a measure of operating profit.Please refer to the section “Use of Non-GAAP Financial Measures “ in the Company’s quarterly press release

2121

557 395 471 492 113 122

6,079 6,674

6,998

5,572

1,428 1,130

9%

6%7%

9%8%

11%

2%

4%

6%

8%

10%

12%

14%

16%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011 2012 Q2'12 Q2'13

Cap

ex a

s %

Tot

al R

even

ues

NIS

mill

ions

CAPEX Revenues CAPEX margin

CAPEX* / Revenues

* Cash capital expenditures in fixed assets including intangible assets but excluding capitalized subscriber acquisition and retention costs,, net,

2222

Free Cash Flow (In million NIS)

Free Cash Flow- Cash flows generated from operating activities before interest payments, net of cash flows used for investments activities, after elimination of cash flows used for the acquisition of 012 Smile

1,021

1,502

1,082

1,234

313 287

-

200

400

600

800

1,000

1,200

1,400

1,600

2009 2010 2011 2012 Q2'12 Q2'13

2323

EBITDA Evolution Q1’13-Q2’13 (In million NIS)

268

280

Q1 2013 Q2 2013

EBITDA represents earnings before interest (finance costs, net), taxes, depreciation, amortization (including amortization of intangible assets, deferred expenses-right of use, and share based compensation expenses) and impairment charges, as a measure of operating profit. Please refer to the section "Use of Non-GAAP Measures" in the Company's quarterly press release.

The analysis presented includes intersegment revenues and expenses.

2424

EBITDA Evolution Q2’12-Q2’13 (In million NIS)

423

280

Q2 2012 Q2 2013

EBITDA represents earnings before interest (finance costs, net), taxes, depreciation, amortization (including amortization of intangible assets, deferred expenses-right of use, and share based compensation expenses) and impairment charges, as a measure of operating profit. Please refer to the section "Use of Non-GAAP Measures" in the Company's quarterly press release.

The analysis presented includes intersegment revenues and expenses.

2525

Balance Sheet, June 30, 2013 (In million NIS)

Assets Liabilities and Equity

Cash and cash equivalents 513 Current maturities of Notes payables and loans 332 Trade receivables and other 1,334 Trade payables 765 Inventories 106 Other current liabilities 288 Total Current Assets 1,953 Total Current Liabilities 1,385

Trade receivables and other 509 Long term borrowings 3,627 Property and equipment 1,846 Other liabilities 87 Goodwill 407 Total Long-term Liabilities 3,714 Intangible assets 1,180 Total Long-term Assets 3,942

Equity 796 Total Assets 5,895 Total Liabilities and Equity 5,895

2626

Dividend Distribution

No decision regarding dividend distribution was made in the second quarter of 2013.

187 410

752 841 1,059

1,220

350 160

-

1,091 351

1,400

53%

60%

80%

80%93%

98%

79%

33%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

-

500

1,000

1,500

2,000

2,500

3,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Dividend distributed Buy back One Time

2727

4. Partner’s Strategic Direction

2828

Our Strategy

Customer centric

strategy

StrongBranding

OperationalExcellence

Growth in mobile

broadband

Innovation and technological

leadership

Excellence in customer experience

Advancedquality service

High level of customer service

Customer value management

Focused marketing strategy

Focus on service, innovation & advanced technology

Integration with 012 Smile

Realizing the full marketing and product potential

Cost savings

Capitalizing on the rapid increase in demand for ubiquitous mobile data services and devices

Innovative products and services

Commitment to network quality

Preparing for 4G network

2929

In Summary- Why Partner

Advanced networkCustomer centric

Strategy

Strong Brand Innovation

3030

Ziv Leitman, CFO

investors@orange.co.il

+972 54 781 4951

Yaffa Cohen-Ifrah,

Head of Investor Relations

Yaffa.cohenifrah@orange.co.il

+972 54 909 9039

Investors’ website: http://www.orange.co.il/en/Investors-Relations/lobby/

The future is bright. The future is Orange.