1May 22, 2013

Partner Communications Company Ltd.

Company presentation

Q1 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 1,144 million ($ 314 million)

Service Revenues of NIS 961 million ($ 263 million)

Equipment Revenues of NIS 183 million ($ 50 million)

EBITDA* of NIS 268 million ($ 73 million), 23% of total revenues

Net profit of NIS 31 million ($ 9 million)

Free Cash Flow (before Interest): NIS 203 million (US$ 55 million)

Cellular ARPU: NIS 82

Cellular Churn: 10.4%

Q1 2013 Financial and Operational Highlights

* 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.

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 March 31, 2013

Partner’s Ownership Structure

88

2. The Israeli Telecommunications Market

99

Telecommunications Market - 2012-2013

Regulatory changes

Intense competition in the

cellular market

Increased competition in the

ISP market

MOC decision regarding the

implementation of wholesale market in

the Fixed-line

10

Main Regulatory Actions*

Increasing competition - two

new operators and three MVNOs

Financial sanctions on licensees that

violate their license conditions

Handset Market Liberalization

MOC published the policy on fixed

line wholesale market

Reduction in cellular royalty rate to the Government for

2012 - 1.3%, 2013 - 0%

Israel Electric Company fiber optic

election process

* 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 Q1 2013 PR.

1111

3. Financial and Operational Performance

1212

Q1 2013 Financial Highlights

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

Revenues 1,571 1,428 1,315 1,258 1,144

Cost of Revenues 1,128 1,000 934 969 901

Gross Profit 443 428 381 289 243

S,G&A 222 213 192 160 171

Other income 27 30 28 26 23

Operating Profit 248 245 217 155 95

Financial Costs, net 55 73 68 38 49

Income Taxes 47 52 39 15 15

Net Profit 146 120 110 102 31

EBITDA 438 423 401 340 268

1313

Cellular Subscribers (In thousands)

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

811 870 894874 830

3,042 3,160 3,176

2,976 2,932

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2009 2010 2011 2012 Q1'13

Post-paid Pre-paid

* Cellular subscribers at the end of the period

1414

Fixed Line Subscribers (In thousands)

292 295 292 285 281 282 288 293

632 632 632 618 609 594 587 581

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

Number of Fixed Lines ISP Subscribers

1515

Cellular ARPU and MOU

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

151

122 111

97 101

82

364 366

397

450 424

496

250

300

350

400

450

500

-

25

50

75

100

125

150

2009 2010 2011 2012 Q1'12 Q1'13

ARPU

(NIS

)

ARPU MOU

*

1616

Quarterly Cellular Churn Rate

6.5%7.2%

8.2% 8.0%

8.9%

10.4%10.9%

10.4%

0%

2%

4%

6%

8%

10%

12%

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

1717

Total Revenues (In million NIS)

Results include 012 Smile from March 2011

5,424 5,6625,224

4,640

1,241 961

6551,012 1,774

932

330183

6,079 6,674

6,998

5,572

1,571 1,144

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011 2012 Q1'12 Q1'13

Service Revenues Equipment Revenues

1818

2,304

2,570

2,178

1,602

438 268

38% 39%

31%29% 28%

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

500

1,000

1,500

2,000

2,500

2009 2010 2011 2012 Q1'12 Q1'13

% t

otal

reve

nues

NIS

mill

ions

EBITDA EBITDA margin

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.

Results include 012 Smile from March 2011

1919

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

500

600

700

800

900

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

2020

Net Debt / EBITDA

2,102

3,395

4,639

3,812 3,622

0.9

1.3

2.12.4

2.5

-

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

Net

Deb

t / E

BIT

DA

NIS

milli

ons

Net Debt Net debt / EBITDA

Net Debt at the end of the period

EBITDA for the last four quarters

2121

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

305 138

-

400

800

1,200

1,600

2,000

2,400

2009 2010 2011 2012 Q1'12 Q1'13

2222

CAPEX* / Revenues

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

557 395 471 492 133 130

6,079 6,674

6,998

5,572

1,571 1,144

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 Q1'12 Q1'13

Cape

x as

% T

otal

Rev

enue

s

NIS

milli

ons

CAPEX Revenues CAPEX margin

2323

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

223 203

-

200

400

600

800

1,000

1,200

1,400

1,600

2009 2010 2011 2012 Q1'12 Q1'13

2424

EBITDA Evolution Q4’12-Q1’13 (In million NIS)

340

268

Q4 2012 Q1 2013

2525

EBITDA Evolution Q1’12-Q1’13 (In million NIS)

438

268

Q1 2012 Q1 2013

2626

Balance Sheet, March 31, 2013 (In million NIS)

Assets Liabilities and Equity

Cash and cash equivalents 739 Long term borrowings, current maturities 306 Trade receivables and other 1,426 Trade payables 869 Inventories 152 Other current liabilities 328 Total Current Assets 2,317 Total Current Liabilities 1,503

Trade receivables and other 580 Long term borrowings 4,055 Property and equipment 1,922 Other liabilities 91 Goodwill 407 Total Long-term Liabilities 4,146 Intangible assets 1,197 Total Long-term Assets 4,106

Equity 774 Total Assets 6,423 Total Liabilities and Equity 6,423

2727

Dividend Distribution

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

Dividend distributed Buy back One Time % Net Income Dividend Payout (excl. one time and buy back)

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

2828

4. Partner’s Strategic Direction

2929

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

3030

In Summary- Why Partner

Advanced networkCustomer centric

Strategy

Strong Brand Innovation

3131

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.